WAYNE, Pa., March 27 /PRNewswire/ -- Covalent Group, Inc.(NASDAQ:CVGR) today announced financial results for the full year and the fourth quarter 1997. For the full year ended December 31, 1997, net income was $135,000 or $0.01 per share (Basic and Diluted) versus net income of $581,000 or $0.05 per share for the full year 1996. Revenue for 1997 was $11.8 million or 14% higher than revenue of $10.4 million reported for 1996.
The Company's contractual backlog at December 31, 1997, amounted to $10 million as compared to $8 million at the end of 1996. Backlog representsthe value of future revenues to be issued from signed contracts, but is subject to modification or possible cancellation.
For the fourth quarter ended December 31, 1997, revenues were $1.9 million as compared to revenues of $3.7 million for the prior year period. Net loss was $189,000 or $0.02 per share loss for the quarter ended December 31, 1997, compared to net income of $259,000, or $0.02 per share for the quarter ended December 31, 1996.
Bruce LaMont, President and CEO, commenting on the results said, "In spite of our disappointing financial performance for the fourth quarter, we continue to believe the clinical drug trial market offers significant opportunities for the Company.
In January 1998 we expanded our business development group. The new individuals possess comprehensive CRO and pharmaceutical industry experience. Their extensive contacts within the pharmaceutical industry have opened new doors for Covalent's message of quality and customer service as we broaden our customer base.
While Covalent's management fully appreciates the long CRO sales cycle, we are encouraged by the feedback and substantive discussions resulting from the new business development staff's efforts."
Mr. LaMont added, "In 1997 we invested over $1 million or 9% of revenues in the final completion of the platform for our interactive voice recognition system. I continue to see this technology providing significant competitive advantage and differentiation for the Company both in stand alone health management situations and as an added benefit in clinical development studies.
As to 1998 and with development completed, expenditures will be limited to revenue producing projects."
"Our customers have indicated satisfaction with Covalent's services for all contracts conducted and completed in 1997 and have initiated discussions for future business. Additionally, we are awaiting closure on a number of substantial opportunities that have been submitted to current and potential clients.".........
Covalent provides drug development and health management research and
systems to pharmaceutical and device manufacturers, as well as to managed care organizations.
To aid its pharmaceutical and managed care customers, Covalent
has developed an automated data collection system using an interactive voice recognition system -- Virtual HouseCall.
This press release contains forward-looking statements.........
Visit Covalent Group on-line: ( cracorp.com )
CONTACT: William Robinson, CFO of Covalent Group, 610-975-9533/
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