PAREXEL International Corp. F1Q09 (Qtr End 9/30/08) Earnings Call Transcript

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2008-10-28 12:12:10.0

Tags: Slowdown, Call Transcript, Earnings, PAREXEL International Corp., Sales Strategy, Sales Force Management, Operational Accounting, Sales, Finance, Seeking Alpha, Slowdown, Call Transcript, Earnings, PAREXEL International Corp., Sales Strategy, Sales Force Management, Operational Accounting, Sales, Finance, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). And the first question comes from the line of Todd Van Fleet with First Analysis. Please go ahead.

Todd Van Fleet

Good morning guys. I want to give a chance to elaborate a bit more on the sales slowdown that you said you had seen that was kind of unanticipated in the September quarter? And given the revenue performance I guess in PCMS and Perceptive Informatics, if you could provide us a little bit more detail as to whether the slowdown was observed across business segment if it was just proportionate in CRS, what the issues where and why we shouldn’t have broader concerns I guess, regarding demand out there in the marketplace. Thanks?

Josef Von Rickenbach

Hi Todd, Sorry, you said what? Revenue in PCMS and what was the third part of the question?

Todd Van Fleet

Well, with respect to the general the unanticipated slowdown, I guess in bookings activity so the book-to-bill ratio one, in the first quarter here obviously problematic below what we have seen in the peers and below I think we would have expected for you guys. So, one, where was that weakness, was it in CRS? Was it across the business lines? And then, can you talk about that in the context of demand that you are seeing out there in the marketplace just broadly speaking?

Josef Von Rickenbach

Yeah. Okay, so, in terms of PCMS, I will take them out of the picture in this respect. I would say they were pretty normal and pretty much what we expected. And in CRS and in Perceptive, we had lower bookings than what we expected. As I said, this was sort of an interesting happening defense that we usually expect a slower period in the beginning of the summer quarter which would be July and August and we expect especially this time because we have a very strong fourth quarter and probably some of the contract that might have possibly been in the first quarter, not into the first quarter, but I am sure, that’s happening in the couple of instances. And then we expected a strong September. We had a very good flow of proposals. We had a very good beginning portfolio of proposals for, actually for both businesses. And then in the end there was also somewhat disappointing. So I hate they basically was lower than what we expected and there is a variety of reasons for them, there is not just one reason. So basically that’s kind of a pattern.

 

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