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On March 11, 2009,
(PDII - Get Report)
reported that its net loss widened in Q4 FY08. Net loss was $16.92 million, or $1.20 per share, compared with a loss of $1.52 million, or $0.11 per share. The quarterly consensus estimate was for a loss of $0.70 per share.
Revenue dropped 22.0% to $25.40 million from $32.58 million in the same quarter of the previous year. The sales services' revenue slipped 13.0% to $21.02 million from $24.17 million, hurt by the internalization of the contract sales force by one of the long-term clients. Marketing services' revenue plunged 47.8% to $4.38 million from $8.41 million as a result of a continuing weakness in the market. The company did not realize any product commercialization revenue. However, revenue increased 10.0% in PDI's on demand service offerings.
PDII announced a one-year contract renewal with a major pharmaceutical company to utilize PDI's exclusive select access team to reach pediatricians. The company expects to generate approximately $6.60 million in revenue over the contract's 12-month term. PDI and the Sequenom Center for Molecular Medicine (SCMM), a wholly owned subsidiary of Sequenom Incorporated, announced that PDI has been selected to provide the sales infrastructure to launch and commercialize SCMM's noninvasive prenatal genetic screening tests based on its SEQureDx technology.
For FY08, revenue decreased 3.9% to $112.53 million from $117.13 million a year ago. Net loss widened to $34.46 million, or $2.46 per share, from $9.97 million, or $0.72 per share, in FY07.
Looking ahead to FY09, PDII expects operating losses, particularly in the first half of the year, and forecasts lower interest income. The cash flow is anticipated to be negative by approximately $20.00 million.