PPD's net revenues up 14%, income down slightly, president to depart

By Lisa Kerner

Charlotte, N.C., Oct. 16 - PPD, Inc.'s net revenue for the third quarter ended Sept. 30 rose 14.6% to $313.1 million from $273.3 million for the third quarter of 2005.

Income from operations fell for the quarter to $52.0 million from $56.7 million, adjusted to include $4.1 million of stock compensation expense, for the prior-year period.

Research and development expense for the third-quarter 2006 was comparable at $1.9 million, to $2.0 million for the same period last year.

Third-quarter 2006 and third-quarter 2005 earnings per diluted share were $0.31.

PPD's board of directors increased the annual dividend rate by 20%, to $0.12 per year from $0.10, payable quarterly at a rate of $0.03 per share, effective beginning in the fourth-quarter 2006.

"We continued to see solid growth in a number of geographic areas and service segments within the industry, which enabled PPD to deliver another quarter of development segment revenue growth exceeding 20%, a net book-to-bill of 1.51 and backlog growth of 25% versus the same quarter last year," chief executive officer Fred Eshelman.

PPD also announced its president, Fred B. Davenport Jr., decided not to renew his employment agreement and will leave the Wilmington, N.C., contract research organization company on Dec. 31 to pursue other interests.

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