The results represent the first quarter-to-quarter improvement in “several years” and PDI attributes this to its growth initiatives and an upturn in the market.
Nancy Lurker, CEO of PDI, added that pharma companies “continue to prioritise the retention of contract services organizations, such as PDI, that can bring improved efficiency, flexibility, and measurable bottom line results to their sales force initiatives”.
Buoyed by this improvement in the market, revenues at PDI grew to $32.4m in the first quarter. Coupled to a slight dip in operating expenses this reduced operating loss from $5.7m to $1.7m.
Lower total operating expenses, down to $8.6m from $10.6m, is a consequence of the initiatives PDI launched in 2009. This was partially offset by costs associated with the launch of PDI Voice, the firm’s contact centre.
Growth plans
Improvement of the financial results is primarily attributable to a 38 per cent year-on-year increase in revenues from the sales services unit, which totalled $28.3m. This was supported by a 34 per cent, or $1.0m, upturn in revenues from marketing services.
PDI is now in the “grow” phase of its strategic plan, having completed the stabilisation process, and is consequently looking to continue this upwards trend by securing new business and renewals.
Lurker is confident PDI can work towards its goal of achieving profitability by the end of the year. However, she also added “that sustained profitability in 2011 will require continued growth in new contracts and close monitoring of our SG&A (selling, general and administrative expenses)”.