InVentiv 1Q profit slips
SOMERSET: InVentiv Health Inc., which provides services for the pharmaceutical and life sciences industries, said Friday its profit slipped 2 percent in the first quarter due to falling demand for its communications business.
InVentiv also targeted a second quarter profit that was just below analyst estimates, and narrowed its annual profit forecast.
The company earned $7.9 million, or 24 cents a share, in the three months ended March 31 from $8 million, or 24 cents a share, a year ago.
Revenue also slipped 2 percent to $257.7 million from $262.3 million, with communications revenue sliding 20 percent as customers delayed their purchases in the early part of the quarter.
Thomson Reuters says analysts expected a smaller profit of 19 cents per share and $268.8 million in revenue.
InVentiv's communications revenue fell to $70.9 million, and clinical revenue decreased 2 percent to $51.2 million. Commercial revenue rose 12 percent to $103.2 million, and patient outcomes revenue grew 8 percent to $32.4 million.
The company said communications revenue was slow at the beginning of the quarter, but improved as the period went on. The division helps clients learn about the market for their product, and develop and execute marketing plans.