8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 23, 2008

PAREXEL International Corporation

(Exact name of registrant as specified in charter)

Massachusetts	000-21244	04-2776269
(State or other juris- diction of incorporation	(Commission File Number)	(IRS Employer Identification No.)

200 West Street, Waltham, Massachusetts	02451
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (781) 487-9900

Not applicable.

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations for the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 2.02.   Results of Operations and Financial Condition.
	Item 9.01.   Financial Statements and Exhibits.
SIGNATURES
EX-99.1 Press release dated January 23, 2008

Item 2.02.   Results of Operations and Financial Condition.

          On January 23, 2008, PAREXEL International Corporation announced its financial results for the fiscal quarter ended December 31, 2007. The full text of the press release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K. The information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01.   Financial Statements and Exhibits.

(c)   Exhibits.

Exhibit No.	Description
99.1	Press release dated January 23, 2008.

SIGNATURES

          Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:   January 24, 2008	PAREXEL International Corporation
	By:	/s/ James F. Winschel, Jr.
		James F. Winschel, Jr.
		Senior Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1   

CONTACTS:	James Winschel, Senior Vice President and Chief Financial Officer
	Jill Baker, Vice President of Investor Relations
	+1-781-434-4118

PAREXEL REPORTS SECOND QUARTER FISCAL YEAR 2008 FINANCIAL RESULTS

Second Quarter Highlights:

• Consolidated service revenue of $238.7 million grows 32% year-over-year

• Operating income increases 47.7%, diluted earnings per share grow 25%

• Backlog increases 41% to a record of $1.8 billion

• Net quarterly book-to-burn ratio equates to 1.9

Boston, MA, January 23, 2008 — PAREXEL International Corporation (NASDAQ: PRXL) today announced its financial results for the second quarter ended December 31, 2007.

For the three months ended December 31, 2007, PAREXEL’s consolidated service revenue increased 32.2% to a record $238.7 million, compared with $180.5 million in the prior year period. The Company reported operating income of $20.5 million, or 8.6% of service revenue, versus operating income of $13.9 million, or 7.7% of service revenue, in the comparable quarter of the prior year. Net income for the quarter totaled $11.5 million, or $0.40 per diluted share, compared with net income of approximately $9.1 million, or $0.32 per diluted share, for the quarter ended December 31, 2006, representing earnings per share growth of 25%.

On a segment basis, consolidated service revenue for the second quarter of Fiscal Year 2008 was $182.7 million in Clinical Research Services (CRS), $32.5 million in PAREXEL Consulting and Medical Communications Services (PCMS), and $23.4 million in Perceptive Informatics, Inc.

PAREXEL’s backlog increased approximately 41% year-over-year, and 13% sequentially, to $1.778 billion at the end of the December quarter. As of September 30, 2007, PAREXEL’s backlog totaled $1.570 billion. Adding the December quarter’s gross new business wins of $486.8 million to that amount, and subtracting $238.7 million in current quarter service revenue and $40.1 million in cancellations, left the Company with a backlog of $1.778 billion as of December 31, 2007. The net book-to-burn ratio in the quarter was 1.87.

Mr. Josef H. von Rickenbach, PAREXEL’s Chairman and Chief Executive Officer stated, “During the second quarter, very strong revenue growth was driven by increases across all business and geographic reporting segments. The quarter’s operating performance further validates our strategy and tangibly demonstrates that the initiatives we have been focusing on over the past few years are bearing fruit. In combination with the current favorable outsourcing market, our proven capabilities to compete for and win significant levels of new business leaves us well-positioned to further improve operating margins and drive profitable growth as we go forward.”

The Company issued forward-looking guidance for the third quarter of Fiscal Year 2008 (ending March 31, 2008), for Fiscal Year 2008, and for Calendar Year 2008. For the third quarter, the Company anticipates reporting consolidated service revenue in the range of $240 to $250 million, using recent exchange rates, and earnings per diluted share in the range of $0.42 to $0.44. For Fiscal Year 2008, consolidated service revenue is expected to be in the range of $935 to $955 million, using recent exchange rates (previously issued revenue guidance was $890 to $920 million). Earnings per diluted share for Fiscal Year 2008 are projected to be in the range of $1.78 and $1.83 (versus previously issued guidance for earnings per diluted share of $1.75 to $1.81). For Calendar Year 2008, consolidated service revenue is expected to be in the range of $1.0 billion to $1.04 billion, using recent exchange rates, and earnings per diluted share are projected to be in the range of $1.85 to $1.94.

A conference call to discuss PAREXEL’s second quarter earnings, business, and financial outlook will begin at 10 a.m. ET, Thursday, January 24th and will be broadcast live over the internet via webcast. The webcast may be accessed in the “Webcasts” portion of the Investor Relations section of the Company’s website at http://www.parexel.com. Users should follow the instructions provided to ensure that the necessary audio applications are downloaded and installed. A replay of this webcast will be archived on the website approximately two hours after the call and will continue to be accessible for approximately one year following the live event. To participate via telephone, dial +1-612-332-0107 and ask to join the PAREXEL quarterly conference call.

About the Company

PAREXEL International Corporation is a leading global bio/pharmaceutical services organization, providing a broad range of knowledge-based contract research, medical communications and consulting services to the worldwide pharmaceutical, biotechnology and medical device industries. Committed to providing solutions that expedite time-to-market and peak-market penetration, PAREXEL has developed significant expertise across the development and commercialization continuum, from drug development and regulatory consulting to clinical pharmacology, clinical trials management, medical education and reimbursement. Perceptive Informatics, Inc., a subsidiary of PAREXEL, provides advanced technology solutions, including medical imaging, to facilitate the clinical development process. Headquartered near Boston, Massachusetts, PAREXEL operates in 64 locations throughout 51 countries around the world, and has over 7,320 employees. For more information about PAREXEL International visit www.PAREXEL.com.

This release contains “forward-looking” statements regarding future results and events, including, without limitation, statements regarding expected financial results, future growth and customer demand, such as the guidance provided by the Company with respect to the third quarter of Fiscal Year 2008, Fiscal Year 2008, and Calendar Year 2008. For this purpose, any statements contained herein that are not statements of historical fact may be deemed forward-looking statements. Without limiting the foregoing, the words “believes,” “anticipates,” “plans,” “expects,” “intends,” “appears,” “estimates,” “projects,” “targets,” and similar expressions are also intended to identify forward-looking statements. The forward-looking statements in this release involve a number of risks and uncertainties. The Company’s actual future results may differ significantly from the results discussed in the forward-looking statements contained in this release. Important factors that might cause such a difference include, but are not limited to, risks associated with: actual operating performance; actual expense savings and other operating

improvements resulting from recent restructurings; the loss, modification, or delay of contracts which would, among other things, adversely impact the Company’s recognition of revenue included in backlog; the Company’s dependence on certain industries and clients; the Company’s ability to win new business, manage growth and costs, and attract and retain employees; the Company’s ability to complete additional acquisitions and to integrate newly acquired businesses or enter into new lines of business; the impact on the Company’s business of government regulation of the drug, medical device and biotechnology industry; consolidation within the pharmaceutical industry and competition within the biopharmaceutical services industry; the potential for significant liability to clients and third parties; the potential adverse impact of health care reform; and the effects of exchange rate fluctuations and other international economic, political, and other risks. Such factors and others are discussed more fully in the section entitled “Risk Factors” of the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2007 as filed with the SEC on November 7, 2007, which “Risk Factors” discussion is incorporated by reference in this press release. The forward-looking statements included in this press release represent the Company’s estimates as of the date of this release. The Company specifically disclaims any obligation to update these forward-looking statements in the future. These forward-looking statements should not be relied upon as representing the Company’s estimates or views as of any date subsequent to the date of this press release.

PAREXEL is a registered trademark of PAREXEL International Corporation, and Perceptive Informatics is a trademark of Perceptive Informatics, Inc. All other names or marks may be registered trademarks or trademarks of their respective business and are hereby acknowledged.

PAREXEL International Corporation
Consolidated Condensed Statement of Operations
(In thousands, except per share data)

	Unaudited
	For the three months ended December 31,
	2007			2006
Service revenue	$	238,653		$	180,474
Reimbursement revenue		45,635			39,522
Total revenue		284,288			219,996
Costs and expenses:
Direct costs		156,991			119,630	(a)
Reimbursable out-of-pocket expenses		45,635			39,522
Selling, general and administrative		51,406			39,376	(a)
Depreciation		8,392			6,608
Amortization		1,382			993
Income from operations		20,482			13,867
Other income (expense)		(329	)		823
Income before income taxes		20,153			14,690
Provision for income taxes		8,326			5,482
Effective tax rate		41.3	%		37.3	%
Minority interest expense		296			128
Net income	$	11,531		$	9,080
Earnings per common share:
Basic	$	0.41		$	0.33
Diluted	$	0.40		$	0.32
Shares used in computing earnings per common share:
Basic		27,821			27,245
Diluted		28,648			27,970

Balance Sheet Information	Preliminary
	Dec 31,			Sept 30,			June 30,
	2007			2007			2007
Billed accounts receivable, net	$	221,476		$	205,002		$	189,843
Unbilled accounts receivable, net		163,251			149,378			135,178
Deferred revenue		(200,093	)		(173,972	)		(170,718	)
Net receivables	$	184,634		$	180,408		$	154,303
Cash and marketable securities	$	62,926		$	50,436		$	96,677
Working capital	$	108,877		$	75,958		$	118,746
Total assets	$	809,549		$	735,660		$	680,013
Short-term borrowings	$	60,453		$	55,463		$	30,463
Stockholders’ equity	$	363,403		$	343,087		$	316,616

(a) FY 2007 numbers have been adjusted to reflect FY 2008 presentation. Certain Direct costs have been moved to selling, general and administrative to ensure consistency among all business segments.

PAREXEL International Corporation
Consolidated Condensed Statement of Operations
(In thousands, except per share data)

	Unaudited
	For the six months ended December 31,
	2007			2006
Service revenue	$	446,778		$	345,531
Reimbursement revenue		89,542			77,972
Total revenue		536,320			423,503
Costs and expenses:
Direct costs		293,053			228,118	(a)
Reimbursable out-of-pocket expenses		89,542			77,972
Selling, general and administrative		98,546			78,148	(a)
Depreciation		15,888			12,751
Amortization		2,281			1,400
Restructuring benefit		—			(74	)
Income from operations		37,010			25,188
Other income (expense)		(755	)		1,306
Income before income taxes		36,255			26,494
Provision for income taxes		10,563			10,298
Effective tax rate		29.1	%		38.9	%
Minority interest expense		276			139
Net income	$	25,416		$	16,057
Earnings per common share:
Basic	$	0.92		$	0.59
Diluted	$	0.89		$	0.57
Shares used in computing earnings per common share:
Basic		27,721			27,148
Diluted		28,595			27,950

(a) FY 2007 numbers have been adjusted to reflect FY 2008 presentation. Certain Direct costs have been moved to selling, general and administrative to ensure consistency among all business segments.

PAREXEL International Corporation
Segment Information
($ in thousands)

	Three months ended
	December 31,
	2007			2006(a)
Clinical Research Services (CRS)
Service revenue	$	182,705		$	132,464
% of total service revenue		76.6	%		73.4	%
Gross profit	$	60,063		$	44,138
Gross margin % of service revenue		32.9	%		33.3	%
PAREXEL Consulting & Medical Communications Services (PCMS)
Service revenue	$	32,537		$	28,309
% of total service revenue		13.6	%		15.7	%
Gross profit	$	11,142		$	7,558
Gross margin % of service revenue		34.2	%		26.7	%
Perceptive Informatics, Inc. (PII)
Service revenue	$	23,411		$	19,701
% of total service revenue		9.8	%		10.9	%
Gross profit	$	10,457		$	9,148
Gross margin % of service revenue		44.7	%		46.4	%
Total service revenue	$	238,653		$	180,474
Total gross profit	$	81,662		$	60,844
Gross margin % of service revenue		34.2	%		33.7	%
Revenue by Geography
The Americas	$	92,925		$	70,973
Europe, Middle East & Africa		128,044			100,710
Asia/Pacific		17,684			8,791
Total service revenue	$	238,653		$	180,474
Quarterly Supplemental Financial Data
Total revenue	$	284,288		$	219,996
Investigator fees		41,198			34,417
Gross revenue	$	325,486		$	254,413
DSO		52			53
Capital expenditures	$	13,283		$	8,733

(a) FY 2007 numbers have been adjusted to reflect FY 2008 presentation. Certain Direct costs have been moved to selling, general and administrative to ensure consistency among all business segments.

PAREXEL International Corporation
Segment Information
($ in thousands)

	Six months ended
	December 31,
	2007			2006 (a)
Clinical Research Services (CRS)
Service revenue	$	342,034		$	252,700
% of total service revenue		76.6	%		73.1	%
Gross profit	$	115,225		$	85,437
Gross margin % of service revenue		33.7	%		33.8	%
PAREXEL Consulting & Medical Communications Services (PCMS)
Service revenue	$	63,057		$	57,619
% of total service revenue		14.1	%		16.7	%
Gross profit	$	20,723		$	16,711
Gross margin % of service revenue		32.9	%		29.0	%
Perceptive Informatics, Inc. (PII)
Service revenue	$	41,687		$	35,212
% of total service revenue		9.3	%		10.2	%
Gross profit	$	17,777		$	15,265
Gross margin % of service revenue		42.6	%		43.4	%
Total service revenue	$	446,778		$	345,531
Total gross profit	$	153,725		$	117,413
Gross margin % of service revenue		34.4	%		34.0	%
Revenue by Geography
The Americas	$	172,924		$	135,619
Europe, Middle East & Africa		240,887			193,310
Asia/Pacific		32,967			16,602
Total service revenue	$	446,778		$	345,531

(a) FY 2007 numbers have been adjusted to reflect FY 2008 presentation. Certain Direct costs have been moved to selling, general and administrative to ensure consistency among all business segments.