Averion International Reports 2008 Third Quarter Financial Results

Business Wire, Nov 17, 2008

2008 Third Quarter and Nine Month Financial and Business Highlights:

* Net service revenue for the third quarter of 2008 grew to $15.9 million versus $7.8 million, an increase of $8.1 million or 103% compared to the third quarter of 2007

* Net operating loss for the third quarter of 2008 increased to $857 thousand versus net operating income of $468 for the third quarter of 2007. The net operating loss was principally due to non-cash depreciation and amortization charges of $1 million versus $338 thousand for the comparable prior year period. The increase in non-cash depreciation and amortization charges was principally due to the business combination with Hesperion Ltd.

* Net service revenue of $50.3 million for the nine months ended September 30, 2008 increased by $28.1 million or 127% compared to net service revenue of $22.2 million for the nine months ended September 30, 2007

* Net operating loss of $370 thousand for the nine months ended September 30, 2008 includes $3.1 million of non-cash depreciation and amortization charges principally related to the Hesperion acquisition compared to a net operating loss of $1.1 million for the comparable nine month period of 2007

* Net service revenue for our operations in Europe grew significantly during the third quarter and nine months ended September 30, 2008 due to the Hesperion acquisition

* Net loss from continuing operations includes significant non-cash amortization charges of debt discount of $1.2 million and $3.3 million for the three months and nine months ended September 30, 2008

* Our backlog at September 30, 2008 increased to $68 million from $39.5 million at September 30, 2007

* Averion continued to expand its global footprint by opening an office in the Czech Republic

* Integration of the Hesperion business in the United States and Europe proceeding as planned

* Averion has named Peter C. Gonze, Executive Vice President Global Business Development to strengthen its senior management team. Mr. Gonze brings more than 35 years of sales, marketing, development and commercialization expertise with pharmaceutical and biotech companies.

SOUTHBOROUGH, Mass. -- Averion International Corp. (OTC BB: AVRO), a full service international clinical research organization specializing in oncology, cardiovascular diseases and medical devices, today announced financial results for the three months and nine months ended September 30, 2008. These financial results include nine months in 2008 of combined operations following the October 31, 2007 closing of Averion's business combination with Hesperion Ltd., a full service clinical research organization based in Basel, Switzerland.

Markus H. Weissbach, MD, PhD, Chief Executive Officer of Averion International commented, "During the nine months ended September 30, 2008, we continued to realize positive trends in our net service revenue despite the difficulties facing many of our clients who are currently seeking additional sources of funds. We continue to mange our business very carefully and capitalize on the efficiencies of our expanded international operations through the integration of Hesperion and Averion."

Dr. Weissbach continued, "As illustrated by the recent opening of our Czech office, we are increasing our global footprint in order to better meet the needs of our clients. We are continuing to evaluate other opportunities to increase the scope of our existing geographic and therapeutic capabilities in emerging regions of the world. We continue to pursue new business opportunities that utilize the scope of our significantly enhanced capabilities in North America and Europe."

Dr. Philip Lavin, Executive Chairman, added, "We are very encouraged by the continued progress that has been made over the past year in the integration of Hesperion and Averion. The combination of these companies has enhanced our operations, strategic capabilities and core expertise while maintaining our core values. The Board is pleased with the execution of the Company's growth strategies and accomplishments through the course of this year."

2008 Third Quarter Financial Results

Net service revenue for the three months ended September 30, 2008 increased $8.1 million to $15.9 million as compared to $7.8 million for the three months ended September 30, 2007, an increase of 103%. The increase in net service revenue was primarily related to the inclusion of results from the Hesperion acquisition completed on October 31, 2007.

Direct expenses for the three months ended September 30, 2008 increased by $5.7 million to $9.9 million from $4.2 million during the same period prior year. The increase in direct expenses was primarily related to the inclusion of results from the Hesperion acquisition completed on October 31, 2007 which contributed $5.4 million in direct expenses during the three months ended September 30, 2008. As a percentage of net service revenue, direct expenses increased to 62% during the three months ended September 30, 2008 from 54% during the comparable period in 2007. The increase in direct expenses as a percentage of net service revenue was principally the result of a decrease in the rate of staff utilization.