Kendle

Kendle 2Q10

2Q Service Revenues*: $82.4 million (-23%)

2Q Earnings: $1.9 million (-40%)

YTD Service Revenues*: $173 million (-20%)

YTD Earnings: $3.1 million (-24%)

Comments: Kendle’s top five customers based on net service revenues accounted for 25% of total revenues versus 28% in 2Q09. New business awards for the 2Q10 were $131.5 million, up 48% from 1Q10. Contract cancellations and other adjustments added up to $30.9 million, 4% of the company’s backlog, so net book-to-bill was 1.2. New business authorizations (backlog) were $778.0 million as of June 30, 2010.

* Kendle must count reimbursable out-of-pocket revenues as part of total revenues. These were $29 million in 2Q10 (-17%) and $55 million for 1H10 (-23%), and are offset in the company’s costs and expenses.