FORM
10-Q
|
x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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¨
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Commission
File Number: 0-24249
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PDI,
Inc.
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(Exact
name of registrant as specified in its charter)
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Delaware
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22-2919486
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||||||||
(State
or other jurisdiction of
incorporation
or organization)
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(I.R.S
Employer
Identification
No.)
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||||||||
Saddle
River Executive Centre
1
Route 17 South
Saddle
River, New Jersey 07458
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|||||||||
(Address
of principal executive offices and zip code)
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|||||||||
(201)
258-8450
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|||||||||
(Registrant's
telephone number, including area code)
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Large
accelerated filer £
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Accelerated
filer £
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Non-accelerated
filer Q
|
Smaller
reporting company£
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(Do
not check if a smaller
reporting
company)
|
Class
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Shares
Outstanding
November
3, 2008
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Common
stock, $0.01 par value
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14,188,374
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PDI,
Inc.
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|||
Form
10-Q for Period Ended September 30, 2008
|
|||
TABLE
OF CONTENTS
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|||
Page No.
|
|||
PART
I - FINANCIAL INFORMATION
|
|||
Item
1.
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Condensed
Consolidated Financial Statements
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||
Condensed
Consolidated Balance Sheets
at
September 30, 2008 (unaudited) and December 31, 2007
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3
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||
Condensed
Consolidated Statements of Operations
for
the three and nine month periods ended September 30, 2008 and 2007
(unaudited)
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4
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||
Condensed
Consolidated Statements of Cash Flows
for
the nine month periods ended September 30, 2008 and 2007
(unaudited)
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5
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||
Notes
to Condensed Consolidated Financial Statements
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6
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||
Item
2.
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Management's
Discussion and Analysis of Financial
Condition
and Results of Operations
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13
|
|
Item
3.
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Quantitative
and Qualitative Disclosures About Market Risk
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22
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|
Item
4.
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Controls
and Procedures
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22
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PART
II - OTHER INFORMATION
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|||
Item
1.
|
Legal
Proceedings
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23
|
|
Item
1A.
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Risk
Factors
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23
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|
Item
6.
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Exhibits
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25
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|
Signatures
|
25
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PDI,
INC.
|
||||||||
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
||||||||
(in
thousands, except share and per share data)
|
||||||||
September
30,
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December
31,
|
|||||||
2008
|
2007
|
|||||||
(unaudited)
|
||||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
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$ | 94,310 | $ | 99,185 | ||||
Short-term
investments
|
5,616 | 7,800 | ||||||
Accounts
receivable, net
|
11,721 | 22,751 | ||||||
Unbilled
costs and accrued profits on contracts in progress
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3,264 | 3,481 | ||||||
Other
current assets
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5,089 | 7,558 | ||||||
Total
current assets
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120,000 | 140,775 | ||||||
Property
and equipment, net
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5,985 | 8,348 | ||||||
Goodwill
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13,612 | 13,612 | ||||||
Other
intangible assets, net
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13,708 | 14,669 | ||||||
Other
long-term assets
|
3,500 | 2,150 | ||||||
Total
assets
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$ | 156,805 | $ | 179,554 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$ | 2,628 | $ | 2,792 | ||||
Unearned
contract revenue
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2,122 | 8,459 | ||||||
Accrued
salary and bonus
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6,343 | 7,136 | ||||||
Other
accrued expenses
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11,559 | 10,801 | ||||||
Total
current liabilities
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22,652 | 29,188 | ||||||
Long-term
liabilities
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10,584 | 10,177 | ||||||
Total
liabilities
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33,236 | 39,365 | ||||||
Commitments
and contingencies (Note 7)
|
||||||||
Stockholders’
equity:
|
||||||||
Preferred
stock, $.01 par value; 5,000,000 shares authorized, no
|
||||||||
shares
issued and outstanding
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- | - | ||||||
Common
stock, $.01 par value; 100,000,000 shares authorized;
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||||||||
15,236,194
and 15,222,715 shares issued, at September 30, 2008 and
|
||||||||
December
31, 2007, respectively; 14,190,619 and 14,183,236 shares
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||||||||
outstanding,
at September 30, 2008 and December 31, 2007,
respectively
|
152 | 152 | ||||||
Additional
paid-in capital
|
121,426 | 120,422 | ||||||
Retained
earnings
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15,477 | 33,018 | ||||||
Accumulated
other comprehensive (loss) income
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(7 | ) | 30 | |||||
Treasury
stock, at cost - 1,045,575 shares
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(13,479 | ) | (13,433 | ) | ||||
Total
stockholders' equity
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123,569 | 140,189 | ||||||
Total
liabilities and stockholders' equity
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$ | 156,805 | $ | 179,554 | ||||
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||||||
(unaudited,
in thousands, except for per share data)
|
||||||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
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September
30,
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|||||||||||||||
2008
|
2007
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2008
|
2007
|
|||||||||||||
Revenue,
net
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$ | 24,496 | $ | 23,969 | $ | 87,124 | $ | 84,555 | ||||||||
Cost
of services
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24,084 | 18,203 | 74,423 | 62,664 | ||||||||||||
Gross
profit
|
412 | 5,766 | 12,701 | 21,891 | ||||||||||||
Compensation
expense
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5,696 | 5,861 | 19,006 | 18,287 | ||||||||||||
Other
selling, general and administrative expenses
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4,305 | 5,155 | 12,892 | 14,985 | ||||||||||||
Total
operating expenses
|
10,001 | 11,016 | 31,898 | 33,272 | ||||||||||||
Operating
loss
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(9,589 | ) | (5,250 | ) | (19,197 | ) | (11,381 | ) | ||||||||
Other
income, net
|
629 | 1,488 | 2,579 | 4,425 | ||||||||||||
Loss
before income tax
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(8,960 | ) | (3,762 | ) | (16,618 | ) | (6,956 | ) | ||||||||
Provision
for income tax
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44 | 295 | 923 | 1,499 | ||||||||||||
Net
loss
|
$ | (9,004 | ) | $ | (4,057 | ) | $ | (17,541 | ) | $ | (8,455 | ) | ||||
Loss
per share of common stock:
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||||||||||||||||
Basic
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$ | (0.64 | ) | $ | (0.29 | ) | $ | (1.25 | ) | $ | (0.61 | ) | ||||
Diluted
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(0.64 | ) | (0.29 | ) | (1.25 | ) | (0.61 | ) | ||||||||
Weighted
average number of common shares and
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||||||||||||||||
common
share equivalents outstanding:
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||||||||||||||||
Basic
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14,026 | 13,956 | 13,994 | 13,932 | ||||||||||||
Diluted
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14,026 | 13,956 | 13,994 | 13,932 | ||||||||||||
The
accompanying notes are an integral part of these condensed consolidated
financial statements.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(unaudited,
in thousands)
|
||||||||
Nine
Months Ended
|
||||||||
September
30,
|
||||||||
2008
|
2007
|
|||||||
Cash
Flows From Operating Activities
|
||||||||
Net
loss from operations
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$ | (17,541 | ) | $ | (8,455 | ) | ||
Adjustments
to reconcile net loss to net cash
|
||||||||
provided
by operating activities:
|
||||||||
Depreciation
and amortization
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3,730 | 4,251 | ||||||
Deferred
income taxes, net
|
254 | 774 | ||||||
Provision
for bad debt
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23 | (16 | ) | |||||
Recovery
of doubtful notes
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- | (150 | ) | |||||
Stock-based
compensation
|
1,004 | 901 | ||||||
Other
(gains), losses and expenses, net
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(19 | ) | 67 | |||||
Other
changes in assets and liabilities:
|
||||||||
Decrease
in accounts receivable
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11,030 | 18,414 | ||||||
Decrease
in unbilled costs
|
217 | 410 | ||||||
Decrease
in other current assets
|
956 | 1,705 | ||||||
Decrease
in other long-term assets
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175 | 175 | ||||||
Decrease
in accounts payable
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(164 | ) | (2,391 | ) | ||||
Decrease
in unearned contract revenue
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(6,337 | ) | (6,972 | ) | ||||
Decrease
in accrued salaries and bonus
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(793 | ) | (3,653 | ) | ||||
Increase
(decrease) in accrued liabilities
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1,002 | (1,357 | ) | |||||
Increase
(decrease) in long-term liabilities
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143 | (311 | ) | |||||
Net
cash (used in) provided by operating activities
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(6,320 | ) | 3,392 | |||||
Cash
Flows From Investing Activities
|
||||||||
Purchase
of available-for-sale investments
|
- | (11,700 | ) | |||||
Proceeds
from sales of available-for-sale investments
|
- | 44,285 | ||||||
Purchase
of held-to-maturity investments
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(15,161 | ) | (11,317 | ) | ||||
Proceeds
from maturities of held-to-maturity investments
|
17,050 | 41,766 | ||||||
Loan
repayments
|
- | 150 | ||||||
Purchase
of property and equipment
|
(398 | ) | (768 | ) | ||||
Net
cash provided by investing activities
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1,491 | 62,416 | ||||||
Cash
Flows From Financing Activities
|
||||||||
Cash
paid for repurchase of restricted shares
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(46 | ) | (207 | ) | ||||
Net
cash used in financing activities
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(46 | ) | (207 | ) | ||||
Net
(decrease) increase in cash and cash equivalents
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(4,875 | ) | 65,601 | |||||
Cash
and cash equivalents – beginning
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99,185 | 45,221 | ||||||
Cash
and cash equivalents – ending
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$ | 94,310 | $ | 110,822 | ||||
The
accompanying notes are an integral part of these condensed consolidated
financial statements.
|
1.
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BASIS
OF PRESENTATION:
|
2.
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES:
|
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||||
September
30,
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September
30,
|
||||||||||||||
2008
|
2007
|
2008
|
2007
|
||||||||||||
Basic
weighted average number of
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14,026 | 13,956 | 13,994 | 13,932 | |||||||||||
of
common shares
|
|||||||||||||||
Dilutive
effect of stock options, SARs,
|
|||||||||||||||
and
restricted stock
|
- | - | - | - | |||||||||||
Diluted
weighted average number
|
|||||||||||||||
of
common shares
|
14,026 | 13,956 | 13,994 | 13,932 |
3.
|
INVESTMENTS
IN MARKETABLE SECURITIES:
|
September
30, 2008
|
December
31, 2007
|
||||||||||||||||||||||
Maturing
|
Maturing
|
||||||||||||||||||||||
after
1 year
|
after
1 year
|
||||||||||||||||||||||
Carrying
|
within
|
through
|
Carrying
|
within
|
through
|
||||||||||||||||||
Amount
|
1
year
|
3
years
|
Amount
|
1
year
|
3
years
|
||||||||||||||||||
Short-term
investments:
|
|||||||||||||||||||||||
Corporate
debt securities
|
$ | 5,341 | $ | 5,341 | $ | - | $ | 7,340 | $ | 7,340 | $ | - | |||||||||||
US
Treasury securities
|
111 | 111 | - | - | - | - | |||||||||||||||||
5,452 | 5,452 | - | 7,340 | 7,340 | - | ||||||||||||||||||
Investments
supporting letters of credit:
|
|||||||||||||||||||||||
Cash/money
accounts
|
- | - | - | 2,390 | 2,390 | - | |||||||||||||||||
US
Treasury securities
|
1,363 | 1,363 | - | 1,498 | 500 | 998 | |||||||||||||||||
Government
agency securities
|
4,500 | 1,000 | 3,500 | 3,400 | 1,400 | 2,000 | |||||||||||||||||
5,863 | 2,363 | 3,500 | 7,288 | 4,290 | 2,998 | ||||||||||||||||||
Total
|
$ | 11,315 | $ | 7,704 | $ | 3,500 | $ | 14,628 | $ | 11,630 | $ | 2,998 | |||||||||||
4.
|
GOODWILL
AND OTHER INTANGIBLE ASSETS:
|
As
of September 30, 2008
|
As
of December 31, 2007
|
||||||||||||||||||||||
Carrying
|
Accumulated
|
Carrying
|
Accumulated
|
||||||||||||||||||||
Amount
|
Amortization
|
Net
|
Amount
|
Amortization
|
Net
|
||||||||||||||||||
Covenant
not to compete
|
$ | 140 | $ | 114 | $ | 26 | $ | 140 | $ | 93 | $ | 47 | |||||||||||
Customer
relationships
|
16,300 | 4,437 | 11,863 | 16,300 | 3,622 | 12,678 | |||||||||||||||||
Corporate
tradename
|
2,500 | 681 | 1,819 | 2,500 | 556 | 1,944 | |||||||||||||||||
Total
|
$ | 18,940 | $ | 5,232 | $ | 13,708 | $ | 18,940 | $ | 4,271 | $ | 14,669 |
2008
|
2009
|
2010
|
2011
|
2012
|
||||
$ 1,281
|
$ 1,272
|
$ 1,253
|
$ 1,253
|
$ 1,253
|
||||
5.
|
FACILITIES
REALIGNMENT:
|
Sales
|
Marketing
|
|||||||||||
Services
|
Services
|
Total
|
||||||||||
Balance
as of December 31, 2007
|
$ | 274 | $ | 401 | $ | 675 | ||||||
Accretion
|
4 | 6 | 10 | |||||||||
Payments
|
(72 | ) | (89 | ) | (161 | ) | ||||||
Balance
as of September 30, 2008
|
$ | 206 | $ | 318 | $ | 524 |
6.
|
FAIR
VALUE MEASUREMENTS:
|
Fair
Market
|
|||||||||||||||||||
Carrying
|
Fair
|
Measurements
at September 30, 2008
|
|||||||||||||||||
Amount
|
Value
|
Level
1
|
Level
2
|
Level
3
|
|||||||||||||||
Available-for-sale
securities
|
$ | 164 | $ | 164 | $ | 164 | $ | - | $ | - | |||||||||
Held-to-maturity
securities
|
11,315 | 11,315 | 11,315 | - | - | ||||||||||||||
Total
|
$ | 11,479 | $ | 11,479 | $ | 11,479 | $ | - | $ | - |
7.
|
COMMITMENTS
AND CONTINGENCIES:
|
8.
|
OTHER
COMPREHENSIVE LOSS:
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Net
loss
|
$ | (9,004 | ) | $ | (4,057 | ) | $ | (17,541 | ) | $ | (8,455 | ) | ||||
Other
comprehensive income
|
||||||||||||||||
Reclassification
adjustment for
|
||||||||||||||||
realized
gains
|
- | - | (18 | ) | - | |||||||||||
Unrealized
holding gain/(loss) on
|
||||||||||||||||
available-for-sale
securities
|
(5 | ) | 12 | (19 | ) | 22 | ||||||||||
Other
comprehensive loss
|
$ | (9,009 | ) | $ | (4,045 | ) | $ | (17,578 | ) | $ | (8,433 | ) |
9.
|
PRODUCT
COMMERCIALIZATION CONTRACT:
|
10.
|
STOCK-BASED
COMPENSATION:
|
11.
|
INCOME
TAXES:
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Income
tax expense
|
$ | 44 | $ | 295 | $ | 923 | $ | 1,499 | ||||||||
Effective
income tax rate
|
0.5 | % | 7.8 | % | 5.6 | % | 21.5 | % |
12.
|
SEGMENT
INFORMATION:
|
Sales
|
Marketing
|
Product
|
||||||||||||||
Services
|
Services
|
Commercialization
|
Consolidated
|
|||||||||||||
Three
months ended September 30, 2008:
|
||||||||||||||||
Revenue
|
$ | 19,979 | $ | 4,517 | $ | - | $ | 24,496 | ||||||||
Operating
loss
|
(3,228 | ) | (1,576 | ) | (4,785 | ) | (9,589 | ) | ||||||||
Capital
expenditures
|
43 | - | - | 43 | ||||||||||||
Depreciation
expense
|
549 | 147 | 27 | 723 | ||||||||||||
Three
months ended September 30, 2007:
|
||||||||||||||||
Revenue
|
$ | 16,890 | $ | 7,079 | $ | - | $ | 23,969 | ||||||||
Operating
loss
|
(4,822 | ) | (428 | ) | - | (5,250 | ) | |||||||||
Capital
expenditures
|
163 | 39 | - | 202 | ||||||||||||
Depreciation
expense
|
843 | 243 | - | 1,086 | ||||||||||||
Nine
months ended September 30, 2008:
|
||||||||||||||||
Revenue
|
$ | 68,636 | $ | 19,488 | $ | (1,000 | ) | $ | 87,124 | |||||||
Operating
loss
|
(6,482 | ) | (1,389 | ) | (11,326 | ) | (19,197 | ) | ||||||||
Capital
expenditures
|
339 | 59 | - | 398 | ||||||||||||
Depreciation
expense
|
2,171 | 519 | 69 | 2,759 | ||||||||||||
Nine
months ended September 30, 2007:
|
||||||||||||||||
Revenue
|
$ | 62,595 | $ | 21,960 | $ | - | $ | 84,555 | ||||||||
Operating
loss
|
(11,252 | ) | (129 | ) | - | (11,381 | ) | |||||||||
Capital
expenditures
|
635 | 133 | - | 768 | ||||||||||||
Depreciation
expense
|
2,639 | 635 | - | 3,274 |
·
|
Changes
in outsourcing trends or a reduction in promotional, marketing and sales
expenditures in the pharmaceutical, biotechnology and life sciences
industries;
|
·
|
Loss
of one or more of our significant customers or a material reduction in
service revenues from such
customers;
|
·
|
Our
ability to fund and successfully implement our long-term strategic
plan;
|
·
|
Our
ability to generate sufficient revenue from product commercialization
opportunities that we pursue to offset the costs and expenses associated
with implementing and maintaining these types of
programs;
|
·
|
Our
ability to successfully identify, complete and integrate any future
acquisitions and the effects of any such acquisitions on our ongoing
business;
|
·
|
Our
ability to meet performance goals in incentive-based and revenue sharing
arrangements with customers;
|
·
|
Competition
in our industry;
|
·
|
Our
ability to attract and retain qualified sales representatives and other
key employees and management
personnel;
|
·
|
Product
liability claims against us;
|
·
|
Changes
in laws and healthcare regulations applicable to our industry or our, or
our customers’ failure to comply with such laws and
regulations;
|
·
|
Volatility
of our stock price and fluctuations in our quarterly revenues and
earnings;
|
·
|
Potential
liabilities associated with insurance claims;
and
|
·
|
Failure
of, or significant interruption to, the operation of our information
technology and communications
systems.
|
|
¨
|
Sales
Services, which is comprised of the following business
units:
|
|
·
|
Performance
Sales Teams; and
|
|
·
|
Select
Access.
|
|
¨
|
Marketing
Services, which is comprised of the following business
units:
|
|
·
|
Pharmakon;
|
|
·
|
TVG
Marketing Research and Consulting (TVG);
and
|
|
·
|
Vital
Issues in Medicine (VIM)®.
|
|
¨
|
Product
Commercialization (formally PDI Products
Group).
|
|
·
|
the
number of prescriptions filled in excess of the pre-established baseline
per the agreement, which is based on information supplied by a
major independent supplier of industry prescription
data;
|
|
·
|
the
average net sales value per unit of the product as reported to us by the
customer; and
|
|
·
|
the
revenue sharing percentage in the
agreement.
|
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
Operating
data
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Revenue,
net
|
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Cost
of services
|
98.3 | % | 75.9 | % | 85.4 | % | 74.1 | % | ||||||||
Gross
profit
|
1.7 | % | 24.1 | % | 14.6 | % | 25.9 | % | ||||||||
Compensation
expense
|
23.3 | % | 24.5 | % | 21.8 | % | 21.6 | % | ||||||||
Other
selling, general and administrative expenses
|
17.6 | % | 21.5 | % | 14.8 | % | 17.7 | % | ||||||||
Total
operating expenses
|
40.8 | % | 46.0 | % | 36.6 | % | 39.3 | % | ||||||||
Operating
loss
|
(39.1 | %) | (21.9 | %) | (22.0 | %) | (13.5 | %) | ||||||||
Other
income, net
|
2.6 | % | 6.2 | % | 3.0 | % | 5.2 | % | ||||||||
Loss
before income tax
|
(36.6 | %) | (15.7 | %) | (19.1 | %) | (8.2 | %) | ||||||||
Provision
for income tax
|
0.2 | % | 1.2 | % | 1.1 | % | 1.8 | % | ||||||||
Net
loss
|
(36.8 | %) | (16.9 | %) | (20.1 | %) | (10.0 | %) |
Quarter
Ended
|
||||||||||||||||
September
30,
|
||||||||||||||||
2008
|
2007
|
Change
($)
|
Change
(%)
|
|||||||||||||
Sales
services
|
$ | 19,979 | $ | 16,890 | $ | 3,089 | 18.3 | % | ||||||||
Marketing
services
|
4,517 | 7,079 | (2,562 | ) | (36.2 | %) | ||||||||||
Product
commercialization
|
- | - | - | - | ||||||||||||
Total
|
$ | 24,496 | $ | 23,969 | $ | 527 | 2.2 | % |
Quarter
Ended
|
||||||||||||||||
September
30,
|
||||||||||||||||
2008
|
2007
|
Change
($)
|
Change
(%)
|
|||||||||||||
Sales
services
|
$ | 17,148 | $ | 13,990 | $ | 3,158 | 22.6 | % | ||||||||
Marketing
services
|
2,807 | 4,213 | (1,406 | ) | (33.4 | %) | ||||||||||
Product
commercialization
|
4,129 | - | 4,129 | - | ||||||||||||
Total
|
$ | 24,084 | $ | 18,203 | $ | 5,881 | 32.3 | % |
Quarter
Ended
|
Sales
|
%
of
|
Marketing
|
%
of
|
Product
|
%
of
|
%
of
|
|||||||||||||||||||||||||
September
30,
|
services
|
sales
|
services
|
sales
|
commercialization
|
sales
|
Total
|
sales
|
||||||||||||||||||||||||
2008
|
$ | 2,831 | 14.2 | % | $ | 1,710 | 37.9 | % | $ | (4,129 | ) | - | $ | 412 | 1.7 | % | ||||||||||||||||
2007
|
2,900 | 17.2 | % | 2,866 | 40.5 | % | - | - | 5,766 | 24.1 | % | |||||||||||||||||||||
Change
($)
|
$ | (69 | ) | $ | (1,156 | ) | $ | (4,129 | ) | $ | (5,354 | ) |
Quarter
Ended
|
Sales
|
%
of
|
Marketing
|
%
of
|
Product
|
%
of
|
%
of
|
|||||||||||||||||||||||||
September
30,
|
services
|
sales
|
services
|
sales
|
commercialization
|
sales
|
Total
|
sales
|
||||||||||||||||||||||||
2008
|
$ | 3,092 | 15.5 | % | $ | 2,239 | 49.6 | % | $ | 365 | - | $ | 5,696 | 23.3 | % | |||||||||||||||||
2007
|
3,902 | 23.1 | % | 1,959 | 27.7 | % | - | - | 5,861 | 24.5 | % | |||||||||||||||||||||
Change
($)
|
$ | (810 | ) | $ | 280 | $ | 365 | $ | (165 | ) |
Quarter
Ended
|
Sales
|
%
of
|
Marketing
|
%
of
|
Product
|
%
of
|
%
of
|
|||||||||||||||||||||||||
September
30,
|
services
|
sales
|
services
|
sales
|
commercialization
|
sales
|
Total
|
sales
|
||||||||||||||||||||||||
2008
|
$ | 2,967 | 14.9 | % | $ | 1,047 | 23.2 | % | $ | 291 | - | $ | 4,305 | 17.6 | % | |||||||||||||||||
2007
|
3,821 | 22.6 | % | 1,334 | 18.8 | % | - | - | 5,155 | 21.5 | % | |||||||||||||||||||||
Change
($)
|
$ | (854 | ) | $ | (287 | ) | $ | 291 | $ | (850 | ) |
Nine
Months Ended,
|
||||||||||||||||
September
30,
|
||||||||||||||||
2008
|
2007
|
Change
($)
|
Change
(%)
|
|||||||||||||
Sales
services
|
$ | 68,636 | $ | 62,595 | $ | 6,041 | 9.7 | % | ||||||||
Marketing
services
|
19,488 | 21,960 | (2,472 | ) | (11.3 | %) | ||||||||||
Product
commercialization
|
(1,000 | ) | - | (1,000 | ) | - | ||||||||||
Total
|
$ | 87,124 | $ | 84,555 | $ | 2,569 | 3.0 | % |
Nine
Months Ended,
|
||||||||||||||||
September
30,
|
||||||||||||||||
2008
|
2007
|
Change
($)
|
Change
(%)
|
|||||||||||||
Sales
services
|
$ | 54,760 | $ | 50,707 | $ | 4,053 | 8.0 | % | ||||||||
Marketing
services
|
11,047 | 11,957 | (910 | ) | (7.6 | %) | ||||||||||
Product
commercialization
|
8,616 | - | 8,616 | - | ||||||||||||
Total
|
$ | 74,423 | $ | 62,664 | $ | 11,759 | 18.8 | % |
Nine
Months Ended,
|
Sales
|
%
of
|
Marketing
|
%
of
|
Product
|
%
of
|
%
of
|
|||||||||||||||||||||||||
September
30,
|
services
|
sales
|
services
|
sales
|
commercialization
|
sales
|
Total
|
sales
|
||||||||||||||||||||||||
2008
|
$ | 13,876 | 20.2 | % | $ | 8,441 | 43.3 | % | $ | (9,616 | ) | - | $ | 12,701 | 14.6 | % | ||||||||||||||||
2007
|
11,888 | 19.0 | % | 10,003 | 45.6 | % | - | - | 21,891 | 25.9 | % | |||||||||||||||||||||
Change
($)
|
$ | 1,988 | $ | (1,562 | ) | $ | (9,616 | ) | $ | (9,190 | ) |
Nine
Months Ended,
|
Sales
|
%
of
|
Marketing
|
%
of
|
Product
|
%
of
|
%
of
|
|||||||||||||||||||||||||
September
30,
|
services
|
sales
|
services
|
sales
|
commercialization
|
sales
|
Total
|
sales
|
||||||||||||||||||||||||
2008
|
$ | 11,144 | 16.2 | % | $ | 6,847 | 35.1 | % | $ | 1,015 | - | $ | 19,006 | 21.8 | % | |||||||||||||||||
2007
|
11,766 | 18.8 | % | 6,521 | 29.7 | % | - | - | 18,287 | 21.6 | % | |||||||||||||||||||||
Change
($)
|
$ | (622 | ) | $ | 326 | $ | 1,015 | $ | 719 |
Nine
Months Ended,
|
Sales
|
%
of
|
Marketing
|
%
of
|
Product
|
%
of
|
%
of
|
|||||||||||||||||||||||||
September
30,
|
services
|
sales
|
services
|
sales
|
commercialization
|
sales
|
Total
|
sales
|
||||||||||||||||||||||||
2008
|
$ | 9,214 | 13.4 | % | $ | 2,983 | 15.3 | % | $ | 695 | - | $ | 12,892 | 14.8 | % | |||||||||||||||||
2007
|
11,374 | 18.2 | % | 3,611 | 16.4 | % | - | - | 14,985 | 17.7 | % | |||||||||||||||||||||
Change
($)
|
$ | (2,160 | ) | $ | (628 | ) | $ | 695 | $ | (2,093 | ) |
Exhibit
No.
|
Description
|
|
31.1
|
Certification
of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002, filed herewith as Exhibit 31.1.
|
|
31.2
|
Certification
of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002, filed herewith as Exhibit 31.2.
|
|
32.1
|
Certification
of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith
as Exhibit 32.1.
|
|
32.2
|
Certification
of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith
as Exhibit 32.2.
|
Date: November
6, 2008
|
PDI,
Inc.
|
||
(Registrant)
|
|||
/s/
Jeffrey E. Smith
|
|||
Jeffrey
E. Smith
|
|||
Chief
Executive Officer
|
|||
/s/
James G. Farrell
|
|||
James
G. Farrell
|
|||
Chief
Financial Officer
|