McKesson has strong Q1 fiscal 2007

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McKesson Corp. Friday reported that revenues for Q1 fiscal 2007 were $23.6 billion, an increase of 13 percent from $21.0 billion in Q1 a year ago. Q1 net income was $184 million, up 8 percent from $171 million a year ago, and diluted earnings per share was 60 cents, up 9 percent.

First quarter results included a total of $26 million in previously announced pre-tax charges associated with McKesson's investment in Parata Systems and a restructuring charge in Provider Technologies. The quarter also included $8 million in pre-tax share-based compensation expense as the FAS123R requirement took effect for the company.

The company’s Provider Technologies segment saw revenues that were up 19 percent for the first quarter compared to the first quarter a year ago. Software and software systems revenues increased 27 percent. Operating profit in the quarter was up 13 percent to $35 million, including a $5 million charge for a restructuring plan, from $31 million in the first quarter a year ago. Operating margin rate was 8.39 percent for the first quarter, including the impact of the restructuring charge, according to McKesson.