Strong contributions from service revenues and its InForm electronic data capture (EDC) solution helped Phase Forward to a 29.5% increase in overall revenues to US$40.9 million for the second quarter of 2008.
Operating income at the US-based provider of data management solutions for clinical trials and drug safety was 32.4% higher at US$4.19 million, although net income dropped by 14.6% compared with last year’s quarter, to US$3.69 million.
Commenting on the company’s diluted earnings per share (EPS), which on a non-GAAP basis slipped back to US$0.12 from US$0.14 in the second quarter of 2007 (all other figures are according to Generally Accepted Accounting Principles/GAAP), Phase Forward said the figures were at the high end of its guidance for Q2 (US$0.11-US$0.12) while the year-on-year decline was “due entirely” to an increase in the company’s tax rate from 7.9% to 35.0%.
Service revenues for the three months ended 30 June 2008 were US$27.8 million, a 38.4% improvement over the prior-year period. Licence revenues rose by 14.1% to US$13.1 million. More than three quarters (76%) of overall second-quarter revenues came from Inform, which brought in US$31.1 million – 36.4% more than the combined licensing, application hosting and other revenues in the second quarter of 2007.
Bob Weiler, president and chief executive officer of Phase Forward, said the company was particularly pleased with the continued success of its CRO Advantage Program. Tying up with contract research organisations (CROs) has been an important part of Phase Forward’s strategy of late, as evidenced by the 35% growth to US$7.6 million in revenues from CROs during the quarter.
The company has expanded its relationships with existing CRO clients such as i3 Stratprobe (Ingenix), ICON, Chiltern International, Omnicare, Veristat and Quintiles. Also in the second quarter, Charles River Laboratories signed up as a new InForm customer for its Phase I operations.
