Waltham, Massachusetts – (The Hosting News) – November 1, 2007 – Web host and integrated data management solutions firm, Phase Forward Incorporated, has released its financial results for the third quarter of 2007, indicating revenue of $34.9 million, with increases of 24% over the prior year.
In addition, the company reported Non-GAAP operating income of $5.4 million, with increases of 37% over the prior year. Within total revenues, InForm(TM) license, application hosting and other related revenues were $25.5 million, an increase of 29% from $19.7 million in the prior year period, representing 73% of third quarter 2007 total revenues.
Bob Weiler, Chief Executive Officer and President commented, ”We are extremely pleased with the company’s performance during the third quarter, which was highlighted by strong revenue and profitability growth. Phase Forward’s proven customer success and referenceability continue to be significant differentiators, and they were key factors in major electronic data capture (EDC) wins during the third quarter with customers such as Eisai and Novartis Vaccines. During the quarter Eli Lilly, a top 10 pharmaceutical company adopted Phase Forward’s advanced safety solutions after realizing the business benefits of our InForm EDC solution. We believe customers will look to purchase integrated EDC and safety solutions from a single vendor when considering a long-term strategy, and that Phase Forward’s leadership ranking in both of these areas positions it well to capitalize on this trend. We continue to be encouraged by demand levels for EDC, which is reflected by our strong third quarter results and increased guidance for the full year.”
For the third quarter of 2007, GAAP income from operations was $4.1 million, compared to $2.8 million in the third quarter of 2006. GAAP net income for the third quarter of 2007 was $5.7 million, or $0.13 per diluted share, compared to $2.9 million, or $0.08 per diluted share, in the third quarter of 2006.
For the third quarter of 2007, non-GAAP income from operations was $5.4 million, representing a margin of 15.6% and an increase of 37% from the prior year period. Non-GAAP net income was $6.9 million, or $0.16 per diluted share, for the third quarter of 2007. This represented an increase of 69% from non-GAAP net income of $4.1 million, or $0.11 per diluted share, in the third quarter of 2006.
Cash, cash equivalents and short-term investments were $187 million at the end of the third quarter, an increase of $7.6 million from $179.4 million at the end of the prior quarter. Total deferred revenue was $60 million at the end of the quarter, down $1.5 million sequentially and an increase of $11.9 million on a year-over-year basis.
Business Highlights Include:
— Eisai Medical Research, a U.S. pharmaceutical subsidiary of Tokyo-based Eisai Co., signed a license and services agreement with Phase Forward for the implementation and use of the company’s InForm EDC solution.
— Schering-Plough Research Institute (SPRI) signed a multi-year, multi-million dollar renewal of their InForm EDC license, added coverage for Japan and purchased additional modules.
— Novartis Vaccines signed a multi-million dollar license, hosting and services agreement with Phase Forward for the implementation and use of the company’s InForm EDC solution.
— Phase Forward continued to make progress executing its strategy to broaden and deepen its relationships with Contract Research Organizations (CROs) and academic research centers around the globe. During the quarter, the company expanded its relationships with MedPace, Imperial College and SGS for the use of its InForm solution.
— Phase Forward announced a multi-year alliance agreement with AAIPharma, Inc., a leading global CRO with operations throughout the United States, Canada, Western and Eastern Europe and South America. AAIPharma plans to offer services centered around Phase Forward’s InForm EDC solution and its Clintrial (TM) clinical data management product.
For the fourth quarter of 2007, the company expects revenues to be between $36.0 and $36.8 million. The company expects non-GAAP operating income to be between $5.2 and $5.6 million, with non-GAAP EPS between $0.15 and $0.16. GAAP EPS is expected to be between $0.12 and $0.13, including non-cash expenses associated with stock-based compensation expense and the amortization of intangible assets.
For the full year 2007, the company expects revenues to be between $132.5 and $133.3 million and bookings to be between $180 and $190 million. On a non-GAAP basis, operating income is expected to be between 14.5% and 15%, with non-GAAP EPS between $0.58 and $0.59. GAAP EPS is expected to be between $0.46 and $0.47, including non-cash expenses associated with stock-based compensation expense and the amortization of intangible assets.
Phase Forward is a provider of web hosting and integrated data management solutions for clinical trials and drug safety. The company offers solutions for electronic data capture (InForm), clinical data management (Clintrial), clinical trials signal detection (CTSD), strategic pharmacovigilance (WebVDME) and Signal Management), adverse event reporting (Clintrace) and applied data standards (WebSDM). In addition, the company provides services in the areas of application implementation, hosting and validation, data integration, business process optimization, safety data management and industry standards. Phase Forward’s products and services have been utilized in over 10,000 clinical trials involving more than 1,000,000 clinical trial study participants at over 260 organizations and regulatory agencies worldwide including: AstraZeneca, Boston Scientific, Dana-Farber Cancer Institute, Eli Lilly, Food and Drug Administration, GlaxoSmithKline, Merck, U.K. Medicines and Healthcare Products Regulatory Agency, National Institutes of Health, Procter and Gamble, Quintiles, sanofi-aventis, Schering-Plough Research Institute, Serono and Servier.
To learn more, please visit: www.phaseforward.com.