London, United Kingdom – (The Hosting News) – August 11, 2006 – Web host and data management solutions firm, Phase Forward, has reported that revenues for the second quarter of 2006 were $24.7 million, a 19% increase from $20.7 million in the second quarter of 2005. Within total revenue, InForm license, application hosting and other related revenues were $16.3 million, an increase of 19% from $13.7 million in the prior year period.
Bob Weiler, Chief Executive Officer and President commented, ”We are very pleased with the company’s performance in the second quarter. We are encouraged with the pace of new business activity, in addition to the diversity of our business across market segments and customer sizes as demonstrated by orders from a wide range of customers in the quarter. This included our selection by another top 25 pharmaceutical company, who signed a multi-year commitment to use InForm on an application service provider basis, in another highly competitive, enterprise-type EDC engagement.”
For the second quarter of 2006, GAAP income from operations was $1.6 million, compared to $2.0 million in the second quarter of 2005. GAAP net income was $1.9 million, or $0.05 per diluted share, for the second quarter of 2006, compared to $1.8 million and $0.05 per diluted share reported in the second quarter of 2005.
Weiler added, ”Phase Forward’s product and services leadership position, combined with our proven track record with the industry’s most scalable and complex implementations, positions us well as customers seek a single vendor to automate their EDC and safety processes in an integrated fashion.”
For the second quarter of 2006, non-GAAP income from operations was $2.4 million, an increase of 14% from the prior year period. Non-GAAP net income was $2.7 million, or $0.07 per diluted share, for the second quarter of 2006. This represented an increase of 35% from non-GAAP net income of $2.0 million, or $0.06 per diluted share, for the second quarter of 2005.
Both GAAP and non-GAAP operating expenses in the second quarter of 2006 included $438,000, or $0.01 per share, for professional services related to an acquisition opportunity evaluated during the quarter, which the company decided not to pursue. This expense was not anticipated at the time management provided guidance on April 27, 2006.
In addition. there was a reconciliation of GAAP to non-GAAP income from operations and net income and net income per share applicable to common stockholders for the second quarter of 2006 and 2005. Cash, cash equivalents and short-term investments were $63.7 million at the end of the second quarter, a slight increase from the end of the prior quarter and up $3.1 million from December 31, 2005. Total deferred revenue was $48.3 million at the end of the quarter, down $3.4 million from the prior quarter and up $1.8 million from December 31, 2005.
Business Highlights include:
— A top 25 pharmaceutical company signed a multi-year commitment to use InForm on an application service provider (ASP) basis. The InForm system’s flexible architecture is expected to enable the customer to integrate InForm with their existing clinical systems to drive operational efficiencies and meet business needs.
— Aurum Institute of Health, in South Africa, ordered two additional ASP-based, InForm trials in the second quarter, in addition to moving into production with two large Tuberculosis-related trials that are expected to include approximately 55,000 patients located in geographically dispersed mining locations.
— The company announced its CRO Advantage Program, a partner program specifically designed to meet the needs of contract research organizations (CROs) across a wide variety of geographies, market segments and adoption models.
— Basilea Pharmaceutica Ltd., a biopharmaceutical company headquartered in Switzerland, signed on for three InForm-based trials in partnership with Quintiles, one of the largest CROs in the world.
— The company released Web Submission Data Manager (WebSDM(TM)) version 1.5, an FDA submission review tool that incorporates the newest Clinical Data Interchange Standards Consortium’s (CDISC) Study Data Tabulations Model (SDTM) standard, along with enhanced functionality. This solution provides early visibility to submission data and enables proactive decision making.
— The company announced the new InForm Adapter module, enhancing the integration capabilities between InForm and customers’ existing proprietary systems and packaged applications such as clinical, custom, financial, ERP and inventory management systems.
For the third quarter of 2006, the company expects revenues to be between $26.8 and $27.6 million. The company expects non-GAAP operating income to be between $3.4 and $3.9 million, with non-GAAP EPS between $0.09 and $0.10. GAAP EPS is expected to be between $0.06 and $0.07, including non-cash expenses associated with FAS 123R and the amortization of intangible assets.
For the full year 2006, the company expects bookings to be between $115 million and $125 million and revenues to be between $103 million and $105 million. On a non-GAAP basis, operating income is expected to be between $12 million and $13 million and non-GAAP EPS between $0.34 and $0.36. GAAP EPS is expected to be between $0.23 and $0.25, including non-cash expenses associated with FAS 123R and the amortization of intangible assets.
The company’s investor conference call will be archived on its website until August 26th, 2006.
Phase Forward is a provider of 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 230 organizations and regulatory agencies worldwide including: AstraZeneca, Biogen Idec, Boston Scientific, Dana-Farber Cancer Institute, Eli Lilly, Food and Drug Administration, GlaxoSmithKline, Guidant, Merck, U.K. Medicines and Healthcare Products Regulatory Agency, National Institutes of Health, Procter and Gamble, Quintiles, sanofi-aventis, Schering-Plough Research Institute and Serono.
To learn more, please visit: www.phaseforward.com.