eResearch Revenues Up 41.5%, Shares Down 30%
Friday, October 31, 2008
Philadelphia, Pa.-based eResearch Technology saw its revenue growth wane slightly in the third quarter but still maintained a 41.5% increase compared with the same period last year. The eClinical company reported net revenues for the quarter of $33.9 million up from $24 million in the third quarter of last year. Diluted net income per share was $0.13 compared with $0.07 in the third quarter of 2007, and gross margin was $19.1 million.
Revenues were down slightly from the second quarter of 2008, which was $35.5 million, due to slower activity in the summer months and a working down of backlog, according to president and CEO Dr. Michael McKelvey. eResearch narrowed its full year revenue guidance from $141.4 million to the range of $134 million to $137 million.
In early morning trading, share prices fell almost 30% to $6.21.