eResearch Income Falls 63%
Friday, July 31, 2009
Philadelphia-based eResearch Technology (ERT) reported second quarter financial results after the markets closed Thursday. Included in the results were ERT’s electronic data capture (EDC) operations, which were sold to Omnicomm Systems in June.
ERT’s second-quarter revenues were down 32% to $24.2 million, compared to $35.5 million a year ago. EDC licenses and service revenues accounted for $1.1 million of total revenue. The company reported a $500,000 gain on the sale of its EDC operations.
Net income for ERT was also down significantly over last year. Second quarter net income was $2.5 million, or $0.05 per diluted share, compared to $6.7 million, or $0.13 per diluted share a year ago.
“Revenue and bookings continue to be significantly impacted by lower spending by clients on Thorough QT trials,” ERT president and CEO Michael McKelvey said in a statement. “Sponsors may delay the running of Thorough QT trials until later in the drug development cycle, though regulatory guidance ultimately requires that they be performed. As previously announced, we consolidated our customer care teams in Philadelphia and continue to improve the efficiency of our operations. This resulted in increases in our margins in the second quarter and will positively impact our cost base in the future. We believe the divestiture of our EDC operations will be positive for ERT as it allows us to focus our efforts on cardiac safety and ePRO opportunities.”