New York-based Medidata Solutions, a provider of hosted clinical development solutions, reported third quarter profits soared on revenues that jumped 27% compared with the year ago quarter.

Non-GAAP net income for the third quarter of 2009 was $3.5 million, or $0.15 per diluted share, compared with a loss of $2.1 million, or $0.32 per diluted share, in the third quarter of 2008.

Net revenues for the third quarter of 2009 were $35.2 million, an increase of  27%, compared with $27.8 million in the third quarter of 2008. The increase in revenues was primarily due to a $6.8 million, or 36%, increase in revenues from application services.

“Again this quarter we saw strong demand for our innovative solutions as evidenced by customer renewals and new customer wins in all geographies,” said Tarek Sherif, chairman and CEO of Medidata Solutions. “Many of the world’s leading life science companies are choosing Medidata’s Rave platform for its rich EDC functionality as well as its ability to seamlessly exchange data with their other key clinical systems through the use of industry standards.”

For the third quarter, GAAP operating income was $2.6 million, compared with a loss of $2.9 million in the third quarter of 2008. GAAP net income for the period was $1.6 million, or $0.06 per diluted share, compared with a loss of $3.4 million, or $0.51 per diluted share, in the third quarter of 2008.

“Our results this quarter underscore the strength of our execution, the scalability of our business model and our ability to drive both top and bottom line growth. Medidata’s recurring revenue model and visibility through backlog give us confidence in our ability to deliver profitable growth,” said Bruce Dalziel, chief financial officer.

Total cash and cash equivalents were $86.9 million at the end of the third quarter. During the quarter, the company prepaid the outstanding balance of its $15.0 million term loan under its existing credit facility and has no long-term debt.