Waltham, Mass-based Phase Forward, a provider of data management solutions for clinical trials and drug safety, reported third quarter revenues jumped 24% to $53.1 million, compared with the third quarter of 2008, but earnings were cut in half.
For the third quarter, income from operations was $2.4 million, compared with $4.4 million in the third quarter of 2008. Net income for the period was $1.8 million, or $0.04 per diluted share, compared with $0.08 per diluted share in 2008.
Within total revenues, electronic data capture license, application hosting and other related revenues were $38.5 million, representing 71% of third quarter total revenues and an increase of 18% from $32.7 million in the prior year period.
Bob Weiler, chairman and CEO, said, “The combination of solid revenue growth and expense management led to non-GAAP operating income and EPS that were above our guidance for the quarter.”
Total cash, cash equivalents and investments were $147.2 million at the end of the third quarter, which was down from $168.7 million at the end of the prior quarter because Phase Forward spent approximately $21 million used in the previously announced acquisitions of Maaguzi and Covance’s IRT business unit.