Waltham, Mass.-based Phase Forward, a provider of electronic data capture (EDC), drug safety and data management solutions for clinical trials, reported second quarter revenues rose 28% to $31.5 million and profits doubled.
At mid-day, Phase Forward's shares were up 11% to $18.18.
For the second quarter, income from operations increased 89% from the prior year period to $4.5 million, resulting in a 14.4% operating margin. Net income for the period was $5.6 million, or $0.14 per diluted share, compared with $2.7 million, or $0.07 per diluted share, in the second quarter of 2006.
License, application hosting and other related revenues increased 39% to $22.8 million from $16.3 million in the prior year period, representing 72% of second quarter 2007 total revenues.
"We are pleased with the company's performance during the second quarter, which was highlighted by major customer wins, new and expanded partnerships with contract research organizations (CROs), a breakthrough technology introduction and an increase in the level of competitive replacement activity. We continue to be encouraged by the overall strength of market demand for EDC and safety solutions, which is reflected in our increased outlook for bookings in 2007," said Bob Weiler, chief executive officer and president of Phase Forward.
During the second quarter, a top 10 pharmaceutical company expanded its adoption of Phase Forward’s EDC solution into a multi-year, multi-million dollar application services provider commitment.
“We believe the increasing adoption of EDC by the world's largest pharmaceutical companies adds further pressure on other companies to make similar investments or risk being at a competitive disadvantage. Phase Forward is benefiting from this trend due to our customer reference ability, proven scalability, global service and support infrastructure, as well as the breadth and depth of our products' functionality. In addition, our recently introduced Central Designer(TM) application can help customers shorten the EDC study design and build process more effectively, improving operational efficiencies and reducing the barriers to adoption for customers of all sizes," Weiler added.