eResearchTechnology Reports First Quarter Results Reports Revenue
of $22.9 Million and Earnings per Share of $0.08 PHILADELPHIA,
April 27 /PRNewswire-FirstCall/ -- eResearchTechnology, Inc.
(NASDAQ:ERES) ("eRT" or "the company"), a leading provider of
technology and services to the pharmaceutical, biotechnology and
medical device industries, announced today results for the quarter
ended March 31, 2005. The company reported revenues of $22.9
million for the first quarter, compared to $26.1 million in revenue
reported for the first quarter of 2004. eRT reported net income for
the first quarter of 2005 of $4.1 million, or $0.08 per diluted
share, versus net income of $7.3 million, or $0.13 per diluted
share, for the first quarter of 2004. The company's tax rate for
the first quarter of 2005 was 40.8% compared to 40.2% in the first
quarter of 2004. The company signed $24.5 million in new contracts
and work orders in the first quarter of 2005, including $9.1
million for new Thorough Phase I definitive ECG study agreements.
eRT ended the quarter with $70.8 million in cash and short-term
investments, an increase from $68.7 million at the end of 2004.
"Recent industry communications serve to reinforce that there is
considerable debate over the current regulatory guidance for
cardiac safety evaluation in clinical trials, and such uncertainty
continues to impact our ability to accelerate new contract signings
including Thorough QTc studies," commented Joseph Esposito,
President and CEO of eRT. "We will continue to maintain our
infrastructure to ensure that we deliver the highest quality
services to our clients and remain prepared for accelerated growth
prospects that could result from regulatory guidance expected from
the next step of the ICH process," Mr. Esposito added. 2005
Guidance The company issued the following guidance for 2005: For
the second quarter of 2005, the company expects to report revenues
of between $20 and $23 million and net income of $0.06 to $0.09 per
diluted share. For the full year 2005, the company expects to
report revenue of between $96 and $104 million and diluted earnings
per share of $0.36 to $0.44. Mr. Esposito and Bruce Johnson, the
company's Chief Financial Officer, will hold a conference call to
discuss these results. The conference call will take place at 4:45
p.m. EDT on April 27, 2005. Interested participants should call
888-874-9713 when calling within the United States or 973-935-8506
when calling internationally. There will be a playback available
until May 27, 2005. To listen to the playback, please call
877-519-4471 when calling within the United States or 973-341-3080
when calling internationally. Please use pass code 5952291 for the
replay. This call is being webcast by ViaVid Broadcasting and can
be accessed at eRT's web site at http://www.ert.com/. The webcast
may also be accessed at ViaVid's website at
http://www.viavid.net/detailpage.aspx?sid=000024A0. The webcast can
be accessed until May 27, 2005 on either site. Based in
Philadelphia, PA, eResearchTechnology, Inc. (http://www.ert.com/)
is a provider of technology and services to the pharmaceutical,
biotechnology and medical device industries on a global basis. The
company is a market leader in providing centralized core-diagnostic
electrocardiographic (ECG) technology and services to evaluate
cardiac safety in clinical development. The company is also a
leader in providing technology and services to streamline the
clinical trials process by enabling its customers to automate the
collection, analysis, and distribution of clinical data in all
phases of clinical development. Statements included in this release
may constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements,
including, but not limited to, 2005 financial guidance, and the
timing of regulatory guidance, involve a number of risks and
uncertainties such as the company's ability to obtain new contracts
and accurately estimate net revenues due to uncertain regulatory
guidance, variability in size, scope and duration of projects, and
internal issues at the sponsoring client, competitive factors,
technological development, and market demand. As a result, actual
results may differ materially from any financial outlooks stated
herein. Further information on potential factors that could affect
the company's financial results can be found in the company's
Report on Form 10-K filed with the Securities and Exchange
Commission. The company undertakes no obligation to publicly update
any forward-looking statement, whether as a result of new
information, future events, or otherwise. eResearchTechnology, Inc.
and Subsidiaries Consolidated Statements of Operations (in
thousands, except per share amounts) (unaudited) Three Months Ended
March 31, 2004 2005 Net revenues: Licenses $2,453 $1,663 Services
18,010 15,902 Site support 5,629 5,349 Total net revenues 26,092
22,914 Costs of revenues: Cost of licenses 122 133 Cost of services
5,985 6,490 Cost of site support 2,363 3,183 Total costs of
revenues 8,470 9,806 Gross margin 17,622 13,108 Operating expenses:
Selling and marketing 2,453 2,338 General and administrative 2,150
2,896 Research and development 973 991 Total operating expenses
5,576 6,225 Operating income 12,046 6,883 Other income (expense),
net 108 (5) Income before income taxes 12,154 6,878 Income tax
provision 4,886 2,806 Net income $7,268 $4,072 Basic net income per
share $0.14 $0.08 Diluted net income per share $0.13 $0.08 Shares
used to calculate basic net income per share 50,933 50,370 Shares
used to calculate diluted net income per share 55,405 53,324
eResearchTechnology, Inc. and Subsidiaries Consolidated Balance
Sheets (in thousands, except share and per share amounts) December
31, 2004 March 31, 2005 ASSETS (unaudited) Current assets: Cash and
cash equivalents $45,806 $38,877 Short-term investments 22,942
31,942 Accounts receivable, net 14,798 14,814 Prepaid expenses and
other 3,522 3,831 Deferred income taxes 323 323 Total current
assets 87,391 89,787 Property and equipment, net 25,204 25,310
Goodwill 1,212 1,212 Other assets 782 498 Deferred income taxes
1,936 1,332 $116,525 $118,139 LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable $2,455 $2,169 Accrued
expenses 4,318 4,269 Income taxes payable 2,147 176 Current portion
of capital lease obligations 233 167 Deferred revenues 20,325
19,614 Total current liabilities 29,478 26,395 Capital lease
obligations, excluding current portion 193 159 Stockholders'
equity: Preferred stock-$10.00 par value, 500,000 shares
authorized, none issued and outstanding - - Common stock-$.01 par
value, 175,000,000 shares authorized, 56,396,696 and 56,506,808
shares issued, respectively 564 565 Additional paid-in capital
69,694 70,558 Accumulated other comprehensive income 1,601 1,395
Retained earnings 46,550 50,622 Treasury stock, 6,067,519 shares at
cost (31,555) (31,555) Total stockholders' equity 86,854 91,585
$116,525 $118,139 eResearchTechnology, Inc. and Subsidiaries
Consolidated Statements of Cash Flows (in thousands) (unaudited)
Three Months Ended March 31, 2004 2005 Operating activities: Net
income $7,268 $4,072 Adjustments to reconcile net income to net
cash provided by operating activities: Depreciation and
amortization 2,006 2,630 Cost of sale of equipment - 269 Provision
for uncollectable accounts 39 45 Stock option income tax benefits
3,647 540 Investment impairment charge - 284 Changes in operating
assets and liabilities: Accounts receivable (4,188) (120) Prepaid
expenses and other (995) (238) Accounts payable (14) (275) Accrued
expenses (669) (119) Income taxes 960 (1,370) Deferred revenues
5,349 (672) Net cash provided by operating activities 13,403 5,046
Investing activities: Purchases of property and equipment (4,035)
(3,148) Purchases of short-term investments (10,900) (15,175)
Proceeds from sales of short-term investments 3,596 6,175 Net cash
used in investing activities (11,339) (12,148) Financing
activities: Repayment of capital lease obligations (161) (100)
Proceeds from exercise of stock options 867 326 Net cash provided
by financing activities 706 226 Effect of exchange rate changes on
cash 58 (53) Net increase (decrease) in cash and cash equivalents
2,828 (6,929) Cash and cash equivalents, beginning of period 38,364
45,806 Cash and cash equivalents, end of period $41,192 $38,877
DATASOURCE: eResearchTechnology, Inc. CONTACT: Bruce Johnson,
eResearchTechnology, Inc., +1-215-282-5580; or Matt Hayden, Hayden
Communications, +1-858-704-5065, for eResearchTechnology Web site:
http://www.ert.com/
Copyright
East Resources Acquisition (NASDAQ:ERES)
Historical Stock Chart
From Jun 2024 to Jul 2024
East Resources Acquisition (NASDAQ:ERES)
Historical Stock Chart
From Jul 2023 to Jul 2024