|eResearch Shares Move on Cardiac Bookings and Analyst Buzz|
eResearch Technology reported third quarter results of $20.9 million for the third quarter, compared to $28.0 million in revenue reported for the third quarter of 2004, the stock slipped. With results below expectations, it looked as if the leading provider of technology and services to the biotechnology and medical device industries was closing the year on a negative note.
Adding to that sentiment was slightly lower guidance for the fourth quarter of 2005. The company now expects to report revenues of between $24.5 and $26.5 million and net income of $0.09 to $0.11 per diluted share. For the full year 2005, the company expects to report revenue of between $86 and $88 million and diluted earnings per share of $0.28 to $0.30. For 2006 the company expects revenue of $112 million to $118 million and earnings per diluted share of $0.42 to $0.48, below the $.50 that analysts had expected the company to earn.
Yet, one positive note from the release was that the company’s cash position remained strong, with $71.8 million in cash equivalents and short-term investments, a small reduction due to 479,600 shares of stock that had been re-purchased at a cost of $7.2 million during the quarter. In addition, an accomplishment that the company heavily emphasized was that it signed a record $32.0 million in new business in the third quarter of 2005, which included six later phase program awards valued at $14.5 million and five QT studies valued at $6.0 million.
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