First Quarter 2009 Results
Net service revenues were $3.6 million for the Q1 2009, as against $3.7 million for the Q1 2008 and $3.6 million for the Q4 2008. This decline between first quarters was partially offset by three significant change orders to existing contracts that resulted in an increase to revenue in the Q1 2009 of about $600,000. Cost of revenues decreased 21% to $2.0 million versus $2.6 million in the comparable period a year ago and $2.2 million in the Q4 2008. As a%age of net service revenues, costs of revenues decreased to 56% from 70% for the three months ended March 31, 2009 and 2008, respectively.
Sales and marketing costs decreased 31% to $791,000 against $1.1 million for the same period in 2008 and $1.0 million in the Q4 2008. General and administrative costs decreased by 16% to $1.2 million in the quarter, against $1.5 during the same period in 2008 and $1.4 million in the Q4 2008. Research and development costs decreased by 24% to $490,000 against $646,000 during the same period in 2008 and $502,000 in the Q4 2008.
New project bookings for the Q1 2009 totaled $1.9 million against $4.8 million in the first quarter of 2008 and $5.5 million in the Q4 2008.
During the quarter ended March 31, 2009, we experienced cancellations of $5 million. This was a direct reflection of the volatile economic times and the fact that customers are opting to cancel studies sooner than was the case in the past, especially if they do not show promising results early on in clinical trial development.
“etrials first quarter performance was disappointing in terms of awards and cancellations, but reassuring in terms of our cost management efforts, customer-centric culture and ability to renew and deepen customer relationships,” said M. Denis Connaghan, etrials’ president and chief executive officer. “Today, we are a nimble clinical trials solutions provider, and better positioned to respond quickly to changing customer requirements and market conditions.”
Financial Position and Backlog
The company reported $18.5 million in total available backlog as of March 31, 2009 as compared with $20.3 million at March 31, 2008 and $25.1 million on December 31, 2008. Of the $18.5 million in total available backlog, $2.5 million was scheduled to start later than six months, or after September 30, 2009. About 47% and 46% of our total available backlog as of March 31, 2009 and December 31, 2008, respectively, consisted of fully executed contracts.
For the period ended March 31, 2009, cash, and cash equivalents was $9.0 million. The company’s cash and cash equivalents decreased by about $1.6 million during the three months ended March 31, 2009.
Etrials is a provider of eClinical software and services to pharmaceutical, biotechnology, medical device, and contract research organizations offers adaptive, Web-based tools that work together to coordinate data capture, logistics, patient interaction and trial management – turning data into intelligence and shortening the pathway to an actionable study endpoint.
