EX-99 3 ex99-1.txt EX99-1.TXT EXHIBIT 99.1 eResearchTechnology, Inc. Reports Fourth Quarter 2001 Operating Results Reports Net Income of $0.19 per Share in Fourth Quarter 2001 PHILADELPHIA, PA February 7, 2002/PR Newswire/--eResearchTechnology, Inc. (NASDAQ: ERES) (the "company") reported today its financial results for the fourth quarter and full year of 2001. Net revenues for the three months ended December 31, 2001 were $7.8 million versus $7.3 million for the prior quarter ended September 30, 2001 and $6.9 million for the three months ended December 31, 2000. Overall the company reported net income of $1.3 million or $0.19 per share in the fourth quarter of 2001 compared to net income of $516,000 or $0.07 per share in the fourth quarter of 2000. The company reported operating income of $664,000 in the fourth quarter of 2001, compared to an operating loss of $1.5 million in the fourth quarter of 2000. The operating loss for the fourth quarter of 2000 includes the write-off of $782,000 of costs associated with the contemplated initial public offering of stock in a subsidiary company (the "Offering"), which Offering was later withdrawn. Net revenues for the year ended December 31, 2001 were $28.0 million versus $28.1 million for the year ended December 31, 2000. The company reported an operating loss of $447,000 for the year ended December 31, 2001 compared to an operating loss of $2.9 million for the year ended December 31, 2000, which includes the write-off of $782,000 of costs associated with the Offering. Overall, the company reported a net loss of $3.8 million or $0.54 per share for the year ended December 31, 2001, which includes an investment asset impairment charge of $5.7 million, compared to net income of $120,000 or $0.02 per share for the year ended December 31, 2000. Company Financial Guidance The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. For 2002, the company expects revenue growth of approximately twenty-five percent for each quarter over the prior year's quarter. The company expects earnings per share will be between $0.06 and $0.09 for the first quarter and between $0.07 and $0.10 in the second quarter of 2002. With $18.4 million in cash and short-term investments at December 31, 2001, the company has sufficient capital on hand to complete this year's business plan and position the company for future growth. Based in Philadelphia, PA, eResearchTechnology, Inc. (www.eRT.com), is a provider of integrated software applications and technology consulting services to the pharmaceutical, biotechnology and medical device industries. The company offers Internet and other technology-based solutions designed to streamline the clinical trials process by enabling its customers to automate many parts of a clinical trial. The company is also a market leader in providing centralized core-diagnostic electrocardiographic services on a global basis. Statements included in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as competitive factors, technological development, market demand, and the Company's ability to obtain new contracts and accurately estimate net revenues and net income due to variability in size, scope and duration of projects, and internal issues in the sponsoring client. 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 & 10-Q filed with the Securities and Exchange Commission (SEC). eResearchTechnology, Inc. and Subsidiaries Consolidated Statements of Operations (in thousands, except per share information) (unaudited)
For the Three Months Ended For the Year Ended December 31, December 31, December 31, December 31, 2001 2000 2001 2000 -------------------------------------------------------------------- Net revenues: Licenses $ 1,040 $ 1,241 $ 1,372 $ 5,189 Services 6,774 5,612 26,625 22,878 -------- -------- -------- -------- Total net revenues 7,814 6,853 27,997 28,067 -------- -------- -------- -------- Costs of revenues: Cost of licenses 167 229 576 721 Cost of services 3,245 3,483 12,388 13,296 -------- -------- -------- -------- Total costs of revenues 3,412 3,712 12,964 14,017 -------- -------- -------- -------- Gross margin 4,402 3,141 15,033 14,050 -------- -------- -------- -------- Operating expenses: Selling and marketing 1,327 1,273 5,427 4,754 General and administrative 1,199 1,355 5,188 6,593 Research and development 1,212 1,190 4,865 4,840 Write-off of registration costs -- 782 -- 782 -------- -------- -------- -------- Total operating expenses 3,738 4,600 15,480 16,969 -------- -------- -------- -------- Operating income (loss) 664 (1,459) (447) (2,919) Interest income, net 106 657 941 1,770 Investment asset impairment charge (716) -- (5,686) -- Gain on sale of domestic CRO operations 1,190 1,867 1,422 2,114 -------- -------- -------- -------- Income (loss) before income taxes 1,244 1,065 (3,770) 965 Income tax provision (benefit) (71) 362 (112) 322 Minority interest dividend -- 187 116 523 -------- -------- -------- -------- Net income (loss) $ 1,315 $ 516 $ (3,774) $ 120 ======== ======== ======== ======== Basic and diluted net income (loss) per share $ 0.19 $ 0.07 $ (0.54) $ 0.02 ======== ======== ======== ========
Consolidated Balance Sheet Information (in thousands, unaudited) December 31, December 31, 2001 2000 ----------- ------------ Cash and Short-term Investments $ 18,429 $ 18,157 * Working Capital 20,689 21,189 * Total Assets 41,000 53,964 Shareholders' Equity 32,792 34,170 * Adjusted to reflect $9.5 million purchase of convertible preferred stock in subsidiary.