Over the years, Phase Forward (NASDAQ: PFWD)'s sophisticated software has managed more than 10,000 clinical trials with companies like Merck and Co. (NYSE: MRK), GlaxoSmithKline (NYSE: GSK), and Eli Lilly (NYSE: LLY). And investors are taking notice, as the stock price is up about 50% this year.
In Q3, Phase Forward reported a 24% increase in revenues to $34.9 million and net income was $5.7 million, or 13 cents per share, up from $2.9 million or 8 cents per share in the same period a year ago. The company's cash balance increased by $7.6 million to $187 million.
Phase Forward scored several key customer wins in Q3, such as with Novartis (NYSE: NVS) and Eisai, which is one of the largest pharma companies in Japan. No doubt, it helps that the company's software platform is highly scalable for complex, global organizations. This is critical in combating rivals like Oracle Corp. (NASDAQ: ORCL), ArisGlobal, and etrials Worldwide (NASDAQ: ETWC).
Moreover, Phase Forward is getting traction with cross-selling its customer base. Look at Eli Lilly, which uses the company's InForm offering. Now, Eli Lilly is implementing Phase Forward's safety offerings. Based on Phase Forward's conference call, this adoption curve should be a nice source of long-term growth.
As a result, Phase Forward's bookings are improving, with full-year 2007 guidance of $180 million to $190 million. Keep in mind that back in April the company estimated a range of $140 million to $155 million.
In other words, Phase Forward is showing lots of momentum and 2008 is likely to be particularly strong, especially if the company can rack up some other large customers.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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Reader Comments (Page 1 of 1)
11-02-2007 @ 7:55AM
camsicamsa said...
Very nice chart... plus upward guidance. Only negative is insiders are selling a bunch. Nice article Tom and thanks for bringing this stock to my radar.