Medidata Solutions, a leading global provider of SaaS-based clinical technology solutions that enhance the efficiency of clinical development, posted record revenues, margins and profitability for the first quarter and full year ended December 31, 2010, and provided financial guidance for the first quarter and full year 2011.
“We finished 2010 with very good momentum. We expect 2011 to be another excellent year for Medidata, including expectations of strong cash flow generation. Our vision of helping customers develop successful drugs faster and more efficiently continues to resonate in the market, as we provide better information for critical portfolio decisions. Our success is scalable and we will continue to execute,” Bruce Dalziel, CFO of Medidata stated in the press release.
The company noted that net revenue, operating income and net income figures for the quarter and full year include a $3.2 million, one-time acceleration of revenue recognition related to its termination of a government contract on behalf of the National Cancer Institute (NCI). The NCI and certain NCI-supported organizations continue to use the Rave software licenses acquired under the original procurement. To lay out the comparison of results, Medidata presents pro forma results excluding this event, posting pro forma net revenues for the quarter at $44.1 million, 18 percent increase year-on-year.
Net revenues for the fourth quarter of 2010 were $47.4 million, 26 percent increase compared to $37.5 million in the fourth quarter of 2009.
Gross margins in the fourth quarter of 2010 were 71 percent compared to gross margins of 67 percent reported for the comparable quarter of last year; pro forma gross margins were 69 percent as compared to 67 percent a year ago.
For full year 2010, the company reported net revenues at $166.4 million, 19 percent increase compared with $140.4 million in 2009; pro forma net revenues for the full year were $163.2 million, an increase of $22.8 million, or 16 percent year-on-year.
Gross margins for the year were 69 percent as compared to 64 percent of margins generated in 2009; pro forma gross margins were 68 percent, compared with 64 percent margins in the prior year.
As of December 31, 2010, Medidata had total cash, cash equivalents and marketable securities of $85.5 million at the end of the fourth quarter, a decrease of $3.6 million from the third quarter and compares to $89 million at the end of the fourth quarter 2009.
The company also offered full year 2011 guidance, with expectations of revenues to be between $180 million and $188 million, which includes a $4.8 million reduction in 2011 NCI revenue the company had expected to recognize from its backlog.
Beginning of year backlog for full year 2011 was $135 million, which represents the amount of 2011 contractual revenue booked as of January 1, 2011, as compared to the beginning of year backlog for full year 2010 of $132 million.
For the first quarter of 2011, the company expects revenues to be between $40.5 million and $41.5 million.
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