BioClinica releases financial results for the third quarter of 2009

BioClinica™, Inc. (NASDAQ: BIOC), a global provider of clinical trial services, today announced its financial results for the quarter and nine months ended September 30, 2009. The operating results of Phoenix Data Systems (“PDS”) are included in the financial results following the acquisition of PDS that was completed March 24, 2008. The CapMed division, which was sold on January 6, 2009, was reclassified as a discontinued operation for all periods presented.

We are commencing the presentation of certain non-GAAP financial information that we believe is useful in assessing our core operating performance, evaluating our ongoing business operations and comparing our results of operations on a consistent basis from period to period. We are providing information for 2009 and 2008 non-GAAP income from continuing operations before interest and taxes, non-GAAP income from continuing operations net of taxes, and non-GAAP diluted earnings per share. The non-GAAP information excludes the impact of stock-based compensation, amortization of intangible assets related to acquisitions, restructuring charges and merger and acquisition costs. See further discussion and information in “non-GAAP financial information” paragraph and “GAAP to non-GAAP Reconciliation” table below.

Financial highlights for the quarter ended September 30, 2009 include:

• Service revenues were $14.1 million as compared with $15.1 million for the same period 2008.
• GAAP income from continuing operations before interest and taxes was $1.2 million as compared with $2.3 million for the same period 2008.
• GAAP income from continuing operations, net of taxes was $674,000, or $0.05 per fully diluted share as compared with $1.5 million, or $0.10 per fully diluted share, for the same period 2008.
• Non-GAAP income from continuing operations before interest and taxes was $2.0 million as compared with $2.7 for the same period 2008.
• Non-GAAP income from continuing operations, net of taxes was $1.2 million or $0.08 per fully diluted share, as compared with $1.8 million, or $0.12 per fully diluted share, for the same period 2008.
• Backlog was $96.5 million as of September 30, 2009 as compared with $94.1 million at June 30, 2009 and compared with $101.7 million as of September 30, 2008.

Financial highlights for the nine months ended September 30, 2009 include:

• Service revenues were $42.5 million as compared with $41.2 million for the same period 2008.
• GAAP income from continuing operations before interest and taxes was $3.1 million as compared with $6.2 million for the same period 2008.
• GAAP income from continuing operations net of taxes was $2.0 million, or $0.13 per fully diluted share, as compared with $4.1 million, or $0.29 per fully diluted share, for the same period 2008.
• Non-GAAP income from continuing operations before interest and taxes was $5.1 million as compared with $7.1 million for the same period 2008.
• Non-GAAP income from continuing operations, net of taxes was $3.2 million or $0.21 per fully diluted share, as compared with $4.7 million, or $0.33 per fully diluted share, for the same period 2008.

The Company is reiterating its full year 2009 service revenues guidance of $57-$60 million and its full year 2009 GAAP EPS guidance of $0.18 to $0.21 per share, and issuing non-GAAP EPS guidance of $0.27 to $0.30 per share.

Mark L. Weinstein, President and Chief Executive Officer of BioClinica said, “The third quarter was very positive and busy on multiple fronts. Our operating results were in line with our expectations and we completed the acquisitions of Tourtellotte Solutions, Inc. (“Tourtellotte”) and CardioNow, a unit of Agfa Healthcare (“CardioNow”). The integration of both acquisitions is on schedule and we believe both Tourtellotte and CardioNow will be accretive in 2010. We continue to see a pickup in proposal activity and the sequential quarter over quarter increase in backlog indicates a strengthening of the overall clinical trial services market.”

“The CardioNow solutions provide core labs, investigator sites, and medical device and pharmaceutical companies with an established and proven web-based system for the secure, regulatory compliant transmission and analysis of medical images that are integral components of clinical trials. CardioNow fits perfectly into BioClinica’s strategy of adding components that both complement our current products and services and help to create a more efficient clinical trial process,” Mr. Weinstein added.

Mr. Weinstein continued, “With the addition of the Tourtellotte team we have a tremendous set of resources and products. Tourtellotte pioneered the first major parameter-driven interactive voice response (IVR) and the world’s first interactive web response (IWR) for a top five global pharmaceutical company. The software they designed, developed and continue to support is currently being used in over 150 active clinical trials and has been used in over 300 trials since its inception. As a part of BioClinica, Ed Tourtellotte and his expanded team are currently developing a state of the art next-generation interactive voice/interactive web response system (IXR) that redefines how interactive response technology can function in the biopharmaceutical industry. It is parameter-driven, built specifically for the web, and is able to support rapid, flexible customization that gives sponsors greater control over cost and data than traditional IVR. In addition to the new IXR product we are actively marketing Tourtellotte’s tcVisualize product, which is a software solution that allows biopharmaceutical companies to simulate and optimize the clinical supply chain. Using tcVisualize, study managers can develop the perfect clinical supply plan resulting in a rapid return on investment by reducing product waste, trial delays, and lost patient enrollment due to product stockouts. tcVisualize is currently being used by four of the top ten global pharmaceutical companies.”

“Our strong balance sheet supports our ability to grow our company both organically and through acquisitions. Acquisitions continue to be an important part of our growth strategy and we intend to seek acquisitions that are complementary to our current suite of products and services while helping to create a more efficient clinical trial process,” Mr. Weinstein said.

Mr. Weinstein concluded, “I am very pleased with our operational performance and our enhanced opportunities due to our recent acquisitions. I believe our vision of offering “best in class” integrated solutions to pharmaceutical, biotechnology and medical device companies to improve the overall efficiency of the drug development process is completely in line with what our clients are looking for and, therefore, will lead to ongoing successes in the future.”