MOUNTAIN VIEW, Calif., Jan. 24 PharsightCorporation (Nasdaq: PHST), a leading provider of software and strategicservices designed to optimize clinical drug development, today announcedfinancial results for its third quarter of fiscal 2008, ended December 31,2007. Revenue for the third quarter was $7.4 million, a 20% increase comparedwith revenue of $6.1 million in the third quarter of fiscal 2007.
"The fiscal third quarter of 2008 was a productive period for Pharsightduring which we achieved tangible operational milestones that resulted in arecord level of quarterly revenue and the successful re-listing of theCompany's common stock on the Nasdaq Capital Market," said Shawn O'Connor,chairman and chief executive officer. "In our software business unit, we grewrevenue by 24% compared with the fiscal third quarter of 2007 and added our21st PKS(TM) and our third WinNonlin(R) AutoPilot(TM) customers. In addition,we surpassed the 100 customer milestone with our IVIVC Toolkit(TM) forWinNonlin that we released a year ago. Each of these achievements illustratesour continued progress in growing our relationships with our customers whileexpanding the overall addressable market for our products.
Within our consulting services business, which includes the StrategicConsulting Services (SCS) and Reporting and Analysis Services (RAS) units, wegrew quarterly revenue by 17% year-over-year and were engaged for a total of26 new agreements during the quarter," said Mr. O'Connor. "We continue to reapthe benefits of our investment in our RAS business and our successful effortsto diversify our SCS business practice have resulted in our top five customersrepresenting 50% of our total SCS revenue this quarter compared with 74% inthe same quarter of fiscal 2007.
During the first 9 months of fiscal 2008, we've achieved annual revenuegrowth of 16%, gross margin of 65% and non-GAAP net income that was 9% ofrevenue," continued Mr. O'Connor. "Based upon our year-to-date performance,we remain on track with our full-year financial guidance."
Pharsight's recent highlights in its software and consulting servicesbusinesses include:
Additional Financial Results
Gross margin in the third quarter of fiscal 2008 was 64%. GAAP net incomeattributable to common stockholders was $532,000 in the fiscal third quarterof 2008, up 77% compared with $300,000 in the comparable period of fiscal2007. Net earnings per basic and diluted share were $0.06 and $0.05respectively during the third quarter of fiscal 2008 compared with $0.05 and$0.04 respectively during the third fiscal quarter of 2007. Non-GAAP netearnings per basic and diluted share for the third quarter of fiscal 2008,which exclude the impact of stock-based compensation, were both $0.09 comparedwith $0.08 and $0.07 respectively for the third quarter of fiscal 2007.Historical earnings per share calculations for the quarter and nine-monthperiods have been updated to reflect the 1-for-3 reverse stock split effectedin November 2007.
Revenue for the first nine months of fiscal 2008 was $20.8 million, up 16%from $17.8 million reported for the same period of fiscal 2007. Gross marginfor the first nine months of fiscal 2008 was 65%. GAAP net income for thefirst nine months of fiscal 2008 was $1.1 million up 9% compared with thecomparable period of fiscal 2007. Excluding the impact of stock-basedcompensation, non-GAAP net income for the first nine months of fiscal 2008 was$2 million, 9% of revenue for the period. Net loss per basic and dilutedshare during the first nine months of fiscal 2008 were both $0.72 and included$0.82 in a non-cash accounting charge associated with the preferred stockconversion in the first quarter of fiscal 2008. Net income per basic anddiluted share during the first nine months of fiscal 2007 were both $0.06.Non-GAAP net earnings per basic and dilut