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ERT Reports First Quarter 2011 Operating Results
Date:5/2/2011

lution, which combines respiratory, cardiac safety, and ePRO to our customers.  Our revenue level was slightly lower than expected due to a large TQT cancellation during the quarter.  We also experienced higher cancellations in our respiratory business as three large studies were terminated by the sponsors.  We managed to moderate our expenses as some of the 2011 planned hiring and other investments were delayed.  Offsetting this was the negative impact of the foreign exchange rate changes, which resulted in a charge of approximately $0.01 per share.   Overall, we believe we are off to a strong start for 2011."

"I am also very excited to have Dr. Jeffrey Litwin appointed as our new President and Chief Executive Officer as previously announced earlier today," continued Dr. Morganroth.  "Jeff and I have worked together for many years, and he brings knowledge of the clinical research domain that is our core business and also experience in the adjacent markets of Phase IV safety surveillance and healthcare."

2011 Guidance The Company reaffirmed its previously-issued guidance for the full year of 2011.  ERT expects net revenues of between $178 million and $188 million for 2011.  ERT expects GAAP diluted net income per share to be between $0.30 and $0.40 for 2011 and non-GAAP diluted net income per share to be between $0.40 and $0.50 for the same period.   For the second quarter ending June 30, 2011, ERT expects net revenues of between $43.0 million and $46.0 million, GAAP diluted net income per share to be between $0.05 and $0.08 and non-GAAP diluted net income per share to be between $0.08 and $0.11.  

Use of Non-GAAP Financial MeasuresIn addition to GAAP financial measures, ERT uses certain non-GAAP financial measures that exclude charges related to the amortization of the RS acquired intangible and other assets and acquisition and other costs which are related to the RS acquisition, and als
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