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ERT Reports Third Quarter 2010 Results
Date:11/4/2010

PHILADELPHIA, Nov. 4, 2010 /PRNewswire-FirstCall/ -- eResearchTechnology, Inc. (ERT), (Nasdaq: ERES), a global provider of technology and services to the pharmaceutical, biotechnology, and medical device industries, announced today results for the three and nine months ended September 30, 2010.  Unless otherwise noted, all comparative numbers refer to changes from the same period a year ago.  The financial results for the third quarter of 2010 include a full quarter of results related to the acquisition of CareFusion Research Services (RS), which was completed on May 28, 2010.

This press release contains financial measures prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and non-GAAP measures, which exclude the impact of the amortization of the acquired intangibles and other assets and acquisition and other costs related to the recent acquisition of RS and related income tax effects.  A reconciliation of these GAAP and non-GAAP measures is found in the attached "Reconciliation of GAAP to Non-GAAP Information."

Financial highlights for the third quarter of 2010

  • Net revenues were $45.1 million for the third quarter of 2010 compared to $29.1 million for the second quarter of 2010 and $22.7 million a year ago.  Revenues from RS were $21.5 million in the third quarter of 2010, compared to $5.7 million in the second quarter of 2010 (which only had one month of revenue from RS).
  • GAAP gross margin percentage was 44.5% in the third quarter of 2010 compared to 54.4% for the second quarter of 2010 and 51.6% a year ago.  The gross margin percentage decline was due to (1) inclusion of a full quarter of RS financials in the third quarter compared to the inclusion of one month of RS financials in the second quarter as RS historically has had a lower gross margin than  ERT
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  • SOURCE eResearchTechnology, Inc.
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