BioClinica Inc. is a leading global provider of clinical trials services helping to support drug and product development efforts through all phases of the clinical trial process. The company offers industry-leading medical image management and best-of-breed electronic data capture to companies in the life sciences industry. In addition BioClinica offers solutions that combine these core services to maximize efficiency and manageability throughout the entire clinical development process. BioClinica with approximately 2000 successful trials helps in bringing various drugs from early phase development through final approval. It operates two state-of-the-art FDA-compliant core labs in the United States and Europe. The company is based in Newtown Pennsylvania with business offices in the United States France Germany the United Kingdom and the Netherlands. Bioclinica Inc. has a market cap of $66.2 million; its shares were traded at around $4.62 with a P/E ratio of 16.5 and P/S ratio of 1.
Highlight of Business Operations:On September 15, 2009, BioClinica acquired substantially all of the assets of Tourtellotte Solutions, Inc. (Tourtellotte). Tourtellotte provides software applications and consulting services which support clinical trials in the pharmaceutical industry. The purchase price for Tourtellotte was $2.1 million in cash. Pursuant to the acquisition agreement, the Company agreed to pay up to an additional $3.2 million in cash and 350,000 shares of our common stock based upon achieving certain milestones, which include certain product development and revenue targets. (the earn-out). The fair value of the cash earn-out of $2.8 million has been recorded as a liability and the fair value of the 350,000 shares of $1.3 million has been classified separately within stockholders equity as contingent consideration for a total purchase price of $6.2 million as of September 30, 2009. The Company used cash from operations to fund the cash purchase price for Tourtellotte. The financial results of Tourtellotte for the third quarter are included in the consolidated statement of income for the period ended September 30, 2009.
Reimbursement revenues and cost of reimbursement revenues for the three months ended September 30, 2009 and 2008 were $4.2 million and $3.0 million, respectively, an increase of $1.2 million, or 38.7%. Reimbursement revenues and cost of reimbursement revenues consist of payments received from the customer for reimbursable costs. Reimbursement revenues and cost of reimbursement revenues fluctuate significantly over the course of any given project, and quarter to quarter variations are a reflection of this project timing. Therefore, our management believes that reimbursement revenues and cost of reimbursement revenues are not a significant indicator of our overall performance trends. At the request of our clients, we may directly pay the independent radiologists who review our clients imaging data. In such cases, per contractual arrangement, these costs are billed to our clients and are included in reimbursement revenues and cost of reimbursement revenues.
Cost of service revenues for the three months ended September 30, 2009 and 2008 were $8.9 million and $8.5 million, respectively, an increase of $424,000, or 5.0%. This increase is primarily due to the addition of personnel from Tourtellotte and Cardionow from the acquisition dates and consulting fees for project related services. Cost of service revenues for the three months ended September 30, 2009 and 2008 were comprised of professional salaries and benefits and allocated overhead. The cost of revenues as a percentage of total revenues also fluctuates due to work-flow variations in the utilization of staff and the mix of services provided by us in any given period. We expect that the level of our quarterly cost of revenues will increase for the remainder of fiscal 2009 due to the addition of personnel from Tourtellotte and CardioNow.
General and administrative expenses for the three months ended September 30, 2009 and 2008 were $1.8 million and $2.0 million, respectively, a decrease of $203,000, or 10.3%. General and administrative expenses for the three months ended September 30, 2009 and three months ended September 30, 2008 consisted primarily of salaries and benefits, allocated overhead, professional and consulting services and corporate insurance. This decrease is primarily due to less professional and consulting service fees. We expect that the level of our quarterly general and administrative expenses will remain relatively flat for the remainder of fiscal 2009.
Amortization of intangible assets related to acquisitions for the three months ended September 30, 2009 and 2008 were $113,000 and $212,000 respectively, a decrease of $99,000 or 46.7%. This decrease is primarily due to the expiration of amortization costs from prior acquisitions. Amortization of intangible assets related to acquisitions consisted primarily of amortization of customer backlog, customer relationships, software and non-compete intangibles acquired from the acquisitions of PDS and Theralys. We expect that the quarterly amortization of intangible assets related to acquisitions may increase as we
Net interest income was $5,000 for the three months ended September 30, 2009 and $98,000 for the three months ended September 30, 2008, a decrease of $93,000, or 94.9%. Net interest income and expense for the three months ended September 30, 2009 and 2008 is comprised of interest income earned on our cash balance and interest expense incurred on equipment lease obligations. The decrease was due to a decline in market interest rates for short-term cash investments; we expect this trend to continue throughout 2009.
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