Thursday after the bell, clinical development solutions provider Medidata Solutions, Inc. (MDSO) turned to a profit for the third-quarter, compared to a loss in the year-ago period on a 27% increase in revenue.
Medidata's third-quarter net profit was $1.6 million or $0.06 per share, compared with a loss of $3.4 million or $0.51 per share in the year-ago period.
Non-GAAP net income was $3.5 million, compared with a loss of $2.1 million in the prior-year period. On a per share basis, non-GAAP net income was $0.15, compared to a loss of $0.32.
Analysts polled by Thomson Reuters expected earnings of $0.04 for the quarter. Analysts' estimates typically exclude one-time items.
Medidata's total revenue increased 27% to $35.21 million from $27.81 in the year-earlier quarter. Analysts expected the company to post revenue of $33.62 million.
Segment-wise, revenue from application services shot up 36% to $25.95 million from $19.13 million, while revenue from professional services increased to $9.26 million from $8.67 million in the year-earlier period.
Total operating costs and expenses increased to $20.13 million from $18.09 million in the prior-year period.
For the nine-month period, net income was $3.44 million or $0.17 per share, compared to a loss of $17.85 million or $2.72 per share. Revenue increased to $102.84 million from $74.54 million a year earlier.
For the fourth-quarter, Medidata expects to report GAAP net income of between $0.4 million and $1.4 million and non-GAAP net income between $2.3 million and $3.3 million. The company also expects revenue between $35.2 million and $36.2 million. Analysts expect the company to report revenue of $34.78 million for the fourth quarter.
For the full year, Medidata expects GAAP net income between $3.8 million and $4.8 million and non-GAAP net income between $10.5 million and $11.5 million. It also increased its previous revenue guidance in the range of $135 million and $137 million to the range of $138 million and $139 million.
Analysts expect the company to post revenue of $136.06 million.
MDSO closed Thursday's regular trading session at $15.40, up $0.19, on the Nasdaq.
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