eResearchTechnology Pounded

The medical-equipment company slashes first-quarter revenue because of industry uncertainty.
By TSC Staff ,

eResearchTechnology

(ERES)

shares were hammered in heavy trading Friday after the company slashed first-quarter revenue guidance.

The Philadelphia-based company, which makes heart monitoring equipment, expects revenue to be 12% to 18% below the low end of previous guidance, which was $26 million to $28 million.

eResearch cited delays in trial starts, cardiac safety studies and uncertainty related to the timing of closing contracts.

Analysts had expected revenue of $27.1 million for the quarter ending March 31.

"There is a considerable amount of uncertainty in the clinical research or drug development industry at this time, due in part to evolving regulatory guidance," the company said in a statement late Thursday. "Such uncertainty has caused a slowing in new signings as well as delays in the initiation of new studies. This trend has continued in the first quarter."

The company said it will announce complete first-quarter results and provide additional guidance on April 27.

"We believe that regulators will reinforce the importance of cardiac safety testing in clinical trials at the upcoming targeted conferences on this issue in April and May 2005," the company said.

Shares fell $3.28, or 24%, to $10.48. Some 4.5 million shares changed hands, four times the average daily volume.

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