Phase Forward’s increased costs and expenses outstrip revenue gain; profit down 53 pct

Phase Forward 1Q profit tumbles on higher costs

WALTHAM, Mass. — Phase Forward Inc., a provider of data management software for drug safety and clinical trials, said Tuesday its first-quarter profit fell 53 percent as business costs and operating expenses outstripped modest revenue gains.

The company reported net income of $1.9 million, or 5 cents per share, compared with $4.1 million, or 9 cents per share a year ago.

Revenue rose 17 percent to $57.2 million.

Excluding an accounting adjustment, the company earned $5.2 million, or 12 cents per share, compared with $6.7 million, or 15 cents per share a year ago.

Analysts surveyed by Thomson Reuters expected 12 cents per share.

Its shares slipped 2 cents to $16.78.

Earlier this month Oracle Corp. announced it would buy Phase Forward for $685 million.

The deal is expected to close in the middle of this year.