Medidata Q3 Net Profit Slumps; Adj. EPS Misses Street; Updates FY Forecast

(RTTNews) - Medidata Solutions, Inc. (MDSO) Tuesday reported a sharp plunge in net profit for the third quarter of 2014, and revised its full-year 2014 guidance.

For the quarter, GAAP net income plummeted to $0.16 million, or $0.00 per share, from last year's $5.27 million, or $0.10 per share. On a non-GAAP basis, net income for the third quarter of 2014 stood at $11.1 million, or $0.20 per share. On average, 12 analysts polled by Thomson Reuters expected the company to earn $0.22 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the period were $86.0 million, a 21% increase from $70.9 million reported in the third quarter of 2013. Ten analysts expected third-quarter revenues of $87.72 million. Subscription revenue totaled $71.5 million, up 23% year-over-year, the company said.

For the full year 2014, the company now sees non-GAAP net income between $38.0 million and $39.5 million, that includes the tax affected adjustments primarily from stock-based compensation, non-cash interest expense associated with convertible senior notes, wire transaction loss and amortization at a 40% effective tax rate. Based on current estimates, this would equate to GAAP net income of $3.0 million - $4.5 million. The current estimated GAAP equivalents to its non-GAAP outlook include the impact of a pre-tax charge of $4.9 million associated with a prior announced international wire transfer fraud committed against the company and the related investigation costs at the end of the third quarter.