NEW YORK, July 31 - Pharsight yesterday reported that a pull-back on fiscal first-quarter expenses, including R&D spending, together with a 26 percent increase in total revenue help narrow net loss.
This, accompanied with a company-wide restructuring announced last week that cost 15 percent of Pharsight's staff their job, will help the firm save as much as $3 million in annual operating costs.
For the period ended June 30, Pharsight reported total revenues of $3.5 million compared with $2.7 million in the same quarter one year ago. Receipts from new and existing software licenses led the charge in the quarter with a $500,000 increase to $1.5 million.
Meantime, R&D spending in the first quarter fell to $1.5 million from $2 million year over year, a move echoed in each of Pharsight's cost centers and reflected in a $2.6 million year-over-year reduction in total expenses.
As a result, the company posted a first-quarter net loss of $3.5 million, or $.19 per share, or $6.5 million, or $.35 per share, year over year.
Pharsight said it had slightly less than $13 million in cash, cash equivalents, and short-term investments as of June 30.
Last week, Mountain View, Calif.-based Pharsight said it decided to restructure in hopes of saving between $2.5 million and $3 million in annual operating costs and help the company better focus on its duo of software platforms and its consulting group. To that end, beside the 15-percent staff reduction, which the firm said will cost between $300,000 and $500,000 in second-quarter charges, Pharsight has created three new business units:
The company's Knowledgebase unit which will focus on Pharsight's PKS products, will be headed by Mark Robillard, senior vice president PKS business and former vice president of global sales; the Strategic Development Group which will focus on new-product design, will be led by Michael Schwartz, senior vice president of strategic development and former vice president of marketing; and the Strategic Consulting Group, which will focus on "applications of modeling and simulation methods" and "strategic decision-making," which will be headed by new recruit Mona Cross Sowiski, who was hired by Pharsight to be its senior vice president of consulting services.
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