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Waltham, Massachusetts - (Cheap Web Hosting Directory) - March 22, 2007 - Web host and integrated data management solutions firm, Phase Forward Incorporated, has released its financial results for the fourth quarter and full year 2006.

Highlights of the report include:

• Bookings Grew 52% to $137 Million, Resulting in Ending Backlog of $217 Million
• Fourth Quarter Revenue Grew 28% to $30.2 Million
• Fourth Quarter Non-GAAP Income from Operations Grew 67% to $4.1 Million

Revenues for the fourth quarter of 2006 were $30.2 million, a 28% increase from $23.6 million in the fourth quarter of 2005. Within total revenues, InForm license, application hosting and other related revenues were $21 million, an increase of 41% from $14.9 million in the prior year period, representing 69% of fourth quarter total revenues.

Bob Weiler, Chief Executive Officer and President, remarked, “The fourth quarter was a strong finish to an excellent year for Phase Forward. During 2006, we accomplished key objectives such as winning numerous major purchase decisions, expanding and diversifying our customer base, and enhancing our market leadership position. Strong execution against these objectives enabled the company to exceed our original 2006 financial guidance for revenue, profitability and bookings, and we are optimistic about our outlook heading into 2007.”

Mr. Weiler added, “During the fourth quarter, we continued to gain traction in major market segments, with the selection of our WebVDME post-market signal detection and data mining product by a top 5 global pharmaceutical company. Additional wins included the selection of our InForm ASP offering by a major healthcare company and two medical device companies, among others. On the Clinical Research Organization (CRO) front, our increased focus on building relationships with leading CROs has gained significant momentum as we continue to add new partners with some selecting Phase Forward as their standard EDC platform. Customers and CROs alike are turning to Phase Forward because of our proven scalability, customer references and product and services leadership position.”

For the fourth quarter of 2006, GAAP income from operations was $2.9 million, compared to a loss from operations of $6.4 million in the fourth quarter of 2005. The fourth quarter of 2005 included a patent litigation settlement for $8.5 million. GAAP net income for the period was $5.5 million, or $0.15 per diluted share, compared to a net loss of $2.1 million, or a loss per diluted share of $0.06, in the fourth quarter of 2005. Fourth quarter results in 2006 and 2005 included a per share benefit of $0.07 and $0.13, respectively, related to adjustments to the amount of the release of the company’s deferred tax asset valuation allowance.

For the fourth quarter of 2006, non-GAAP income from operations was $4.1 million, representing an increase of 67% from the prior year period and an operating margin of 13.6%. Non-GAAP net income for the period was $6.7 million, or $0.19 per diluted share, compared to $6.8 million, or $0.19 per diluted share, in the fourth quarter of 2005. Both fourth quarters included the benefit of the tax adjustments.

Cash, cash equivalents and short-term investments were $69.6 million at the end of the fourth quarter, an increase of $4.0 million from $65.6 million at the end of the prior quarter and an increase of $9.0 million for the year. Total deferred revenue was $50.7 million at the end of the quarter, an increase from $48.1 million at the end of the prior quarter.
Business Highlights include:

• A top 5 global pharmaceutical company purchased Phase Forward’s WebVDME and Signal Management safety products during the fourth quarter. This same company selected InForm as its standard EDC platform in early 2006, underscoring this industry leader’s adoption of EDC and safety solutions.
• A major healthcare company, which specializes in treatment of complex conditions such as hemophilia, immune disorders and cancer, signed on as a new customer for the use of the InForm solution on an ASP basis.
• The company continued to expand its customer base in 2006 with a total of 38 new customers for the year. In the fourth quarter, the company added new pharmaceutical and biotech customers including Altana Pharma AG, Teijin Pharma, and Orexigen. The adoption of EDC technology continued to grow in the medical device segment throughout the year, culminating with the addition of CardioFocus and CardioDynamics in the fourth quarter.
• The company’s focus on expanding and improving its relationships with CROs continued to gain momentum in the fourth quarter as key CRO partners, large and small, conducted additional studies using Phase Forward’s InForm EDC platform. Earlier this week, the company added to this momentum by announcing a partnership with ICON, one of the world’s largest CROs, as part of Phase Forward’s CRO Advantage Program. Demonstrating immediate success, this partnership has jointly secured several studies.
• During the fourth quarter, the company announced the immediate availability of a new version (2.0) of the company’s Clinical Trials Signal Detection (CTSD) system, which enables clinical safety and medical monitoring staff to analyze clinical data for the purpose of detecting, evaluating and tracking potential safety signals.

Revenues for the full year 2006 were $106.6 million, a 22% increase from $87.1 million in the full year 2005. Within total revenues, InForm license, application hosting and other related revenues were $72.3 million, an increase of 29% from $56.0 million in 2005, representing 68% of 2006 total revenues. GAAP income from operations was $9.3 million in 2006, compared to a loss from operations of approximately $263,000 in 2005. GAAP net income was $12.3 million, or $0.35 per diluted share, for the full year 2006, compared to $3.3 million, or $0.10 per diluted share, in the full year 2005. Non-GAAP income from operations was $13.2 million in 2006, representing an increase of 46% from 2005 and a full year operating margin of 12.4%. Non-GAAP net income was $16.2 million, or $0.45 per diluted share, for the full year 2006. Non-GAAP net income was $12.7 million, or $0.36 per diluted share, in 2005.

For the first quarter of 2007, the company expects revenues to be between $29.0 and $29.8 million. The company expects non-GAAP operating income to be between $4.0 and $4.3 million, with non-GAAP EPS between $0.11 and $0.12. GAAP EPS is expected to be between $0.08 and $0.09, including non-cash expenses associated with stock-based compensation expense and the amortization of intangible assets.

For the full year 2007, the company expects revenues to be between $124 and $129 million and bookings to be between $135 and $150 million. On a non-GAAP basis, operating income is expected to be between 14% and 15%, with non-GAAP EPS between $0.47 and $0.51. GAAP EPS is expected to be between $0.33 and $0.37, including non-cash expenses associated with stock-based compensation expense and the amortization of intangible assets.

Phase Forward is a provider of web hosting and integrated data management solutions for clinical trials and drug safety. The company offers solutions for electronic data capture (InForm), clinical data management (Clintrial), clinical trials signal detection (CTSD), strategic pharmacovigilance (WebVDME) and Signal Management), adverse event reporting (Clintrace) and applied data standards (WebSDM). In addition, the company provides services in the areas of application implementation, hosting and validation, data integration, business process optimization, safety data management and industry standards. Phase Forward’s products and services have been utilized in over 10,000 clinical trials involving more than 1,000,000 clinical trial study participants at over 260 organizations and regulatory agencies worldwide including: AstraZeneca, Boston Scientific, Dana-Farber Cancer Institute, Eli Lilly, Food and Drug Administration, GlaxoSmithKline, Merck, U.K. Medicines and Healthcare Products Regulatory Agency, National Institutes of Health, Procter and Gamble, Quintiles, sanofi-aventis, Schering-Plough Research Institute, Serono and Servier.

To learn more, please visit: www.phaseforward.com.

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