Chip Jennings, the new chief executive officer at clinical software and services firm etrials, warned Monday that more changes are going to be made at the firm.
Jennings has already brought in an interim chief operating officer and made other organizational moves since taking over in May. He replaced founding CEO John Cline.
In an earnings announcement Monday after the markets closed, etrials (Nasdaq: ETWC) reported a jump in revenues but an increase in losses and a big drop in new orders. Etrials provides services for contract research organizations and pharmaceutical firms in clinical trials.
“etrials claimed an early lead in the eClinical space with its three integrated products and flexible solutions but has, since the end of 2005, failed to keep pace with the industry’s rapid growth – ceding leadership and market share in all segments in which it competes,” Jennings said in a statement.
“To capitalize on our assets and re-assert our position in a nascent market that still offers abundant growth opportunities, we are formulating a fresh go-to-market strategy and implementing the necessary structure to jump start the revenue growth engine, drive market share gains and put the company on track to achieve high levels of sustainable profitability,” he added in his lengthy statement.
“As a first step, the organization is sharpening its focus on operational excellence, with particular emphasis on customer service, sales and client service delivery mechanisms,” he added. “We have already implemented a number of initiatives to improve the business, including reorganizing the sales force, hiring a new COO, and launching a client services practice. In the second half of the year, we plan to continue the process of retooling the operations by selectively investing to fill gaps in the sales staff; revamping sales management and procedures; and redeploying marketing resources. These various actions will enable etrials to expand into a comprehensive and responsive clinical patient information solutions provider.”
etrials loss $1.3 million in the second quarter even though revenues surged 25 percent from a year ago to $4.2 million. Of that loss, $800,000 was linked to Cline’s severance and Jennings’ hiring.
When Clines left the firm and Jennings was hired, etrials said Cline had resigned.
Net new project bookings for the quarter also declined 31 percent to $3.4 million.
For the third quarter, etrials forecast that revenues “will increase modestly” over 2006. Due to many changes to be made in the company, etrials said it would “suspend guidance” of new project bookings.
