##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-Q
  þ
    
    Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
 For the quarterly period ended March 31, 2009
 or
 o
    
    Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the transitional period from  to
 Commission
file number 0-29100
 eResearchTechnology, Inc.
  Delaware
    
    22-3264604(State or other jurisdiction of
incorporation or organization)
    
    (I.R.S. Employer Identification No.)1818 Market StreetPhiladelphia, PA
    
    19103(Address of principal executive offices)
    
    (Zip code)
  (Registrants telephone number, including area code)
 þ o
 o o
  Large accelerated filer þ
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company o(Do not check if a smaller reporting company)
 Yes o No þ




---



##### 



INDEX
 PagePart I. Financial InformationItem 1. Financial StatementsConsolidated Balance Sheets-December 31, 2008 and March 31, 2009 (unaudited)
    
    
    3Consolidated Statements of Operations (unaudited)Three Months
Ended March 31, 2008 and 2009
    
    
    4Consolidated Statements of Cash Flows (unaudited)Three Months
Ended March 31, 2008 and 2009
    
    
    5Notes to Consolidated Financial Statements (unaudited)
    
    
    6-15Item 2. Managements Discussion and Analysis of Financial Condition and Results of
Operations
    
    
    16-24Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    24Item 4. Controls and Procedures
    
    
    24Part II. Other InformationItem 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    25Item 6. Exhibits
    
    
    25Signatures
    
    
    26Exhibit Index
    
    
    27Exhibit 10.14Exhibit 10.32Exhibit 10.45Exhibit 10.57Exhibit 10.58Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
   2




---



##### Table of Contents



Part 1. Financial Information
 
 Item 1. Financial Statements
  
   December 31, 2008
    
    
    March 31, 2009AssetsCurrent Assets:Cash and cash equivalents
    
    $
    66,376
    
    
    $
    65,518Short-term investments
    
    
    50
    
    
    
    50Accounts receivable, net
    
    
    29,177
    
    
    
    21,676Prepaid income taxes
    
    
    1,892
    
    
    
    1,818Prepaid expenses and other
    
    
    2,885
    
    
    
    3,285Deferred income taxes
    
    
    1,831
    
    
    
    1,703Total current assets
    
    
    102,211
    
    
    
    94,050Property and equipment, net
    
    
    29,639
    
    
    
    27,105Goodwill
    
    
    34,603
    
    
    
    34,653Long-term investments
    
    
    
    
    
    
    Intangible assets
    
    
    2,149
    
    
    
    2,012Deferred income taxes
    
    
    
    
    
    
    Other assets
    
    
    520
    
    
    
    447Total assets
    
    $
    169,122
    
    
    $
    158,267Liabilities and Stockholders EquityCurrent Liabilities:Accounts payable
    
    $
    3,971
    
    
    $
    5,153Accrued expenses
    
    
    8,140
    
    
    
    4,690Income taxes payable
    
    
    2,492
    
    
    
    805Current portion of capital lease obligations
    
    
    43
    
    
    
    Deferred revenues
    
    
    12,276
    
    
    
    12,608Total current liabilities
    
    
    26,922
    
    
    
    23,256Capital lease obligations, excluding current portion
    
    
    
    
    
    
    Deferred rent
    
    
    2,183
    
    
    
    2,296Deferred income taxes
    
    
    1,332
    
    
    
    1,326Other liabilities
    
    
    1,257
    
    
    
    1,117Total liabilities
    
    
    31,694
    
    
    
    27,995Commitments and contingenciesStockholders Equity:Preferred stock  $10.00 par value, 500,000 shares authorized,
none issued and outstanding
    
    
    
    
    
    
    Common stock  $.01 par value, 175,000,000 shares authorized,
59,950,257 and 59,974,108 shares issued, respectively
    
    
    600
    
    
    
    600Additional paid-in capital
    
    
    93,828
    
    
    
    94,826Accumulated other comprehensive income (loss)
    
    
    (2,716
    )
    
    
    (2,948
    )Retained earnings
    
    
    110,479
    
    
    
    112,549Treasury stock, 8,686,868 and 10,652,320 shares at cost, respectively
    
    
    (64,763
    )
    
    
    (74,755
    )Total stockholders equity
    
    
    137,428
    
    
    
    130,272Total liabilities and stockholders equity
    
    $
    169,122
    
    
    $
    158,267
   3




---



##### Table of Contents



Three Months Ended March 31,2008
    
    
    2009Net revenues:Licenses
    
    $
    625
    
    
    $
    709Services
    
    
    25,273
    
    
    
    16,817Site support
    
    
    7,775
    
    
    
    6,260Total net revenues
    
    
    33,673
    
    
    
    23,786Costs of revenues:Cost of licenses
    
    
    200
    
    
    
    205Cost of services
    
    
    10,514
    
    
    
    7,954Cost of site support
    
    
    5,268
    
    
    
    3,635Total costs of revenues
    
    
    15,982
    
    
    
    11,794Gross margin
    
    
    17,691
    
    
    
    11,992Operating expenses:Selling and marketing
    
    
    3,323
    
    
    
    3,426General and administrative
    
    
    4,873
    
    
    
    4,077Research and development
    
    
    999
    
    
    
    1,149Total operating expenses
    
    
    9,195
    
    
    
    8,652Operating income
    
    
    8,496
    
    
    
    3,340Other income, net
    
    
    427
    
    
    
    116Income before income taxes
    
    
    8,923
    
    
    
    3,456Income tax provision
    
    
    3,177
    
    
    
    1,386Net income
    
    $
    5,746
    
    
    $
    2,070Basic net income per share
    
    $
    0.11
    
    
    $
    0.04Diluted net income per share
    
    $
    0.11
    
    
    $
    0.04Shares used to calculate basic net
income per share
    
    
    50,638
    
    
    
    50,879Shares used to calculate diluted net
income per share
    
    
    51,894
    
    
    
    51,164
   4




---



##### Table of Contents



Three Months Ended March 31,2008
    
    
    2009Operating activities:Net income
    
    $
    5,746
    
    
    $
    2,070Adjustments to reconcile net income to net cash
provided by operating activities:Depreciation and amortization
    
    
    4,344
    
    
    
    3,404Cost of sales of equipment
    
    
    414
    
    
    
    7Provision for uncollectible accounts
    
    
    30
    
    
    
    105Share-based compensation
    
    
    470
    
    
    
    901Deferred income taxes
    
    
    (362
    )
    
    
    111Changes in
operating assets and liabilities:Accounts receivable
    
    
    (222
    )
    
    
    7,331Prepaid expenses and other
    
    
    (11
    )
    
    
    (459
    )Accounts payable
    
    
    (984
    )
    
    
    143Accrued expenses
    
    
    (1,413
    )
    
    
    (3,436
    )Income taxes
    
    
    63
    
    
    
    (1,601
    )Deferred revenues
    
    
    (344
    )
    
    
    384Deferred rent
    
    
    (135
    )
    
    
    107Net cash provided by operating activities
    
    
    7,596
    
    
    
    9,067Investing activities:Purchases of property and equipment
    
    
    (1,430
    )
    
    
    (1,613
    )Proceeds from sales of investments
    
    
    455
    
    
    
    Payments for acquisition
    
    
    (3,673
    )
    
    
    Net cash used in investing activities
    
    
    (4,648
    )
    
    
    (1,613
    )Financing activities:Repayment of capital lease obligations
    
    
    (751
    )
    
    
    (43
    )Proceeds from exercise of stock options
    
    
    189
    
    
    
    59Stock option income tax benefit
    
    
    103
    
    
    
    38Repurchase of common stock for treasury
    
    
    
    
    
    
    (8,190
    )Net cash used in financing activities
    
    
    (459
    )
    
    
    (8,136
    )Effect of exchange rate changes on cash
    
    
    (3
    )
    
    
    (176
    )Net increase (decrease) in cash and cash equivalents
    
    
    2,486
    
    
    
    (858
    )Cash and cash equivalents, beginning of period
    
    
    38,082
    
    
    
    66,376Cash and cash equivalents, end of period
    
    $
    40,568
    
    
    $
    65,518
   5




---



##### Table of Contents



eResearchTechnology, Inc. and Subsidiaries
 
 Notes to Consolidated Financial Statements
 (unaudited)
 Note 1. Basis of Presentation
  Note 2. Summary of Significant Accounting Policies
 Principles of Consolidation
  Reclassifications
  Use of Estimates
  Revenue Recognition
      6




---



##### Table of Contents



Concentration of Credit Risk and Significant Clients
   Cash and Cash Equivalents
  Short-term Investments
  Property and Equipment
    7




---



##### Table of Contents



Goodwill
    Long-lived Assets
  Software Development Costs
   8




---



##### Table of Contents



Stock-Based Compensation
 Accounting for Stock-Based Compensation
  Valuation Assumptions for Options Granted
  2008
    
    
    2009Risk-free interest rate
    
    
    2.10
    %
    
    
    1.33
    %Expected life
    
    3.5 years
    
    
    3.5 yearsExpected volatility
    
    
    52.03
    %
    
    
    63.97
    %
  Equity Incentive Plans
     9




---



##### Table of Contents



RemainingWeighted
    
    
    Contractual
    
    
    IntrinsicAverage
    
    
    Term
    
    
    ValueShares
    
    
    Exercise Price
    
    
    (in years)
    
    
    (in thousands)Outstanding as of January 1, 2009
    
    
    3,635,860
    
    
    $
    11.03Granted
    
    
    1,218,150
    
    
    
    4.60Exercised
    
    
    (23,851
    )
    
    
    2.49Cancelled/forfeited
    
    
    (48,401
    )
    
    
    18.05Outstanding as of March 31, 2009
    
    
    4,781,758
    
    
    $
    9.37
    
    
    
    5.3
    
    
    $
    2,196Options exercisable or expected to vest at March 31, 2009
    
    
    4,481,091
    
    
    $
    9.48
    
    
    
    5.3
    
    
    $
    2,088Options exercisable at March 31, 2009
    
    
    2,777,308
    
    
    $
    10.64
    
    
    
    4.5
    
    
    $
    1,488
    Tax Effect Related to Stock-based Compensation Expense
  Note 3. Fair Value of Financial Instruments
    10




---



##### Table of Contents



Level 1
    
    Unadjusted quoted prices in active markets for identical assets or liabilitiesLevel 2
    
    Unadjusted quoted prices in active markets for similar assets or liabilities, or
Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or
Inputs other than quoted prices that are observable for the asset or
liabilityLevel 3
    
    Unobservable inputs for the asset or liability
  Fair Value Measurements at December 31, 2008Quoted Prices
    
    
    
    
    
    
    Significantin Active Markets
    
    
    Significant Other
    
    
    Unobservablefor Identical Assets
    
    
    Observable Inputs
    
    
    InputsTotal
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Money market funds
    
    $
    66,376
    
    
    $
    66,376
    
    
    $
    
    
    
    $
    Auction rate securities
    
    
    50
    
    
    
    
    
    
    
    
    
    
    
    50Total
    
    $
    66,426
    
    
    $
    66,376
    
    
    $
    
    
    
    $
    50
 Fair Value Measurements at March 31, 2009Quoted Prices
    
    
    
    
    
    
    Significantin Active Markets
    
    
    Significant Other
    
    
    Unobservablefor Identical Assets
    
    
    Observable Inputs
    
    
    InputsTotal
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Money market funds
    
    $
    65,518
    
    
    $
    65,518
    
    
    $
    
    
    
    $
    Auction rate securities
    
    
    50
    
    
    
    
    
    
    
    
    
    
    
    50Total
    
    $
    65,568
    
    
    $
    65,518
    
    
    $
    
    
    
    $
    50
 Note 4. Business Combination
   11




---



##### Table of Contents



LeaseSeverance
    
    
    LiabilityBalance at acquisition at November 28, 2007
    
    $
    1,165
    
    
    $
    900Adjustments to previous estimates
    
    
    16
    
    
    
    Cash payments
    
    
    (55
    )
    
    
    Balance at December 31, 2007
    
    
    1,126
    
    
    
    900Additional reserve recorded
    
    
    21
    
    
    
    Adjustments to previous estimates
    
    
    (255
    )
    
    
    1,183Cash payments
    
    
    (801
    )
    
    
    (327
    )Balance at December 31, 2008
    
    
    91
    
    
    
    1,756Cash payments
    
    
    (61
    )
    
    
    (140
    )Balance at March 31, 2009
    
    $
    30
    
    
    $
    1,616
  Note 5. Intangible Assets
  December 31, 2008EstimatedAccumulated
    
    
    Net Book
    
    
    Useful LifeDescription
    
    Gross Value
    
    
    Amortization
    
    
    Value
    
    
    (in years)Backlog
    
    $
    1,900
    
    
    $
    1,269
    
    
    $
    631
    *
    
    
    3Customer Relationships
    
    
    1,700
    
    
    
    182
    
    
    
    1,518
    
    
    
    10Technology
    
    
    400
    
    
    
    400
    
    
    
    
    
    
    
    1Total
    
    $
    4,000
    
    
    $
    1,851
    
    
    $
    2,149
 March 31, 2009EstimatedAccumulated
    
    
    Net Book
    
    
    Useful LifeDescription
    
    Gross Value
    
    
    Amortization
    
    
    Value
    
    
    (in years)Backlog
    
    $
    1,900
    
    
    $
    1,364
    
    
    $
    536
    *
    
    
    3Customer Relationships
    
    
    1,700
    
    
    
    224
    
    
    $
    1,476
    
    
    
    10Technology
    
    
    400
    
    
    
    400
    
    
    $
    
    
    
    
    1Total
    
    $
    4,000
    
    
    $
    1,988
    
    
    $
    2,012
 
 *
    
    The backlog is being amortized over three years on an accelerated basis.   12




---



##### Table of Contents



Amortization ofYears ending December 31,
    
    Intangible Assets2009
    
    $
    4052010
    
    
    4312011
    
    
    1702012
    
    
    1702013
    
    
    170Thereafter
    
    
    666Total
    
    $
    2,012
 Note 6. Net Income per Common Share
   Net
    
    
    
    
    
    
    Per ShareThree Months Ended March 31,
    
    Income
    
    
    Shares
    
    
    Amount2008Basic net income
    
    $
    5,746
    
    
    
    50,638
    
    
    $
    0.11Effect of dilutive shares
    
    
    
    
    
    
    1,256
    
    
    
    Diluted net income
    
    $
    5,746
    
    
    
    51,894
    
    
    $
    0.112009Basic net income
    
    $
    2,070
    
    
    
    50,879
    
    
    $
    0.04Effect of dilutive shares
    
    
    
    
    
    
    285
    
    
    
    Diluted net income
    
    $
    2,070
    
    
    
    51,164
    
    
    $
    0.04
  Note 7. Comprehensive Income
  Three Months Ended March 31,2008
    
    
    2009Net income
    
    $
    5,746
    
    
    $
    2,070Other comprehensive income:Currency translation adjustment
    
    
    (3
    )
    
    
    (232
    )Comprehensive income, net of tax
    
    $
    5,743
    
    
    $
    1,838
  13




---



##### Table of Contents



Note 8. Recent Accounting Pronouncements
   Note 9. Income Taxes
   Note 10. Related Party Transactions
  Note 11. Commitments and Contingencies
    14




---



##### Table of Contents



Note 12. Operating Segments / Geographic Information
   Three Months Ended March 31, 2008NorthAmerica
    
    
    Europe
    
    
    TotalLicense revenues
    
    $
    625
    
    
    $
    
    
    
    $
    625Service revenues
    
    
    21,210
    
    
    
    4,063
    
    
    
    25,273Site support revenues
    
    
    5,131
    
    
    
    2,644
    
    
    
    7,775Net revenues from external customers
    
    $
    26,966
    
    
    $
    6,707
    
    
    $
    33,673Operating income
    
    $
    6,850
    
    
    $
    1,646
    
    
    $
    8,496Long-lived assets
    
    $
    24,424
    
    
    $
    6,402
    
    
    $
    30,826Total assets
    
    $
    131,325
    
    
    $
    16,077
    
    
    $
    147,402
 Three Months Ended March 31, 2009NorthAmerica
    
    
    Europe
    
    
    TotalLicense revenues
    
    $
    709
    
    
    $
    
    
    
    $
    709Service revenues
    
    
    14,595
    
    
    
    2,222
    
    
    
    16,817Site support revenues
    
    
    4,443
    
    
    
    1,817
    
    
    
    6,260Net revenues from external customers
    
    $
    19,747
    
    
    $
    4,039
    
    
    $
    23,786Operating income
    
    $
    2,985
    
    
    $
    355
    
    
    $
    3,340Long-lived assets
    
    $
    23,881
    
    
    $
    3,224
    
    
    $
    27,105Total assets
    
    $
    141,334
    
    
    $
    16,933
    
    
    $
    158,267
  15




---



##### Table of Contents



Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
 Cautionary Statement for Forward-Looking Information
    Overview
    Cardiac Safety ® ®
  16




---



##### Table of Contents



Cardiac Safety Consulting.
 EDC.
 
 
 
 
 
 ePRO
 Project Assurance
     17




---



##### Table of Contents



18




---



##### Table of Contents



Results of Operations
 Executive Overview
       19




---



##### Table of Contents



Three Months Ended March 31,2008
    
    
    2009Net revenues:Licenses
    
    
    1.9
    %
    
    
    3.0
    %Services
    
    
    75.0
    
    
    
    70.7Site support
    
    
    23.1
    
    
    
    26.3Total net revenues
    
    
    100.0
    
    
    
    100.0Costs of revenues:Cost of licenses
    
    
    0.6
    
    
    
    0.9Cost of services
    
    
    31.2
    
    
    
    33.4Cost of site support
    
    
    15.7
    
    
    
    15.3Total costs of revenues
    
    
    47.5
    
    
    
    49.6Gross margin
    
    
    52.5
    
    
    
    50.4Operating expenses:Selling and marketing
    
    
    9.9
    
    
    
    14.4General and administrative
    
    
    14.4
    
    
    
    17.2Research and development
    
    
    3.0
    
    
    
    4.8Total operating expenses
    
    
    27.3
    
    
    
    36.4Operating income
    
    
    25.2
    
    
    
    14.0Other income, net
    
    
    1.3
    
    
    
    0.5Income before income taxes
    
    
    26.5
    
    
    
    14.5Income tax provision
    
    
    9.4
    
    
    
    5.8Net income
    
    
    17.1
    %
    
    
    8.7
    %
  20




---



##### Table of Contents



Three Months Ended March 31, 2008 Compared to Three Months Ended March 31, 2009.
  Three Months Ended March 31,2008
    
    
    2009
    
    
    Increase (Decrease)Licenses:Net revenues
    
    $
    625
    
    
    $
    709
    
    
    $
    84
    
    
    
    13.4
    %Costs of revenues
    
    
    200
    
    
    
    205
    
    
    
    5
    
    
    
    2.5
    %Gross margin
    
    $
    425
    
    
    $
    504
    
    
    $
    79
    
    
    
    18.6
    %Services:Cardiac SafetyNet revenues
    
    $
    23,784
    
    
    $
    15,617
    
    
    $
    (8,167
    )
    
    
    (34.3
    %)Costs of revenues
    
    
    9,865
    
    
    
    7,377
    
    
    
    (2,488
    )
    
    
    (25.2
    %)Gross margin
    
    $
    13,919
    
    
    $
    8,240
    
    
    $
    (5,679
    )
    
    
    (40.8
    %)Technology consulting and trainingNet revenues
    
    $
    706
    
    
    $
    398
    
    
    $
    (308
    )
    
    
    (43.6
    %)Costs of revenues
    
    
    427
    
    
    
    363
    
    
    
    (64
    )
    
    
    (15.0
    %)Gross margin
    
    $
    279
    
    
    $
    35
    
    
    $
    (244
    )
    
    
    (87.5
    %)Software maintenanceNet revenues
    
    $
    783
    
    
    $
    802
    
    
    $
    19
    
    
    
    2.4
    %Costs of revenues
    
    
    222
    
    
    
    214
    
    
    
    (8
    )
    
    
    (3.6
    %)Gross margin
    
    $
    561
    
    
    $
    588
    
    
    $
    27
    
    
    
    4.8
    %Total servicesNet revenues
    
    $
    25,273
    
    
    $
    16,817
    
    
    $
    (8,456
    )
    
    
    (33.5
    %)Costs of revenues
    
    
    10,514
    
    
    
    7,954
    
    
    
    (2,560
    )
    
    
    (24.3
    %)Gross margin
    
    $
    14,759
    
    
    $
    8,863
    
    
    $
    (5,896
    )
    
    
    (39.9
    %)Site support:Net revenues
    
    $
    7,775
    
    
    $
    6,260
    
    
    $
    (1,515
    )
    
    
    (19.5
    %)Costs of revenues
    
    
    5,268
    
    
    
    3,635
    
    
    
    (1,633
    )
    
    
    (31.0
    %)Gross margin
    
    $
    2,507
    
    
    $
    2,625
    
    
    $
    118
    
    
    
    4.7
    %TotalNet revenues
    
    $
    33,673
    
    
    $
    23,786
    
    
    $
    (9,887
    )
    
    
    (29.4
    %)Costs of revenues
    
    
    15,982
    
    
    
    11,794
    
    
    
    (4,188
    )
    
    
    (26.2
    %)Gross margin
    
    
    17,691
    
    
    
    11,992
    
    
    
    (5,699
    )
    
    
    (32.2
    %)Operating expenses:Selling and marketing
    
    
    3,323
    
    
    
    3,426
    
    
    
    103
    
    
    
    3.1
    %General and administrative
    
    
    4,873
    
    
    
    4,077
    
    
    
    (796
    )
    
    
    (16.3
    %)Research and development
    
    
    999
    
    
    
    1,149
    
    
    
    150
    
    
    
    15.0
    %Total operating expenses
    
    
    9,195
    
    
    
    8,652
    
    
    
    (543
    )
    
    
    (5.9
    %)Operating income
    
    
    8,496
    
    
    
    3,340
    
    
    
    (5,156
    )
    
    
    (60.7
    %)Other income, net
    
    
    427
    
    
    
    116
    
    
    
    (311
    )
    
    
    (72.8
    %)Income before income taxes
    
    
    8,923
    
    
    
    3,456
    
    
    
    (5,467
    )
    
    
    (61.3
    %)Income tax provision
    
    
    3,177
    
    
    
    1,386
    
    
    
    (1,791
    )
    
    
    (56.4
    %)Net income
    
    $
    5,746
    
    
    $
    2,070
    
    
    $
    (3,676
    )
    
    
    (64.0
    %)
  21




---



##### Table of Contents



Three Months Ended March 31,
    
    
    Increase2008
    
    
    2009
    
    
    (Decrease)Cost of licenses
    
    
    32.0
    %
    
    
    28.9
    %
    
    
    (3.1
    %)Cost of services:Cardiac Safety
    
    
    41.5
    %
    
    
    47.2
    %
    
    
    5.7
    %Technology consulting and training
    
    
    60.5
    %
    
    
    91.2
    %
    
    
    30.7
    %Software maintenance
    
    
    28.4
    %
    
    
    26.7
    %
    
    
    (1.7
    %)Total cost of services
    
    
    41.6
    %
    
    
    47.3
    %
    
    
    5.7
    %Cost of site support
    
    
    67.8
    %
    
    
    58.1
    %
    
    
    (9.7
    %)Total costs of revenues
    
    
    47.5
    %
    
    
    49.6
    %
    
    
    2.1
    %Operating expenses:Selling and marketing
    
    
    9.9
    %
    
    
    14.4
    %
    
    
    4.5
    %General and administrative
    
    
    14.4
    %
    
    
    17.1
    %
    
    
    2.7
    %Research and development
    
    
    3.0
    %
    
    
    4.8
    %
    
    
    1.8
    %
 Revenues
    Costs of Revenues
   Operating Expenses
    22




---



##### Table of Contents



Liquidity and Capital Resources
    ®
     23




---



##### Table of Contents



Inflation
  
 Item 3. Quantitative and Qualitative Disclosures About Market Risk
  Interest Rate Risk
  Foreign Currency Risk
   
 Item 4. Controls and Procedures
   24




---



##### Table of Contents



Part II. Other Information
 
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
  ISSUER PURCHASES OF EQUITY SECURITIES
 (c) Total Number of
    
    
    (d) Maximum Number ofShares Purchased as Part
    
    
    Shares that May Yet Be(a) Total Number of
    
    
    (b) Average Price
    
    
    of Publicly Announced
    
    
    Purchased Under thePeriod
    
    Shares Purchased
    
    
    Paid per Share
    
    

Plans
or Programs (1)
    
    
    Plans or ProgramsJanuary 2009
    
    
    
    
    
    $
    
    
    
    
    
    
    
    
    7,875,651February 2009
    
    
    
    
    
    $
    
    
    
    
    
    
    
    
    7,875,651March 2009
    
    
    1,965,452
    
    
    $
    5.05
    
    
    
    1,965,452
    
    
    
    5,910,199Total
    
    
    1,965,452
    
    
    
    
    
    
    
    1,965,452
 
 (1)
    
    We originally announced a
program to repurchase up to 500,000 shares on April 21, 2004,
and subsequently announced increases of 2.0 million and
10.0 million shares on October 20, 2004 and May 3,
2005, respectively. Through March 31, 2009, we have repurchased
6.6 million shares of the 12.5 million shares approved for
repurchase. 
 Item 6. Exhibits
 10.14
    
    
    2009 Bonus Plan.*10.32
    
    

First
Amendment to the Amended and Restated 2003 Equity Incentive Plan.*10.45
    
    
    Management Employment Agreement effective August 31, 2004 between Amy Furlong and the Company.*10.57
    
    
    Management Employment Agreement effective January 1, 2009 between Dr. Joel Morganroth and the Company.*10.58
    
    
    Consultant Agreement effective January 1, 2009 between Dr. Joel Morganroth and the Company.*31.1
    
    
    Certification of Chief Executive Officer.31.2
    
    
    Certification of Chief Financial Officer.32.1
    
    
    Statement of Chief Executive Officer Pursuant to Section 1350 of Title 18 of the United States Code.32.2
    
    
    Statement of Chief Financial Officer Pursuant to Section 1350 of Title 18 of the United States Code.
 
 *
    
    Management contract or compensatory plan or arrangement.  25




---



##### Table of Contents



eResearchTechnology, Inc.
(Registrant)Date:      May 8, 2009
    By:

/s/
Michael J. McKelveyMichael J. McKelveyPresident and Chief Executive Officer,

(Principal executive officer)Date:      May 8, 2009
    By:

/s/
Keith D. SchneckKeith D. SchneckExecutive Vice President, Chief Financial
Officer and Secretary
 (Principal financial and
accounting officer)  26




---



##### Table of Contents



EXHIBIT INDEX
 Exhibit No.
    
    

Exhibit10.14
    
    
    2009 Bonus Plan.*10.32
    
    

First
Amendment to the Amended and Restated 2003 Equity Incentive Plan.*10.45
    
    
    Management Employment Agreement effective August 31, 2004 between Amy Furlong and the
Company.*10.57
    
    
    Management Employment Agreement effective January 1, 2009 between Dr. Joel Morganroth and
the Company.*10.58
    
    
    Consultant Agreement effective January 1, 2009 between Dr. Joel Morganroth and the Company.*31.1
    
    
    Certification of Chief Executive Officer.31.2
    
    
    Certification of Chief Financial Officer.32.1
    
    
    Statement of Chief Executive Officer Pursuant to Section 1350 of Title 18 of the United States Code.32.2
    
    
    Statement of Chief Financial Officer Pursuant to Section 1350 of Title 18 of the United States Code.
 
   27