ALBANY — Albany-based drug discovery and development firm AMRI reported a 24 percent gain in year-over-year net earnings for the second quarter Wednesday.

AMRI’s net income was $5.7 million or 18 cents per basic and diluted stock share, compared to net income of $4.6 million, 14 cents per share in the second quarter of 2007.

AMRI’s stock price surged after the positive report Wednesday, increasing 18 percent to close at $17.77 per share, up $2.66.

The company’s net income was up despite a $2 million charge, about six cents per share, incurred from the costs of restructuring its European operations in Hungary. Without those costs, earnings would have climbed 68 percent.

“[Our second quarter results] reflect continued strength in our Discovery Services and Development/Small Scale business [segments]. Contract revenue for these components grew at rates greater than 40 percent,” AMRI Chairman, President and CEO Thomas D’Ambra said.

AMRI reported revenues of $57.9 million, an increase of $8.6 million or 17 percent compared with the second quarter of 2007. Contract revenue for Discovery Services in the second quarter of 2008 was $14.8 million, up 54 percent from the second quarter of 2007, when it was $9.7 million. Contract revenue for Development/Small Scale Manufacturing in the second quarter was $15.3 million, up $4.6 million, 43 percent, from last year.

However, revenues for AMRI’s Large Scale Manufacturing segment were down 17 percent from last year, at $16.3 million for the second quarter, compared with $19.6 million for the same period last year.

“Our Large Scale business reported gross margin improvement from quarter one to quarter two of this year, even with reduced revenue,” D’Ambra said. “As we reflect back on the first half of 2008 and look forward to the remainder of the year, we are pleased with the margin results achieved to date from this business component and are optimistic that the trend of improving margins will continue for the second half of 2008.”

The submission of a Canadian clinical trial application by Bristol-Myers Squibb also triggered a $4 million milestone payment to AMRI.

The former Albany Molecular Research Inc. employs more than 1,200 in the United States, Europe and Asia.