AskMuncher
2 years ago
$DTRK Datatrak International, Inc. Reports Results for Third Quarter and First Nine Months of 2021
Press Release | 11/15/2021
CLEVELAND, Nov. 15, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Datatrak International, Inc. (OTC Markets: DTRK), (“Datatrak” or the “Company”), a Software-as-a-Service (“SaaS”) provider of cloud-based technologies for the life sciences industry, today announced its operating results for the third quarter and the first nine months of 2021.
Financial Highlights:
Datatrak remains focused on innovation and expects to add business intelligence as part of its product offering in the fourth quarter of 2021, in addition to Datatrak Direct, which allows customers to run decentralized or hybrid clinical trials and was added to our platform in the second quarter of 2021. This is one more step in the Company’s plan for a complete eClinical platform to be full service for our clients in the life sciences industry. As our new product lines are being adopted, we are shifting attention and resources to expanding our sales and marketing efforts to meet the demand for decentralized and hybrid clinical trials along with the backlog of thousands of trials delayed by the COVID-19 pandemic. We believe Datatrak continues to be well positioned for this opportunity.
In addition to adding two new customers in the third quarter of 2021, Datatrak extended its contract with a major CRO partner. As we transition through COVID-19 delays to new contracts, we expect to see new revenue generating contracts moving forward. New sales are partially accounted for in current revenues and partially recognized in future quarters’ revenues due to the long-term nature and accounting rules applying to revenue recognition in the clinical trial software business. The result is that positive new sales figures may take time to be reflected in the current period revenues. Revenue for the third quarter of 2021 was $1,516,000 compared to $1,752,000 for the third quarter of 2020. Direct costs totaled $566,000 for the three months ended September 30, 2021 compared to $490,000 for the three months ended September 30, 2020. The increase in direct costs was due to higher amortization related to software development efforts as more new features and products are being placed into production. This amortization cost is a critical part of the strategic decision to reinvest earnings into expanding our product line. ISP costs also increased, due to internal initiatives, as well as employee costs. The Company’s gross margin was 63% for the three months ended September 30, 2021 compared to 72% for the three months ended September 30, 2020. SG&A expenses were $1,342,000 for the three months ended September 30, 2021 compared to $1,288,000 the three months ended September 30, 2020. The increase in SG&A expenses was driven by higher employee expenses, mainly due to personnel changes and salary adjustments. Depreciation and amortization were $1,000 and $2,000 for the three months ended September 30, 2021 and 2020, respectively. As a result of the items discussed, Datatrak had a loss from operations for the three months ended September 30, 2021 of ($393,000) compared to ($28,000) for the three months ended September 30, 2020. After other expense of ($38,000) for the three months ended September 30, 2021, which included an unrealized loss on marketable securities of ($37,000), the Company’s net loss was ($431,000). For the three months ended September 30, 2020, the Company had other income of $1,000 which resulted in a net loss of ($27,000).
Datatrak continues to see steady contract signings and has added six new customers during the first nine months of 2021. The Company’s revenue for the nine months ended September 30, 2021 was $4,791,000 compared to $5,448,000 for the nine months ended September 30, 2020. Direct costs were $1,606,000 for the nine months ended September 30, 2021 compared to $1,449,000 the nine months ended September 30, 2020. The increase in direct costs was due to higher amortization related to software development efforts as more new features and products are being placed into production. This amortization cost is a critical part of the strategic decision to reinvest earnings into expanding our product line. ISP costs also increased, due to internal initiatives, as well as employee costs. The Company’s gross margin was 67% for the nine months ended September 30, 2021 compared to 73% for the nine months ended September 30, 2020. SG&A expenses increased slightly to $4,073,000 for the nine months ended September 30, 2021 compared to $3,995,000 for the nine months ended September 30, 2020. The increase in SG&A expenses was driven by higher employee costs, due to personnel changes and salary adjustments, and consulting and legal costs due to various corporate initiatives. Depreciation and amortization were $5,000 and $9,000 for the nine months ended September 30, 2021 and 2020, respectively. As a result of the items discussed, Datatrak had a loss from operations for the nine months ended September 30, 2021 of ($893,000) compared to ($5,000) for the nine months ended September 30, 2020. After other income of $974,000 for the nine months ended September 30, 2021, which included an unrealized gain on marketable securities of $124,000 and a gain on PPP loan forgiveness of $846,000, compared to other income of $3,000 for the nine months ended September 30, 2020, the Company’s net income for the nine months ended September 30, 2021 was $81,000, compared to a net loss of ($2,000) for the nine months ended September 30, 2020.
Datatrak’s backlog at September 30, 2021 was $10.8 million compared to a backlog of $13.7 million at December 31, 2020. Backlog consists of future value from authorization letters to commence services, statements of work, technology and services agreements, change orders and other customer contracts, billed and unbilled.
All contracts are subject to possible delays or cancellation or can change in scope in a positive or negative direction. Therefore, current backlog is not necessarily indicative of the Company’s future quarterly or annual revenue. Historically, backlog has not always been an accurate predictor of the Company’s short-term revenue.
The Company continues to monitor state and federal guidelines regarding the COVID-19 pandemic and will modify business operations as needed to comply with these guidelines for the safety of its employees and customers. Despite the recovery the Company is seeing, the COVID-19 pandemic continues to evolve and the recovery could be slowed or reversed by a number of factors, including a widespread resurgence in COVID-19 infections, whether due to the spread of variants of the virus (some of which are more transmissible than the initial strain) or otherwise, the availability and rate of vaccinations, and the rate in which state and local governments are re-opening businesses or, in certain jurisdictions, reversing re-opening decisions. As such, the Company cannot provide any assurance that the effects of the COVID-19 pandemic will not have an adverse effect on its business or results of operations going forward. In addition, as long as the COVID-19 pandemic remains a public health threat, global economic conditions will continue to be volatile depending on several factors, including new information concerning the severity of the pandemic and new variants, government actions to mitigate the effects of the pandemic in the near-term, and the resulting impact on our clients’ spending plans, any of which could potentially materially impact the Company. While we have seen that the availability of vaccines and various treatments with respect to COVID-19 begin to have an overall positive impact on business conditions, we cannot currently predict the continued recovery due to hesitancy of parts of the population to become vaccinated. We will continue to assess the impact of the COVID-19 pandemic on our business and will respond accordingly.
Executive Highlights:
“We continue to see excitement in the marketplace with new and existing customers for our eClinical platform that provides hybrid and decentralized trials,” said Scott DeMell, VP of Sales at Datatrak. “Sponsors and CROs can now take control of a multilingual enterprise platform that combines virtual data capture directly from patients anytime and anywhere in the world.”
“Now that our virtual Datatrak Direct solution is commercially available, we continue to carry out our long-term vision of empowering our clients by the introduction of Business Intelligence within our platform in the coming months,” said Jim Bob Ward, CEO at Datatrak. “Providing our customers scalable business intelligence capabilities with the ability to centralized study data enables better decision making and trial forecasting.”
Join Datatrak thought leaders:
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Datatrak Resources
Tweet: Datatrak Reports Results for the Third Quarter and First Nine Months of 2021
See the Earnings Release on Datatrak’s website: https://bit.ly/3CgebqN
About Datatrak International, Inc.
Datatrak International, Inc. is a software-as-a-service provider of enterprise cloud-based technologies for the life sciences industry. Datatrak’s unified eClinical solutions and related services help improve cost and time efficiencies for the clinical trials industry. Datatrak built its multi-component, comprehensive solution on a single, unified platform and expanded this concept to include services delivery via Datatrak’s Clinical and Consulting Services group. The Company delivers a complete portfolio of software products designed to accelerate the reporting of clinical research data from sites to sponsors and ultimately regulatory authorities, faster and more efficiently than loosely integrated technologies. The Datatrak Enterprise Cloud software solution, deployed worldwide through an ASP or Enterprise Transfer offering, supports Preclinical and Phase I - Phase IV drug and device studies in multiple languages throughout the world. Datatrak is located in Cleveland, Ohio, and College Station, Texas. For more information, visit http://www.datatrak.com.
Except for the historical information contained in this press release, the statements made in this release are forward-looking statements. These forward-looking statements
are made based on management’s expectations, assumptions, estimates and current beliefs concerning the operations, future results and prospects of the Company and are subject to uncertainties and factors which are difficult to predict and, in many instances, are beyond the control of the Company, and which could cause actual results to differ materially from those contemplated in these forward-looking statements. All statements that address operating performance, events or developments that management anticipates will occur in the future, including statements related to future revenue, profits, the impact of COVID-19, expenses, cost reductions, cash management alternatives and working capital requirements, release or success of new products, market share, strategic alternatives, raising additional funds, income and earnings per share or statements expressing general opinion about future results, are forward-looking statements. For a list of certain factors that may cause actual results to differ materially from those contemplated in these forward looking statements, please see the Company’s report filed with the OTC Markets on March 26, 2021 announcing its results for the full-year period ended December 31, 2020 and subsequent filings with the OTC Markets. Many such factors have been, and may further be, exacerbated by the COVID-19 pandemic. The Company undertakes no obligation to update publicly or revise any forward-looking statement whether as a result of new information, future events or otherwise.
Contacts:
Sales:
Scott.DeMell@datatrak.com
Employment Opportunities:
Laura.Stuebbe@datatrak.com
Shareholders:
investor@datatrak.com
Datatrak International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet Data
(Unaudited and Not Reviewed)
September 30, 2021 December 31, 2020
Cash and cash equivalents $ 905,473 $2,634,490
Marketable securities 834,431 10,232
Certificate of deposit 95,013 125,095
Accounts receivable, net 1,955,127 1,836,321
Operating right-of-use asset, net 1,277,539 1,532,066
Property & equipment, net 1,800,701 1,646,768
Other 490,308 443,193
Total assets $7,358,592 $8,228,165
Accounts payable and other current liabilities $1,137,984 $1,595,485
Deferred revenue 3,438,014 3,323,796
Other long-term liabilities 1,301,790 2,047,172
Shareholders’ equity 1,480,804 1,261,712
Total liabilities and shareholders’ equity $7,358,592 $8,228,165
Datatrak International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited and Not Reviewed)
For the 3 Months Ended September 30,
2021 2020
Revenue $1,515,717 $1,752,099
Direct costs 565,797 490,349
Gross profit 949,920 1,261,750
Selling, general and administrative expenses 1,341,620 1,287,842
Depreciation and amortization 1,497 2,151
Loss from operations (393,197) (28,243)
Interest income 13 58
Interest expense (860) (3,054)
(Loss) gain on marketable securities (37,322) 4,515
Net loss before tax provision $(431,366) $ (26,724)
Tax provision — —
Net loss $(431,366) $ (26,724)
Net loss per share:
Net loss per share, basic $ (0.18) $ (0.01)
Weighted-average shares outstanding, basic 2,421,507 2,390,373
Net loss per share, diluted $ (0.18) $ (0.01)
Weighted-average shares outstanding, diluted 2,421,507 2,390,373
Datatrak International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited and Not Reviewed)
For the 9 Months Ended September 30,
2021 2020
Revenue $4,790,643 $5,448,230
Direct costs 1,606,055 1,448,983
Gross profit 3,184,588 3,999,247
Selling, general and administrative expenses 4,073,168 3,995,156
Depreciation and amortization 4,638 9,038
Loss from operations (893,218) (4,947)
Interest income 44 5,000
Interest expense 4,283 (5,908)
Gain on marketable securities 124,269 3,999
Gain on PPP forgiveness 845,938 —
Net income (loss) before tax provision $ 81,316 $ (1,856)
Tax provision — —
Net income (loss) $ 81,316 $ (1,856)
Net income (loss) per share:
Net income (loss) per share, basic $ 0.03 $ (0.00)
Weighted-average shares outstanding, basic 2,415,080 2,381,864
Net income (loss) per share, diluted $ 0.03 $ (0.00)
Weighted-average shares outstanding, diluted 2,427,285 2,381,864
AskMuncher
3 years ago
$DTRK Datatrak International, Inc. Reports Fourth Quarter and Full Year Results for 2020
Press Release | 03/26/2021
CLEVELAND, OH, March 26, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Datatrak International, Inc. (OTC Markets: DTRK), a worldwide Software-as-a-Service (“SaaS”) provider and innovation leader of cloud-based technologies for the life sciences industry, today announced its operating results for the fourth quarter and full year for 2020.
Financial Highlights:
Revenue for the fourth quarter of 2020 was $1,709,000 compared to $1,909,000 for the fourth quarter of 2019. Despite the decrease in revenue, the Company has seen a significant increase in the number of new contracts and new customers during 2020 compared to the last three years. Direct costs decreased by $36,000 to $479,000 for the three months ended December 31, 2020 compared to $515,000 for the three months ended December 31, 2019 due to less amortization related to software development efforts that have been placed into production, which was partially offset by higher employee costs. The Company’s gross margin was 72% for the three months ended December 31, 2020 compared to 73% for the three months ended December 31, 2019. Selling, general and administrative (“SG&A”) expenses increased by $26,000 to $1,313,000 for the three months ended December 31, 2020 compared to $1,287,000 for the three months ended December 31, 2019. The increase in SG&A expenses was driven by higher advertising and legal costs, and partially offset by lower travel costs due to the COVID-19 pandemic. Depreciation and amortization was $2,000 and $5,000 for the three months ended December 31, 2020 and 2019, respectively. As a result of the items discussed, Datatrak had a loss from operations for the three months ended December 31, 2020 of ($85,000) compared to income from operations of $102,000 for the three months ended December 31, 2019. After other expense of ($3,000) for the three months ended December 31, 2020 and other income of $6,000 for the three months ended December 31, 2019, the Company’s net loss for the three months ended December 31, 2020 was ($88,000) compared to net income of $108,000 for the three months ended December 31, 2019.
Full year revenue for 2020 was $7,157,000 compared to $7,743,000 for the full year of 2019. Despite the decrease in revenue, the Company has seen a significant increase in the number of new contracts and new customers during 2020 compared to the last three years. Direct costs decreased by $276,000 for the year ended December 31, 2020 compared to the year ended December 31, 2019 due to less amortization related to software development efforts that have been placed into production, which was partially offset by higher employee costs. The Company’s gross margin increased to 73% for the year ended December 31, 2020 compared to 72% for the year ended December 31, 2019. SG&A expenses increased by $163,000 for the year ended December 31, 2020 compared to the year ended December 31, 2019. The increase in SG&A expenses was driven by higher employee expenses, advertising, consulting and legal costs. However, travel costs decreased for the year ended December 31, 2020 compared to the year ended December 31, 2019 due to the COVID-19 pandemic. Depreciation and amortization was $11,000 and $19,000 for the year ended December 31, 2020 and 2019, respectively. As a result of the items discussed, Datatrak had a loss from operations for the year ended December 31, 2020 of ($90,000) compared to income from operations of $374,000 for the year ended December 31, 2019. While other income netted to zero for the year ended December 31, 2020, the year ended December 31, 2019 recorded other income of $13,000, which resulted in a net loss of ($90,000) for the year ended December 31, 2020 compared to net income of $387,000 for the year ended December 31, 2019.
Datatrak’s backlog at December 31, 2020 was $13.7 million compared to a backlog of $13.3 million at December 31, 2019. Backlog consists of future value from authorization letters to commence services, statements of work, technology and services agreements, change orders and other customer contracts, billed and unbilled.
All contracts are subject to possible delays or cancellation or can change in scope in a positive or negative direction. Therefore, current backlog is not necessarily indicative of the Company’s future quarterly or annual revenue. Historically, backlog has not always been an accurate predictor of the Company’s short-term revenue.
The Company has been monitoring state and federal guidelines regarding the COVID-19 pandemic and will continue to modify business operations as needed to comply with these guidelines for the safety of its employees and customers. As the COVID-19 pandemic is a continually evolving situation, including the recent emergence of new variants of COVID-19, some of which may be more transmissible than the initial strain, the Company cannot provide any assurance that the effects of the COVID-19 pandemic will not have an adverse effect on its business or results of operations going forward. In addition, the COVID-19 pandemic has caused a global economic recession, which could potentially materially impact the Company. While the Company expects the availability of vaccines and various treatments with respect to COVID-19 to have an overall positive impact on business conditions in the aggregate over time, the Company cannot currently predict the timing and availability of such treatments or vaccines.
Executive Highlights:
The COVID-19 pandemic has been a source of major disruption for the life sciences and clinical trials industry throughout 2020. An estimated 80% of non-COVID-19 related trials were either stopped or interrupted as a result of the pandemic. Even with these disruptions, Datatrak worked diligently to increase the number of new contracts and customers in 2020.
“We continue to see significant momentum from new and existing clients who rely on our intuitive and flexible solutions to help address their challenges in recruitment, data capture and analysis,” said Scott DeMell, VP of Sales at Datatrak. “Efficiencies in unified systems such as our Enterprise Cloud, supported by remote monitoring, the ability for sites to easily upload source document materials, and true, real time reporting across all of the platform products, have helped our clients meet the demands for remote access, tighter collaboration, and direct to patient communications.”
Jim Bob Ward, CEO at Datatrak, continued, “The past few years of industry collaboration and self-funded product development have reached a point of convergence with three new major products coming to market in 2021. Our new multi-lingual innovations include iOS and Android Apps for ePRO, Wearables, eConsent and Virtual Trials to empower Patient Direct participation in clinical trials. We are extending our reach into global medical imaging laboratories in an effort to reduce redundant system costs, errors and reporting delays by enabling radiologists centralized access to evaluate and adjudicate images and end-points directly within an EDC system. The natural next step is to provide clients with the ability to centralize all data, including trial data from competitor systems, through our CTMS for data visualization and data analytics for new product research and development.”
Join Datatrak thought leaders:
Twitter
LinkedIn
Datatrak Resources
Tweet: Datatrak Reports Fourth Quarter and Full Year Results for 2020
See the Earnings Release on Datatrak’s website: https://bit.ly/2TmpDdY
AboutDatatrakInternational, Inc.
Datatrak International, Inc. is a software-as-a-service provider of enterprise cloud-based technologies for the life sciences industry. Datatrak’s unified eClinical solutions and related services help improve cost and time efficiencies for the clinical trials industry. Datatrak built its multi-component, comprehensive solution on a single, unified platform and expanded this concept to include services delivery via Datatrak’s Clinical and Consulting Services group. The Company delivers a complete portfolio of software products designed to accelerate the reporting of clinical research data from sites to sponsors and ultimately regulatory authorities, faster and more efficiently than loosely integrated technologies. The Datatrak Enterprise Cloud software solution, deployed worldwide through an ASP or Enterprise Transfer offering, supports Preclinical and Phase I - Phase IV drug and device studies in multiple languages throughout the world. Datatrak is located in Cleveland, Ohio and College Station, Texas. For more information, visit http://www.datatrak.com.
Except for the historical information contained in this press release, the statements made in this release are forward-looking statements. These forward-looking statements
are made based on management’s expectations, assumptions, estimates and current beliefs concerning the operations, future results and prospects of the Company and are subject to uncertainties and factors which are difficult to predict and, in many instances, are beyond the control of the Company, and which could cause actual results to differ materially from those contemplated in these forward-looking statements. All statements that address operating performance, events or developments that management anticipates will occur in the future, including statements related to future revenue, profits, the impact of COVID-19, expenses, cost reductions, cash management alternatives and working capital requirements, release or success of new products, market share, strategic alternatives, raising additional funds, income and earnings per share or statements expressing general opinion about future results, are forward-looking statements. For a list of certain factors that may cause actual results to differ materially from those contemplated in these forward looking statements, please see the Company’s report filed with the OTC Markets on March 24, 2020 announcing its results for the full-year period ended December 31, 2019 and subsequent filings with the OTC Markets. Many such factors have been, and may further be, exacerbated by the COVID-19 pandemic. The Company undertakes no obligation to update publicly or revise any forward-looking statement whether as a result of new information, future events or otherwise.
Contacts:
Sales: Scott DeMell
Scott.DeMell@datatrak.com
Employment Opportunities: Laura Stuebbe
Laura.Stuebbe@datatrak.com
Shareholders: Alex Tabatabai
investor@datatrak.com
Datatrak International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet Data
(Audited)
December 31, 2020 December 31, 2019
Cash and cash equivalents $2,634,490 $3,990,549
Marketable securities 10,232 6,998
Certificate of deposit 125,095 165,224
Accounts receivable, net 1,836,321 634,571
Operating right-of-use asset, net 1,532,066 1,845,460
Property & equipment, net 1,646,768 1,355,164
Other 443,193 375,506
Total assets $8,228,165 $8,373,472
Accounts payable and other current liabilities $1,595,485 $ 902,183
Deferred revenue 3,323,796 4,308,563
Other long-term liabilities 2,047,172 2,016,407
Shareholders’ equity 1,261,712 1,146,319
Total liabilities and shareholders’ equity $8,228,165 $8,373,472
Datatrak International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Audited)
For the 3 Months Ended December 31,
2020 2019
Revenue $1,708,779 $1,908,678
Direct costs 479,442 515,012
Gross profit 1,229,337 1,393,666
Selling, general and administrative expenses 1,312,704 1,286,810
Depreciation and amortization 1,732 4,648
(Loss) income from operations (85,099) 102,208
Interest income 16 6,097
Interest expense (2,602) (863)
Other (expense) income (645) 688
Net (loss) income before tax provision $ (88,330) $ 108,130
Tax provision — —
Net (loss) income $ (88,330) $ 108,130
Net (loss) income per share:
Net (loss) income per share, basic $ (0.04) $ 0.05
Weighted-average shares outstanding, basic 2,397,107 2,358,667
Net (loss) income per share, diluted $ (0.04) $ 0.05
Weighted-average shares outstanding, diluted 2,397,107 2,388,177
Datatrak International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Audited)
For the 12 Months Ended December 31,
2020 2019
Revenue $7,157,009 $7,742,569
Direct costs 1,928,425 2,204,821
Gross profit 5,228,584 5,537,748
Selling, general and administrative expenses 5,307,860 5,144,820
Depreciation and amortization 10,770 19,020
(Loss) income from operations (90,046) 373,908
Interest income 5,016 18,140
Interest expense (8,510) (3,803)
Other income (expense) 3,354 (1,446)
Net (loss) income before tax provision $ (90,186) $ 386,799
Tax provision — —
Net (loss) income $ (90,186) $ 386,799
Net (loss) income per share:
Net (loss) income per share, basic $ (0.04) $ 0.16
Weighted-average shares outstanding, basic 2,385,696 2,346,372
Net (loss) income per share, diluted $ (0.04) $ 0.16
Weighted-average shares outstanding, diluted 2,385,696 2,378,739
AskMuncher
3 years ago
$DTRK Datatrak International, Inc. Reports Fourth Quarter and Full Year Results for 2020
Press Release | 03/26/2021
CLEVELAND, OH, March 26, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Datatrak International, Inc. (OTC Markets: DTRK), a worldwide Software-as-a-Service (“SaaS”) provider and innovation leader of cloud-based technologies for the life sciences industry, today announced its operating results for the fourth quarter and full year for 2020.
Financial Highlights:
Revenue for the fourth quarter of 2020 was $1,709,000 compared to $1,909,000 for the fourth quarter of 2019. Despite the decrease in revenue, the Company has seen a significant increase in the number of new contracts and new customers during 2020 compared to the last three years. Direct costs decreased by $36,000 to $479,000 for the three months ended December 31, 2020 compared to $515,000 for the three months ended December 31, 2019 due to less amortization related to software development efforts that have been placed into production, which was partially offset by higher employee costs. The Company’s gross margin was 72% for the three months ended December 31, 2020 compared to 73% for the three months ended December 31, 2019. Selling, general and administrative (“SG&A”) expenses increased by $26,000 to $1,313,000 for the three months ended December 31, 2020 compared to $1,287,000 for the three months ended December 31, 2019. The increase in SG&A expenses was driven by higher advertising and legal costs, and partially offset by lower travel costs due to the COVID-19 pandemic. Depreciation and amortization was $2,000 and $5,000 for the three months ended December 31, 2020 and 2019, respectively. As a result of the items discussed, Datatrak had a loss from operations for the three months ended December 31, 2020 of ($85,000) compared to income from operations of $102,000 for the three months ended December 31, 2019. After other expense of ($3,000) for the three months ended December 31, 2020 and other income of $6,000 for the three months ended December 31, 2019, the Company’s net loss for the three months ended December 31, 2020 was ($88,000) compared to net income of $108,000 for the three months ended December 31, 2019.
Full year revenue for 2020 was $7,157,000 compared to $7,743,000 for the full year of 2019. Despite the decrease in revenue, the Company has seen a significant increase in the number of new contracts and new customers during 2020 compared to the last three years. Direct costs decreased by $276,000 for the year ended December 31, 2020 compared to the year ended December 31, 2019 due to less amortization related to software development efforts that have been placed into production, which was partially offset by higher employee costs. The Company’s gross margin increased to 73% for the year ended December 31, 2020 compared to 72% for the year ended December 31, 2019. SG&A expenses increased by $163,000 for the year ended December 31, 2020 compared to the year ended December 31, 2019. The increase in SG&A expenses was driven by higher employee expenses, advertising, consulting and legal costs. However, travel costs decreased for the year ended December 31, 2020 compared to the year ended December 31, 2019 due to the COVID-19 pandemic. Depreciation and amortization was $11,000 and $19,000 for the year ended December 31, 2020 and 2019, respectively. As a result of the items discussed, Datatrak had a loss from operations for the year ended December 31, 2020 of ($90,000) compared to income from operations of $374,000 for the year ended December 31, 2019. While other income netted to zero for the year ended December 31, 2020, the year ended December 31, 2019 recorded other income of $13,000, which resulted in a net loss of ($90,000) for the year ended December 31, 2020 compared to net income of $387,000 for the year ended December 31, 2019.
Datatrak’s backlog at December 31, 2020 was $13.7 million compared to a backlog of $13.3 million at December 31, 2019. Backlog consists of future value from authorization letters to commence services, statements of work, technology and services agreements, change orders and other customer contracts, billed and unbilled.
All contracts are subject to possible delays or cancellation or can change in scope in a positive or negative direction. Therefore, current backlog is not necessarily indicative of the Company’s future quarterly or annual revenue. Historically, backlog has not always been an accurate predictor of the Company’s short-term revenue.
The Company has been monitoring state and federal guidelines regarding the COVID-19 pandemic and will continue to modify business operations as needed to comply with these guidelines for the safety of its employees and customers. As the COVID-19 pandemic is a continually evolving situation, including the recent emergence of new variants of COVID-19, some of which may be more transmissible than the initial strain, the Company cannot provide any assurance that the effects of the COVID-19 pandemic will not have an adverse effect on its business or results of operations going forward. In addition, the COVID-19 pandemic has caused a global economic recession, which could potentially materially impact the Company. While the Company expects the availability of vaccines and various treatments with respect to COVID-19 to have an overall positive impact on business conditions in the aggregate over time, the Company cannot currently predict the timing and availability of such treatments or vaccines.
Executive Highlights:
The COVID-19 pandemic has been a source of major disruption for the life sciences and clinical trials industry throughout 2020. An estimated 80% of non-COVID-19 related trials were either stopped or interrupted as a result of the pandemic. Even with these disruptions, Datatrak worked diligently to increase the number of new contracts and customers in 2020.
“We continue to see significant momentum from new and existing clients who rely on our intuitive and flexible solutions to help address their challenges in recruitment, data capture and analysis,” said Scott DeMell, VP of Sales at Datatrak. “Efficiencies in unified systems such as our Enterprise Cloud, supported by remote monitoring, the ability for sites to easily upload source document materials, and true, real time reporting across all of the platform products, have helped our clients meet the demands for remote access, tighter collaboration, and direct to patient communications.”
Jim Bob Ward, CEO at Datatrak, continued, “The past few years of industry collaboration and self-funded product development have reached a point of convergence with three new major products coming to market in 2021. Our new multi-lingual innovations include iOS and Android Apps for ePRO, Wearables, eConsent and Virtual Trials to empower Patient Direct participation in clinical trials. We are extending our reach into global medical imaging laboratories in an effort to reduce redundant system costs, errors and reporting delays by enabling radiologists centralized access to evaluate and adjudicate images and end-points directly within an EDC system. The natural next step is to provide clients with the ability to centralize all data, including trial data from competitor systems, through our CTMS for data visualization and data analytics for new product research and development.”
Join Datatrak thought leaders:
Twitter
LinkedIn
Datatrak Resources
Tweet: Datatrak Reports Fourth Quarter and Full Year Results for 2020
See the Earnings Release on Datatrak’s website: https://bit.ly/2TmpDdY
AboutDatatrakInternational, Inc.
Datatrak International, Inc. is a software-as-a-service provider of enterprise cloud-based technologies for the life sciences industry. Datatrak’s unified eClinical solutions and related services help improve cost and time efficiencies for the clinical trials industry. Datatrak built its multi-component, comprehensive solution on a single, unified platform and expanded this concept to include services delivery via Datatrak’s Clinical and Consulting Services group. The Company delivers a complete portfolio of software products designed to accelerate the reporting of clinical research data from sites to sponsors and ultimately regulatory authorities, faster and more efficiently than loosely integrated technologies. The Datatrak Enterprise Cloud software solution, deployed worldwide through an ASP or Enterprise Transfer offering, supports Preclinical and Phase I - Phase IV drug and device studies in multiple languages throughout the world. Datatrak is located in Cleveland, Ohio and College Station, Texas. For more information, visit http://www.datatrak.com.
Except for the historical information contained in this press release, the statements made in this release are forward-looking statements. These forward-looking statements
are made based on management’s expectations, assumptions, estimates and current beliefs concerning the operations, future results and prospects of the Company and are subject to uncertainties and factors which are difficult to predict and, in many instances, are beyond the control of the Company, and which could cause actual results to differ materially from those contemplated in these forward-looking statements. All statements that address operating performance, events or developments that management anticipates will occur in the future, including statements related to future revenue, profits, the impact of COVID-19, expenses, cost reductions, cash management alternatives and working capital requirements, release or success of new products, market share, strategic alternatives, raising additional funds, income and earnings per share or statements expressing general opinion about future results, are forward-looking statements. For a list of certain factors that may cause actual results to differ materially from those contemplated in these forward looking statements, please see the Company’s report filed with the OTC Markets on March 24, 2020 announcing its results for the full-year period ended December 31, 2019 and subsequent filings with the OTC Markets. Many such factors have been, and may further be, exacerbated by the COVID-19 pandemic. The Company undertakes no obligation to update publicly or revise any forward-looking statement whether as a result of new information, future events or otherwise.
Contacts:
Sales: Scott DeMell
Scott.DeMell@datatrak.com
Employment Opportunities: Laura Stuebbe
Laura.Stuebbe@datatrak.com
Shareholders: Alex Tabatabai
investor@datatrak.com
Datatrak International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet Data
(Audited)
December 31, 2020 December 31, 2019
Cash and cash equivalents $2,634,490 $3,990,549
Marketable securities 10,232 6,998
Certificate of deposit 125,095 165,224
Accounts receivable, net 1,836,321 634,571
Operating right-of-use asset, net 1,532,066 1,845,460
Property & equipment, net 1,646,768 1,355,164
Other 443,193 375,506
Total assets $8,228,165 $8,373,472
Accounts payable and other current liabilities $1,595,485 $ 902,183
Deferred revenue 3,323,796 4,308,563
Other long-term liabilities 2,047,172 2,016,407
Shareholders’ equity 1,261,712 1,146,319
Total liabilities and shareholders’ equity $8,228,165 $8,373,472
Datatrak International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Audited)
For the 3 Months Ended December 31,
2020 2019
Revenue $1,708,779 $1,908,678
Direct costs 479,442 515,012
Gross profit 1,229,337 1,393,666
Selling, general and administrative expenses 1,312,704 1,286,810
Depreciation and amortization 1,732 4,648
(Loss) income from operations (85,099) 102,208
Interest income 16 6,097
Interest expense (2,602) (863)
Other (expense) income (645) 688
Net (loss) income before tax provision $ (88,330) $ 108,130
Tax provision — —
Net (loss) income $ (88,330) $ 108,130
Net (loss) income per share:
Net (loss) income per share, basic $ (0.04) $ 0.05
Weighted-average shares outstanding, basic 2,397,107 2,358,667
Net (loss) income per share, diluted $ (0.04) $ 0.05
Weighted-average shares outstanding, diluted 2,397,107 2,388,177
Datatrak International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Audited)
For the 12 Months Ended December 31,
2020 2019
Revenue $7,157,009 $7,742,569
Direct costs 1,928,425 2,204,821
Gross profit 5,228,584 5,537,748
Selling, general and administrative expenses 5,307,860 5,144,820
Depreciation and amortization 10,770 19,020
(Loss) income from operations (90,046) 373,908
Interest income 5,016 18,140
Interest expense (8,510) (3,803)
Other income (expense) 3,354 (1,446)
Net (loss) income before tax provision $ (90,186) $ 386,799
Tax provision — —
Net (loss) income $ (90,186) $ 386,799
Net (loss) income per share:
Net (loss) income per share, basic $ (0.04) $ 0.16
Weighted-average shares outstanding, basic 2,385,696 2,346,372
Net (loss) income per share, diluted $ (0.04) $ 0.16
Weighted-average shares outstanding, diluted 2,385,696 2,378,739
AskMuncher
3 years ago
$DTRK Datatrak International, Inc. Reports Results for Third Quarter and First Nine Months of 2020
Press Release | 11/10/2020
CLEVELAND, OH, Nov. 10, 2020 (GLOBE NEWSWIRE) -- via NewMediaWire-- Datatrak International, Inc. (OTC Markets: DTRK), a worldwide Software-as-a-Service (“SaaS”) provider and innovation leader of cloud-based technologies for the life sciences industry, today announced its operating results for the third quarter and the first nine months of 2020.
Financial Highlights:
Revenue for the third quarter of 2020 was $1,752,000 compared to $2,028,000 for the third quarter of 2019. Despite the overall decrease in revenue, the Company has seen a significant increase in the number of new contracts and new customers during 2020 compared to the last three years. Direct costs decreased by $92,000 to $490,000 for the three months ended September 30, 2020 compared to $582,000 for the three months ended September 30, 2019 due to less amortization related to software development efforts that have been placed into production. The Company’s gross margin increased to 72% for the three months ended September 30, 2020 compared to 71% for the three months ended September 30, 2019. Selling, general and administrative (“SG&A”) expenses decreased by $75,000 to $1,288,000 for the three months ended September 30, 2020 compared to $1,363,000 for the three months ended September 30, 2019. The decrease in SG&A expenses was driven by lower employee expenses, due to personnel changes and partially offset by higher recruiting costs. Depreciation and amortization was $2,000 and $5,000 for the three months ended September 30, 2020 and 2019, respectively. As a result of the items discussed, Datatrak had a loss from operations for the three months ended September 30, 2020 of ($28,000) compared to income from operations of $79,000 for the three months ended September 30, 2019. After other income of $1,000 for the three months ended September 30, 2020 and $3,000 for the three months ended September 30, 2019, the Company’s net loss for the three months ended September 30, 2020 was ($27,000) compared to net income of $82,000 for the three months ended September 30, 2019.
Revenue for the first nine months of 2020 was $5,448,000 compared to $5,834,000 for the first nine months of 2019. Despite the overall decrease in revenue, the Company has seen a significant increase in the number of new contracts and new customers during 2020 compared to the last three years. Direct costs decreased by $241,000 for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 due to less amortization related to software development efforts that have been placed into production, which was partially offset by higher ISP costs. The Company’s gross margin increased to 73% for the nine months ended September 30, 2020 compared to 71% for the nine months ended September 30, 2019. SG&A expenses increased by $137,000 for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019. The increase in SG&A expenses was driven by higher employee expenses, due to salary adjustments, commissions and employee recruitment, and consulting costs. However, travel and advertising costs decreased for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 due to the COVID-19 pandemic. Depreciation and amortization was $9,000 and $14,000 for the nine months ended September 30, 2020 and 2019, respectively. As a result of the items discussed, Datatrak had a loss from operations for the nine months ended September 30, 2020 of ($5,000) compared to income from operations of $272,000 for the nine months ended September 30, 2019. After other income of $3,000 for the nine months ended September 30, 2020 and $7,000 for the nine months ended September 30, 2019, the Company’s net loss for the nine months ended September 30, 2020 was ($2,000) compared to net income of $279,000 for the nine months ended September 30, 2019.
Datatrak’s backlog at September 30, 2020 was $12 million compared to a backlog of $13.3 million at December 31, 2019. Backlog consists of future value from authorization letters to commence services, statements of work, technology and services agreements, change orders and other customer contracts, billed and unbilled.
All contracts are subject to possible delays or cancellation or can change in scope in a positive or negative direction. Therefore, current backlog is not necessarily indicative of the Company’s future quarterly or annual revenue. Historically, backlog has not always been an accurate predictor of the Company’s short-term revenue.
The Company has been monitoring state and federal guidelines regarding the COVID-19 pandemic and will continue to modify business operations as needed to comply with these guidelines for the safety of its employees and customers. As the COVID-19 pandemic is a continually evolving situation, the Company cannot provide any assurance that the effects of the COVID-19 pandemic will not have an adverse effect on its business or results of operations going forward. In addition, the COVID-19 pandemic has caused a global economic recession, which could potentially materially impact the Company.
Executive Highlights:
“Datatrak is committed to carrying out our long-term vision of providing the life sciences industry with the next generation of SaaS platforms that bridge the eClinical service delivery gaps,” said Jim Bob Ward, CEO at Datatrak. “Our system supplies clients with a responsive and agile solution that minimizes workforce outages during today’s uncertain times brought on by the COVID-19 pandemic. With the depth of our products and the team-based collaboration functionality of the Datatrak Enterprise Cloud, our clients are benefiting from more effective ways to execute their trials within a challenging business environment.”
“We continue to see an increase in new customers and contract opportunities in 2020 compared to the past three years,” said Scott DeMell, VP of Sales at Datatrak. “Both new and existing customers are recognizing that we provide the ability to streamline data collection and management from multiple sources within our unified platform, providing studies with enhanced data for faster and more informed clinical decisions.”
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See the Earnings Release on Datatrak’s website: https://bit.ly/36mKF4T
AboutDatatrakInternational, Inc.
Datatrak International, Inc. is a software-as-a-service provider of enterprise cloud-based technologies for the life sciences industry. Datatrak’s unified eClinical solutions and related services help improve cost and time efficiencies for the clinical trials industry. Datatrak built its multi-component, comprehensive solution on a single, unified platform and expanded this concept to include services delivery via Datatrak’s Clinical and Consulting Services group. The Company delivers a complete portfolio of software products designed to accelerate the reporting of clinical research data from sites to sponsors and ultimately regulatory authorities, faster and more efficiently than loosely integrated technologies. The Datatrak Enterprise Cloud software solution, deployed worldwide through an ASP or Enterprise Transfer offering, supports Preclinical and Phase I - Phase IV drug and device studies in multiple languages throughout the world. Datatrak is located in Cleveland, Ohio and College Station, Texas. For more information, visit http://www.datatrak.com.
Except for the historical information contained in this press release, the statements made in this release are forward-looking statements. These forward-looking statements
are made based on management’s expectations, assumptions, estimates and current beliefs concerning the operations, future results and prospects of the Company and are subject to uncertainties and factors which are difficult to predict and, in many instances, are beyond the control of the Company, and which could cause actual results to differ materially from those contemplated in these forward-looking statements. All statements that address operating performance, events or developments that management anticipates will occur in the future, including statements related to future revenue, profits, the impact of COVID-19, expenses, cost reductions, cash management alternatives and working capital requirements, release or success of new products, market share, strategic alternatives, raising additional funds, income and earnings per share or statements expressing general opinion about future results, are forward-looking statements. For a list of certain factors that may cause actual results to differ materially from those contemplated in these forward looking statements, please see the Company’s report filed with the OTC Markets on March 24, 2020 announcing its results for the full-year period ended December 31, 2019 and subsequent filings with the OTC Markets. Many such factors have been, and may further be, exacerbated by the COVID-19 pandemic. The Company undertakes no obligation to update publicly or revise any forward-looking statement whether as a result of new information, future events or otherwise.
Contacts:
Sales: Scott DeMell
Scott.DeMell@datatrak.com
Employment Opportunities: Laura Stuebbe
Laura.Stuebbe@datatrak.com
Shareholders: Alex Tabatabai
investor@datatrak.com
Datatrak International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet Data
(Unaudited and Not Reviewed)
September 30, 2020 December 31, 2019
Cash and cash equivalents $3,188,436 $3,990,549
Marketable securities 10,907 6,998
Certificate of deposit 125,079 165,224
Accounts receivable, net 741,159 634,571
Operating right-of-use asset, net 1,613,147 1,845,460
Property & equipment, net 1,561,656 1,355,164
Other 682,618 375,506
Total assets $7,923,002 $8,373,472
Accounts payable and other current liabilities $1,699,424 $ 902,183
Deferred revenue 2,764,848 4,308,563
Other long-term liabilities 2,148,755 2,016,407
Shareholders’ equity 1,309,975 1,146,319
Total liabilities and shareholders’ equity $7,923,002 $8,373,472
Datatrak International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited and Not Reviewed)
For the 3 Months Ended September 30,
2020 2019
Revenue $1,752,099 $2,028,216
Direct costs 490,349 581,957
Gross profit 1,261,750 1,446,259
Selling, general and administrative expenses 1,287,842 1,362,971
Depreciation and amortization 2,151 4,648
(Loss) income from operations (28,243) 78,640
Interest income 58 5,475
Interest expense (3,054) (1,371)
Other income (expense) 4,515 (817)
Net (loss) income before tax provision $ (26,724) $ 81,927
Tax provision — —
Net (loss) income $ (26,724) $ 81,927
Net (loss) income per share:
Net (loss) income per share, basic $ (0.01) $ 0.03
Weighted-average shares outstanding, basic 2,390,373 2,352,213
Net (loss) income per share, diluted $ (0.01) $ 0.03
Weighted-average shares outstanding, diluted 2,390,373 2,374,113
Datatrak International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited and Not Reviewed)
For the 9 Months Ended September 30,
2020 2019
Revenue $5,448,230 $5,833,891
Direct costs 1,448,983 1,689,809
Gross profit 3,999,247 4,144,082
Selling, general and administrative expenses 3,995,156 3,858,010
Depreciation and amortization 9,038 14,372
(Loss) income from operations (4,947) 271,700
Interest income 5,000 12,043
Interest expense (5,908) (2,940)
Other income (expense) 3,999 (2,134)
Net (loss) income before tax provision $ (1,856) $ 278,669
Tax provision — —
Net (loss) income $ (1,856) $ 278,669
Net (loss) income per share:
Net (loss) income per share, basic $ (0.00) $ 0.12
Weighted-average shares outstanding, basic 2,381,864 2,342,229
Net (loss) income per share, diluted $ (0.00) $ 0.12
Weighted-average shares outstanding, diluted 2,381,864 2,372,946
Ultimaratioregum
9 years ago
Rawrrrrr
Arosa Investment Management Responds to Datatrak’s Deceptive and Misleading Letter to Shareholders
Oct 26, 2015
OTC Disclosure & News Service
-
Arosa Investment Management LLC, the beneficial owner of approximately 9.9% of the shares of Datatrak International, Inc. (OTC: DTRK) that has initiated a proxy contest to elect three new directors at Datatrak’s annual meeting of shareholders scheduled to be held on November 11, 2015, is providing this response to the deceptive and misleading letter of Datatrak’s board and management to shareholders issued on October 19, 2015.
Arosa Investment Management encourages shareholders to review Datatrak’s management’s statements closely. Where Datatrak’s management accuses Arosa Investment Management of misrepresentations or makes accusations regarding Arosa Investment Management’s board nominees, we encourage shareholders to read Datatrak’s own filings with the OTC Markets and our proxy materials. We believe Datatrak’s management’s deceptive and misleading statements are apparent from readily obtainable information. Datatrak’s filings with the OTC Markets can easily be found at www.otcmarkets.com, by entering “DTRK” in the “Get Quote” field, and then selecting “Filings and Disclosure.” We reference Datatrak’s OTC filings below, with page numbers.
Arosa Investment Management responds specifically to the following deceptive and misleading statements by Datatrak’s management:
Datatrak’s management deceptively states that “[t]he base salaries of the CEO and CFO combined were $557,000, not $1,073,737 as Arosa/Mr. Tabatabai stated…”
Arosa Investment Management’s proxy statement states that “[w]ith revenues of only $11,010,792 in fiscal 2014, Datatrak paid its Chairman/CEO and CFO combined cash compensation of $1,073,737.”
This information is contained on page 15 of Datatrak’s annual report filed with the OTC Markets on March 13, 2015. Surprisingly, this information is not included in the abridged annual report that Datatrak mailed to shareholders. Why would Datatrak remove that information from the version of the annual report that it mailed to shareholders? Why does Datatrak now try to confuse shareholders by referring to “base salaries” instead of “total cash compensation”?
Between 2008 and 2014, the Chairman/CEO has received $2,939,849 in total cash compensation. Between 2012 and 2014, the CFO has received total cash compensation of $945,554. These figures can be found in Datatrak’s own annual reports filed with the OTC Markets. These cash compensation figures do not include the equity awards that have been granted to the Chairman/CEO and CFO on top of their regular cash compensation. Arosa Investment Management believes that this compensation is excessive and is one of many problems arising from the poor corporate governance at Datatrak.
Datatrak’s management falsely states that it “provides disclosures in excess of what is required to be in compliance with the OTCQX requirements for disclosure.”
Datatrak maintained a convicted felon on its board since 2009 and as chairman of its audit committee. This was not disclosed in any of Datatrak’s annual reports since 2009, despite this being a clear disclosure requirement under OTC rules. Why did Datatrak’s management not disclose this? Why would Datatrak’s management maintain a convicted felon on its board and as chairman of its audit committee? Did the felony conviction allow him to exercise complete independence of the Chairman/CEO, or did it require the opposite?
Datatrak’s board recently completed an internal investigation regarding the actions of its Chairman/CEO. Why has Datatrak not disclosed the matters addressed and conclusions reached in this investigation? Why did Datatrak’s management not respond to this in its letter to shareholders? We understand that the investigation was led by the convicted felon on the Datatrak board—why did the board think that was appropriate?
Datatrak’s management falsely states that the Chairman/CEO holds shares “with the same rights as all other shareholders.”
Datatrak’s board granted a special exception under its anti-shareholder poison pill to its Chairman/CEO. This special exception is shown as an attachment to Datatrak’s quarterly report filed with the OTC Markets on May 15, 2013. The trigger under the poison pill that applies to all shareholders except the Chairman/CEO is 15% ownership of Datatrak shares. The special exception granted only to the Chairman/CEO is 20%. This means the Chairman/CEO holds shares with special rights that other shareholders do not have.
In addition, Datatrak has reported that “on July 1, 2010, the Company privately placed 357,857 Common Shares with certain members of the Board of Directors and key employees.” This special offering for insiders was made at a 15% discount. This information is contained on pages 24, 26 and F-18 of Datatrak’s annual report for the fiscal year ended December 31, 2010 filed by Datatrak with the OTC Markets on March 25, 2011. We believe that the Chairman/CEO was a large beneficiary of this offering—an offering that was not made available to outside shareholders.
Datatrak’s management falsely states that its corporate governance guidelines “may” make one of Arosa Investment Management’s board candidates “an ineligible nominee.”
Datatrak’s corporate governance guidelines are simply that—guidelines. They are not contained in the company’s articles of incorporation or code of regulations and therefore cannot be applied to prevent shareholders from electing candidates of their choice to the board. We are confident that Datatrak’s management and its lawyers know this. We believe that Datatrak’s management is trying to mislead shareholders into believing that a vote for one of our nominees would be a wasted vote.
Our board candidate that Datatrak’s management falsely targeted with this attack, Jack H. Jacobs, is 70 years old, while Datatrak’s management’s new nominee for the board, William Coates, is also 70 years old as of October 9. Datatrak’s management’s press release states that Mr. Jacobs “is beyond the age of retirement per the Company’s corporate governance guidelines.” Also, contrary to Datatrak’s management’s false contention, it is apparent from a plain reading that Mr. Jacobs’ biography in our proxy statement does not indicate that he “already sits on five other Boards.” We believe it is apparent that Datatrak’s management is attempting to blatantly mislead shareholders on these points.
Datatrak’s management falsely states extensively that Arosa Investment Management’s board candidate James R. Ward is “unsuitable” and “not qualified” to be on the board.
If Mr. Ward is “unsuitable” and “not qualified” for service and his contribution to the company’s technology was not significant, then we believe Datatrak’s management should explain why they have recently been communicating with Mr. Ward in effort to hire him as a consultant or employee.
Arosa Investment Management also believes that Datatrak’s management should explain that during the time that Mr. Ward served as Datatrak’s VP of Research and Development, Datatrak’s current board nominee William Coates served as VP of Business Development and Strategy. Mr. Coates also worked at ClickFind before it was acquired by Datatrak. Datatrak’s management seems to cast all blame for Datatrak’s problems on Mr. Ward, whose company they acquired and whose technology forms the basis of Datatrak’s current software product.
Datatrak’s management falsely and repeatedly refers to having avoided dilution to shareholders.
Since 2009, Datatrak’s shareholders have been diluted by approximately 32.25% through stock awards to executives and directors—shareholder dilution that brought little to no additional capital to the company.
In addition, in 2010 Datatrak privately sold 357,857 common shares to selected members of its board and management at a 15% discount. As stated above, this information is contained on pages 24, 26 and F-18 of Datatrak’s annual report for the fiscal year ended December 31, 2010 filed by Datatrak with the OTC Markets on March 25, 2011.
Arosa Investment Management believes that this constitutes significant dilution to shareholders and that Datatrak’s management is being deceptive to say that outside shareholders have not been diluted
Datatrak’s management boasts regarding the “significant progress and accomplishments achieved under the current leadership.”
Datatrak has reported a profit in only one year in the past eight fiscal years. Datatrak reported a profit of $101,109 in fiscal 2010. Datatrak reported net losses of $1,292,834, $128,902, $1,539,348 and $1,006,887 on revenues of $11,010,792, $10,900,711, $9,716,225 and $7,926,342 in fiscal years 2014, 2013, 2012 and 2011. Datatrak reported even greater net losses in fiscal years 2007, 2008 and 2009.
Datatrak’s management boasts of “white papers,” “webinars,” being a “thought leader” and other things that have not generated returns for shareholders. Arosa Investment Management believes that shareholders are entitled to a return on their investment. Instead, Datatrak’s shareholders have suffered significant net losses year after year, while management benefits from what Arosa Investment Management believes is excessive cash compensation, special discounted equity offerings and highly dilutive equity awards to insiders.
Datatrak’s management deceptively states that its Chairman/CEO has “driven share appreciation of 224%.”
Based on the closing price of Datatrak’s common stock as of October 12, 2015 as reported by the OTC Markets, Datatrak’s stock has returned approximately -38% for shareholders over the past five years and approximately -94% for shareholders over the past ten years.
Since the Chairman/CEO was elected to the board on April 16, 2007, Datatrak’s stock has returned -91%, since he was named Chairman on May 15, 2008, the stock has returned -21%, since he was named Interim CEO on January 21, 2009, the stock has returned 224%, and since he was named CEO on November 1, 2009, the stock has returned 43%. Shareholders should take into account the significant stock market crash in late 2008 and early 2009 due to the U.S. financial crisis, and the rapid market recovery that took place beginning in March 2009. Any share appreciation since that time largely reflects the market’s return to normal trading levels.
Datatrak’s management can selectively pick dates to show positive returns for Datatrak’s stock. The reality is that Datatrak’s stock has languished for more than 10 years, including during the time that the current Chairman/CEO has added to his titles with Datatrak.
Datatrak’s management tries to scare shareholders with the boilerplate slogan that Arosa Investment Management seeks to “[t]ake control of the Company without paying shareholders a premium.”
Arosa Investment Management has not made an offer to acquire Datatrak and does not intend to. Arosa Investment Management only desires to elect new and truly independent candidates to Datatrak’s board of directors to effect positive change at the company for all shareholders. Shareholders should not be deceived by Datatrak’s boilerplate and outdated scare tactic.
Arosa Investment Management is a long term-oriented investor that feels compelled to take action because we believe that Datatrak is a “now or never” situation requiring the installation of a new board that will fulfill its duties to all shareholders. Based on the outreach to Arosa Investment Management to date, we believe that many valuable Datatrak employees support us and welcome our plans for the company. Arosa Investment Management is committed to the long term success, growth and profitability of Datatrak for the benefit of all shareholders and its employees.
Datatrak’s management deceptively defends its anti-shareholder poison pill.
Datatrak’s management states that it maintains its poison pill “for the exact purpose of protecting the Company’s shareholders from attempts...such as the…approach seemingly contemplated by Arosa/Mr. Tabatabai…to gain control of the Company…at a value that does not reflect the intrinsic value of the Company.”
Arosa Investment Management has not made an offer to acquire Datatrak and does not intend to. We believe that Datatrak’s management knows this. Datatrak’s management is not attempting to stop an acquisition of the company at an inadequate price. Instead, Datatrak’s management has sent letters to Arosa Investment Management seeking to use its poison pill as a weapon to prevent a lawful proxy solicitation by Arosa Investment Management in a manner that we believe is blatantly unlawful. We believe through this and many other ways Datatrak’s management is working furiously to avoid a lawful proxy solicitation not for the benefit of the company or shareholders but to further entrench themselves.
Datatrak’s management falsely states that “Arosa/Mr. Tabatabai has presented no new ideas and has no plan.”
Arosa Investment Management’s plan for the company is described on pages 2-5 of its proxy statement mailed to shareholders. Datatrak’s management acknowledges in its letter to shareholders that it has reviewed Arosa Investment Management’s proxy statement, so this would appear to be a blatant false statement. Shareholders are encouraged to review our proxy statement and our plan for the company. If you have not received a copy of our proxy statement, please contact Alliance Advisors, our proxy advisor, toll-free at 855-737-3183.
Shareholders should have received a proxy statement and proxy card from Arosa Investment Management. You may also obtain these materials from Arosa Investment Management’s proxy advisor as provided below. We urge you to cast your vote on Arosa Investment Management’s proxy card.
We urge you not to return Datatrak’s management’s proxy card. If you have already returned management’s proxy card, you may revoke it simply by now voting on Arosa Investment Management’s proxy card.
If you own shares of Datatrak, we would like to hear from you. We urge you to call us so that we can provide you with additional information and our proxy materials. Please contact Alliance Advisors, Arosa Investment Management’s proxy advisor, toll-free at 855-737-3183.
We would like to thank the many Datatrak shareholders and employees who have expressed support for our efforts. We encourage Datatrak employees not to be intimidated by management’s efforts to compel your vote for management’s nominees. If we are successful in our efforts, we expect that most all current Datatrak employees will have the opportunity to be part of our efforts to effect positive change at the company.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151026006291/en/
Copyright © 2015 Businesswire. All Rights Reserved
The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.
noceojwiclow
9 years ago
Mission IR - Priming the PUMP
DATATRAK International, Inc. (DTRK) Unified E-Clinical Solutions Platform Key to Improved Efficiency, Reduced Cost in Clinical Trials
Posted on March 6, 2015 by MissionIR
Transparency Market Research’s October 2014 report on the clinical trial management system (CTMS) market indicates that the global CTMS space alone, worth just $844 million in 2013, is on track to grow at a 14% CAGR through 2019, when it will hit around $1.85 billion. CTMS software platforms are used to manage, store and analyze the huge volumes of clinical data associated with a given drug/device and to circumspectly execute the requisite planning, preparation, and reporting to carry out a clinical trial. Another report by Transparency Market Research, also out in 2014, focused on the broader e-clinical solution software market, which encompasses licensed enterprise, web-based and cloud-based deployments spanning the CTMS, as well as clinical data management, electronic clinical outcome assessment, randomization, trial supply management and safety solution markets. That report indicates a similarly robust outlook for the industry, with a projected CAGR of 13.8% through 2020, as the market swells from around $3 billion last year, to over $6.5 billion.
Growing pressure on the pharmaceutical industry to shave time off the clinical trial process and simultaneously increase drug productivity, as well as the rapid emergence of e-clinical solution users like healthcare providers and contract research organizations (CROs), have created serious tailwinds for the e-clinical solutions software market. Moreover, the growing cost to take a drug from conception through to FDA/EMA (or other relevant agency) marketing approval, has steadily increased over the years and major e-clinical solutions sector player Oracle (NYSE:ORCL) has documented the associated decline of U.S. and Europe in terms of their percentage share of the global clinical trials market.
Japan, China and India have all seen notable increases over the same interval, due in large part to improved regulatory and patent expiration laws in Asia, as well as lower overall clinical trial costs compared to the U.S. and Europe. Hence the massive demand, particularly in western markets, for comprehensive e-clinical solutions that can help cut time and money off the clinical trial process, as well as the associated rise of CROs, to whom developers can outsource their R&D work. The CRO market size alone was around $23.6 billion in 2014 according to Industry Standard Research Reports, where growth has been driven mostly by increasing R&D budgets ($245.7 billion in total) among biotech, specialty, and generics companies, in addition to the demand for cost-effective clinical trial outsourcing among new drug/device developers.
These market conditions have created a huge boon for companies like DATATRAK (OTCQX: DTRK), which serves the global clinical trials industry with their comprehensive, unified e-clinical solutions platform and related services. The company’s DATATRAK ONE® unified platform provides a single data source architecture that powers all of DTRK’s e-clinical solutions, brilliantly eliminating the often cumbersome and time consuming process of data integration. Built for the cloud, this architecture, complete with a superbly intuitive and easy-to-use interface, even allows for rapid mid-study changes to be made on the fly, while also maintaining rock-solid uptime.
Because the DATATRAK ONE architecture is a component-based platform of independent solutions which are designed to integrate seamlessly in any configuration, no matter what the specific deployment looks like, developers have full-spectrum control over all aspects of a given clinical study, with real-time access to all their clinical data. The DATATRAK ONE Unified Experience™ approach confers numerous benefits in addition to industry-leading system reliability, intuitive design and a unified data source, like improved site compliance, higher granularity in the data sets, reduced trial complexity, and accelerated, cheaper trialing, with a dramatic improvement in overall trial safety being a natural bonus. Moreover, the DATATRAK Clinical Consulting Services (DCCS) team brings the kind of trial type and phase spanning expertise needed for developers to run a truly successful trial. With the DCCS team becoming an actual extension of the development team and utilizing the same customer-centric approach that has already made DTRK a preferred provider with partners all over the globe, DTRK provides the software and the services developers need to compete and thrive in today’s highly competitive clinical trial market.
The DATATRAK ONE architecture does it all: planning and management using the UX CTMS™ component; design and deployment in one tool with the UX Trial Design™ component; data capture and delivery with the UX EDC & Medical Coding™ component; randomized patients and automated supply with the UX Randomization & Trial Supply Management™ component; patient-driven data collection with the UX Patient Data Capture™ component; individual case safety report management with the UX Safety™ component; and robust user training, as well as certificate tracking with the UX Training™ component. This unified architecture also offers unprecedented capacity to be fully configured to the individual user’s specifications and is accessible via single sign-on, delivering a vastly improved user experience and the company genuinely considers its users to be partners as well, providing a wealth of expansion programs that can help forge an even closer bond under the DATATRAK CONNECT® banner.
The company has a CRO-focused partner program, which supports CROs via a collaborative effort that translates into further time and cost savings benefits, complete with co-marketing opportunities and access to the DATATRAK sandbox, as well as demo and bid defense support. The company also offers a technology partner program focused on granting tech providers an interoperable channel via access to the DATATRAK Exchange API (application programming interface), which enhances overall usability and understanding for tech providers of the architecture and its solutions, while simultaneously introducing them to potential clients who are already keen on the significant benefits of the platform. DATATRAK also does a highly unique reseller agreement program with strategic partners in adjacent industries where their architecture has yet to achieve a sizeable presence, like with China/Japan-focused NTT Data. This is a particularly lucrative vector for DTRK given the outlook for the Asian e-clinical solutions market and shows how spry the company can be when it comes to penetrating new markets.
The recent expansion in February of multi-year global enterprise agreements with three top CRO enterprise partners, who have opted to extend their relationship with DTRK and increase their global licensing capacity, is abundant proof of how the advanced DATATRAK platform is actively reshaping industry expectations. Cumbersome complexities like data integration, once considered unavoidable by most developers, vanish within the DATATRAK ONE architecture and innovations once thought impossible, like cross-study real-time data reporting, are already fully integrated features of the platform. In addition to the recently added cross-study manager, which provides tailored information support to each individual researcher, granting extremely flexible reporting across 100 plus fields, DTRK has added an automated information delivery scheduler, as well as collaboration-facilitating file versioning, to their full suite of enterprise-wide online data management tools.
Whether clinical trialing is outsourced work being done at a CRO, or in-house pharma/biotech or device development, DATATRAK prides itself on removing the most difficult to contend with complexities and delivering truly revolutionary advantages to the development process. This is particularly apparent with the platform’s ability to do aforementioned mid-study changes in the field of biopharma development, where the complex work never needs to come to a halt in order to integrate new changes, an advantage which translates directly into improved development cycle times and cost efficiencies. The advantages of the DATATRAK architecture are also readily apparent in the device development field, where the dynamic regulatory landscape presents unique challenges that can be ably surmounted by DTRK’s fusion of proven technologies and industry expertise, whether the specific goal is clinical trial data collection for pre-market authorization approval, or keeping tabs on product usage once the device has gone live.
Fully aligned services to support their unified technology platform rounds out the equation at DATATRAK. With an experienced arsenal of development teams, project managers and trial designers at their disposal, as well as a complete solution center and technology services under the DCCS umbrella, DTRK is a one-stop-shop for clinical trial industry developers looking to up their game. The company provides thorough training programs that are recognized throughout the industry as being top notch, thanks in large part to the company’s extremely knowledgeable learning solution specialists and the wide variety of hands-on training that is available to meet any client’s needs.
Diving deeper into the company’s services, we see that DATATRAK’s solution center is a highly personalized single source contact which goes above and beyond the traditional definitions of a help desk, providing customized, proactive help that dovetails exceptionally well with the company’s learning center, which is comprised of a knowledgebase covering every area of the e-clinical world. DATATRAK’s experienced team of clinical data managers also help support the company’s clients with full-service assistance, ranging from initial study builds through to database closeout, and the company has a wealth of experience in trial design as well, enabling clients to take the guess work out of preparing and executing across the vast landscape of therapeutic areas and trial Phases.
Get a closer look at DATATRAK by visiting www.Datatrak.com
Soapy Bubbles
13 years ago
DATATRAK International, Inc. Announces Second Quarter Results for 2011
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Datatrak Intl (QX) (USOTC:DATA)
Intraday Stock Chart
Today : Thursday 11 August 2011
Click Here for more Datatrak Intl (QX) Charts.
DATATRAK International, Inc. (OTCQX: DATA), a technology and services company focused on global eClinical solutions for the clinical trials industry, today announced its operating results for the second quarter of 2011. Highlights include: $2.1 million revenue, $4.4 million new contract sales and the highest quarter ending cash balance in 18 months.
"Today, DATATRAK is a dynamic organization focused on forward growth as evidenced by our record level of new contract sales and significant increase in working capital due to our contract extension with NTT DATA. The company is now positioned to increase investment in Sales, Marketing and R&D to accelerate our sales growth curve in 2011, 2012 and beyond," stated Laurence P. Birch, DATATRAK's Chairman of the Board and CEO. "Even in a market facing reduced R&D expenditures and rising clinical trial costs, DATATRAK is continuing to set milestones in its company history."
Corporate Highlights:
New contract sales for the second quarter of 2011 of $4.4 million were the highest quarterly amount in over 5 years
Revenue for the second quarter of 2011 of $2.1 million increased 13% over the second quarter revenue of 2010 of $1.9 million and was the highest quarterly revenue since 2008
Revenue for the first six months of 2011 of $4.0 million increased 13% over the same period revenue of 2010 of $3.6 million
Cash balance of $2.1 million at June 30, 2011 increased 130% over the $0.9 million cash balance of June 30, 2010
June 30, 2011 ending Backlog of $11.7 million was a 12% increase over the ending balance at March 31, 2011 of $10.5 million and the highest balance since 2008
Continued positive cash flow from operations
Gross profit margin remained relatively stable at 84% for the second quarter of 2011 compared to 85% for same period in 2010, despite an increased headcount to support DATATRAK's new Clinical and Consulting Services unit
Announced the multi-million dollar, 5-year extension to the existing NTT DATA Enterprise Agreement, including a branded version of DATATRAK ONE™ for use in the Japanese PMS marketplace
Exhibited at the 47th DIA Annual Meeting in Chicago, Illinois
Experienced significant booth traffic
Shiela McLaughlin, International Director Quality Assurance, presented, "A Risk-Based Approach to Vendor Management"
Kathy Tibaldi, Director of Client Services, chaired the session, "Hot Issues of Professional Development and Training"
Exhibited at the 2011 ASCO Meeting in Chicago, Illinois
Actively engaged in proposal opportunities with 30 CRO and Connect Partners during the first six months of 2011 – more than a 200% increase from 2010
Recognized as a 2011 Crain's Leading Edge Award Winner for the second consecutive year
Announced expansion of the DATATRAK Academy to include Durham Tech Community College, including licensing of software to their Clinical Trial Research program and courses
Announced expansion and rebranding of DATATRAK's unified software suite, DATATRAK ONE™, including the following products:
uCTMS – unified Clinical Trial Management System
uDesign – unified Trial Design
uEDC – unified Electronic Data Capture
uIRT – unified Interactive Response Technology
uSafety – unified Safety Submission
uTrain – unified Training Program
uCDR – unified Clinical Data Repository
Continued to support Safety, Simplicity and Speed in data collection with the 2011 Q2 uEDC software release, including the following enhancements to enable faster timelines with fewer clicks:
Tabular Data Entry – expedite and simplify data collection with tabular data entry screens
Automatic Reconciliation of Cross-form Edit Checks – move all complex batch edit checks to uEDC™ with the ability to automatically reconcile cross form edit checks
Coding Dictionary Upgrade Utility – reduce the complexity of mid-study dictionary changes to a simple wizard
Expanded Data Output Formats – gain greater impact with enhanced visualization tools and CDISC ODM standard exports
Financial Highlights:
Revenue for the second quarter of 2011 increased 13% to $2,133,000 compared to $1,881,000 in the same period of 2010. The gross profit margin remained relatively stable at 84% for the three months ended June 30, 2011 compared to 85% for the three months ended June 30, 2010. The slight decrease in the Company's gross margin reflects higher headcount costs to support DATATRAK's Clinical and Consulting Services™ business offset to some degree by the increase in revenue.
DATATRAK's backlog at June 30, 2011 was $11.7 million compared to a backlog of $11.2 million at December 31, 2010. Backlog consists of future value from authorization letters to commence services, statements of work, technology and services agreements, change orders and other customer contracts, billed and unbilled. Backlog at June 30, 2011 increased over December 31, 2010, despite several studies that were cancelled during the first six months of 2011 due to reasons beyond DATATRAK's control. Without these unforeseen study cancellations, backlog would have had a more significant increase for the first six months of 2011 due to sales of the company's products and services. New sales for the first six months of 2011 outpaced the first six months of 2010 by 39%; these sales were longer term in nature and while a healthy indicator going into 2012, they may not be sufficient to offset the short term revenue reductions due to the unforeseen study cancellations in the first six months of 2011. All contracts are subject to possible delays or cancellation or can change in scope in a positive or negative direction. Therefore, current backlog is not necessarily indicative of the Company's future quarterly or annual revenue. Historically, backlog has been a poor predictor of the Company's short-term revenue.
"DATATRAK's recent success within the marketplace was best demonstrated by the Company's presence at the 2011 Annual DIA Meeting in June," noted Birch. "As a result of increased sales and marketing activities promoting DATATRAK's improved technological advances, booth traffic was extremely high and we were rewarded with numerous possible new Connect Partners and many qualified leads."
About DATATRAK International, Inc.
DATATRAK International is a worldwide technology and services company delivering eClinical solutions and related services for the clinical trials industry. DATATRAK built its multi-component, comprehensive solution on a single, unified platform and expanded this concept to include services delivery via DATATRAK's Clinical and Consulting Services™ group. The Company delivers a complete portfolio of software products designed to accelerate the reporting of clinical research data from sites to sponsors and ultimately regulatory authorities, faster and more efficiently than loosely integrated technologies. The DATATRAK ONE™ software solution, deployed worldwide through an ASP or Enterprise Transfer offering, supports Phase I - Phase IV drug and devices studies in multiple languages throughout the world. DATATRAK has offices located in Cleveland, Ohio; Bryan, Texas; and Cary (RTP), North Carolina. For more information, visit http://www.datatrak.net.
Except for the historical information contained in this press release, the statements made in this release are forward-looking statements. These forward-looking statements are made based on management's expectations, assumptions, estimates and current beliefs concerning the operations, future results and prospects of the Company and are subject to uncertainties and factors which are difficult to predict and, in many instances, are beyond the control of the Company, and which could cause actual results to differ materially from those contemplated in these forward-looking statements. For a list of certain of the factors that may cause actual results to differ materially from those contemplated in these forward looking statements, please see the Company's quarterly report filed with the OTCQX Market announcing its results for the three-month period ended March 31, 2011 and for a list of additional factors, please see the Company's upcoming quarterly report for the period ended June 30, 2011. The Company undertakes no obligation to update publicly or revise any forward-looking statement whether as a result of new information, future events or otherwise.
DATATRAK International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet Data
(Unaudited)
June 30, 2011
December 31, 2010
Cash and investments
$2,121,655
$1,026,369
Accounts receivable, net
867,168
1,062,807
Property & equipment, net
238,009
317,145
Deferred tax assets
56,400
74,200
Other
767,633
206,430
Total assets
$4,050,865
$2,686,951
Accounts payable and other current liabilities
$1,281,298
$1,606,317
Deferred revenue
3,493,971
1,929,623
Deferred tax liabilities
56,400
74,200
Other long-term liabilities
35,054
54,932
Shareholders' (deficit)
(815,858)
(978,121)
Total liabilities and shareholders' (deficit)
$4,050,865
$2,686,951
DATATRAK International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
For the Three Months Ended June 30,
2011
2010
Revenue
$2,132,852
$1,880,572
Direct costs
334,216
277,602
Gross profit
1,798,636
1,602,970
Selling, general and administrative expenses
1,913,511
1,530,413
Depreciation and amortization
38,938
45,267
(Loss) income from operations
(153,813)
27,290
Interest income
139
175
Interest expense
(4,581)
(2,103)
Other loss
---
(697)
(Loss) income before income taxes
(158,255)
24,665
Income tax expense
---
---
Net (loss) income
$(158,255)
$24,665
Net (loss) income per share:
Basic:
Net (loss) income per share
$(0.01)
$0.00
Weighted-average shares outstanding
14,325,325
13,706,901
Diluted:
Net (loss) income per share
$(0.01)
$0.00
Weighted-average shares outstanding
14,325,325
14,069,023
DATATRAK International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
For the Six Months Ended June 30,
2011
2010
Revenue
$4,021,173
$3,558,222
Direct costs
685,194
580,310
Gross profit
3,335,979
2,977,912
Selling, general and administrative expenses
3,608,616
3,021,914
Severance expense
---
(182,299)
Depreciation and amortization
79,135
100,461
(Loss) income from operations
(351,772)
37,836
Interest income
319
317
Interest expense
(7,255)
(3,414)
Other
---
(697)
Net income (loss)
$(358,708)
$34,042
Net income (loss) per share:
Net (loss) income per share, basic and
Diluted
$(0.03)
$0.00
Weighted-average shares outstanding
14,217,167
13,706,901
SOURCE DATATRAK International, Inc.
Soapy Bubbles
13 years ago
DATATRAK International, Inc. Announces First Quarter Results for 2011
Datatrak Intl (USOTC:DATA)
Intraday Stock Chart
Today : Monday 16 May 2011
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DATATRAK International, Inc. (OTCQX: DATA), a technology and services company focused on global eClinical solutions for the clinical trials industry, today announced its operating results for the first quarter of 2011. Highlights include: $1.9 million revenue, a stable gross profit margin and the highest quarter ending cash balance in 15 months.
"DATATRAK continues to focus on strategic investments that maximize our organic growth," noted Laurence P. Birch, DATATRAK's Chairman of the Board and CEO. "Our commitment to exceptional customer service is evidenced in the additional services now offered through our DATATRAK Clinical and Consulting Services™ unit. These new services in addition to the advantages of our proprietary unified technology are the foundation for our emergence as a leader in the eClinical marketplace." Birch continued, "In order to safeguard our position, our partners and our clients, DATATRAK's 2011 focus has expanded to aggressively protecting our intellectual property."
Corporate Highlights:
Revenue for the first quarter of 2011 increased 13% over the first quarter of 2010
Cash balance of $1.184 million at March 31, 2011 increased 46% over the $811,000 cash balance of March 31, 2010
Continued positive cash flow from operations
Gross profit margin remained relatively stable at 81% for the first quarter of 2011 compared to 82% for same period in 2010, despite an increased headcount to support DATATRAK's new Clinical and Consulting Services unit
Attended the 14th Annual DIA Workshop in Japan with partner NTT DATA
Added contracts with 5 new clients in the first quarter, including previously released:
In January, awarded a Phase II device study by a leading global healthcare supplier headquartered in Europe
In March, awarded first study with Kreara Solutions, an Indian CRO - the trial, to be managed by Kreara, will be conducted in Japan and employ several CROs based in Japan, India and the US
Expanded CRO activity to include bidding with 25 CROs in the first quarter
Scaled cloud offering to support client growth by relocating datacenter to a specialized collocation facility
Opened a new office in the Research Park Triangle, headed by Dr. Bill Gluck, formerly of Gilead Sciences, Inc.
Increased visibility in the industry:
Chris Wilke, DATATRAK's CTO, presented "Using Technology to Improve the Clinical Trial Process" at DIA's 23rd Annual EuroMeeting
Dr. Bill Gluck, DATATRAK's VP Clinical and Consulting Services, presented, "Quality Data is a Team Effort" at the DIA Clinical Data Quality Summit in Arlington, Virginia
Financial Highlights:
Revenue for the first quarter of 2011 increased 13% to $1,888,000 compared to $1,678,000 in the same period of 2010. The gross profit margin remained relatively stable at 81% for the three months ended March 31, 2011 compared to 82% for the first three months of 2010. The slight decrease in the Company's gross margin reflects the increase in revenue offset by a higher headcount to support DATATRAK's Clinical and Consulting Services™ business.
DATATRAK's loss from operations in the first quarter of 2011 was $(198,000) compared to income from operations of $11,000 in the same quarter of the prior year. The 2011 first quarter loss from operations includes: (i) research and development expense of $273,000, (ii) stock compensation expense of $72,000, and (iii) non-cash items of $112,000. The 2010 first quarter income from operations includes: (i) reversal of severance expense of $182,000, (ii) research and development expense of $254,000, (iii) stock compensation expense of $22,000, and (iv) non-cash items of $77,000.
DATATRAK's backlog at March 31, 2011 was $10.5 million compared to a backlog of $11.2 million at December 31, 2010. Without unforeseen study cancellations, backlog would have increased for the quarter due to robust new contract sales. Backlog is defined as the remaining value of signed contracts or authorization letters to commence services. The Company does not include in its backlog potential contracts or authorization letters that have passed the verbal stage but have not been signed. All contracts are subject to possible delays or cancellation or can change in scope in a positive or negative direction. Therefore, current backlog is not necessarily indicative of the Company's future quarterly or annual revenue. Historically, backlog has been a poor predictor of the Company's short-term revenue.
"As planned," continued Birch, "We are now investing for growth through additional investments in sales, marketing and product development as well as investing to protect our valuable intellectual property. This is an exciting time for DATATRAK. We have great technology supported by a great team, and we are executing to continuously deliver outstanding products and services to a growing number of customers."
About DATATRAK International, Inc.
DATATRAK International is a worldwide technology and services company delivering eClinical solutions and related services for the clinical trials industry. DATATRAK built its multi-component, comprehensive solution on a single, unified platform and expanded this concept to include services delivery via DATATRAK's Clinical and Consulting Services™ group. The Company delivers a complete portfolio of software products designed to accelerate the reporting of clinical research data from sites to sponsors and ultimately regulatory authorities, faster and more efficiently than loosely integrated technologies. The DATATRAK eClinical® software solution, deployed worldwide through an ASP or Enterprise Transfer offering, supports Phase I - Phase IV drug and devices studies in multiple languages throughout the world. DATATRAK has offices located in Cleveland, Ohio; Bryan, Texas; and Cary (RTP), North Carolina. For more information, visit http://www.datatrak.net.
Except for the historical information contained in this press release, the statements made in this release are forward-looking statements. These forward-looking statements are made based on management's expectations, assumptions, estimates and current beliefs concerning the operations, future results and prospects of the Company and are subject to uncertainties and factors which are difficult to predict and, in many instances, are beyond the control of the Company, and which could cause actual results to differ materially from those contemplated in these forward-looking statements. For a list of certain of the factors that may cause actual results to differ materially from those contemplated in these forward looking statements, please see the Company's annual report filed with the OTC Markets on March 24, 2011 announcing its results for the full-year period ending December 31, 2010. The Company undertakes no obligation to update publicly or revise any forward-looking statement whether as a result of new information, future events or otherwise.
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