CLEVELAND, Aug. 15, 2012 /PRNewswire/ -- 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 2012.
"DATATRAK's fortified Sales and Marketing efforts, including a significant rebranding initiative, have amplified the Unified message of DATATRAK ONE and enabled us to expand our market position by highlighting the advantages of our solution over legacy technologies resulting in record backlog levels, which drive top-line growth," stated Laurence P. Birch, DATATRAK's Chairman of the Board and CEO. "We continue to execute against a solid business strategy, expanding our global reach into China and posting steady increases in clients, trials and financial results."
"DATATRAK's strong achievements for the second quarter are the result of two things," Birch continued, "the strategic growth investments made in Sales, Marketing and Software Development and the industry's validation of a unified, Cloud-based offering. Many in the industry are reflecting on the supposed nascent nature of Cloud technology in the life sciences arena. We believe our technology leadership in this area is evidenced by the efforts of many of our competitors to retool their offerings to create "new" technologies that can compete with our advanced platform. DATATRAK, however, is a pioneer in this space DATATRAK ONE has the leading Cloud functionality coupled with a truly unified system. As our clients face trends of increased outsourcing and reduced budgets, DATATRAK is poised to help them reduce capital expenditures, lower total cost of ownership and safely accelerate clinical trials."
Highlights for the second quarter of 2012 include:
- Revenues for the second quarter of 2012 increased 10% over the comparable period for 2011
- Gross Profit remained stable at 83%
- Backlog at the end of the quarter totaled approximately $16 million a 36% increase over backlog at December 31, 2011 and the highest balance in 6 years
- Solid new contract sales results:
- New contract sales year-to-date for 2012 outpaced 2011 and 2010 new contract sales by 33% and 85%, respectively
- In Q2, recognizing the benefits of a Unified Cloud Technology, 71% of all new clients purchased multiple products within the DATATRAK ONE Platform
- NTT DATA signed a multi-year license agreement launching DATATRAK ONE into China
- Pharm-Olam, International, a global CRO, signed a multi-year, multi-million dollar contract standardizing on the cloud-based unified clinical research platform, DATATRAK ONE
- RPS, one of the industry's largest contract research organizations (CRO), standardized on DATATRAK ONE
- Participated in Key Global Events:
- 4th Annual China DIA Meeting
- 2012 ASCO Annual Meeting
- DIA 2012 Annual Meeting
- Marketing activities:
- Unveiled new progressive corporate branding
- Announced the DATATRAK Accreditation Program
- Received Crain's Leading Edge Award Honor for third consecutive year
- Platform enhancements:
- Showcased new interface that redefines the user experience
- Expanded CDISC Registered Solutions to include Provider Status for Define.XML
- Released uCTMS 2.0 which provides automatic, systemized data sharing
Driven by the continued improvement in backlog and new contract sales, revenue for the second quarter of 2012 increased 10% to $2.3 million compared to $2.1 million in the second quarter of 2011. The gross profit margin remained stable at 83% for the three months ended June 30, 2012 compared to 84% for the three months ended June 30, 2011. The Company's loss from operations for the three months ended June 30, 2012 was $(458,000) compared to $(154,000) for the corresponding period in the prior year. The operating results for both years reflect the Company's planned strategic investments in Sales, Marketing and Software Development to position the business for future top-line growth, the accrual of management incentive plan awards and sales compensation awards, as well as costs incurred to protect the Company's intellectual property for its customers and partners.
DATATRAK's backlog at June 30, 2012 was $15.8 million compared to a backlog of $11.6 million at December 31, 2011. 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. The improvement in backlog from December 31, 2011 to June 30, 2012 was due to the increase in new contract sales. New contract sales for 2012 outpaced 2011 new contract sales by 33%.
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 device 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.
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.
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 16, 2012 announcing its results for the full-year period ending December 31, 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.