DATATRAK International, Inc. Reports Third Quarter 2012 Results
Published: Nov 12, 2012
CLEVELAND, Nov. 12, 2012 /PRNewswire/ --DATATRAK International, Inc. (OTCQX: DATA), a leader in developing cloud-based, unified eClinical technologies and delivering related services for the clinical trials industry, today announced its operating results for the third quarter of 2012.
"DATATRAK's robust third quarter performance demonstrates the realization of the strategic investments we continue to make. We believe our results indicate that the industry is beginning to embrace the benefits of our DATATRAK ONE unified platform," stated Laurence P. Birch, DATATRAK's Chairman of the Board and CEO. "As the cost for new drug development is ever increasing, we believe DATATRAK offers what others cannot a true Total Cost of Ownership advantage. In our opinion, our competitors mask their high pricing and inefficiencies by emphasizing paper to EDC efficiencies. The sophisticated simplicity of our cloud-based unified platform drives down total trial costs, while also offering a lower cost solution. DATATRAK is a global company, transforming the drug development process with global solutions from Concept to Cure®."
Highlights for the third quarter of 2012 include:
- Revenues for the third quarter of 2012 increased 21% over the comparable period for 2011
- Gross Profit Margin remained stable at 84%
- Backlog at the end of the quarter totaled approximately $18.3 million a 59% increase over backlog at December 31, 2011 and the highest balance in 7 years
- Cash balance at quarter end of $2.6M is the highest balance since 2008
- Solid new contract sales results:
- New contract sales year-to-date for 2012 outpaced 2011 and 2010 new contract sales by 57% and 99%, respectively
- In Q3, recognizing the benefits of a unified cloud Technology, 88% of all new clients purchased multiple products within the DATATRAK ONE Platform
- Expanded diversity of client base utilizing benefits of DATATRAK's Unified Cloud-based Clinical Research Platform
- Bellicum Pharmaceuticals awarded DATATRAK a multi-million dollar, five-year technology agreement. Bellicum uses Chemical Induction of Dimerization technology to treat human disease.
In other news,the Company announced that its Board of Directors appointed Ms. Jennifer Mabe Fox as Chief Financial Officer. Ms. Mabe Fox has been serving as the VP of Finance and Quality at DATATRAK since August 2011, and will continue to lead the Company's finance, quality and investor relations functions in her new role.
"Jennifer is very talented and has made valuable contributions to our Company," said Mr. Birch. "Her promotion is well deserved."
Ms. Mabe Fox has 17 years accounting and finance experience with 14 years industry experience. Ms. Mabe Fox was previously the CFO and VP of Finance and Quality Control for ClickFind, which was acquired by DATATRAK in 2006. Ms. Mabe Fox earned a Bachelor of Science degree in Economics and a Master of Science degree in Accounting from Texas A&M University. She is also a Certified Public Accountant and a Chartered Global Management Accountant.
Driven by the continued improvement in backlog and new contract sales, revenue for the third quarter of 2012 increased 21% to $2.5 million compared to $2.1 million in the third quarter of 2011. The gross profit margin remained stable at 84% for the three months ended September 30, 2012 and for the three months ended September 30, 2011. The Company's loss from operations for the three months ended September 30, 2012 was $(456,000) compared to $(466,000) for the corresponding period in the prior year. The operating results for both years reflect the Company's planned strategic expansion of the Sales, Marketing and Software Development, as well as the accrual of management incentive plan awards and sales compensation awards; whereas 2012 also reflects strategic investments in Finance, Quality Assurance, and consulting costs to complete user interface enhancements.
DATATRAK's backlog at September 30, 2012 was $18.3 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 September 30, 2012 was due to the increase in new contract sales. New contract sales year-to-date for 2012 outpaced 2011 new contract sales by 57%.
About DATATRAKInternational, 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 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 OTCQX Market on August 15, 2012 announcing its results for the three-month period ending June 30, 2012. 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
September 30, 2012
December 31, 2011
Cash and investments
Accounts receivable, net
Property & equipment, net
Deferred tax assets
Accounts payable and other current liabilities
Deferred tax liabilities
Other long-term liabilities
Total liabilities and shareholders' deficit
DATATRAK International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
For the Three Months Ended September 30,
Selling, general and administrative expenses
Depreciation and amortization
Loss from operations