Second Quarter 2016 Results Reported For DATATRAK International, Inc.
CLEVELAND, Aug. 5, 2016 /PRNewswire/ -- DATATRAK International, Inc. (OTC Markets: DTRK), a leader in cloud-based, unified dClinical® technologies and related services for the clinical trials industry, today announced its operating results for the second quarter of 2016.
Second Quarter Highlights:
- Revenue increase of 2% over same period in the prior year
- Gross margin of 84% for Q2 2016 compared to 77% in Q2 2015
- Reduction of 48% in SG&A spending Q2 2016 vs. Q2 2015
- Net income from operations of $330,000 compared to a net loss from operations of $(1.4M) in Q2 2015
- Continued growth in Enterprise partners
- 90% of contracts include multiple products
"We are seeing the results of the entire company's focus on our clients," said Jim Bob Ward, President and CEO, DATATRAK. "The sales team continues to develop meaningful partnerships with our existing and new clients. We saw their efforts pay off in the second quarter with the addition of a new Enterprise partner. The operations team has focused on giving great support to our clients, resulting in revenue being converted from backlog. From a financial perspective, the restructuring has allowed us to dramatically reduce our spending with no operational impact to our customers. With the focus clearly on our clients, current and future, we are doing what we can do to help them reach their potential - first and always."
"DIA was a success again this year," said Scott DeMell, Vice President Sales, DATATRAK. "Rather than focus on big crowds and trade show entertainment, we spent more time talking with our customers about their business needs. This resulted in more substantive meetings with current and future clients. By using this opportunity to listen, we learned a lot about what customers need, how they want their solutions and services to support their trials; and we are putting it into action. The most exciting discussions centered on the response to our upcoming release of our new CTMS solution."
Tim Lyons, Vice President, Product Development and Operations commented on the new CTMS solution. "It's great to hear the feedback on our innovative CTMS. We are in the final stages of development and working toward a planned release near of end of Q3 2016. DATATRAK's focus remains the same as it has been from the start: Understanding how we can help our users gain meaningful insight into their trials, faster and easier. Our commitment is to our user's success."
The Company's revenue increased 2% for the quarter ended June 30, 2016 compared to the quarter ended June 30, 2015. Revenue from contracts in backlog and revenue from new contract sales both contributed to the increase. Direct costs decreased 30% to $381,000 in the quarter ended June 30, 2016 from $540,000 in the quarter ended June 30, 2015 due to lower employee costs. The Company's gross margin was 84% for the quarter ended June 30, 2016 compared to 77% for the quarter ended June 30, 2015. SG&A expenses decreased by $1,515,000, or 48%, for the quarter ended June 30, 2016 compared to the quarter ended June 30, 2015. The decrease was primarily due to lower employee costs, including bonus, recruitment and travel. The Company also cut spending for advertising, consulting, equipment and legal. As a result, DATATRAK had income from operations for the quarter ended June 30, 2016 of $330,000 compared to a loss from operations of $(1,391,000) for the quarter ended June 30, 2015.
DATATRAK's backlog at June 30, 2016 was $24.3 million compared to a backlog of $26.7 million at December 31, 2015, which is a 9% decrease. 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 been a poor predictor of the Company's short-term revenue.
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About DATATRAK International, Inc.
DATATRAK International is a worldwide technology and services company delivering unified dClinical® 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 DATATRAKONE® 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 Bryan, 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, expenses, cost reductions, cash management alternatives and working capital requirements, 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 April 8, 2016 announcing its results for the full-year period ended December 31, 2015. 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
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December 31, 2015
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DATATRAK International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
For the 3 Months Ended June 30,
Selling, general and administrative expenses
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Income (loss) from operations
Net income (loss) before tax provision
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Net income (loss) per share:
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SOURCE DATATRAK International, Inc.