Third Quarter 2016 Results Reported For DATATRAK International, Inc.
CLEVELAND, Oct. 28, 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 third quarter of 2016.
Third Quarter Highlights:
- Gross margin of 82% for Q3 2016 compared to 80% in Q3 2015
- Reduction of 46% in SG&A spending Q3 2016 vs. Q3 2015
- Q3 2016 net income from operations of $429,000 compared to a net loss from operations of $(265,000) in Q3 2015
- 100% of contracts include multiple products
"Companies we have met with have consistently mentioned the difficulty in finding a CTMS system that is easy to deploy, but can scale up as their needs grow," said Scott DeMell, Vice President, Sales. "We have heard that many current solutions are often full of redundant processes, lack real time reporting, and are difficult to install and deploy, often requiring expensive third party consultants. Our CTMS product works seamlessly with our EDC and Randomization solutions, pre-configured for out-of-the-box ease of use. It eliminates duplication, saves time and improves quality by directly populating monitoring reports with data from the EDC, RTSM and CTMS products."
Tim Lyons, Vice President, Product Development and Operations, commented on additional upcoming product changes. "As Scott mentioned, scalability is a major concern across our customer base. Companies want to have solutions that can grow with the needs of their business. This is becoming more and more critical for customers looking to reduce their study build times. As we head into 2017, our product development focus will be on realizing design efficiency opportunities by more effectively managing library content and industry standard design elements. Within our study design tools we will be adding more visual design capabilities that will put your study design on rails, allowing you to build faster and with more options than ever before."
The Company's revenue was $2,137,000 for the quarter ended September 30, 2016 compared to $2,639,000 for the quarter ended September 30, 2015. The $502,000 decrease was mainly due to revenue from new contract sales, but the Company also saw a decrease in revenue from contracts in backlog due to lower change orders and contract expansions. Direct costs decreased 27%, to $391,000 for the quarter ended September 30, 2016 from $534,000 for the quarter ended September 30, 2015, due to lower employee costs. The Company's gross margin was 82% for the quarter ended September 30, 2016 compared to 80% for the quarter ended September 30, 2015. SG&A expenses decreased by $1,055,000, or 46%, for the quarter ended September 30, 2016 compared to the quarter ended September 30, 2015. The decrease was primarily due to lower employee costs, including bonus, recruitment and travel. The Company also cut spending for advertising, equipment and legal. As a result, DATATRAK had income from operations for the quarter ended September 30, 2016 of $429,000 compared to a loss from operations of $(265,000) for the quarter ended September 30, 2015.
DATATRAK's backlog at September 30, 2016 was $23.3 million compared to a backlog of $26.7 million at December 31, 2015, which is a 13% 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 not always been an accurate 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
September 30, 2016
December 31, 2015
Cash and cash equivalents
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DATATRAK International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
For the 3 Months Ended September 30,
Selling, general and administrative expenses
Depreciation and amortization
Income (loss) from operations
Loss on asset disposal
Net income (loss) before tax provision
Net income (loss)
Net income (loss) per share:
Net income (loss) per share, basic
Weighted-average shares outstanding, basic
Net income (loss) per share, diluted
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SOURCE DATATRAK International, Inc.