CLEVELAND, Aug. 10, 2011 /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 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.
