CLEVELAND, May 14, 2014 /PRNewswire/ -- DATATRAK International, Inc. (OTCQX: DTRK), the leader in developing cloud-based, unified eClinical® technologies and delivering related services for the clinical trials industry, today announced its operating results for the first quarter of 2014.
“The benefits of our unified eClinical® platform are resonating with clients, who realize additional time and cost savings when using multiple products. The first quarter confirms the value of our unified platform with every client requesting two or more products,” said Laurence P. Birch, Chairman and CEO, DATATRAK.
“In fact, 50% of Q1 2014 contracts include 3 or more products,” continued Birch. “Due to the growth in demand for our products and services, we are funding pivotal investments in sales and marketing capabilities. These investments are self-funding, due to the high gross profit margin DATATRAK maintains as a direct result of our unified architecture.”
Powered by the DATATRAKONE® unified platform, clients are realizing the benefits made possible by a unified experience. Eliminating the need to migrate data and implementing mid-study changes while supporting continued work in the trial are among the benefits that deliver greater efficiency to our clients.
“As the industry seeks solutions to optimize their investment in clinical trials, they are realizing our unified experience and unparalleled customer care deliver on that promise better than anyone else,” Birch concluded.
The DATATRAKONE® platform delivers the unified experience and is the technical infrastructure that powers all DATATRAK products, which can be used in any combination. The inherent strength of DATATRAK products is the intrinsic connectivity to the platform, providing a single data source, a single sign-on and a single user-friendly interface, greatly reducing clinical trial complexities.
Highlights include:
- First quarter 2014 revenues increased to $2.7 million from $2.6 million from the same period in 2013, an increase of 4% year-over-year
- Gross Profit Margin for the quarter remained stable at 81%
- Backlog at March 31, 2014 totaled $21.3 million
- DATATRAK leadership featured in 5 speaking engagements at 3 Trade Shows, including DIA Euromeeting, 17th Annual Workshop in Japan for CDM, and ACRP Global Conference & Exhibition
- DATATRAKChairman and CEO, Laurence P. Birch, appointed to the Metropolitan Chicago YMCA Board of Managers recognized for outstanding leadership
- DATATRAKextends leadership to preclinical trials through a partnership with Texas A&M Institute for Preclinical Studies
- DATATRAKteams with Clinverse to drive costs out of clinical trials
Financial Highlights:
Revenue increased by 4% to $2.67 million in the first quarter of 2014 compared to $2.58 million in the first quarter of 2013. While direct costs increased slightly in order to service a higher level of revenue than the prior year, the gross profit margin remained stable at 81% for both the three months ended March 31, 2014 and 2013. SG&A expenses decreased 1% for the three months ended March 31, 2014. As a result, the Company’s loss from operations for the three months ended March 31, 2014 was $(287,000) compared to $(389,000) for the corresponding period in the prior year.
DATATRAK‘s backlog at March 31, 2014 was $21.3 million compared to a backlog of $20.9 million at December 31, 2013. 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, 2013 to March 31, 2014 was due to new contract sales, change orders and contract amendments.
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About DATATRAKInternational, Inc.
DATATRAK International is a worldwide technology and services company delivering unified 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 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 has offices located in Cleveland, Ohio; Bryan, Texas; and Cary (RTP), North Carolina. DATATRAK has established a UK entity to support our burgeoning European sales activities; DATATRAK Technologies Limited is a private limited company registered in England and Wales under number 8870946, registered office: One New Change, London, EC4M 9AF, England. For more information, visit http://www.datatrak.com.
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 March 14, 2014 announcing its results for the full-year period ending December 31, 2013. 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 | |||
(Unaudited) | |||
March 31, 2014 | December 31, 2013 | ||
Cash and cash equivalents | $2,610,168 | $3,305,852 | |
Accounts receivable, net | 1,299,128 | 1,084,377 | |
Property & equipment, net | 254,411 | 190,799 | |
Deferred tax assets | |||
Other | 387,138 | 461,196 | |
Total assets | $4,550,845 | $5,042,224 | |
Accounts payable and other current liabilities | $1,194,028 | $1,855,061 | |
Deferred revenue | 4,500,827 | 4,425,167 | |
Other long-term liabilities | 32,165 | 29,775 | |
Shareholders’ deficit | (1,176,175) | (1,267,779) | |
Total liabilities and shareholders’ deficit | $4,550.845 | $5,042.224 | |
DATATRAK International, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) | |||
For the 3 Months Ended March 31, | |||
2014 | 2013 | ||
Revenue | $2,674,488 | $2,582,477 | |
Direct costs | 512,604 | 482,652 | |
Gross profit | 2,161,884 | 2,099,825 | |
Selling, general and administrative expenses | 2,434,615 | 2,467,012 | |
Depreciation and amortization | 14,730 | 21,930 | |
Loss from operations | (287,461) | (389,117) | |
Interest income | 349 | 93 | |
Interest expense | (2,922) | (3,150) | |
Other income | 750,000 | ||
Net (loss) income | $(290,034) | $ 357,826 | |
Net (loss) income per share: | |||
Net (loss) income per share, basic | $ (0.21) | $ 0.28 | |
Weighted-average shares outstanding, basic | 1,411,186 | 1,300,716 | |
Net (loss) income per share, diluted | $ (0.21) | $ 0.25 | |
Weighted-average shares outstanding, diluted | 1,411,186 | 1,443,670 | |
SOURCE DATATRAK International, Inc.
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