CLEVELAND, Nov. 12, 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 third quarter of 2014.
"DATATRAK saw tremendous growth in new contracts in the
third quarter, resulting in unprecedented backlog expansion.
As clients continue to harness the power of our Unified
Experience™, we continue to see new contract growth through all
access points – direct sales to existing and new clients, deeper
penetration into channel partners, expansion of our global
footprint through reseller NTT DATA and competitive takeaways from
expensive, incumbent providers," said Laurence P. Birch, DATATRAK Chairman and
CEO.
Birch continued, "The multi-million dollar extension of our
strategic partnership with NTT DATA is the largest contract ever
signed by DATATRAK – we will see an immediate, non-dilutive
cash impact from this deal in the next quarter as a result of a
non-refundable upfront payment, which will fuel accelerated
investment in Research and Development expanding our functionality
and Intellectual Property creation and protection and Sales and
Marketing expenditures to accelerate our new contract growth.
The expanding NTT DATA relationship is a reflection of the strength
of the partnership, the flexibility of the platform and the
benefits of our unified eClinical solutions on a global
landscape."
"I would also like to take this opportunity to address a topic
at the forefront of our client discussions – data security.
Whether related to financial controls or network security, data
breaches do occur in our industry. DATATRAK
takes all security very seriously and insists on high standards for
internal controls throughout the entire organization. Our
commitment to protect patient data continues to be rewarded by new
and existing clients' expanding partnerships as evidenced by this
quarter's record breaking backlog," concluded Birch.
Highlights include:
- Second Consecutive Quarter with Record Breaking Backlog for
September 30, 2014 with $25.2 million, a 21% increase over backlog at
December 31, 2013 of $20.9 million
- YTD 2014 revenue of $8.20M
increased 2% compared to YTD 2013 revenue of $8.05M
- Gross Profit Margin for the year remained strong at 80%
- Number of revenue-generating contracts increased 11% as of
September 30, 2014 compared to
September 30, 2013
- 98% of all 2014 new studies used more than one DATATRAK
solution
- DATATRAK website transformed, resulting in 28% growth in
total traffic and an increase in global visitors
- NTT DATA Expanded Technology Transfer Agreement through 2020,
recognizing the ease of language translation and our intuitive user
interface
- Risk Based Monitoring Webinar hosted by DATATRAK
provided insight on optimizing EDC solutions to maximize
benefits
Financial Highlights:
Revenue decreased by 11% to
$2.69 million in the third quarter of
2014 compared to $3.02 million in the
third quarter of 2013 due to timing impacts and the effect of deal
flow and cancellations in previous quarters. Direct costs
increased by 11% over the third quarter of 2013 as a result of
higher headcount to support DATATRAK's growing backlog.
Due to the lower revenue and higher direct costs for the
quarter ended September 30, 2014, the
Company's gross margin was 79% compared to 83% for the three months
ended September 30, 2013. The
Company continues to focus on efficient, effective operations and
controlled growth which allow the Company to incur necessary
incremental costs while maintaining a stable gross margin.
SG&A expenses increased by $148,000, or 6%, to $2.51
million from $2.36 million for
the three months ended September 30,
2014 and 2013, respectively. The increase was due to
higher employee and consulting costs, as well as legal costs
associated with the protection of the Company's intellectual
property portfolio. As a result, the Company's loss from
operations for the three months ended September 30, 2014 was $(397,000) compared to income from operations of
$134,000 for the corresponding period
in the prior year. DATATRAK will continue to invest in
Sales, Marketing and Research and Development, introducing new
DATATRAK ONE® solutions and feature enhancements while
accelerating market share growth.
DATATRAK's backlog at September
30, 2014 was $25.2 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 September 30, 2014 was due to new contract sales,
change orders and contract amendments.
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About
DATATRAK International,
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
DATATRAK ONE® 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;
Bryan, Texas; Cary (RTP),
North Carolina; Chicago, Illinois; and London, 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
ended 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)
|
|
|
|
|
|
September 30,
2014
|
|
December 31,
2013
|
Cash and cash
equivalents
|
$1,876,199
|
|
$3,305,852
|
Accounts receivable,
net
|
1,436,932
|
|
1,084,377
|
Property &
equipment, net
|
306,999
|
|
190,799
|
Other
|
502,795
|
|
461,196
|
Total
assets
|
$4,122,925
|
|
$5,042,224
|
|
|
|
|
Accounts payable and
other current liabilities
|
$1,893,837
|
|
$1,855,061
|
Deferred
revenue
|
3,998,626
|
|
4,425,167
|
Other long-term
liabilities
|
20,270
|
|
29,775
|
Shareholders'
deficit
|
(1,789,808)
|
|
(1,267,779)
|
Total
liabilities and shareholders' deficit
|
$4,122.925
|
|
$5,042.224
|
|
|
|
|
DATATRAK
International, Inc. and Subsidiaries
Condensed
Consolidated Statements of Operations
(Unaudited)
|
|
|
|
|
|
For the 3 Months
Ended September 30,
|
|
2014
|
|
2013
|
Revenue
|
$2,694,547
|
|
$3,015,987
|
Direct
costs
|
567,107
|
|
511,464
|
Gross
profit
|
2,127,440
|
|
2,504,523
|
|
|
|
|
Selling, general and
administrative expenses
|
2,506,635
|
|
2,358,819
|
Depreciation and
amortization
|
17,636
|
|
11,525
|
(Loss)
income from operations
|
(396,831)
|
|
134,179
|
|
|
|
|
Interest
income
|
236
|
|
63
|
Interest
expense
|
(3,586)
|
|
(288)
|
Net
(loss) income
|
$(400,181)
|
|
$ 133,954
|
Net (loss) income per
share:
|
|
|
|
Net (loss) income per share, basic
|
$ (0.28)
|
|
$ 0.10
|
Weighted-average shares outstanding, basic
|
1,437,072
|
|
1,360,457
|
|
|
|
|
Net (loss) income per share, diluted
|
$ (0.28)
|
|
$ 0.09
|
Weighted-average shares outstanding, diluted
|
1,437,072
|
|
1,463,602
|
SOURCE DATATRAK International, Inc.