DATATRAK International, Inc. Reports Second Quarter Results of 2014
Record Setting Backlog Reflects Continued Adoption of Unified Experience™
CLEVELAND, Aug. 13, 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 second quarter of 2014.
"Clients are increasing their commitment to DATATRAK, contributing to our double-digit growth this quarter. Previous trial-by-trial clients converted to Enterprise Partners during the quarter, and existing partners are strengthening their alliance. DATATRAK clients are recognizing the power of Unified Experience™ and renewing long before their existing contracts expire in order to leverage the strengths of our products and services at excellent values. In addition, we believe that DATATRAK continues to outpace other vendors with increased platform adoption as evidenced by 100% of new contracts utilizing two or more solutions and more notably, 67% using three or more products," said Laurence P. Birch, Chairman and CEO, DATATRAK.
"Just as existing clients are embracing the Unified Experience™, we continue to see growing interest in our solutions and services with new clients, reflected in the company's record-setting backlog," continued Birch. "The DATATRAK ONE® Unified Experience™ provides an exceptional user experience, eliminating data migration, minimizing downtime, and providing better site compliance, better data, and a safer trial. In conjunction with our Partners, we offer full service solutions that help our clients realize success in their trials," concluded Birch.
Highlights include:
- New Company Record Backlog at June 30, 2014 totaled $22.2 million
- Second quarter 2014 revenues increased to $2.8 million from $2.5 million for the same period in 2013, an increase of 15% year-over-year
- New client count increased 20% for the first six months of 2014 as compared to the same period in 2013
- 100% of all new studies used more than one DATATRAK solution, with 67% utilizing three or more solutions
- Gross Profit Margin for the quarter remained stable at 80%
- DATATRAK unveiled the DATATRAK ONE® Unified Experience™ at DIA 2014
- DATATRAK Presented at the Drexel Hamilton Micro-Cap Investor Forum, May 13
- DATATRAK attended 6th Annual DIA China Meeting
- DATATRAK Thought Leaders spoke at DIA 2014 50th Annual Meeting and ACRP 2014 Global Conference
Financial Highlights:
Revenue increased by 15% to $2.83 million in the second quarter of 2014 compared to $2.45 million in the second 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 80% for the three months ended June 30, 2014 compared to 79% for the three months ended June 30, 2013. SG&A expenses decreased 4% for the three months ended June 30, 2014. As a result, the Company's loss from operations for the three months ended June 30, 2014 was $(375,000) compared to $(802,000) 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 June 30, 2014 was $22.2 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 June 30, 2014 was due to new contract sales, change orders and contract amendments.
Join DATATRAK Thought Leaders:
Tweet: Increasing client commitment driving double digit Q2 Growth #eClinical http://bit.ly/1oKi2yU
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 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 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) |
|||
| June 30, 2014 |
December 31, 2013 |
||
| Cash and cash equivalents |
$2,062,691 |
$3,305,852 |
|
| Accounts receivable, net |
1,492,954 |
1,084,377 |
|
| Property & equipment, net |
286,640 |
190,799 |
|
| Other |
493,283 |
461,196 |
|
| Total assets |
$4,335,568 |
$5,042,224 |
|
| Accounts payable and other current liabilities |
$1,734,683 |
$1,855,061 |
|
| Deferred revenue |
4,064,916 |
4,425,167 |
|
| Other long-term liabilities |
26,916 |
29,775 |
|
| Shareholders' deficit |
(1,490,947) |
(1,267,779) |
|
| Total liabilities and shareholders' deficit |
$4,335.568 |
$5,042.224 |
|
DATATRAK International, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) |
|||
| For the 3 Months Ended June 30, |
|||
| 2014 |
2013 |
||
| Revenue |
$2,826,689 |
$2,454,234 |
|
| Direct costs |
570,736 |
521,339 |
|
| Gross profit |
2,255,953 |
1,932,895 |
|
| Selling, general and administrative expenses |
2,613,743 |
2,719,209 |
|
| Depreciation and amortization |
17,153 |
15,334 |
|
| Loss from operations |
(374,943) |
(801,648) |
|
| Interest income |
274 |
84 |
|
| Interest expense |
(3,964) |
(4,333) |
|
| Net loss |
$(378,633) |
$(805,897) |
|
| Net loss per share: |
|||
| Net loss per share, basic and diluted |
$ (0.26) |
$ (0.59) |
|
| Weighted-average shares outstanding, basic and diluted |
1,434,729 |
1,357,990 |
|
SOURCE DATATRAK International, Inc.
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