DATATRAK International, Inc. Reports Second Quarter Results of 2018
CLEVELAND, July 31, 2018 /PRNewswire/ -- DATATRAK International, Inc. (OTC Markets: DTRK), a software-as-a-service provider and innovation leader of cloud-based technologies for the life sciences industry, today announced its operating results for the second quarter of 2018.
Financial Highlights:
DATATRAK saw an increase in revenue for the three months ended June 30, 2018 to $1,931,000 compared to $1,906,000 for the three months ended June 30, 2017. Direct costs decreased by 4% during the three months ended June 30, 2018 compared to the three months ended June 30, 2017 due to lower employee costs. The Company's gross margin was 83% and 82% for the three months ended June 30, 2018 and 2017, respectively. SG&A expenses increased by $22,000, or 2%, for the three months ended June 30, 2018 compared to the three months ended June 30, 2017. As a result of the items discussed, DATATRAK had income from operations for the three months ended June 30, 2018 of $159,000 compared to $152,000 for the three months ended June 30, 2017. The Company's net income for the second quarter of 2018 was $160,000 compared $104,000 for the second quarter of 2017.
DATATRAK's backlog at June 30, 2018 was $16.9 million compared to a backlog of $18.9 million at December 31, 2017, which is an 11% 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.
Executive Highlights:
The largest event of the year for healthcare product development is the Drug Information Association's (DIA) annual meeting, which was held in Boston, MA in June of this year. One of the key messages at the event was the concept of "Unified" by several vendors. "DATATRAK has been promoting the benefits of a "unified" system for several years, and the industry, though conservative, is beginning to take larger steps to move away from integrated systems and toward unified platforms. A number of competitors are now trying to position themselves as unified, but we believe it will take them several years to get to the point DATATRAK is at today," said Scott DeMell, VP of Sales and Marketing, DATATRAK. DATATRAK has been providing a unified platform since 2006 and continues to build out new functionality, keeping the platform fresh and in the forefront of innovation.
As an industry, Sponsors and CROs alike are looking for more than what they have received from the inefficient and costly integrated systems of the past. They are looking not only for more efficiency in delivering trials, but greater scalability across all trials types and levels of complexity. They are asking for more capabilities as well, such as image data capture, ePRO/eConsent and business analytics. DATATRAK's capabilities and strategic partners can meet these needs:
- Image Data Capture – the use of imaging in clinical trials is growing quickly and many small to midsize companies are balking at the high cost of third party imaging systems that are on the market today. Visibility into the imaging progress, quality checks for missing images, support for imaging workflow and better reporting are some of the features most requested. This is exactly what the DATATRAK Image Data Capture product, released last year, is designed to support.
- ePRO/eCOA/eConsent – The preference for information directly from a patient is also on the rise. These tools enable patients to review study details and sign the consent to participate directly from a phone. Through these phone based apps, patients can answer questions regarding their general health, medication dosages and level of pain. The app can even send reminders to the patient when their next dose is due. Personal devices such as glucose monitors and step counters can be linked and automatically pull data into the ePRO app for reporting and analysis.
- Business Analytics – Although this has been a discussion topic for many years, this year is the first time clients are requesting a solution to implement now. Clients need the ability to run analysis across their trials, including data from other vendors. DATATRAK CTMS is a conduit to bring in third party data, and an excellent source for a business intelligence solution. In addition, there is a great deal of concern over the security of data, or the potential use of data by other companies. A large competitor has recently been promoting an analytics tool that is supported by one of the largest EDC databases in the industry. But what others are seeing is their data being repackaged and sold back to them, as well as being sold to others. A solution like DATATRAK's Business Analytics solves this problem by letting clients maintain control of their data, whether it's coming from a 3rd party system or directly from a DATATRAK trial.
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About DATATRAK International, Inc.
DATATRAK International is a software-as-a-service provider of enterprise cloud-based technologies for the life sciences industry. DATATRAK's unified eClinical solutions and related services help improve cost and time efficiencies 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 and College Station, 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, market share, 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 March 21, 2018 announcing its results for the full-year period ended December 31, 2017 and subsequent filings with the OTC Markets. 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, 2018 |
December 31, 2017 |
||
| Cash and cash equivalents |
$2,001,654 |
$2,528,796 |
|
| Marketable securities |
10,090 |
7,550 |
|
| Certificate of deposit |
305,742 |
304,270 |
|
| Accounts receivable, net |
704,659 |
762,317 |
|
| Property & equipment, net |
1,492,470 |
1,493,610 |
|
| Other |
497,207 |
414,382 |
|
| Total assets |
$5,011,822 |
$5,510,925 |
|
| Accounts payable and other current liabilities |
$1,084,922 |
$1,009,387 |
|
| Deferred revenue |
3,464,930 |
4,258,912 |
|
| Other long-term liabilities |
153,650 |
155,865 |
|
| Shareholders' equity |
308,320 |
86,761 |
|
| Total liabilities and shareholders' equity |
$5,011,822 |
$5,510,925 |
|
| DATATRAK International, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) |
|||
|
For the 3 Months Ended June 30, |
|||
| 2018 |
2017 |
||
| Revenue |
$1,931,340 |
$1,906,236 |
|
| Direct costs |
321,112 |
334,247 |
|
| Gross profit |
1,610,228 |
1,571,989 |
|
| Selling, general and administrative expenses |
1,282,492 |
1,260,830 |
|
| Depreciation and amortization |
168,346 |
158,896 |
|
| Income from operations |
159,390 |
152,263 |
|
| Interest income |
746 |
898 |
|
| Interest expense |
(1,044) |
(49,360) |
|
| Gain on marketable securities |
1,000 |
— |
|
| Net income before income taxes |
$ 160,092 |
$ 103,801 |
|
| Income taxes |
— |
— |
|
| Net income |
$ 160,092 |
$ 103,801 |
|
| Net income per share: |
|||
| Net income per share, basic |
$ 0.07 |
$ 0.06 |
|
| Weighted-average shares outstanding, basic |
2,296,887 |
1,801,913 |
|
| Net income per share, diluted |
$ 0.07 |
$ 0.06 |
|
| Weighted-average shares outstanding, diluted |
2,326,173 |
1,862,350 |
|
SOURCE DATATRAK International, Inc.
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