DATATRAK International, Inc. Reports Record Breaking Third-Quarter 2013 Results

$22M in Backlog Sets Company Record 

Net Profit Driven by Strong Sales

CLEVELAND -- DATATRAK International, Inc. (OTCQX: DTRK), the leader in developing cloud-based, unified eClinical(R) technologies and delivering related services for the clinical trials industry, today announced its operating results for the third quarter of 2013.

"This record setting quarter is a direct result of our success in delivering real benefits to our clients who recognize they can have both cost savings and better functionality with DATATRAK ONE(TM) . Excitement over our new CLINICAL ERP release produced the highest backlog in Company history. DATATRAK is committed to excellence and will continue to invest in our products and our people to drive top line growth," said Laurence P. Birch, Chairman of the Board and CEO.

Birch concluded, "Some of our competition has been raising prices while DATATRAK delivers real cost reductions in data efficiencies at a lower price point. Our clients leverage our intrinsically unified platform to optimize the entire clinical trial process, allowing them to focus on the trial, not the technology. More and more, sophisticated clinical operations executives are realizing they can have the unified system today that our competitors are only promising they may deliver sometime in the future -- and those executives are choosing DATATRAK ONE(TM) ."

Highlights for third-quarter 2013 include:

   -- 16% increase in revenue the first nine months of 2013 as compared to the 
      same period in 2012 
 
   -- Third-quarter revenue of $3.0 million -- a 21% increase year-over-year 
 
   -- Cash balance at September 30, 2013 of $2.6 million reflects a 2% increase 
      in cash year-over-year 
 
   -- Third-quarter Gross Profit Margin remained stable at 83% 
 
   -- Backlog at September 30, 2013 totaled approximately $22 million -- a 19% 
      year-over-year increase and the highest balance ever reported 
 
   -- 91% of new clients year-to-date utilized more than one product within the 
      DATATRAK ONE(TM) software suite 
 
   -- Added CROS NT, an international CRO, as a Connect Partner 
 
   -- Highlighted three speakers as invited industry Thought Leaders at the 
      2013 Society for Clinical Data Management Conference: 
 
          -- Dr. Bill Gluck -- Risk-Based Approach to Monitoring 
 
          -- Mr. Aaron Gadberry -- Quality-Centric Metadata 
 
          -- Mr. Bill O'Mara -- Outsourcing Technology and Procedures 

Financial Highlights:

Revenue increased by 21% to $3.0 million in the third quarter of 2013 compared to $2.5 million in the third quarter of 2012 due to strong new contract sales which fueled backlog increases throughout 2012 and 2013. Gross profit margin remained stable at 83% for the three months ended September 30, 2013 compared to 84% for the three months ended September 30, 2012. The Company's income from operations for the three months ended September 30, 2013 was $134,000 compared to a loss from operations of $(456,000) for the corresponding period in the prior year. Quarter-over-quarter costs remained relatively flat while reflecting the Company's strategy of planned re-investment to grow the top-line revenue through new products and functionalities, new sales and marketing programs and expanded services.

DATATRAK's backlog at September 30, 2013 was $21.9 million compared to a backlog of $17.8 million at December 31, 2012. 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, 2012 to September 30, 2013 was due to new contract sales, change orders and contract amendments.

Join DATATRAK Thought Leaders:

   -- LinkedIn 
 
   -- SlideShare 
 
   -- The DATATRAK Blog 
 
   -- Facebook 

Tweet: #DATATRAK reports 21% increase in Revenue and highest Backlog ever reported http://bit.ly/1apSweD

About DATATRAK International, Inc.

DATATRAK International is a worldwide technology and services company delivering unified eClinical(R) 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(TM) software solution, deployed worldwide through an ASP or Enterprise Transfer offering, supports 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. 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 August 12, 2013 announcing its results for the second quarter of 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, 2013     December 31, 2012 
                                  ---------------------  ------------------- 
Cash and cash equivalents                    $2,642,306           $3,122,905 
Accounts receivable, net                      1,483,575            1,452,174 
Property & equipment, net                        83,296               93,797 
Deferred tax assets                                  --                2,900 
Other                                           458,330              410,221 
                                  ---------------------  ------------------- 
  Total assets                               $4,667,507           $5,081,997 
                                  =====================  =================== 
 
Accounts payable and other 
 current liabilities                         $1,722,192           $2,342,226 
Deferred revenue                              4,374,041            4,642,871 
Deferred tax liabilities                             --                2,900 
Other long-term liabilities                      17,914               12,126 
Shareholders' deficit                       (1,446,640)          (1,918,126) 
                                  ---------------------  ------------------- 
  Total liabilities and 
   shareholders' deficit                     $4,667,507           $5,081,997 
                                  =====================  =================== 
 
 
 
               DATATRAK International, Inc. and Subsidiaries 
               Condensed Consolidated Statements of Operations 
                                 (Unaudited) 
                                   For the Three Months Ended September 30, 
                                  ------------------------------------------ 
                                          2013                  2012 
                                  ---------------------  ------------------- 
Revenue                                      $3,015,987           $2,483,704 
Direct costs                                    511,464              405,434 
                                  ---------------------  ------------------- 
  Gross profit                                2,504,523            2,078,270 
 
Selling, general and 
 administrative expenses                      2,358,819            2,495,148 
Depreciation and amortization                    11,525               38,910 
                                  ---------------------  ------------------- 
  Income (loss) from operations                 134,179            (455,788) 
 
Interest income                                      63                  131 
Interest expense                                  (288)              (3,572) 
                                  ---------------------  ------------------- 
  Net income (loss)                           $ 133,954           $(459,229) 
                                  =====================  =================== 
    Net income (loss) per share: 
         Net income (loss) per 
          share, basic                         $   0.10           $   (0.36) 
                                  =====================  =================== 
         Weighted-average shares 
          outstanding, basic                  1,360,457            1,277,944 
                                  =====================  =================== 
         Net income (loss) per 
          share, diluted                       $   0.09           $   (0.36) 
                                  =====================  =================== 
         Weighted-average shares 
          outstanding, diluted                1,463,602            1,277,944 
                                  =====================  =================== 
 
 
                                      For the Nine Months Ended September 30, 
                                     ----------------------------------------- 
                                            2013                  2012 
                                     -------------------  -------------------- 
Revenue                                       $8,052,698            $6,939,636 
Direct costs                                   1,515,455             1,206,732 
                                     -------------------  -------------------- 
  Gross profit                                 6,537,243             5,732,904 
 
Selling, general and administrative 
 expenses                                      7,545,040             7,045,613 
Depreciation and amortization                     48,789               116,660 
                                     -------------------  -------------------- 
  Loss from operations                       (1,056,586)           (1,429,369) 
 
Interest income                                      240                   410 
Interest expense                                 (7,771)               (9,218) 
Other income                                     750,000                    -- 
                                     -------------------  -------------------- 
  Net loss                                   $ (314,117)          $(1,438,177) 
                                     ===================  ==================== 
    Net loss per share: 
         Net loss per share, basic            $   (0.23)           $    (1.14) 
                                     ===================  ==================== 
         Weighted-average shares 
          outstanding, basic                   1,339,860             1,260,064 
                                     ===================  ==================== 
         Net loss per share, 
          diluted                             $   (0.23)           $    (1.14) 
                                     ===================  ==================== 
         Weighted-average shares 
          outstanding, diluted                 1,339,860             1,260,064 
                                     ===================  ==================== 
 

Suggested Articles

Genesis Drug Discovery & Development has bought up New England Discovery Partners as it looks to boost its synthetic and medicinal chemistry.

Sanofi plans to incorporate its real-world data platform with Aetion’s analytics system to better develop studies for regulatory decision-making.

Major CRO player Pharmaceutical Product Development is set to go back on the public markets after announcing its IPO plans.