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DATATRAK International, Inc. Reports Second Quarter Results of 2013
Aug 07, 2013 (01:08 PM EDT)
CLEVELAND, Aug. 7, 2013 /PRNewswire/ -- DATATRAK International, Inc. (OTCQX: DTRK), a 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 2013.
"DATATRAK's sustained growth and record breaking backlog is evidence that we continue to set the bar for innovation and clinical trial platform depth," stated Laurence P. Birch, DATATRAK's Chairman of the Board and CEO. "Recognizing the transformative properties of our unified eClinical technology, 100% of this year's new clients are utilizing more than one product within the DATATRAK ONE™ software suite to give them a competitive advantage in their clinical trial process – but frankly, we believe that if 100% of all vendors' customers are not utilizing more than one eClinical product, it begs the question whether those systems can ever achieve the efficiency of a single cloud-based platform – like DATATRAK ONE™."
Highlights for the second quarter 2013 include:
- 13% increase in revenue the first six months of 2013 as compared to the same period in 2012 and second quarter revenues of $2.5 million – a 5% increase year-over-year
- Cash balance at June 30, 2013 of $2.6 million reflects a 67% increase in cash year-over-year
- Gross profit margin for the first six months of 2013 remained stable at 80%
- Backlog at June 30, 2013 totaled approximately $20.1 million – a 27% year-over-year increase and the highest balance in 8 years
- Addition of 3 CROs to the DATATRAK Connect™ Partner Program resulting in a 27% increase in bid values quarter-over-quarter
- 100% of new clients year-to-date utilized more than one product within the DATATRAK ONE™ software suite
- Delivery of Innovative Technologies
- Introduced uPRO at 49th Annual DIA Meeting
- Released DATATRAK ONE CLINICAL ERP™ Solution
- Joined SAS® Alliance to offer Cloud-based SAS® Drug Development
- Added new 6th CDISC Standard to repertoire – Terminology
- Continued geographic expansion – new clients in the second quarter in Israel and Latin America
- Continued Industry Presence and Thought Leadership in Second Quarter:
- CHI's Diversity, Inclusion, & Life Sciences Symposium – Mr. Laurence P. Birch, Panelist
- CBI's 10th Forum on Patient Reported Outcomes – Dr. Bill Gluck, Speaker
- 5th Annual DIA China 2013 Annual Meeting
- 2013 Annual ASCO Meeting
- 49th Annual DIA Meeting Advancing Therapeutic Innovation and Regulatory Science – Mr. Walt Townsend, Speaker
- Recipient of 2013 Leading Edge Award for 4th Consecutive Year
"We continue to propel DATATRAK forward as the eClinical thought leader by re-defining the boundaries of the clinical trial frontier with innovative and disruptive solutions – demonstrated by the recent release of our DATATRAK ONE CLINICAL ERP™ software which optimizes the intersection of clinical research and resource planning to transform the drug development process," Birch continued. "Even more exciting is our recently announced alliance to offer SAS® Drug Development. This ground-breaking offering seamlessly pushes real-time data to SAS Drug Development using a single, extended chain of custody. By enabling our clients with the power of SAS Analytics in the cloud, DATATRAK provides a controlled environment for all clinical data that is unmatched in the industry today."
Birch concluded, "Other companies in this space may be larger, for now, but with the introduction of these latest offerings, we believe we have further consolidated our position as the technology leader in the eClinical space. Our ability to be nimble is giving more and more customers the benefit of the industry's leading technologies with unparalleled customer service while delivering a full suite of products and services at pricing that is a fraction of our larger competitors."
Revenue increased by 5% to $2.5 million in the second quarter of 2013 compared to $2.3 million in the second quarter of 2012 due to strong new contract sales which fueled backlog increases throughout 2012 and 2013. Gross profit margin remained stable at 79% for the three months ended June 30, 2013 compared to 83% for the three months ended June 30, 2012. The Company's loss from operations for the three months ended June 30, 2013 was $(802,000) compared to $(458,000) for the corresponding period in the prior year. The quarter-over-quarter cost increases were primarily due to employee costs related to the expansion of all departments. The operating results for both years reflect 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 June 30, 2013 was $20.1 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 June 30, 2013 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 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.net.
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 15, 2013 announcing its results for the full-year period ending December 31, 2012. 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
June 30, 2013
December 31, 2012
Cash and cash equivalents
Accounts receivable, net
Property & equipment, net
Deferred tax assets
Accounts payable and other current liabilities
Deferred tax liabilities
Other long-term liabilities
Total liabilities and shareholders' deficit
DATATRAK International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
For the Three Months Ended June 30,
Selling, general and administrative expenses
Depreciation and amortization
Loss from operations
Net loss per share:
Net loss per share, basic and diluted
Weighted-average shares outstanding, basic and diluted
SOURCE DATATRAK International, Inc.