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DATATRAK International, Inc. Reports First Quarter of 2018
[May 07, 2018]

DATATRAK International, Inc. Reports First Quarter of 2018


CLEVELAND, May 7, 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 first quarter of 2018.

DATATRAK International, Inc. logo (PRNewsfoto/DATATRAK International, Inc.)

Financial Highlights:

DATATRAK's revenue for the three months ended March 31, 2018 was $1,754,000 compared to $1,952,000 for the three months ended March 31, 2017.  The decrease of $198,000 was due to lower backlog levels caused by less sales volume in the previous year, which was partially offset by higher revenue from new contract sales in the first quarter of 2018 compared to the first quarter of 2017.  Direct costs decreased by 10% during the three months ended March 31, 2018 compared to the three months ended March 31, 2017 due to lower employee and clinical data management costs.  The Company's gross margin was 80% for both the three months ended March 31, 2018 and 2017.  SG&A expenses decreased by $308,000, or 18%, for the three months ended March 31, 2018 compared to the three months ended March 31, 2017.  The majority of the decrease was in legal expenses as the first quarter of 2017 included the settlement of litigation. The Company also saw a decrease in stock compensation due to recognition of stock grants in the first quarter of 2017 in connection with employment agreements.  However, travel costs increased for the three months ended March 31, 2018 compared to the three months ended March 31, 2017 due to international sales travel.  As a result of the items discussed, DATATRAK had a loss from operations for the three months ended March 31, 2018 of ($112,000) compared to ($274,000) for the three months ended March 31, 2017.  The Company's net loss for the first quarter of 2018 was ($110,000) compared ($315,000) for the first quarter of 2017.

DATATRAK's backlog at March 31, 2018 was $18.4 million compared to a backlog of $18.9 million at December 31, 2017, which is a 3% 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:

2018 has been a year of exciting growth, not only in its product offering, but also in the global presence of DATATRAK ONE®. "For over two years, DATATRAK has been quietly expanding its footprint in the Chinese Life Sciences market. Through its partnership with NTT DATA, the DATATRAK ONE® platform is now being used in over 21 studies across 19 Contract Research Organizations (CRO) and Sponsor companies," said Scott DeMell, VP Sales and Marketing, DATATRAK.

The China Food and Drug Administration (CFDA) has recently implemented new guidelines that encourage better developed and more efficient approaches to clinical trial design, conduct, oversight, recording and reporting while continuing to ensure human subject protection and the reliability of trial results. Standards regarding electronic records and essential documents intended to increase clinical trial quality and effectiveness have also been updated.

"The tighter guidelines by the CFDA have led to an increased demand by Chinese Pharma, Device, and CROs for global partners with full featured, regulatory compliant systems that can meet these requirements at a reasonable cost. We are very pleased with their response to our platform's capacity, scalability and affordability, which has the added bonus of being interfaced in simplified Chinese for ease of use. We are equally excited with our sales force expansion and client responses to the Sisense Business Intelligence and Analytics integration into our CTMS and EDC," said Jim Bob Ward, CEO, DATATRAK.

At the recent ChinaBio Partnering Forum in Suzhou, China, DATATRAK met with a number of Biotech, CRO, and Pharmaceutical companies. "There was a growing consensus among the attendees for the need of better regulatory compliant systems to ensure patient safety, and to ensure regulatory standards are being met," said Scott DeMell, VP Sales and Marketing, DATATRAK. "Opportunities are rapidly developing for a system like DATATRAK ONE® that can help local companies better promote their products on a global level."

DATATRAK's next major event in China will be exhibiting at the upcoming China Drug Information Association Annual Meeting in Beijing this May.

Join DATATRAK Thought Leaders:

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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)


March 31, 2018

December 31, 2017

Cash and cash equivalents

$2,508,200

$2,528,796

Marketable securities

9,120

7,550

Certificate of deposit

305,166

304,270

Accounts receivable, net

698,675

762,317

Property & equipment, net

1,496,133

1,493,610

Other

379,428

414,382

   Total assets

$5,396,722

$5,510,925




Accounts payable and other current liabilities

$1,121,725

$1,009,387

Deferred revenue

4,024,043

4,258,912

Other long-term liabilities

154,767

155,865

Shareholders' equity 

96,187

86,761

   Total liabilities and shareholders' equity

$5,396,722

$5,510,925





 



DATATRAK International, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)


For the 3 Months Ended March 31,


2018

2017

Revenue

$1,754,313

$1,952,531

Direct costs

348,614

389,085

   Gross profit

1,405,699

1,563,446




Selling, general and administrative expenses

1,368,501

1,676,213

Depreciation and amortization

149,024

160,885

   Loss from operations

(111,826)

(273,652)




Interest income

896

230

Interest expense

(395)

(41,984)

Gain on marketable securities

1,600

   Net loss before tax provision

$(109,725)

$(315,406)

Tax provision

   Net loss

$(109,725)

$(315,406)

     Net loss per share:



          Net loss per share, basic

$      (0.05)

$      (0.18)

          Weighted-average shares outstanding, basic

2,281,489

1,784,319

          Net loss per share, diluted

$      (0.05)

$      (0.18)

          Weighted-average shares outstanding, diluted

2,281,489

1,784,319

 

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/datatrak-international-inc-reports-first-quarter-of-2018-300643256.html

SOURCE DATATRAK International, Inc.


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