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Datatrak International, Inc. Reports Results for Second Quarter and First Half of 2020CLEVELAND, Aug. 05, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Datatrak International, Inc. (OTC Markets: DTRK), a worldwide Software-as-a-Service (“SaaS”) provider and innovation leader of cloud-based technologies for the life sciences industry, today announced its operating results for the second quarter and the first half of 2020. Financial Highlights: Revenue for the second quarter of 2020 was $1,745,000 compared to $1,884,000 for the second quarter of 2019. Despite the overall decrease in revenue, the Company has seen a rise in the number of new contracts and new customers during the second quarter of 2020 compared to the second quarter of 2019. Direct costs decreased by $104,000 for the three months ended June 30, 2020 compared to the three months ended June 30, 2019 due to less amortization related to software development efforts that have been placed into production. There was also a decrease in employee costs due to a higher percentage of direct employee costs being included in capitalized software development efforts for the three months ended June 30, 2020 compared to the three months ended June 30, 2019. The Company’s gross margin was 73% for the three months ended June 30, 2020 compared to 70% for the three months ended June 30, 2019. Selling, general and administrative (“SG&A”) expenses increased by $34,000 for the three months ended June 30, 2020 compared to the three months ended June 30, 2019. The increase in SG&A expenses was driven by higher employee expenses, due to lower software capitalization and salary adjustments, and consulting costs. However, travel and advertising costs decreased for the three months ended June 30, 2020 compared to the three months ended June 30, 2019. Depreciation and amortization was $3,000 and $5,000 for the three months ended June 30, 2020 and 2019, respectively. As a result of the items discussed, Datatrak had a loss from operations for the three months ended June 30, 2020 of ($39,000) compared to income from operations of $28,000 for the three months ended June 30, 2019. After other expenses of ($2,000) for the three months ended June 30, 2020 and other income of $2,000 for the three months ended June 30, 2019, the Company’s net loss for the three months ended June 30, 2020 was ($41,000) compared to net income of $30,000 for the three months ended June 30, 2019. Revenue for the first half of 2020 was $3,696,000 compared to $3,806,000 for the first half of 2019. Despite the overall decrease in revenue, the Company has seen a rise in the number of new contracts and new customers during the first half of 2020 compared to the first half of 2019. Direct costs decreased by $149,000 for the six months ended June 30, 2020 compared to the six months ended June 30, 2019 due to less amortization related to software development efforts that have been placed into production, which was partially offset by higher ISP costs. The Company’s gross margin was 74% for the six months ended June 30, 2020 compared to 71% for the six months ended June 30, 2019. SG&A expenses increased by $212,000 for the six months ended June 30, 2020 compared to the six months ended June 30, 2019. The increase in SG&A expenses was driven by higher employee expenses, due to salary adjustments and lower software capitalization, and consulting costs. However, travel, advertising and legal costs decreased for the six months ended June 30, 2020 compared to the six months ended June 30, 2019. Depreciation and amortization was $7,000 and $10,000 for the six months ended June 30, 2020 and 2019, respectively. As a result of the items discussed, Datatrak had income from operations for the six months ended June 30, 2020 of $23,000 compared to $193,000 for the six months ended June 30, 2019. After other income of $2,000 for the six months ended June 30, 2020 and $4,000 for the six months ended June 30, 2019, the Company’s net income for the six months ended June 30, 2020 was $25,000 compared to $197,000 for the six months ended June 30, 2019. Datatrak’s backlog at June 30, 2020 was $11.8 million compared to a backlog of $13.3 million at December 31, 2019. 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. While the Company has seen a delay in the signing of some new contracts due to the COVID-19 pandemic, it has not laid off and does not currently have plans to lay off any employees. Datatrak’s employees were all able to work remotely during quarantine, and the Company has continued to deliver services according to the terms of its contracts. Datatrak re-opened its offices as of May 4, 2020 to correspond with the state of Ohio’s plan for general office environments. Employees who are comfortable and would like to work out of the offices have been able to do so as long as they follow social distancing requirements and wear masks. Office cleaning takes place daily. The Company has been monitoring state and federal guidelines regarding the COVID-19 pandemic and will modify business operations as needed to comply with these guidelines for the safety of its employees and customers. As the COVID-19 pandemic is a continually evolving situation, the Company cannot provide any assurance that the effects of the COVID-19 pandemic will not have an adverse effect on its business or results of operations going forward. In addition, the COVID-19 pandemic has caused a global economic recession, which could potentially materially impact the Company. Executive Highlights: “Datatrak’s Enterprise Cloud was built to ensure stability, maintain focus and drive progress in times like we are currently experiencing due to the COVID-19 pandemic,” said Jim Bob Ward, CEO at Datatrak. “We believe our unified platform allows us to innovate and bridge service delivery gaps in ways that are impossible for our competitors to address with their integrated solutions. Providing streamlined collection and management of site, lab and direct patient data with business analytics to support new protocol development that allow our customers to push the boundaries of their product development efforts has never been more important than it is right now.” “Given that we are working through the worst socioeconomic disaster in recent history, we are very encouraged by the increased number of top-tier opportunities presented and the significant increase in new clients signed to date over the last three cumulative years,” said Scott DeMell, VP Sales at Datatrak. “From large to small, our current and future customers are reviewing and contributing to our innovations with enthusiasm for the future.” Join Datatrak thought leaders: Tweet: Datatrak Reports Results for Second Quarter and First Half of 2020 See the Earnings Release on Datatrak’s website: https://bit.ly/3kbhoQR About Datatrak International, Inc. Datatrak International, Inc. 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 Enterprise Cloud 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 Contacts: Employment Opportunities: Laura Stuebbe Shareholders: Alex Tabatabai Datatrak International, Inc. and Subsidiaries
Datatrak International, Inc. and Subsidiaries ?
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