CLEVELAND, May 9, 2012 /PRNewswire/ -- DATATRAK International, Inc. (DATA), a technology and services company focused on global eClinical solutions for the clinical trials industry, today announced its operating results for the first quarter of 2012.
Highlights for the first quarter of 2012 include:
- Revenue increased 14% over the previous quarter to $2.1M; a 12% increase over the comparable quarter of the prior year
- Gross profit margin was 81%, despite increased headcount to support growth
- Backlog at the end of the quarter totaled $14 million; a 21% increase over the prior quarter and the highest balance in 6 years
- Cash balance at the end of the quarter increased 21% to $1.4 million compared to the comparable quarter of 2011
- Continued sales pipeline expansion
- New contract sales increased 170% versus the first quarter of 2011
- RPS, one of the industry's largest contract research organizations (CRO), has standardized on DATATRAK ONE™
- Expanded client base
- 38% year-over-year increase in the number of clients
- 233% year-over-year increase in clinical and consulting services clients
- Announced the release of the innovative new uCTMS™ product
- Celebrated the 10th year of medical coding services utilizing DATATRAK's uEDC™ Coding Module
- Announced the release of a completely new product design for the randomization and clinical supplies management product, uIRT™
- Closing in on the 10,000th randomized patient
- Participated in key global events
- 21st Anniversary Partnerships in Clinical Trials
- BIO-Europe 2012
- CBI's 5th Annual Forum on Clinical Trial Management
- 24th Annual DIA EuroMeeting
- OneMedForum
Financial Highlights:
Driven by the increase in new contract sales in the fourth quarter of 2011, revenue for the first quarter of 2012 increased 12% to $2.1 million compared to $1.9 million in the first quarter of 2011. The gross profit margin remained stable at 81% for the three months ended March 31, 2012 and 2011. The Company's loss from operations for the three months ended March 31, 2012 was $(515,000) compared to $(198,000) for the corresponding period in the prior year. The operating losses for both years reflect the Company's strategic investments in Sales, Marketing and Software Development to position the business for future growth, the accrual of management incentive plan awards, as well as costs incurred to protect the Company's intellectual property for its customers and partners.
DATATRAK's backlog at March 31, 2012 was $14.0 million compared to a backlog of $11.6 million at December 31, 2011. 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. Backlog at March 31, 2012 increased over December 31, 2011 due to the increase in new contract sales. New contract sales for 2012 outpaced 2011 new contract sales by 170%.
"DATATRAK's strategic growth investments over the last six months are starting to yield tangible results," stated Mr. Laurence P. Birch, DATATRAK's Chairman of the Board and CEO. "The DATATRAK ONE™ unified suite is a highly flexible and seamless clinical trials platform that provides our customers the most efficient pathway to market. With better focused and funded sales and marketing efforts, we are achieving traction in exposing a larger audience to the benefits of using a truly unified offering – one database, one login – resulting in lower total cost of ownership to our clients. C-level executives see the benefits of this cloud-based solution, resulting in increasing numbers of multi-year, multi-trial enterprise agreements." Mr. Birch continued, "Although we are aware that we have much work to do going forward, we are pleased with the progress achieved to this point and look to the future with great anticipation."
In news related to DATATRAK's Board of Directors, Mr. Birch commented, "We are pleased to announce that on May 8, 2012, DATATRAK's Board of Directors appointed James M. Karis as a Director to its Board. Mr. Karis is the CEO of CollabRx, Inc. which uses information technology to inform personalized cancer treatment planning by combining the world's knowledge on cutting-edge therapies with specific insights from the nation's top cancer experts."
About DATATRAK International, Inc.
DATATRAK International is a worldwide technology and services company delivering 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 of the factors that may cause actual results to differ materially from those contemplated in these forward looking statements, please see the Company's annual report filed with the OTC Markets on March 16, 2012 announcing its results for the full-year period ending December 31, 2011. 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 | ||
March 31, 2012 | December 31, 2011 | |
Cash and investments | $1,431,612 | $2,298,690 |
Accounts receivable, net | 1,076,547 | 758,727 |
Property & equipment, net | 163,257 | 179,320 |
Deferred tax assets | 29,600 | 38,500 |
Other | 196,587 | 393,073 |
Total assets | $2,897,603 | $3,668,310 |
Accounts payable and other current liabilities | $1,226,988 | $1,623,714 |
Deferred revenue | 2,910,662 | 3,159,247 |
Deferred tax liabilities | 29,600 | 38,500 |
Other long-term liabilities | 29,976 | 29,557 |
Shareholders' deficit | (1,299,623) | (1,182,708) |
Total liabilities and shareholders' deficit | $2,897,603 | $3,668,310 |
DATATRAK International, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) | ||
For the Three Months Ended March 31, | ||
2012 | 2011 | |
Revenue | $2,119,198 | $1,888,321 |
Direct costs | 396,647 | 350,978 |
Gross profit | 1,722,551 | 1,537,343 |
Selling, general and administrative expenses | 2,199,002 | 1,695,105 |
Depreciation and amortization | 38,826 | 40,197 |
Loss from operations | (515,277) | (197,959) |
Interest income | 132 | 180 |
Interest expense | (1,655) | (2,674) |
Net loss | $(516,800) | $(200,453) |
Net loss per share: | ||
Net loss per share, basic and diluted | $(0.04) | $(0.01) |
Weighted-average shares outstanding, basic and diluted | 14,714,947 | 14,107,807 |
SOURCE DATATRAK International, Inc.
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