DATATRAK International, Inc. Reports Fourth Quarter and Full Year Results for 2016
March 2 /PRNewswire/ – DATATRAK International, Inc. (OTC Markets: DTRK), a leader in cloud-based technologies for the life sciences industry, today announced its operating results for the fourth quarter and full year 2016.
The full year highlights included net income from operations of $1,083,000 compared to a net loss from operations of $(2,883,000) in 2015 and 96% of all contracts signed in 2016 contained multiple products; 100% of contracts signed in Q4 2016 contained multiple products. Another highlight from 2016 was the release of our CTMS product.
“We are excited about our recent CTMS release and very proud of it for good reason,” said Jim Bob Ward, CEO. “We designed our CTMS product from the user’s perspective, with input from our clients. We used their input to design a world class SaaS product that works with all EDC products with infinite scalability and low cost of ownership.”
Scott DeMell, Vice President of Sales added, “Feedback continues to come in and it is universally positive, across all size companies. They love the ease of implementation, which can be done in days, not weeks or months. The Regulatory Manager, which is the first of its kind, is also a big hit. This feature provides a highly functional framework to track and manage submissions & requirement sets, but can also track any type of study supporting documentation as well. Another feature that gets a lot of buzz is the monitoring report. Clients love the fact that the monitoring reports are so easy to configure and are reusable, requiring no developer support. This solves a big problem in many current CTMS offerings for one of the more time consuming process in the study workflow.”
The Company’s revenue decreased $977,000, from $9,960,000 for the year ended December 31, 2015 to $8,983,000 for the year ended December 31, 2016. The revenue decline was mainly due to revenue from new contract sales but the Company also saw a decrease in revenue from contracts in backlog due to lower change orders and contract expansions. Direct costs decreased by 23% during this same time period due to lower employee costs. The Company’s gross margin was 82% for the year ended December 31, 2016 compared to 79% for the year ended December 31, 2015. SG&A expenses decreased by $4,532,000, or 43%, for the year ended December 31, 2016 compared to the year ended December 31, 2015. The decrease was primarily due to lower employee costs, including travel, and legal costs. The year ended December 31, 2015 included substantial expenses related to the patent defense litigation, which was settled in early 2016. The Company also cut spending for advertising, equipment and office rent. The decrease in office rent was due to the sublease of the Chicago office and the assignment of the North Carolina office. As a result, DATATRAK had income from operations for the year ended December 31, 2016 of $1,083,000 compared to a loss from operations of $(2,883,000) for the year ended December 31, 2015.
DATATRAK’s backlog at December 31, 2016 was $22.2 million compared to a backlog of $26.7 million at December 31, 2015, which is a 17% 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.
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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 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, 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 April 8, 2016 announcing its results for the full-year period ended December 31, 2015. 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
|December 31, 2016||December 31, 2015|
|Cash and cash equivalents||$2,465,721||$1,354,857|
|Certificate of deposit||301,316||300,724|
|Accounts receivable, net||682,252||895,723|
|Property & equipment, net||1,598,541||920,118|
|Accounts payable and other current liabilities||$2,002,153||$1,794,170|
|Other long-term liabilities||164,102||37,647|
|Total liabilities and shareholders’ deficit||$5,242.826||$3,831.568|
|For the 12 Months Ended December 31,|
|Selling, general and administrative expenses||6,042,427||10,574,731|
|Depreciation and amortization||253,467||189,863|
|Income (loss) from operations||1,082,754||(2,883,136)|
|Net income (loss) before tax provision||$1,029,429||$(2,898,870)|
|Net income (loss)||$1,016,793||$(2,898,870)|
|Net income (loss) per share:|
|Net income (loss) per share, basic||$ 0.60||$ (1.93)|
|Weighted-average shares outstanding, basic||1,680,859||1,498,717|
|Net income (loss) per share, diluted||$ 0.60||$ (1.93)|
|Weighted-average shares outstanding, diluted||1,833,869||1,498,717|