$22M in Backlog Sets Company Record
Net Profit Driven by Strong Sales
CLEVELAND, November 13 /PRNewswire/ – DATATRAK International, Inc. (OTCQX: DTRK), the leader in developing cloud-based, unified eClinical® technologies and delivering related services for the clinical trials industry, today announced its operating results for the third quarter of 2013.
“This record setting quarter is a direct result of our success in delivering real benefits to our clients who recognize they can have both cost savings and better functionality with DATATRAK ONE™. Excitement over our new CLINICAL ERP release produced the highest backlog in Company history. DATATRAK is committed to excellence and will continue to invest in our products and our people to drive top line growth,” said Laurence P. Birch, Chairman of the Board and CEO.
Birch concluded, “Some of our competition has been raising prices while DATATRAK delivers real cost reductions in data efficiencies at a lower price point. Our clients leverage our intrinsically unified platform to optimize the entire clinical trial process, allowing them to focus on the trial, not the technology. More and more, sophisticated clinical operations executives are realizing they can have the unified system today that our competitors are only promising they may deliver sometime in the future – and those executives are choosing DATATRAK ONE™.”
Highlights for third-quarter 2013 include:
- 16% increase in revenue the first nine months of 2013 as compared to the same period in 2012
- Third-quarter revenue of $3.0 million – a 21% increase year-over-year
- Cash balance at September 30, 2013 of $2.6 million reflects a 2% increase in cash year-over-year
- Third-quarter Gross Profit Margin remained stable at 83%
- Backlog at September 30, 2013 totaled approximately $22 million – a 19% year-over-year increase and the highest balance ever reported
- 91% of new clients year-to-date utilized more than one product within the DATATRAK ONE™ software suite
- Added CROS NT, an international CRO, as a Connect Partner
- Highlighted three speakers as invited industry Thought Leaders at the 2013 Society for Clinical Data Management Conference:
- Dr. Bill Gluck – Risk-Based Approach to Monitoring
- Mr. Aaron Gadberry – Quality-Centric Metadata
- Mr. Bill O’Mara – Outsourcing Technology and Procedures
Revenue increased by 21% to $3.0 million in the third quarter of 2013 compared to $2.5 million in the third quarter of 2012 due to strong new contract sales which fueled backlog increases throughout 2012 and 2013. Gross profit margin remained stable at 83% for the three months ended September 30, 2013 compared to 84% for the three months ended September 30, 2012. The Company’s income from operations for the three months ended September 30, 2013 was $134,000 compared to a loss from operations of $(456,000) for the corresponding period in the prior year. Quarter-over-quarter costs remained relatively flat while reflecting 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 September 30, 2013 was $21.9 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 September 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.com.
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 August 12, 2013 announcing its results for the second quarter of 2013. 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.
Lisa Pahl, Director Marketing, DATATRAK International, Inc., +1-979-393-9025