CLEVELAND, May 10 /PRNewswire/ –DATATRAK International, Inc. (OTC Markets: DTRK), a leader in cloud-based, unified dClinical® technologies and related services for the clinical trials industry, today announced its operating results for the first quarter of 2016.First Quarter Highlights:
First quarter of net income in two years
82% gross margin for Q1 2016 compared to 77% in Q1 2015
Dramatic 39% reduction in SG&A spending Q1 2016 vs. Q1 2015
90% of clients are committed to multiple products
“We are proud to report our first quarter of net income in two years. Our focus on righting previous years over spending, particularly bonus compensation and legal costs, offset slightly lower revenue. Potential clients’ response to our software platform has been overwhelmingly positive,” said Jim Bob Ward, CEO and President, DATATRAK. “We are also encouraged by the strength of our existing client base. Focusing on their needs, how we can truly partner with them to maximize the potential our software offers, is deepening our relationships. Our clients’ satisfaction and providing technology that truly simplifies clinical trials are our top priorities.”“2016 marks the beginning of a new era at DATATRAK. Jim Bob Ward and I have held face to face meetings with our current customers, focusing on client outreach to address industry needs, which we expect to result in increased sales and continued profitability. We are demonstrating our commitment to first class technology with the deployment of our groundbreaking CTMS product later this year, with more client-requested enhancements on the roadmap,” said Scott DeMell, Vice President of Sales, DATATRAK. “We encourage current and prospective customers to reach out to the new DATATRAK. You will experience a real change and a focus on you, the client.”Financial Highlights:The Company’s revenue decreased 4% for the quarter ended March 31, 2016 compared to the quarter ended March 31, 2015. Revenue from contracts in backlog decreased year-over-year due to lower change orders and contract expansions. The decrease was partially offset by higher year-over-year revenue from new contract sales. Direct costs decreased by 24% during this same time period due to lower employee costs. The Company’s gross margin was 82% for the quarter ended March 31, 2016 compared to 77% for the quarter ended March 31, 2015. SG&A expenses decreased by $1,128,000, or 39%, for the quarter ended March 31, 2016 compared to the quarter ended March 31, 2015. The decrease was primarily due to lower employee costs, including bonus, recruitment and travel, and lower legal costs. The first quarter of 2015 included substantial expenses related to patent defense, which was settled in early 2016. As a result, DATATRAK had income from operations for the quarter ended March 31, 2016 of $138,000 compared to a loss from operations of $(1,015,000) for the quarter ended March 31, 2015.DATATRAK’s backlog at March 31, 2016 was $24.9 million compared to a backlog of $26.7 million at December 31, 2015, which is a 6% 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 been a poor predictor of the Company’s short-term revenue.Join DATATRAK Thought Leaders:
About DATATRAK International, Inc.
DATATRAK International is a worldwide technology and services company delivering unified dClinical® 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 DATATRAKONE® 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 Chicago, Illinois; Cleveland, Ohio; and Bryan, Texas. For more information, visithttp://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. 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.Contacts: Sales:Scott DeMellScott.DeMell@datatrak.comEmployment Opportunities:Laura StuebbeLaura.Stuebbe@datatrak.comShareholders:Alex Tabatabaiinvestor@datatrak.com