Datatrak International, Inc. Reports Third Quarter Results of 2018
CLEVELAND, November 7 /PRNewswire/ – DATATRAK International, Inc. (OTC Markets: DTRK), a software-as-a-service provider and innovation leader of cloud-based technologies for the life sciences industry, today announced its operating results for the third quarter of 2018.
Datatrak saw an increase in revenue for the three months ended September 30, 2018 to $1,847,000 compared to $1,737,000 for the three months ended September 30, 2017. While direct costs increased by 4% during the three months ended September 30, 2018 compared to the three months ended September 30, 2017 due to higher employee costs, ISP and pass through costs, the Company’s gross margin remained stable at 81% for both the three months ended September 30, 2018 and 2017. SG&A expenses decreased by $12,000, or 1%, for the three months ended September 30, 2018 compared to the three months ended September 30, 2017. As a result of the items discussed, Datatrak had income from operations for the three months ended September 30, 2018 of $92,000 compared to an operating loss of ($5,000) for the three months ended September 30, 2017. The Company’s net income for the third quarter of 2018 was $92,000 compared to a net loss of ($42,000) for the third quarter of 2017.
Datatrak’s backlog at September 30, 2018 was $16.1 million compared to a backlog of $18.9 million at December 31, 2017, which is a 15% 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.
Following up on its success at the Drug Information Association (DIA) Annual Meeting in June, Datatrak attended two more industry events, both of which led to a growing interest in its EDC and CTMS solutions. Interest in Business Intelligence and Imaging also appears to be on the rise. The first industry event was the Association of Clinical Research Professionals (ACRP) regional conference in San Diego, which Datatrak helped to sponsor. Jim Bob Ward, CEO of Datatrak, spoke to the attendees on Business Intelligence in clinical trials, and how Big Data and the power of data insights are helping clinical professionals like them. “A tsunami of Big Data will require that we change the way we warehouse, analyze, and distribute actionable information across the enterprise. Successful businesses will develop strategic plans based on objective goals that can be measured with the integration of business intelligence,” said Jim Bob.
Datatrak also exhibited at the annual Society for Clinical Data Management (SCDM) conference in Seattle. Over the two day event, Datatrak conducted product demonstrations, discussed upcoming projects and met with corporate executives of more than 30 companies. As at the DIA event this summer, the attendees continued to express a growing frustration with existing integrated systems, high costs, and the limited functionality of low-cost providers. “This frustration with the status quo has been a benefit for us. We are seeing a quickly growing trend in companies seeking us out for their next trial,” said Scott DeMell, VP of Sales and Marketing of Datatrak. “We are also receiving an increased number of requests for our Image Data Capture, ePRO and Business Analytics products, especially as we see more safety and clinical operations teams getting involved in the technology decision process.”
Interest in CTMS continues to grow as well. Requests for CTMS product demonstrations are now equal to those for EDC. Scott DeMell, VP Sales and Marketing of Datatrak added, “Overall, CTMS requests are up over 300% from this point last year. As a result, we are seeing sizeable increase in the number of new CTMS implementations. This includes sales in both Japan and China with the recent CTMS translation release.”
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About DATATRAK International, Inc.
Datatrak International 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, 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, market share, 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 March 21, 2018, announcing its results for the full-year period ended December 31, 2017 and subsequent filings with the OTC Markets. 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.
Sales: Scott DeMell
Employment Opportunities: Laura Stuebbe
Shareholders: Alex Tabatabai
DATATRAK International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet Data
|September 30, 2018||December 31, 2017|
|Cash and cash equivalents||$1,783,500||$2,528,796|
|Certificate of deposit||225,121||304,270|
|Accounts receivable, net||702,345||762,317|
|Property & equipment, net||1,489,276||1,493,610|
|Accounts payable and other current liabilities||$1,218,573||$1,009,387|
|Other long-term liabilities||152,514||155,865|
|Total liabilities and shareholders’ equity||$4,733,392||$5,510,925|