DATATRAK International, Inc. Reports Fourth Quarter and Full Year Results for 2012

DATATRAK International, Inc. Reports Fourth Quarter and Full Year Results for 2012

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DATATRAK International, Inc. Reports Fourth Quarter and Full Year Results for 2012

54% Increase in Backlog - 23% Increase in Revenue - Continued Positive Operating Cashflow

PR Newswire

CLEVELAND, March 13, 2013

CLEVELAND, March 13, 2013 /PRNewswire/ -- DATATRAK International, Inc. (OTCQX: DTRK), a leader in developing cloud-based, unified eClinical^™ technologies and delivering related services for the clinical trials industry, today announced its operating results for the fourth quarter and full year of 2012.

(Logo: http://photos.prnewswire.com/prnh/20130107/CL38347LOGO )

"We believe the transformative nature of the disruptive technology offered in our cloud-based DATATRAK ONE^™ software suite continues to drive efficiencies for our clients, resulting in positive financial performance for DATATRAK in 2012," stated Laurence P. Birch, DATATRAK's Chairman of the Board and CEO.  "By maintaining a laser-like focus on our customers, we have been able to generate positive cash flow allowing us to increase our investment in the DATATRAK ONE^™ platform and our other strategic initiatives---a virtuous cycle that will continue to allow our customers to enjoy what many believe to be the single most powerful eClinical platform in the industry.  We believe this disciplined investment plan has unlocked value for our clients by providing a single source vendor for their comprehensive clinical trial needs, complete with significant product releases and value-added consulting services."

Birch concluded, "It has been our experience that while many of our competitors have expensive offerings with significant hidden costs and can be monolithic in their dealings with the research professionals who are pursuing more flexible eClinical alternatives, the organizational agility and flexibility afforded by the DATATRAK ONE^™ offering empowers  more sophisticated clients to better respond to normal clinical trial ebbs and flows with nimbleness and efficiency – from ease of protocol design through trial lock, we support our clients from Concept to Cure^®."

Highlights include:

• Full year revenues increased to $9.7 million – a 23% increase year-over-year



• Fourth quarter revenues continued positive growth trends, increasing to $2.8M – a 50% increase over the comparable period for 2011



• Gross Profit Margin for the fiscal year remained stable at 83%



• Backlog at December 31, 2012 totaled approximately $17.8 million – a 54% increase year-over-year



• Cash balance at year-end of $3.1 million is the highest balance in four years



• Solid new contract sales results:
  
  
  
  
  • New contract sales for 2012 outpaced 2011 by 60%
  
  
  
  • In 2012, recognizing the benefits of a unified cloud technology, 95% of all new clients purchased multiple products within the DATATRAK ONE^™ Platform
  
  
  
  



• Continued significant new client and partner acquisition in fourth quarter:
  
  
  
  
  • Comprehensive Clinical Development (Comprehensive) signed a multi-year, Enterprise Agreement to standardize on the DATATRAK ONE^™ cloud-based clinical research platform, for all clinical trials. The agreement extends to the complete DATATRAK ONE^™ unified software suite, including uCTMS, uDesign, uEDC, uIRT, uSafety, uTrain and uCDR.
  
  
  
  • New strategic CRO Connect Partner, ABX-CRO specializes in imaging and offers CROs supplemental services with the goal of helping them reduce study costs and further business development objectives.
  
  
  
  



• Continued industry thought leadership
  
  
  
  
  • 
    DATATRAK's Chairman of the Board and CEO, Laurence P. Birch, moderated a Research & Development panel at the Center for Healthcare Innovation's 2012 Symposium, which focused on opportunities and challenges facing the pharmaceutical industries in China, India, and the U.S.
  
  
  
  • 
    Chris Wilke, DATATRAK's CTO, was elected as Chair-Elect of the CDISC Advisory Board
  
  
  
  • 
    Bill Gluck, Vice President of DCCS, was invited to speak to the Minnesota chapter of the ACRP on the involvement of clinical data management in a risk-based approach to clinical monitoring.
  
  
  
  

Financial Highlights:

Driven by the increase in backlog during 2012 and improved new contract sales, revenue for the fourth quarter of 2012 increased 50% to $2.8 million compared to $1.9 million in the fourth quarter of 2011.  The gross profit margin improved to 84% for the three months ended December 31, 2012 compared to 81% for the three months ended December 31, 2011.  The Company's loss from operations for the three months ended December 31, 2012 was $(100,000) compared to $(426,000) for the corresponding period in the prior year.  The operating results for both years reflect the Company's planned strategic expansion of the Sales, Marketing and Software Development, as well as the accrual of management incentive plan awards and sales compensation awards; whereas 2012 also reflects strategic investments in Finance, Quality Assurance, and consulting costs to complete user interface enhancements.

DATATRAK's backlog at December 31, 2012 was $17.8 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.  The improvement in backlog from December 31, 2011 to December 31, 2012 was due to the increase in new contract sales.  New contract sales year-to-date for 2012 outpaced 2011 new contract sales by 60%.

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.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 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 November 12, 2012 announcing its results for the three-month period ending September 30, 2012. 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 (Unaudited)
	December 31, 2012	December 31, 2011
Cash and investments	$3,122,905	$2,298,690
Accounts receivable, net	1,452,174	758,727
Property & equipment, net	93,797	179,320
Deferred tax assets	2,900	38,500
Other	410,221	393,073
Total assets	$5,081,997	$3,668,310
Accounts payable and other current liabilities	$2,342,226	$1,623,714
Deferred revenue	4,642,871	3,159,247
Deferred tax liabilities	2,900	38,500
Other long-term liabilities	12,126	29,557
Shareholders'  deficit	(1,918,126)	(1,182,708)
Total liabilities and shareholders' deficit	$5,081,997	$3,668,310

 

DATATRAK International, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited)
	For the Three Months Ended December 31,
	2012	2011
Revenue	$2,776,589	$1,854,481
Direct costs	440,418	343,871
Gross profit	2,336,171	1,510,610
Selling, general and administrative expenses	2,396,073	1,896,557
Depreciation and amortization	39,938	40,101
Loss from operations	(99,840)	(426,048)
Interest income	129	90
Interest expense	(1,460)	(3,230)
Other income	—	(5,000)
Net loss	$ (101,171)	$(434,188)
Net loss per share:
Net loss per share, basic and diluted	$       (0.01)	$       (0.03)
Weighted-average shares outstanding, basic and diluted	15,377,327	14,563,562

 

DATATRAK International, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited)
		For the Year Ended December 31,
		2012	2011
Revenue		$9,716,225	$7,926,342
Direct costs		1,647,150	1,366,168
Gross profit		8,069,075	6,560,174
Selling, general and administrative expenses		9,441,686	7,645,420
Depreciation and amortization		156,598	158,367
Loss from operations		(1,529,209)	(1,243,613)
Interest income		539	498
Interest expense		(10,678)	(14,165)
Other income		—	250,393
Net loss		$(1,539,348)	$  (1,006,887)
Net loss per share:
Net loss per share, basic and
Diluted		$        (0.10)	$       (0.07)
Weighted-average shares outstanding		15,185,607	14,382,750

 

SOURCE DATATRAK International, Inc.