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Datatrak International, Inc. Reports Second Quarter Results of 2019

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CLEVELAND, Aug. 14, 2019 /PRNewswire/ -- Datatrak International, Inc. (OTC Markets: DTRK), a worldwide software-as-a-service provider and innovation leader of cloud-based technologies for the life sciences industry, today announced its operating results for the second quarter of 2019.

Financial Highlights:

Datatrak achieved its fifth consecutive quarter of profitability and saw an increase in backlog during the six months ended June 30, 2019.  Revenue for the second quarter of 2019 was $1,884,000 compared to $1,931,000 for the second quarter of 2018.  Direct costs increased $61,000 for the three months ended June 30, 2019 compared to the three months ended June 30, 2018 due to new employees hired in the third quarter of 2018.  The Company's gross profit margin was 80% for the second quarter of 2019 compared to 83% for the second quarter of 2018.  SG&A expenses decreased slightly to $1,280,000 for the three months ended June 30, 2019 compared to $1,282,000 for the three months ended June 30, 2018.  Depreciation and amortization increased for the second quarter of 2019 to $194,000 compared to $168,000 for the second quarter of 2018, due to capitalized software development that was released into production.  As a result of the items discussed, Datatrak had income from operations for the three months ended June 30, 2019 of $28,000 compared to $159,000 for the three months ended June 30, 2018.  After other income of $2,000 for the second quarter of 2019 and $1,000 for the second quarter of 2018, the Company's net income for the three months ended June 30, 2019 was $30,000 compared to $160,000 for the three months ended June 30, 2018.

Revenue increased for the six months ended June 30, 2019 by $120,000, to $3,806,000 compared to $3,686,000 for the six months ended June 30, 2018.  Direct costs increased $63,000 for the six months ended June 30, 2019 compared to the six months ended June 30, 2018 due to new employees hired in the third quarter of 2018.  The Company's gross margin was 81% for the six months ended June 30, 2019 compared to a gross margin of 82% for the six months ended June 30, 2018.  SG&A expenses decreased by $156,000, or 6%, for the six months ended June 30, 2019 compared to the six months ended June 30, 2018.  The decrease in SG&A expenses was driven by lower employee expenses and lower legal costs and was partially offset by higher director fees.  Depreciation and amortization also increased for the six months ended June 30, 2019 to $385,000 compared to $317,000 for the six months ended June 30, 2018, due to capitalized software development that was released into production.  As a result of the items discussed, Datatrak had income from operations of $193,000 and $48,000 for the six months ended June 30, 2019 and 2018, respectively.  After other income of $4,000 for the six months ended June 30, 2019 and $2,000 for the six months ended June 30, 2018, the Company's net income for the six months ended June 30, 2019 was $197,000 compared to $50,000 for the six months ended June 30, 2018.

Datatrak's backlog at June 30, 2019 was $16.2 million compared to a backlog of $15.3 million at December 31, 2018, which is a 6% increase. 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.

Executive Highlights:

Datatrak continues to expand the functionality of its Enterprise Cloud Platform with the announcement of Datatrak Direct, a development platform to collect ePRO, eCOA and eConsent data directly from patients. 

"With the addition of Datatrak Direct, we continue to expand our capabilities of putting the power of design and site, lab, patient and wearable device data capture in the hands of our clients.  Datatrak Direct, along with our new Endpoint Adjudication workflows for safety events and imaging, gives our clients the ability to conduct their trials within a central vendor platform for all data capture, management and Business Intelligence needs," said Scott DeMell, VP of Sales at Datatrak. "Providing our clients a streamlined approach to contracting, training, implementing and executing their eClinical systems enables them to have more time to concentrate on their pipeline and getting their products to market faster."

In June 2019, Datatrak showcased the entire suite of unified products in its Enterprise Cloud Platform at the annual DIA meeting in San Diego. "With our user-group speaking engagements in Japan, Business Intelligence presentation at the DIA 2019 meetings in China and client demonstrations at the DIA meetings in the U.S., we continue to receive support from our current and prospective clients on the new Datatrak products and our commitment to innovation.  The old best of breed, integrated models no longer meet today's global challenges," said Jim Bob Ward, CEO and President at Datatrak.  "We are seeing an increased demand in the U.S., EU and APAC regions for fully translated eClinical solutions delivered through cloud-based platforms that not only manage the clinical data but also manage clinical teams." 

Scott DeMell stated, "Several recent acquisitions in our market validate the move to SaaS platforms like Microsoft Azure or Amazon AWS, which can be modified to meet the increasingly complex needs in clinical research today. As the first EDC company, and the first SaaS cloud platform, in the industry, we believe Datatrak is uniquely positioned with our Enterprise Cloud platform to meet these needs with information segregation based on study teams and the ability to turn on and off products and features based on each trial specification. Our clients can use our technology to not only manage their current trials and trial teams, but to gain better insight into their data via our Business Intelligence tools which should assist in future research and product development."

Datatrak will be presenting its Datatrak Direct, Image and Safety Adjudication, Business Intelligence and the rest of the Enterprise Cloud Platform at the upcoming SCDM 2019 Annual Conference September 29th through October 2nd in Baltimore, Maryland.

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About Datatrak International, Inc.

Datatrak International, Inc. 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 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, release of new products, 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, 2019 announcing its results for the full-year period ended December 31, 2018 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.

 

Datatrak International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet Data
(Unaudited)









June 30, 2019

December 31, 2018

Cash and cash equivalents



$1,825,434

$2,349,348

Marketable securities



6,972

8,230

Certificate of deposit



165,057

225,235

Accounts receivable, net



2,918,771

838,389

Operating right-of-use asset, net



1,990,474

Property & equipment, net



1,455,644

1,408,827

Other



503,472

447,483

   Total assets



$8,865,824

$5,277,512






Accounts payable and other current liabilities



$1,114,535

$1,101,254

Deferred revenue



4,685,142

3,520,065

Other long-term liabilities



2,197,407

151,359

Shareholders' equity



868,740

504,834

   Total liabilities and shareholders' equity



$8,865,824

$5,277,512






Datatrak International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)





For the 3 Months Ended June 30,





2019

2018

Revenue




$1,883,567

$1,931,340

Direct costs




381,607

321,112

   Gross profit




1,501,960

1,610,228







Selling, general and administrative expenses




1,279,818

1,282,492

Depreciation and amortization




193,755

168,346

   Income from operations




28,387

159,390







Interest income




3,819

746

Interest expense




(1,220)

(1,044)

Other income (expense)




(645)

1,000

   Net income before tax provision




$    30,341

$  160,092

Tax provision




   Net income




$    30,341

$  160,092

     Net income per share:






          Net income per share, basic




$        0.01

$        0.07

          Weighted-average shares outstanding, basic




2,343,924

2,296,887

          Net income per share, diluted




$        0.01

$        0.07

          Weighted-average shares outstanding, diluted




2,374,456

2,326,173







Datatrak International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)




For the 6 Months Ended June 30,




2019

2018

Revenue



$3,805,675

$3,685,653

Direct costs



732,867

669,726

   Gross profit



3,072,808

3,015,927






Selling, general and administrative expenses



2,495,039

2,650,993

Depreciation and amortization



384,709

317,370

   Income from operations



193,060

47,564






Interest income



6,568

1,642

Interest expense



(1,569)

(1,439)

Other income (expense)



(1,317)

2,600

   Net income before tax provision



$  196,742

$   50,367

Tax provision



   Net income



$  196,742

$   50,367

     Net income per share:





          Net income per share, basic



$        0.08

$        0.02

          Weighted-average shares outstanding, basic



2,337,154

2,289,231

          Net income per share, diluted



$        0.08

$        0.02

          Weighted-average shares outstanding, diluted



2,368,200

2,310,287









 

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SOURCE Datatrak International, Inc.

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