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DATATRAK International, Inc. Announces 2008 Third Quarter and Nine Month Operating Results
Date:11/6/2008

ed consolidated financial statements continue to reflect the accrual of interest on the ClickFind Notes for the third quarter and first nine months of 2008 and the $3,000,000 obligation as of September 30, 2008. The Company believes the outcome of these disputes with the Indemnifying Shareholders will not affect the Company's rights to the technology purchased from ClickFind or the ability to deliver our eClinical platform.

For the three months ended September 30, 2008, the Company reported a net loss of $(1,599,000), or $(0.12) per share on a basic and diluted basis. The reported net loss for the comparable period of the prior year was $(3,506,000), or $(0.26) per share on a basic and diluted basis. The prior year third quarter included an impairment loss of $213,000 and severance charges totaling $386,000.

For the nine months ended September 30, 2008, DATATRAK's revenue decreased 23% to $6,704,000 compared to $8,723,000 for the first nine months of 2007. Year-to-date gross margin was 64% for the 2008 nine month period compared to 59% for the same time period of the prior year. For the nine months ended September 30, 2008, the Company reported a net loss of $(19,831,000), or $(1.45) per share on a basic and diluted basis, which includes $12,763,000 of asset impairment charges, $652,000 of severance expense and the German lease charge of $835,000. Net loss for the comparable nine month period of 2007 was $(8,367,000), or $(0.64) per share on a basic and diluted basis, and included asset impairment charges of $213,000 and severance expense of $723,000.

DATATRAK's backlog at September 30, 2008 was $12.5 million and backlog currently stands at approximately $12.1 million. This compares to a backlog of $13.0 million at December 31, 2007. Backlog is defined as the remaining value of signed contracts or authorization letters to commence services. The Company does not include in its backlog potential contracts or authorization letters that have passed
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SOURCE DATATRAK International, Inc.
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