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DATATRAK International, Inc. Announces First Quarter Results for 2009
Date:5/13/2009

Restructuring Plan Yields Positive Results

CLEVELAND, May 13 /PRNewswire-FirstCall/ -- DATATRAK International, Inc. (Nasdaq: DATA), a technology and services company focused on global eClinical solutions for the clinical trials industry, today announced its operating results for the first quarter of 2009.

Revenue for the first quarter of 2009 remained relatively constant at $2,086,000 compared to $2,088,000 in the same period of 2008. Gross profit margin improved to 77% for the three months ended March 31, 2009 compared to 55% for the first three months of 2008. The improvement in the Company's gross margin reflects a 49% reduction in direct costs.

For the three months ended March 31, 2009, DATATRAK's loss from operations was $(787,000) compared to $(2,225,000) in the first quarter of the prior year. The current year first quarter loss of $(787,000) includes $634,000 of severance charges related primarily to the separation of two executive officers of the Company. Selling, general and administrative expenses decreased approximately $1.2 million in the first quarter of 2009 compared to the first quarter of 2008. Excluding severance charges from both comparable periods, DATATRAK's loss from operations would be $(153,000) in the current year first quarter compared to $(2,199,000) in the same period last year. Net loss for the first quarter of 2009 was $(788,000), or $(0.06) per share on both a basic and diluted basis compared to $(2,233,000) in the first quarter of 2008, or $(0.16) per share on both a basic and diluted basis.

"We are very pleased with our first quarter results, which we believe reflect our continuing efforts to optimize our operating structure," commented Laurence P. Birch, Chairman of the Board and interim-Chief Executive Officer of the Company. "Excluding severance charges, our ope
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