Closure of German office and consolidation of Help Desk services results in approximately $1.1 million of annualized expense reduction and increases
CLEVELAND, June 17 /PRNewswire-FirstCall/ -- DATATRAK International, Inc. (Nasdaq: DATA), a technology and services company focused on global eClinical solutions for the clinical trials industry, today announced as part of its ongoing efforts to maximize operational efficiencies, the Company will be closing its Bonn, Germany office. Throughout the past year the German office of DATATRAK was mainly providing global Help Desk services in support of the Company's two existing electronic platforms for clinical trials. Help Desk services will now be provided through the Company's headquarters based in Cleveland and will continue to service the global implementations of DATATRAK's products. These initiatives when fully implemented will result in annual costs savings of approximately $1.1 million.
DATATRAK's previous product offering of EDC-only was originally acquired from the German Division of Electronic Data Systems in 1998. This legacy product necessitated more intense supervision and support which translated into a higher cost requirement. The newer DATATRAK eClinical platform is far more user-friendly, modern and intuitive which results in a diminished requirement for support, allowing for a consolidation of these services within a lower cost environment. All of the new clinical trials being implemented by DATATRAK exclusively use the new platform, while the older EDC-only product suite is planned to have its few remaining trials concluded by late 2009 or early 2010.
"Everyone who has ever been associated with the DATATRAK family expresses the highest level of sincerity and respect for the German operation that has provided exemplary service to our worldwide customers and users for the past ten years," stated Dr. Jeffrey A. Green, President and Chief Executive Officer of DATATRAK International, Inc. "This office of DATATRAK was the early pioneer in this industry during the 1990s. However, the advancing innovative nature of our platform is directed towards as much self-reliance as possible for our customers and users and this fact combined with the economic disadvantages of the currency exchange rates necessitated this sound business decision. In the end, this action will increase our corporate competitiveness which will translate into additional advantages for our clients through the use of the DATATRAK eClinical platform."
About DATATRAK International
DATATRAK International, Inc. is a worldwide technology company focused on the provision of multi-component eClinical solutions and related services for the clinical trials industry. The Company delivers a complete portfolio of software products that were created in order to accelerate clinical research data from investigative sites to clinical trial sponsors and ultimately the FDA, faster and more efficiently than manual methods or loosely integrated technologies. The DATATRAK eClinical(TM) software suite can be deployed worldwide through an ASP offering or in a licensed Enterprise Transfer ASP model that fully empowers clients to design, set up and manage their clinical trials independently. The DATATRAK software suite and its earlier versions have successfully supported hundreds of international clinical trials involving thousands of clinical research sites and encompassing tens of thousands of patients in 59 countries. DATATRAK International, Inc.'s product suite has been utilized in some aspect of the clinical development of 16 separate drugs and one medical device that have received regulatory approval from either the United States Food and Drug Administration or counterpart European bodies. DATATRAK International, Inc. has offices located in Cleveland, Ohio and Bryan, Texas. Its common stock is listed on the NASDAQ Stock Market under the ticker symbol "DATA." Visit the DATATRAK International, Inc. web site at http://www.datatrak.net.
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 (including those specified below) which are difficult to predict and, in many instances, are beyond the control of the Company. Factors that may cause actual results to differ materially from those in the forward-looking statements include the limited operating history on which the Company's performance can be evaluated; the ability of the Company to continue to enhance its software products to meet customer and market needs; fluctuations in the Company's quarterly results; the viability of the Company's business strategy and its early stage of development; the timing of clinical trial sponsor decisions to conduct new clinical trials or cancel or delay ongoing trials; the Company's dependence on major customers; government regulation associated with clinical trials and the approval of new drugs; the ability of the Company to compete in the emerging EDC market; losses that potentially could be incurred from breaches of contracts or loss of customer data; the inability to protect intellectual property rights or the infringement upon other's intellectual property rights; the Company's success in integrating its acquisition's operations into its own operations and the costs associated with maintaining and/or developing two product suites; and general economic conditions such as the rate of employment, inflation, interest rates and the condition of capital markets. This list of factors is not all-inclusive. In addition, the Company's success depends on the outcome of various strategic initiatives it has undertaken, all of which are based on assumptions made by the Company concerning trends in the clinical research market and the health care industry. 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.
|SOURCE DATATRAK International, Inc.|
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