Navigation Links
DATATRAK International, Inc. Announces Fourth Quarter and Full Year Results for 2010
Date:3/22/2011

CLEVELAND, March 22, 2011 /PRNewswire/ -- DATATRAK International, Inc. (OTCQX: DATA), a technology and services company focused on global eClinical solutions for the clinical trials industry, today announced its operating results for the fourth quarter and full year of 2010. Highlights of the fourth quarter of 2010 include: $2.0 million revenue, $11.2 million backlog and continued profitability.

"Our solid financial results continue to demonstrate that 2010 marked a new beginning for DATATRAK," noted Laurence P. Birch, DATATRAK's Chairman of the Board and CEO. "The last year was significant in DATATRAK's history. Compared to the last several years, 2010 was marked by record quarters of new contracts, revenue and most notably, profitability.  We successfully executed our 2010 strategy of business stability, including investing in additional resources paramount to our growth plans for 2011."

Corporate Highlights:

  • Fourth consecutive quarterly profit – ending 2010 profitably, a significant improvement as compared to a loss of $(1.9) million in 2009
  • Revenue for the fourth quarter of 2010 increased 38% over the fourth quarter of 2009 – the highest quarterly revenue in two years
  • Sales pipeline expansion – fourth quarter of 2010 new contracts of over $3 million was the highest quarter in 3 years
  • Backlog increased to $11.2 million at December 31, 2010 from $9.5 million at December 31, 2009
  • Cash balance at December 31, 2010 increased over the cash balance at December 31, 2009
  • Gross profit margin increased to 85% for the fourth quarter of 2010 compared to 73% for same period in 2009
  • First positive annual EPS since 2005
  • Announced the formation of a new services group – DATATRAK Clinical and Consulting Services™, focused on promoting our Connect Partners' services and supporting clients' clinical data management and design needs
  • Strengthened corporate leadership with two notable appointments:
  • Chris Wilke named Chief Technology Officer to drive the DATATRAK ONE™ vision
  • William (Bill) Gluck, PhD, a thirty-year clinical trial industry veteran, named as the company's Vice President of Clinical and Consulting Services
  • Continued focus on Sales and Marketing efforts with attendance at several high profile trade shows, including the inaugural exhibition at the 2010 ASCO meeting in June, which featured the introduction of DATATRAK's oncology-specific solution
  • Recognized as a company creating significant value with the selection as a 2010 Crain's Leading EDGE award winner
  • Continued development of relationship with Japanese partner, NTT DATA
  • Participation at the 13th Annual DIA Workshop in Japan for Clinical Data Management with NTT DATA
  • Expanded reach in Japan with signing of NTT DATA's first Enterprise Transfer client
  • Continued commitment to our clients – delivering eClinical excellence through the development of new products and system enhancements that address the needs of our complex industry
  • Premiered the release of DATATRAK's Safety Case Manager at the 46th Annual DIA Meeting in June
  • Announced DATATRAK eClinical's® compatibility with the Apple® iPad™
  • Expansion of the Company's industry standards library to include CDISC CDASH field naming in addition to the existing CDISC STDM, E2B and HL7 export components
  • Delivered new Cross-Trial Reporting functionality to increase visibility of performance metrics across studies
  • Delivered advancements to the Local Laboratory Data component to improve trial efficiencies surrounding range and export management
  • Expanded international reach of Connect partners
  • Extended network of Connect partners into India with signing of CRO Kreara Solutions Pvt Ltd
  • Signed 3-year Enterprise License with Portuguese CRO, Keypoint – Consultoria Cientifica, Lda.
  • Co-sponsored a seminar in Tel Aviv, Israel with Connect partner, PFC Pharma Focus
  • In August, announced Safe Harbor certification for the EU and Switzerland
  • Strengthened Investor Relations outreach
  • Presentations at OneMedForum events in San Francisco and New York
  • Presentation at the Rodman and Renshaw 12th Annual Healthcare conference
  • Announced that Zacks Investment Research initiated coverage on the Company

  • "We stated a year ago that 2010 would be focused on capitalizing on previous restructuring efforts, remaining client-centric, continuing to deliver cutting edge technologies and expanding our sales and marketing initiatives," continued Birch. "We maintained this focus throughout 2010, and the successes are evident in our financial results.  We look forward to converting these successes into re-growth of the organization in 2011 and firmly establishing DATATRAK's patented technology as the industry's leading unified software suite."

    Financial Highlights:

    Revenue for the fourth quarter of 2010 increased 38% to $2,015,000 compared to $1,464,000 in the same period of 2009. Gross profit margin increased to 85% for the three months ended December 31, 2010 compared to 73% for the last three months of 2009. The increase in the Company's gross margin reflects the increase in revenue and a 23% reduction in direct costs.

    DATATRAK's income from operations in the fourth quarter of 2010 was $23,000 compared to a loss from operations of $(655,000) in the same quarter of the prior year. The 2010 fourth quarter income from operations includes: (i) severance expense of $10,000, (ii) research and development expense of $207,000, (iii) stock compensation expense of $71,000, and (iv) non-cash items of $118,000. The 2009 fourth quarter loss from operations includes: (i) severance expense of $46,000, (ii) research and development expense of $280,000, (iii) stock compensation expense of $39,000, and (iv) non-cash items of $326,000.

    For the year ended December 31, 2010, revenue increased 7% to $7,391,000 compared to $6,935,000 in the same period of 2009. Direct cost and selling, general and administrative expenses decreased a combined $623,000, or 8%, for full year 2010 compared to full year 2009. Gross profit margin improved to 84% for the twelve months ended December 31, 2010 compared to 74% for the same time period of 2009. The improvement in margin reflects the increase in revenue coupled with a 34% reduction in direct cost.

    For the year ended December 31, 2010, DATATRAK's income from operations was $113,000 compared to $(1,898,000) for the year ended December 31, 2009. The 2010 income from operations of $113,000 includes: (i) reversal of severance expense of $172,000, (ii) research and development expense of $918,000, (iii) stock compensation expense of $268,000, and (iv) non-cash items of $448,000. The 2009 loss from operations of $(1,898,000) includes: (i) severance expense of $551,000, (ii) research and development expense of $1,067,000, (iii) stock compensation expense of $77,000, and (iv) non-cash items of $686,000.

    DATATRAK's backlog at December 31, 2010 was $11.2 million compared to a backlog of $9.5 million at December 31, 2009. 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 the verbal stage but have not been signed. 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.

    About DATATRAK International, Inc.

    DATATRAK International is a worldwide technology and services company delivering 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 in DATATRAK ONE™, the seamless delivery of product and services. 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 eClinical® software suite, deployed worldwide through an ASP or Enterprise Transfer offering, has successfully supported hundreds of international clinical trials involving thousands of clinical research sites and encompassing tens of thousands of patients in 67 countries. DATATRAK has offices located in Cleveland, Ohio, and Bryan, Texas. For more information, visit 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 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 of the factors that may cause actual results to differ materially from those contemplated in these forward looking statements, please see the Company's quarterly report filed with the OTC Markets on November 12, 2010 announcing its results for the three-month period ending September 30, 2010. 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 SubsidiariesCondensed Consolidated Balance Sheet Data(Unaudited)December 31, 2010

    December 31, 2009Cash and investments

    $1,026,369

    $947,984Accounts receivable, net

    1,062,807

    660,094Property & equipment, net

    317,145

    428,734Deferred tax assets

    74,200

    109,800Other

    206,430

    206,071   Total assets

    $2,686,951

    $2,352,683Accounts payable and other current liabilities

    $1,606,317

    $1,687,069Deferred revenue

    1,929,623

    2,052,678Deferred tax liabilities

    74,200

    109,800Other long-term liabilities

    54,932

    12,790Shareholders'  (deficit)

    (978,121)

    (1,509,654)   Total liabilities and shareholders' (deficit)

    $2,686,951

    $2,352,683DATATRAK International, Inc. and SubsidiariesCondensed Consolidated Statements of Operations(Unaudited) For the Three Months Ended December 31,2010

    2009Revenue

    $2,014,851

    $1,464,441Direct costs

    299,679

    391,098   Gross profit

    1,715,172

    1,073,343Selling, general and administrative expenses

    1,641,937

    1,614,300Severance expense

    9,937

    46,209Depreciation and amortization

    40,605

    67,366   Income (loss) from operations

    22,693

    (654,532)Interest income

    223

    238Interest expense

    (4,485)

    (2,980)   Income (loss) before income taxes

    18,431

    (657,274)Income tax expense

    ---

    ---   Net income (loss)

    $18,431

    $(657,274)Net income (loss) per share:Basic:Net income (loss) per shares

    $0.00

    $(0.05)Weighted average shares outstanding

    14,065,845

    13,706,901Diluted:Net income (loss) per share

    $0.00

    $(0.05)Weighted-average shares outstanding

    14,528,492

    13,706,901DATATRAK International, Inc. and SubsidiariesCondensed Consolidated Statements of Operations(Unaudited) For the Twelve Months Ended December 31,2010

    2009Revenue

    $7,390,660

    $6,935,268Direct costs

    1,170,847

    1,786,775   Gross profit

    6,219,813

    5,148,493Selling, general and administrative expenses

    6,098,948

    6,106,034Severance (reduction) expense

    (172,362)

    551,218Depreciation and amortization

    179,758

    389,187   Income (loss) from operations

    113,469

    (1,897,946)Interest income

    821

    5,380Interest expense

    (12,484)

    (15,288)Other expense

    (697)

    ---   Income (loss) before income taxes

    101,109

    (1,907,854)Income tax expense

    ---

    ---   Net income (loss)

    $101,109

    $(1,907,854)Net income (loss) per share:Basic:Net income (loss) per share

    $0.01

    $(0.14)Weighted average shares outstanding

    13,833,062

    13,717,874Diluted:Net income (loss) per share

    $0.01

    $(0.14)Weighted average shares outstanding

    13,833,062

    13,717,874
    '/>"/>

    SOURCE DATATRAK International, Inc.
    Copyright©2010 PR Newswire.
    All rights reserved

    Related medicine technology :

    1. DATATRAK(TM) Takes Clinical Trial Solutions to the Next Level With the Release of 5.0
    2. DATATRAK and COResearch to Collaborate on Six Cardiac Safety Projects
    3. DATATRAK International Reports First Quarter Results for 2008
    4. European Division of Global Top 20 Pharmaceutical Company Awards Phase III Trial to DATATRAK
    5. Research-Based Biopharmaceutical Company Awards Trials to DATATRAK
    6. DATATRAK eClinical(TM) Supports Multifaceted Studies
    7. DATATRAK to Present at 2009 SCDM Annual Conference
    8. DATATRAK Signs 6 Year Study with New Device Client
    9. DATATRAK Attends 13th Annual DIA Workshop in Japan for Clinical Data Management
    10. DATATRAK International, Inc. Announces Year-End Backlog
    11. DATATRAK Signs Five-Year Registry Study
    Post Your Comments:
    *Name:
    *Comment:
    *Email:
    (Date:2/10/2016)... Mylan N.V. (NASDAQ, TASE: MYL) today announced ... December 31, 2015. --> --> ... revenues of $9.45 billion, up 28% on a constant ... of $9.43 billion. Excluding the impact of the acquisition ... generics business (the "EPD Business"), full year adjusted total ...
    (Date:2/10/2016)... 10, 2016 --> ... & Gas), and Spectroscopy Market by Industry (Oil & Gas, ... & Paper, Metal & Mining, and Others), And Geography ... global market is expected to grow to USD 3.9 ... between 2015 and 2020. Browse 82 market ...
    (Date:2/10/2016)... CSI Specialty Group (CSI) expanded its specialty ... Specialty Pharmacy Podcast. A free, weekly show, the Specialty ... education, discussion and context amongst specialty pharmacy peers and ... --> The Specialty Pharmacy Podcast, hosted by industry ... Suzette DiMascio, CHE, CMCE, CPC, is available for streaming ...
    Breaking Medicine Technology:
    (Date:2/10/2016)... ... February 10, 2016 , ... ... Jacksonville, FL 32224, February 26th: Amateur & Professional Divisions - Time: 7:00pm ... 7:00pm – 10:00pm | Ticket Prices $30, Social Media: http://www.USPoleSportsFed.org , ...
    (Date:2/10/2016)... (PRWEB) , ... February 10, 2016 , ... Workrite Ergonomics, ... company that has evolved from humble beginnings to being an internationally recognized leader in ... that we are today”, said Charlie Lawrence, President of Workrite. “Workrite recognized the ...
    (Date:2/10/2016)... ... 2016 , ... Anxiety of older Americans over steep cost increases of prescription ... decade ago, according to The Senior Citizens League (TSCL). Since last ... with rapidly rising costs. “The implications are chilling, particularly for people with chronic ...
    (Date:2/10/2016)... Puente, California (PRWEB) , ... February 09, 2016 ... ... Medicine students, faculty and staff helped give free oral screenings to 150 children ... Feb. 5, 2016. , The College of Dental Medicine joined Chinese American Dental ...
    (Date:2/10/2016)... Angeles, CA (PRWEB) , ... February 09, 2016 , ... ... surgeons are witnessing a dramatic increase in the number of patients under the age ... reflects what they are seeing in their offices, and may indicate an overall shift ...
    Breaking Medicine News(10 mins):