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."
"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."
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
$947,984Accounts receivable, net
660,094Property & equipment, net
428,734Deferred tax assets
206,071 Total assets
$2,352,683Accounts payable and other current liabilities
2,052,678Deferred tax liabilities
109,800Other long-term liabilities
(1,509,654) Total liabilities and shareholders' (deficit)
$2,352,683DATATRAK International, Inc. and SubsidiariesCondensed Consolidated Statements of Operations(Unaudited) For the Three Months Ended December 31,2010
391,098 Gross profit
1,073,343Selling, general and administrative expenses
46,209Depreciation and amortization
67,366 Income (loss) from operations
(2,980) Income (loss) before income taxes
(657,274)Income tax expense
--- Net income (loss)
$(657,274)Net income (loss) per share:Basic:Net income (loss) per shares
$(0.05)Weighted average shares outstanding
13,706,901Diluted:Net income (loss) per share
$(0.05)Weighted-average shares outstanding
13,706,901DATATRAK International, Inc. and SubsidiariesCondensed Consolidated Statements of Operations(Unaudited) For the Twelve Months Ended December 31,2010
1,786,775 Gross profit
5,148,493Selling, general and administrative expenses
6,106,034Severance (reduction) expense
551,218Depreciation and amortization
389,187 Income (loss) from operations
--- Income (loss) before income taxes
(1,907,854)Income tax expense
--- Net income (loss)
$(1,907,854)Net income (loss) per share:Basic:Net income (loss) per share
$(0.14)Weighted average shares outstanding
13,717,874Diluted:Net income (loss) per share
$(0.14)Weighted average shares outstanding
|SOURCE DATATRAK International, Inc.|
Copyright©2010 PR Newswire.
All rights reserved