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

nse 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
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