First Quarter-Over-Quarter Increase In Backlog Since 2008 Q1
CLEVELAND, Nov. 16 /PRNewswire-FirstCall/ -- DATATRAK
International, Inc. (OTCQX: DATA), a technology and services
company focused on global eClinical solutions for the clinical
trials industry, today reported its operating results for the third
quarter and first nine months of 2009. For the three months ended
September 30, 2009, revenue decreased $813,000, or 34%, to
$1,554,000 compared to $2,367,000 in the prior year third quarter.
Compared to the prior year third quarter, combined direct cost and
selling, general & administrative ("SG&A") expenses
decreased approximately $1.8 million, or 49%. The Company reported
a net loss of $(424,000), or $(0.03) per share on a basic and
diluted basis, for the three months ending September 30, 2009
compared to a net loss of $(1,599,000), or $(0.12) per share on a
basic and diluted basis, for the same time period of 2008. Last
year's third quarter net loss of $(1,599,000) included a charge of
$835,000 related to the Company's German subsidiary office closing
and associated office and equipment leases. In addition, the
Company's financial results for the prior year third quarter were
negatively impacted by legal costs of approximately $234,000
associated with certain litigation which was favorably concluded in
December 2008 resulting in the forgiveness of $3.0 million
previously owed by DATATRAK. Direct costs decreased 18% to $465,000
from $568,000 in the third quarter of 2008. Gross profit margin for
the three months ended September 30, 2009, was 70% compared to 76%
in the third quarter of last year. For the nine months ended
September 30, 2009, DATATRAK's revenue decreased 18% to $5,471,000
compared to $6,704,000 for the first nine months of 2008.
Year-to-date gross margin improved to 74% for the 2009 nine month
period compared to 64% for the same time period of the prior year.
For the nine months ended September 30, 2009, the Company reported
a net loss of $(1,251,000), or $(0.09) per share on a basic and
diluted basis, which includes $505,000 of severance expense. Net
loss for the comparable nine month period of 2008 was
$(19,831,000), or $(1.45) per share on a basic and diluted basis,
which included asset impairment charges of $12,763,000 and
severance expense of $652,000. At September 30, 2009, backlog was
$8,891,000 compared to $8,551,000 at June 30, 2009, $9,699,000 at
March 31, 2009 and $11,400,000 at December 31, 2008. The September
30, 2009 backlog amount of $8,891,000 represents the first
quarter-over-quarter increase in backlog since the first quarter of
2008. During the third quarter of 2009 our cash balance declined
$303,000 to $1.33 million at September 30, 2009 compared to $1.63
million as of June 30, 2009. The $303,000 cash decrease represents
a 32% reduction in cash burn compared to the 2009 second quarter
decrease of $446,000. Approximately 36% of the $303,000 cash
decrease, or $109,000, is attributable to the payment of severance
commitments primarily to former executive officers of the Company.
"We believe the increase in backlog is a very good indicator that
clinical trial sponsors are ready to move forward with projects
which were on hold earlier this year", stated Laurence P. Birch,
Chairman of the Board of DATATRAK International, Inc. "In addition,
we think the introduction of our DATATRAK ONE(TM) concept in August
played a role in the increase in backlog as customers began to
better understand our single platform solution compared to the
patch-work technologies many of our competitors offer. We are now
in the later stages of our stabilization plan which has put us in
excellent position to capitalize on upcoming opportunities in the
market." Birch concluded, "The results are markedly different than
a year ago, after adjusting for the severance charge, our
year-to-date nine month net loss from operations was only
$(738,000) compared to a loss of $(5,949,000) in the first nine
months of 2008 after adjusting for severance and impairment
charges." The Company follows the Pink OTC Markets OTCQX Guidelines
for Providing Adequate Current Information, the highest tier and
most transparent level of disclosure available to the Company. The
Company's 2009 third quarter report will be available later today
at http://www.pinksheets.com/ under the symbol: DATA. About
DATATRAK International, Inc. DATATRAK International, Inc. is a
worldwide technology and services company focused on the provision
of multi-component eClinical solutions and related services for the
clinical trials industry. We operate under the concept of DATATRAK
ONE(TM), which encompasses our unique, single platform technology.
The singular architecture of our DATATRAK eClinical(TM) product
suite has been embraced by clients around the globe for its ability
to effectively manage clinical trials through a unified
multi-component, comprehensive solution. 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.
DATATRAK's eClinical(TM) software suite can be deployed worldwide
through an ASP offering or in a licensed Enterprise Transfer model
that fully empowers its clients. 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 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. 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 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. DATATRAK International,
Inc. and Subsidiaries Condensed Consolidated Balance Sheet Data
(Unaudited) September 30, 2009 December 31, 2008 ------------------
----------------- Cash and investments $1,328,876 $2,372,294
Restricted cash - current - 218,276 Accounts receivable, net
775,842 927,490 Property and equipment, net 496,100 785,549
Deferred tax asset 118,700 145,400 Other 338,017 198,131 -------
------- Total assets $3,057,535 $4,647,140 ========== ==========
Accounts payable and other current liabilities $1,646,400
$1,825,735 Deferred revenue - current 1,142,195 1,053,096 Long-term
liabilities 1,160,145 1,446,923 Shareholders' equity (891,205)
321,386 --------- ------- Total liabilities and shareholders'
equity $3,057,535 $4,647,140 ========== ========== DATATRAK
International, Inc. and Subsidiaries Condensed Consolidated
Statements of Operations (Unaudited) For the Three Months Ended
September 30, ---------------------------------------- 2009 2008
---- ---- Revenue $1,554,133 $2,367,031 Direct costs 464,791
568,020 ------- ------- Gross profit 1,089,342 1,799,011 Selling,
general and administrative expenses 1,425,928 3,135,004 Severance
expense - 46,701 Depreciation and amortization 83,783 183,863
------ ------- Loss from operations (420,369) (1,566,557) Interest
income 662 17,717 Interest expense (4,149) (54,362) Other - 4,317
--- ----- Loss before income taxes (423,856) (1,598,885) Income tax
expense - - --- --- Net loss $(423,856) $(1,598,885) ==========
============ Net loss per share: Basic: Net loss per share $(0.03)
$(0.12) ======= ======= Weighted-average shares outstanding
13,706,901 13,681,901 ========== ========== Diluted: Net loss per
share $(0.03) $(0.12) ======= ======= Weighted-average shares
outstanding 13,706,901 13,681,901 ========== ========== DATATRAK
International, Inc. and Subsidiaries Condensed Consolidated
Statements of Operations (Unaudited) For the Nine Months Ended
September 30, --------------------------------------- 2009 2008
---- ---- Revenue $5,470,827 $6,704,165 Direct costs 1,395,677
2,400,663 --------- --------- Gross profit 4,075,150 4,303,502
Selling, general and administrative expenses 4,491,734 9,044,221
Impairment loss - 12,763,145 Severance expense 505,009 651,750
Depreciation and amortization 321,821 1,208,152 ------- ---------
Loss from operations (1,243,414) (19,363,766) Interest income 5,142
106,723 Interest expense (12,308) (175,489) Other - (13,761) ---
-------- Loss before income taxes (1,250,580) (19,446,293) Income
tax expense - 385,000 --- ------- Net loss $(1,250,580)
$(19,831,293) ============ ============= Net loss per share: Basic:
Net loss per share $(0.09) $(1.45) ======= ======= Weighted average
shares outstanding 13,721,571 13,681,901 ========== ==========
Diluted: Net loss per share $(0.09) $(1.45) ======= =======
Weighted average shares outstanding 13,721,571 13,681,901
========== ========== DATASOURCE: DATATRAK International, Inc.
CONTACT: Raymond J. Merk, Chief Financial Officer and Chief
Operating Officer, DATATRAK International, Inc., +1-440-443-0082
x181 Web Site: http://www.datatrak.net/
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