CLEVELAND, Nov. 15, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Datatrak International, Inc. (OTC Markets: DTRK), (“Datatrak” or the “Company”), a Software-as-a-Service (“SaaS”) provider of cloud-based technologies for the life sciences industry, today announced its operating results for the third quarter and the first nine months of 2021.
Datatrak remains focused on innovation and expects to add business intelligence as part of its product offering in the fourth quarter of 2021, in addition to Datatrak Direct, which allows customers to run decentralized or hybrid clinical trials and was added to our platform in the second quarter of 2021. This is one more step in the Company’s plan for a complete eClinical platform to be full service for our clients in the life sciences industry. As our new product lines are being adopted, we are shifting attention and resources to expanding our sales and marketing efforts to meet the demand for decentralized and hybrid clinical trials along with the backlog of thousands of trials delayed by the COVID-19 pandemic. We believe Datatrak continues to be well positioned for this opportunity.
In addition to adding two new customers in the third quarter of 2021, Datatrak extended its contract with a major CRO partner. As we transition through COVID-19 delays to new contracts, we expect to see new revenue generating contracts moving forward. New sales are partially accounted for in current revenues and partially recognized in future quarters’ revenues due to the long-term nature and accounting rules applying to revenue recognition in the clinical trial software business. The result is that positive new sales figures may take time to be reflected in the current period revenues. Revenue for the third quarter of 2021 was $1,516,000 compared to $1,752,000 for the third quarter of 2020. Direct costs totaled $566,000 for the three months ended September 30, 2021 compared to $490,000 for the three months ended September 30, 2020. The increase in direct costs was due to higher amortization related to software development efforts as more new features and products are being placed into production. This amortization cost is a critical part of the strategic decision to reinvest earnings into expanding our product line. ISP costs also increased, due to internal initiatives, as well as employee costs. The Company’s gross margin was 63% for the three months ended September 30, 2021 compared to 72% for the three months ended September 30, 2020. SG&A expenses were $1,342,000 for the three months ended September 30, 2021 compared to $1,288,000 the three months ended September 30, 2020. The increase in SG&A expenses was driven by higher employee expenses, mainly due to personnel changes and salary adjustments. Depreciation and amortization were $1,000 and $2,000 for the three months ended September 30, 2021 and 2020, respectively. As a result of the items discussed, Datatrak had a loss from operations for the three months ended September 30, 2021 of ($393,000) compared to ($28,000) for the three months ended September 30, 2020. After other expense of ($38,000) for the three months ended September 30, 2021, which included an unrealized loss on marketable securities of ($37,000), the Company’s net loss was ($431,000). For the three months ended September 30, 2020, the Company had other income of $1,000 which resulted in a net loss of ($27,000).
Datatrak continues to see steady contract signings and has added six new customers during the first nine months of 2021. The Company’s revenue for the nine months ended September 30, 2021 was $4,791,000 compared to $5,448,000 for the nine months ended September 30, 2020. Direct costs were $1,606,000 for the nine months ended September 30, 2021 compared to $1,449,000 the nine months ended September 30, 2020. The increase in direct costs was due to higher amortization related to software development efforts as more new features and products are being placed into production. This amortization cost is a critical part of the strategic decision to reinvest earnings into expanding our product line. ISP costs also increased, due to internal initiatives, as well as employee costs. The Company’s gross margin was 67% for the nine months ended September 30, 2021 compared to 73% for the nine months ended September 30, 2020. SG&A expenses increased slightly to $4,073,000 for the nine months ended September 30, 2021 compared to $3,995,000 for the nine months ended September 30, 2020. The increase in SG&A expenses was driven by higher employee costs, due to personnel changes and salary adjustments, and consulting and legal costs due to various corporate initiatives. Depreciation and amortization were $5,000 and $9,000 for the nine months ended September 30, 2021 and 2020, respectively. As a result of the items discussed, Datatrak had a loss from operations for the nine months ended September 30, 2021 of ($893,000) compared to ($5,000) for the nine months ended September 30, 2020. After other income of $974,000 for the nine months ended September 30, 2021, which included an unrealized gain on marketable securities of $124,000 and a gain on PPP loan forgiveness of $846,000, compared to other income of $3,000 for the nine months ended September 30, 2020, the Company’s net income for the nine months ended September 30, 2021 was $81,000, compared to a net loss of ($2,000) for the nine months ended September 30, 2020.
Datatrak’s backlog at September 30, 2021 was $10.8 million compared to a backlog of $13.7 million at December 31, 2020. Backlog consists of future value from authorization letters to commence services, statements of work, technology and services agreements, change orders and other customer contracts, billed and unbilled.
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 not always been an accurate predictor of the Company’s short-term revenue.
The Company continues to monitor state and federal guidelines regarding the COVID-19 pandemic and will modify business operations as needed to comply with these guidelines for the safety of its employees and customers. Despite the recovery the Company is seeing, the COVID-19 pandemic continues to evolve and the recovery could be slowed or reversed by a number of factors, including a widespread resurgence in COVID-19 infections, whether due to the spread of variants of the virus (some of which are more transmissible than the initial strain) or otherwise, the availability and rate of vaccinations, and the rate in which state and local governments are re-opening businesses or, in certain jurisdictions, reversing re-opening decisions. As such, the Company cannot provide any assurance that the effects of the COVID-19 pandemic will not have an adverse effect on its business or results of operations going forward. In addition, as long as the COVID-19 pandemic remains a public health threat, global economic conditions will continue to be volatile depending on several factors, including new information concerning the severity of the pandemic and new variants, government actions to mitigate the effects of the pandemic in the near-term, and the resulting impact on our clients’ spending plans, any of which could potentially materially impact the Company. While we have seen that the availability of vaccines and various treatments with respect to COVID-19 begin to have an overall positive impact on business conditions, we cannot currently predict the continued recovery due to hesitancy of parts of the population to become vaccinated. We will continue to assess the impact of the COVID-19 pandemic on our business and will respond accordingly.
“We continue to see excitement in the marketplace with new and existing customers for our eClinical platform that provides hybrid and decentralized trials,” said Scott DeMell, VP of Sales at Datatrak. “Sponsors and CROs can now take control of a multilingual enterprise platform that combines virtual data capture directly from patients anytime and anywhere in the world.”
“Now that our virtual Datatrak Direct solution is commercially available, we continue to carry out our long-term vision of empowering our clients by the introduction of Business Intelligence within our platform in the coming months,” said Jim Bob Ward, CEO at Datatrak. “Providing our customers scalable business intelligence capabilities with the ability to centralized study data enables better decision making and trial forecasting.”
Join Datatrak thought leaders:
Tweet: Datatrak Reports Results for the Third Quarter and First Nine Months of 2021
See the Earnings Release on Datatrak’s website: https://bit.ly/3CgebqN
About Datatrak International, Inc.
Datatrak International, Inc. is a software-as-a-service provider of enterprise cloud-based technologies for the life sciences industry. Datatrak’s unified eClinical solutions and related services help improve cost and time efficiencies 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 via Datatrak’s Clinical and Consulting Services group. 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 Enterprise Cloud software solution, deployed worldwide through an ASP or Enterprise Transfer offering, supports Preclinical and Phase I - Phase IV drug and device studies in multiple languages throughout the world. Datatrak is located in Cleveland, Ohio, and College Station, Texas. For more information, visit http://www.datatrak.com.
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. All statements that address operating performance, events or developments that management anticipates will occur in the future, including statements related to future revenue, profits, the impact of COVID-19, expenses, cost reductions, cash management alternatives and working capital requirements, release or success of new products, market share, strategic alternatives, raising additional funds, income and earnings per share or statements expressing general opinion about future results, are forward-looking statements. For a list of certain factors that may cause actual results to differ materially from those contemplated in these forward looking statements, please see the Company’s report filed with the OTC Markets on March 26, 2021 announcing its results for the full-year period ended December 31, 2020 and subsequent filings with the OTC Markets. Many such factors have been, and may further be, exacerbated by the COVID-19 pandemic. 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 and Not Reviewed)
|September 30, 2021||December 31, 2020|
|Cash and cash equivalents||$ 905,473||$2,634,490|
|Certificate of deposit||95,013||125,095|
|Accounts receivable, net||1,955,127||1,836,321|
|Operating right-of-use asset, net||1,277,539||1,532,066|
|Property & equipment, net||1,800,701||1,646,768|
|Accounts payable and other current liabilities||$1,137,984||$1,595,485|
|Other long-term liabilities||1,301,790||2,047,172|
|Total liabilities and shareholders’ equity||$7,358,592||$8,228,165|
| DatatrakInternational, Inc. and Subsidiaries|
Condensed Consolidated Statements of Operations
(Unaudited and Not Reviewed)
|For the 3 Months Ended September 30,|
|Selling, general and administrative expenses||1,341,620||1,287,842|
|Depreciation and amortization||1,497||2,151|
|Loss from operations||(393,197)||(28,243)|
|(Loss) gain on marketable securities||(37,322)||4,515|
|Net loss before tax provision||$(431,366)||$ (26,724)|
|Net loss||$(431,366)||$ (26,724)|
|Net loss per share:|
|Net loss per share, basic||$ (0.18)||$ (0.01)|
|Weighted-average shares outstanding, basic||2,421,507||2,390,373|
|Net loss per share, diluted||$ (0.18)||$ (0.01)|
|Weighted-average shares outstanding, diluted||2,421,507||2,390,373|
DatatrakInternational, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited and Not Reviewed)
|For the 9 Months Ended September 30,|
|Selling, general and administrative expenses||4,073,168||3,995,156|
|Depreciation and amortization||4,638||9,038|
|Loss from operations||(893,218)||(4,947)|
|Gain on marketable securities||124,269||3,999|
|Gain on PPP forgiveness||845,938||—|
|Net income (loss) before tax provision||$ 81,316||$ (1,856)|
|Net income (loss)||$ 81,316||$ (1,856)|
|Net income (loss) per share:|
|Net income (loss) per share, basic||$ 0.03||$ (0.00)|
|Weighted-average shares outstanding, basic||2,415,080||2,381,864|
|Net income (loss) per share, diluted||$ 0.03||$ (0.00)|
|Weighted-average shares outstanding, diluted||2,427,285||2,381,864|
© 2021 GlobeNewswire, Inc. All Rights Reserved.