CLEVELAND, OH, March 26, 2021 (GLOBE NEWSWIRE) — via NewMediaWire — Datatrak International, Inc. (OTC Markets: DTRK), a worldwide Software-as-a-Service (“SaaS”) provider and innovation leader of cloud-based technologies for the life sciences industry, today announced its operating results for the fourth quarter and full year for 2020.
Financial Highlights:
Revenue for the fourth quarter of 2020 was $1,709,000 compared to $1,909,000 for the fourth quarter of 2019. Despite the decrease in revenue, the Company has seen a significant increase in the number of new contracts and new customers during 2020 compared to the last three years. Direct costs decreased by $36,000 to $479,000 for the three months ended December 31, 2020 compared to $515,000 for the three months ended December 31, 2019 due to less amortization related to software development efforts that have been placed into production, which was partially offset by higher employee costs. The Company’s gross margin was 72% for the three months ended December 31, 2020 compared to 73% for the three months ended December 31, 2019. Selling, general and administrative (“SG&A”) expenses increased by $26,000 to $1,313,000 for the three months ended December 31, 2020 compared to $1,287,000 for the three months ended December 31, 2019. The increase in SG&A expenses was driven by higher advertising and legal costs, and partially offset by lower travel costs due to the COVID-19 pandemic. Depreciation and amortization was $2,000 and $5,000 for the three months ended December 31, 2020 and 2019, respectively. As a result of the items discussed, Datatrak had a loss from operations for the three months ended December 31, 2020 of ($85,000) compared to income from operations of $102,000 for the three months ended December 31, 2019. After other expense of ($3,000) for the three months ended December 31, 2020 and other income of $6,000 for the three months ended December 31, 2019, the Company’s net loss for the three months ended December 31, 2020 was ($88,000) compared to net income of $108,000 for the three months ended December 31, 2019.
Full year revenue for 2020 was $7,157,000 compared to $7,743,000 for the full year of 2019. Despite the decrease in revenue, the Company has seen a significant increase in the number of new contracts and new customers during 2020 compared to the last three years. Direct costs decreased by $276,000 for the year ended December 31, 2020 compared to the year ended December 31, 2019 due to less amortization related to software development efforts that have been placed into production, which was partially offset by higher employee costs. The Company’s gross margin increased to 73% for the year ended December 31, 2020 compared to 72% for the year ended December 31, 2019. SG&A expenses increased by $163,000 for the year ended December 31, 2020 compared to the year ended December 31, 2019. The increase in SG&A expenses was driven by higher employee expenses, advertising, consulting and legal costs. However, travel costs decreased for the year ended December 31, 2020 compared to the year ended December 31, 2019 due to the COVID-19 pandemic. Depreciation and amortization was $11,000 and $19,000 for the year ended December 31, 2020 and 2019, respectively. As a result of the items discussed, Datatrak had a loss from operations for the year ended December 31, 2020 of ($90,000) compared to income from operations of $374,000 for the year ended December 31, 2019. While other income netted to zero for the year ended December 31, 2020, the year ended December 31, 2019 recorded other income of $13,000, which resulted in a net loss of ($90,000) for the year ended December 31, 2020 compared to net income of $387,000 for the year ended December 31, 2019.
Datatrak’s backlog at December 31, 2020 was $13.7 million compared to a backlog of $13.3 million at December 31, 2019. 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 has been monitoring state and federal guidelines regarding the COVID-19 pandemic and will continue to modify business operations as needed to comply with these guidelines for the safety of its employees and customers. As the COVID-19 pandemic is a continually evolving situation, including the recent emergence of new variants of COVID-19, some of which may be more transmissible than the initial strain, 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, the COVID-19 pandemic has caused a global economic recession, which could potentially materially impact the Company. While the Company expects the availability of vaccines and various treatments with respect to COVID-19 to have an overall positive impact on business conditions in the aggregate over time, the Company cannot currently predict the timing and availability of such treatments or vaccines.
Executive Highlights:
The COVID-19 pandemic has been a source of major disruption for the life sciences and clinical trials industry throughout 2020. An estimated 80% of non-COVID-19 related trials were either stopped or interrupted as a result of the pandemic. Even with these disruptions, Datatrak worked diligently to increase the number of new contracts and customers in 2020.
“We continue to see significant momentum from new and existing clients who rely on our intuitive and flexible solutions to help address their challenges in recruitment, data capture and analysis,” said Scott DeMell, VP of Sales at Datatrak. “Efficiencies in unified systems such as our Enterprise Cloud, supported by remote monitoring, the ability for sites to easily upload source document materials, and true, real time reporting across all of the platform products, have helped our clients meet the demands for remote access, tighter collaboration, and direct to patient communications.”
Jim Bob Ward, CEO at Datatrak, continued, “The past few years of industry collaboration and self-funded product development have reached a point of convergence with three new major products coming to market in 2021. Our new multi-lingual innovations include iOS and Android Apps for ePRO, Wearables, eConsent and Virtual Trials to empower Patient Direct participation in clinical trials. We are extending our reach into global medical imaging laboratories in an effort to reduce redundant system costs, errors and reporting delays by enabling radiologists centralized access to evaluate and adjudicate images and end-points directly within an EDC system. The natural next step is to provide clients with the ability to centralize all data, including trial data from competitor systems, through our CTMS for data visualization and data analytics for new product research and development.”
Join Datatrak thought leaders:
Tweet: Datatrak Reports Fourth Quarter and Full Year Results for 2020
See the Earnings Release on Datatrak’s website: https://bit.ly/2TmpDdY
AboutDatatrakInternational, 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 24, 2020 announcing its results for the full-year period ended December 31, 2019 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.
Contacts:
Sales: Scott DeMell
Scott.DeMell@datatrak.com
Employment Opportunities: Laura Stuebbe
Laura.Stuebbe@datatrak.com
Shareholders: Alex Tabatabai
investor@datatrak.com
Datatrak International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet Data
(Audited)
| December 31, 2020 | December 31, 2019 | |
| Cash and cash equivalents | $2,634,490 | $3,990,549 |
| Marketable securities | 10,232 | 6,998 |
| Certificate of deposit | 125,095 | 165,224 |
| Accounts receivable, net | 1,836,321 | 634,571 |
| Operating right-of-use asset, net | 1,532,066 | 1,845,460 |
| Property & equipment, net | 1,646,768 | 1,355,164 |
| Other | 443,193 | 375,506 |
| Total assets | $8,228,165 | $8,373,472 |
| Accounts payable and other current liabilities | $1,595,485 | $ 902,183 |
| Deferred revenue | 3,323,796 | 4,308,563 |
| Other long-term liabilities | 2,047,172 | 2,016,407 |
| Shareholders’ equity | 1,261,712 | 1,146,319 |
| Total liabilities and shareholders’ equity | $8,228,165 | $8,373,472 |
|
Datatrak International, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Audited)
|
||
| For the 3 Months Ended December 31, | ||
| 2020 | 2019 | |
| Revenue | $1,708,779 | $1,908,678 |
| Direct costs | 479,442 | 515,012 |
| Gross profit | 1,229,337 | 1,393,666 |
| Selling, general and administrative expenses | 1,312,704 | 1,286,810 |
| Depreciation and amortization | 1,732 | 4,648 |
| (Loss) income from operations | (85,099) | 102,208 |
| Interest income | 16 | 6,097 |
| Interest expense | (2,602) | (863) |
| Other (expense) income | (645) | 688 |
| Net (loss) income before tax provision | $ (88,330) | $ 108,130 |
| Tax provision | — | — |
| Net (loss) income | $ (88,330) | $ 108,130 |
| Net (loss) income per share: | ||
| Net (loss) income per share, basic | $ (0.04) | $ 0.05 |
| Weighted-average shares outstanding, basic | 2,397,107 | 2,358,667 |
| Net (loss) income per share, diluted | $ (0.04) | $ 0.05 |
| Weighted-average shares outstanding, diluted | 2,397,107 | 2,388,177 |
| Datatrak International, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Audited)
|
||
| For the 12 Months Ended December 31, | ||
| 2020 | 2019 | |
| Revenue | $7,157,009 | $7,742,569 |
| Direct costs | 1,928,425 | 2,204,821 |
| Gross profit | 5,228,584 | 5,537,748 |
| Selling, general and administrative expenses | 5,307,860 | 5,144,820 |
| Depreciation and amortization | 10,770 | 19,020 |
| (Loss) income from operations | (90,046) | 373,908 |
| Interest income | 5,016 | 18,140 |
| Interest expense | (8,510) | (3,803) |
| Other income (expense) | 3,354 | (1,446) |
| Net (loss) income before tax provision | $ (90,186) | $ 386,799 |
| Tax provision | — | — |
| Net (loss) income | $ (90,186) | $ 386,799 |
| Net (loss) income per share: | ||
| Net (loss) income per share, basic | $ (0.04) | $ 0.16 |
| Weighted-average shares outstanding, basic | 2,385,696 | 2,346,372 |
| Net (loss) income per share, diluted | $ (0.04) | $ 0.16 |
| Weighted-average shares outstanding, diluted | 2,385,696 | 2,378,739 |
