DATATRAK International, Inc. Reports Second Quarter Results of 2013

CLEVELAND, Aug. 7, 2013

(Logo: http://photos.prnewswire.com/prnh/20130107/CL38347LOGO) 

"DATATRAK's sustained growth and record breaking backlog is evidence that we continue to set the bar for innovation and clinical trial platform depth," stated Laurence P. Birch, DATATRAK's Chairman of the Board and CEO. "Recognizing the transformative properties of our unified eClinical technology, 100% of this year's new clients are utilizing more than one product within the DATATRAK ONE^™ software suite to give them a competitive advantage in their clinical trial process – but frankly, we believe that if 100% of all vendors' customers are not utilizing more than one eClinical product, it begs the question whether those systems can ever achieve the efficiency of a single cloud-based platform – like DATATRAK ONE^™."

Highlights for the second quarter 2013 include:

• 13% increase in revenue the first six months of 2013 as compared to the same period in 2012 and second quarter revenues of $2.5 million – a 5% increase year-over-year
• Cash balance at June 30, 2013 of $2.6 million reflects a 67% increase in cash year-over-year
• Gross profit margin for the first six months of 2013 remained stable at 80%
• Backlog at June 30, 2013 totaled approximately $20.1 million – a 27% year-over-year increase and the highest balance in 8 years
• Addition of 3 CROs to the DATATRAK Connect^™ Partner Program resulting in a 27% increase in bid values quarter-over-quarter
• 100% of new clients year-to-date utilized more than one product within the DATATRAK ONE™ software suite
• Delivery of Innovative Technologies
  • Introduced uPRO at 49^th Annual DIA Meeting
  • Released DATATRAK ONE CLINICAL ERP^™ Solution
  • Joined SAS® Alliance to offer Cloud-based SAS® Drug Development
  • Added new 6^th CDISC Standard to repertoire – Terminology
• Continued geographic expansion – new clients in the second quarter in Israel and Latin America
• Continued Industry Presence and Thought Leadership in Second Quarter:
  • CHI's Diversity, Inclusion, & Life Sciences Symposium – Mr. Laurence P. Birch, Panelist
  • CBI's 10^th Forum on Patient Reported Outcomes – Dr. Bill Gluck, Speaker
  • 5^th Annual DIA China 2013 Annual Meeting
  • 2013 Annual ASCO Meeting
  • 49th Annual DIA Meeting Advancing Therapeutic Innovation and Regulatory Science – Mr. Walt Townsend, Speaker
  • Recipient of 2013 Leading Edge Award for 4^th Consecutive Year

"We continue to propel DATATRAK forward as the eClinical thought leader by re-defining the boundaries of the clinical trial frontier with innovative and disruptive solutions – demonstrated by the recent release of our DATATRAK ONE CLINICAL ERP^™ software which optimizes the intersection of clinical research and resource planning to transform the drug development process," Birch continued. "Even more exciting is our recently announced alliance to offer SAS^® Drug Development. This ground-breaking offering seamlessly pushes real-time data to SAS Drug Development using a single, extended chain of custody. By enabling our clients with the power of SAS Analytics in the cloud, DATATRAK provides a controlled environment for all clinical data that is unmatched in the industry today." 

Birch concluded, "Other companies in this space may be larger, for now, but with the introduction of these latest offerings, we believe we have further consolidated our position as the technology leader in the eClinical space. Our ability to be nimble is giving more and more customers the benefit of the industry's leading technologies with unparalleled customer service while delivering a full suite of products and services at pricing that is a fraction of our larger competitors."

Financial Highlights:
Revenue increased by 5% to $2.5 million in the second quarter of 2013 compared to $2.3 million in the second quarter of 2012 due to strong new contract sales which fueled backlog increases throughout 2012 and 2013.  Gross profit margin remained stable at 79% for the three months ended June 30, 2013 compared to 83% for the three months ended June 30, 2012.  The Company's loss from operations for the three months ended June 30, 2013 was $(802,000) compared to $(458,000) for the corresponding period in the prior year.  The quarter-over-quarter cost increases were primarily due to employee costs related to the expansion of all departments.  The operating results for both years reflect the Company's strategy of planned re-investment to grow the top-line revenue through new products and functionalities, new sales and marketing programs and expanded services.