DATATRAK International Inc logo

DTRK - DATATRAK International Inc News Story

$8.1 -0.7  -7.4%

Last Trade - 21/01/22

Sector
Technology
Size
Micro Cap
Market Cap £15.6m
Enterprise Value £15.3m
Revenue £5.41m
Position in Universe 6583rd / 7397

Datatrak International, Inc. Reports First Quarter Results for 2021

Wed 5th May, 2021 7:47pm
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CLEVELAND, OH, May 05, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire
(https://www.globenewswire.com/Tracker?data=IEMBzkWvzbf-xG1sh54Jx3yFuqI69fJi800Ze5-mZwsYJX7C7XIhATbfh5LhldcOhBeb7T1Zx3RDgU0tfRFnDqsoLfOhSSkY_32yan-3JKE=) --
Datatrak International, Inc. (OTC Markets: DTRK), (“Datatrak” or the
“Company”), 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 first quarter of 2021. 

Financial Highlights:

Revenue for the first quarter of 2021 was $1,671,000 compared to $1,951,000
for the first quarter of 2020.  In spite of the decrease in revenue,
Datatrak saw a 14% increase in the number of revenue generating contracts and
an 8% increase in the number of customers for the first quarter of 2021
compared to the first quarter of 2020.  Direct costs remained relatively
flat at $495,000 for the three months ended March 31, 2021 compared to
$491,000 for the three months ended March 31, 2020.  The Company’s gross
profit margin was 70% for the three months ended March 31, 2021 compared to
75% for the three months ended March 31, 2020.  SG&A expenses decreased to
$1,284,000 for the three months ended March 31, 2021 compared to $1,394,000
the three months ended March 31, 2020.  The decrease in SG&A expenses was
driven by the level of software development capitalization, including work on
the newest product, Datatrak Direct, which was released in April
2021.  Travel costs also decreased for the three months ended March 31, 2021
compared to the three months ended March 31, 2020 due to the COVID-19
pandemic.  However, consulting and legal costs increased for the three
months ended March 31, 2021 compared to the three months ended March 31, 2020
due to various corporate initiatives.  Depreciation and amortization were
$2,000 and $4,000 for the three months ended March 31, 2021 and 2020,
respectively.  As a result of the items discussed, Datatrak had a loss from
operations of ($110,000) for the three months ended March 31, 2021 compared to
income from operations of $62,000 for the three months ended March 31,
2020. After other income of $121,000 for the three months ended March 31,
2021, which included an unrealized gain on marketable securities of $115,000,
and other income of $4,000 for the three months ended March 31, 2020, the
Company’s net income for the three months ended March 31, 2021 and 2020 was
$11,000 and $66,000, respectively.

Datatrak’s backlog at March 31, 2021 was $13.3 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.

On March 26, 2021, Datatrak entered into a revolving line of credit (“2021
Line of Credit”) with KeyBank National Association.  The 2021 Line of
Credit provides for draws when requested by the Company of up to $750,000 to
be used for business operations.  Interest will accrue monthly on any
outstanding balance at a rate equal to the 1-Month LIBOR, subject to a .50%
floor, plus 2.25% or KeyBank’s Prime Rate plus 0.25%, subject to a 3%
floor.    The maturity date of the 2021 Line of Credit is March 31,
2022.  The Company made a draw on the 2021 Line of Credit totaling $175,000
on May 3, 2021.

On April 14, 2021, Datatrak received notification from KeyBank National
Association that its PPP loan, which was received in April 2020, was approved
by the SBA for forgiveness in full.  As this is a subsequent event to the
financial statement date of March 31, 2021, the effects of the PPP loan
forgiveness will be reflected in the financial statements for the second
quarter of 2021.

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, 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 expect 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, we cannot currently predict the timing and broad
availability of such treatments or vaccines and vaccination rates. We will
continue to assess the impact of the COVID-19 pandemic on our business and
will respond accordingly.

Executive Highlights:

Over the past year, many organizations have come to the realization that the
process of administrating clinical trials has changed and they must adapt to
this new reality of decentralized trials. As a result, a spotlight has been
put on advanced technology to help trials proceed in this pandemic and
post-pandemic environment. With studies moving towards virtual, during 2020
Datatrak directed our team’s energy and focus on powerful products that
would enter the market this year.

“Even before COVID-19 pandemic struck the life science industry, Datatrak
has been paying close attention to what is going on behind the scenes of
clinical trials and noticed a rising need for a solution that is flexible. Our
team has been hard at work over the last year and proudly launched Datatrak
Direct, a smart app for ePRO and eConsent, last month,” said Jim Bob Ward,
CEO at Datatrak. “This product allows patients to enter data on the device
of their choice, empowering patient engagement along with ensured accuracy,
which enhances the overall success and longevity of today’s trials.”

Scott DeMell, VP of Sales at Datatrak, continued, “At Datatrak we are
determined to continuously supply clients with cutting-edge, innovative
eClinical solutions for accelerated positive trial outcomes. We believe that
our new product offerings provide the adaptability to overcome the evolving
clinical trial environment and reach their study goals efficiently.”

Join Datatrak thought leaders:
*  Twitter (https://twitter.com/DATATRAKinc)
*  LinkedIn
(http://www.linkedin.com/company/datatrak-international?goback=%2Efcs_GLHD_datatrak_false_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2&trk=company_logo)
*  Datatrak Resources (http://www.datatrak.com/home/resources/)
Tweet: Datatrak Reports First Quarter Results for 2021

See the Earnings Release on Datatrak’s website: https://bit.ly/2PScBcx

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 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.

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
 (Unaudited and Not Reviewed)

                                                 March 31, 2021  December 31, 2020  
 Cash and cash equivalents                       $2,778,124      $2,634,490         
 Marketable securities                           825,417         10,232             
 Certificate of deposit                          125,110         125,095            
 Accounts receivable, net                        600,483         1,836,321          
 Operating right-of-use asset, net               1,449,143       1,532,066          
 Property & equipment, net                       1,726,018       1,646,768          
 Other                                           347,207         443,193            
 Total assets                                    $7,851,502      $8,228,165         
                                                                                    
 Accounts payable and other current liabilities  $1,551,610      $1,595,485         
 Deferred revenue                                3,018,412       3,323,796          
 Other long-term liabilities                     1,943,356       2,047,172          
 Shareholders’ equity                            1,338,124       1,261,712          
 Total liabilities and shareholders’ equity      $7,851,502      $8,228,165         
                                                                                    



 Datatrak International, Inc. and Subsidiaries  Condensed Consolidated Statements of Income  (Unaudited and Not Reviewed) 
                                               For the 3 Months Ended March 31,      
                                               2021               2020               
 Revenue                                       $1,671,108         $1,950,666         
 Direct costs                                  495,015            491,206            
 Gross profit                                  1,176,093          1,459,460          
                                                                                     
 Selling, general and administrative expenses  1,284,332          1,393,692          
 Depreciation and amortization                 1,645              4,015              
 (Loss) income from operations                 (109,884)          61,753             
                                                                                     
 Interest income                               15                 4,821              
 Interest expense                              5,877              (346)              
 Gain (loss) on marketable securities          115,215            (688)              
 Net income before tax provision               $ 11,223           $ 65,540           
 Tax provision                                 —                  —                  
 Net income                                    $ 11,223           $ 65,540           
 Net income per share:                                                               
 Net income per share, basic                   $ 0.00             $ 0.03             
 Weighted-average shares outstanding, basic    2,407,394          2,358,667          
 Net income per share, diluted                 $ 0.00             $ 0.03             
 Weighted-average shares outstanding, diluted  2,430,071          2,387,749
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