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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 6581st / 7395

Datatrak International, Inc. Reports Fourth Quarter and Full Year Results for 2020

Fri 26th March, 2021 2:11pm
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CLEVELAND, OH, March 26, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire
(https://www.globenewswire.com/Tracker?data=0AaMvbMJDVUB3-d2YP1EBYjx-u42OdCbxUZWqxGFLKY4lBIRckKTAoSGLjcACtD6y5zMzoJP2F3qdIgRDhoppeYOX7zpxGpu7jsCs9-31zA=) -- 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:
*  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 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
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