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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 Results for Third Quarter and First Nine Months of 2020

Tue 10th November, 2020 4:45pm
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CLEVELAND, OH, Nov. 10, 2020 (GLOBE NEWSWIRE) -- via NewMediaWire
(https://www.globenewswire.com/Tracker?data=Y3N6WXkjZuWG7mW1iOoSNEzJoARmtEs2UKphqJpKcVYp7WZJXtuw9qpXjpk4OEq23RNqOz6hl9FQ-0t1ZULaqZqcwBuOpmPoS0zGeSgy6q8=)-- 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
third quarter and the first nine months of 2020. 

Financial Highlights:

Revenue for the third quarter of 2020 was $1,752,000 compared to $2,028,000
for the third quarter of 2019. Despite the overall 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 $92,000 to $490,000 for the three months ended September 30, 2020 compared
to $582,000 for the three months ended September 30, 2019 due to less
amortization related to software development efforts that have been placed
into production.  The Company’s gross margin increased to 72% for the
three months ended September 30, 2020 compared to 71% for the three months
ended September 30, 2019.  Selling, general and administrative (“SG&A”)
expenses decreased by $75,000 to $1,288,000 for the three months ended
September 30, 2020 compared to $1,363,000 for the three months ended September
30, 2019.  The decrease in SG&A expenses was driven by lower employee
expenses, due to personnel changes and partially offset by higher recruiting
costs.  Depreciation and amortization was $2,000 and $5,000 for the three
months ended September 30, 2020 and 2019, respectively.  As a result of the
items discussed, Datatrak had a loss from operations for the three months
ended September 30, 2020 of ($28,000) compared to income from operations of
$79,000 for the three months ended September 30, 2019.  After other income
of $1,000 for the three months ended September 30, 2020 and $3,000 for the
three months ended September 30, 2019, the Company’s net loss for the three
months ended September 30, 2020 was ($27,000) compared to net income of
$82,000 for the three months ended September 30, 2019.

Revenue for the first nine months of 2020 was $5,448,000 compared to
$5,834,000 for the first nine months of 2019.  Despite the overall 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 $241,000 for the nine months ended
September 30, 2020 compared to the nine months ended September 30, 2019 due to
less amortization related to software development efforts that have been
placed into production, which was partially offset by higher ISP costs.  The
Company’s gross margin increased to 73% for the nine months ended September
30, 2020 compared to 71% for the nine months ended September 30, 2019.  SG&A
expenses increased by $137,000 for the nine months ended September 30, 2020
compared to the nine months ended September 30, 2019.  The increase in SG&A
expenses was driven by higher employee expenses, due to salary adjustments,
commissions and employee recruitment, and consulting costs.  However, travel
and advertising costs decreased for the nine months ended September 30, 2020
compared to the nine months ended September 30, 2019 due to the COVID-19
pandemic.  Depreciation and amortization was $9,000 and $14,000 for the nine
months ended September 30, 2020 and 2019, respectively.  As a result of the
items discussed, Datatrak had a loss from operations for the nine months ended
September 30, 2020 of ($5,000) compared to income from operations of $272,000
for the nine months ended September 30, 2019. After other income of $3,000
for the nine months ended September 30, 2020 and $7,000 for the nine months
ended September 30, 2019, the Company’s net loss for the nine months ended
September 30, 2020 was ($2,000) compared to net income of $279,000 for the
nine months ended September 30, 2019.

Datatrak’s backlog at September 30, 2020 was $12 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,
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.

Executive Highlights:

“Datatrak is committed to carrying out our long-term vision of providing the
life sciences industry with the next generation of SaaS platforms that bridge
the eClinical service delivery gaps,” said Jim Bob Ward, CEO at Datatrak.
“Our system supplies clients with a responsive and agile solution that
minimizes workforce outages during today’s uncertain times brought on by the
COVID-19 pandemic. With the depth of our products and the team-based
collaboration functionality of the Datatrak Enterprise Cloud, our clients are
benefiting from more effective ways to execute their trials within a
challenging business environment.”     

“We continue to see an increase in new customers and contract opportunities
in 2020 compared to the past three years,” said Scott DeMell, VP of Sales
at Datatrak. “Both new and existing customers are recognizing that we
provide the ability to streamline data collection and management from multiple
sources within our unified platform, providing studies with enhanced data for
faster and more informed clinical decisions.”

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 Results for Third Quarter and First Nine Months of
2020

See the Earnings Release on Datatrak’s website: https://bit.ly/36mKF4T

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
 (Unaudited and Not Reviewed)

                                                 September 30, 2020  December 31, 2019  
 Cash and cash equivalents                       $3,188,436          $3,990,549         
 Marketable securities                           10,907              6,998              
 Certificate of deposit                          125,079             165,224            
 Accounts receivable, net                        741,159             634,571            
 Operating right-of-use asset, net               1,613,147           1,845,460          
 Property & equipment, net                       1,561,656           1,355,164          
 Other                                           682,618             375,506            
 Total assets                                    $7,923,002          $8,373,472         
                                                                                        
 Accounts payable and other current liabilities  $1,699,424          $ 902,183          
 Deferred revenue                                2,764,848           4,308,563          
 Other long-term liabilities                     2,148,755           2,016,407          
 Shareholders’ equity                            1,309,975           1,146,319          
 Total liabilities and shareholders’ equity      $7,923,002          $8,373,472         
                                                                                        



 Datatrak International, Inc. and Subsidiaries  Condensed Consolidated Statements of Operations  (Unaudited and Not Reviewed) 
                                               For the 3 Months Ended September 30,      
                                               2020                 2019                 
 Revenue                                       $1,752,099           $2,028,216           
 Direct costs                                  490,349              581,957              
 Gross profit                                  1,261,750            1,446,259            
                                                                                         
 Selling, general and administrative expenses  1,287,842            1,362,971            
 Depreciation and amortization                 2,151                4,648                
 (Loss) income from operations                 (28,243)             78,640               
                                                                                         
 Interest income                               58                   5,475                
 Interest expense                              (3,054)              (1,371)              
 Other income (expense)                        4,515                (817)                
 Net (loss) income before tax provision        $ (26,724)           $ 81,927             
 Tax provision                                 —                    —                    
 Net (loss) income                             $ (26,724)           $ 81,927             
 Net (loss) income per share:                                                            
 Net (loss) income per share, basic            $ (0.01)             $ 0.03               
 Weighted-average shares outstanding, basic    2,390,373            2,352,213            
 Net (loss) income per share, diluted          $ (0.01)             $ 0.03               
 Weighted-average shares outstanding, diluted  2,390,373            2,374,113            



 Datatrak International, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited and Not Reviewed) 
                                               For the 9 Months Ended September 30,      
                                               2020                 2019                 
 Revenue                                       $5,448,230           $5,833,891           
 Direct costs                                  1,448,983            1,689,809            
 Gross profit                                  3,999,247            4,144,082            
                                                                                         
 Selling, general and administrative expenses  3,995,156            3,858,010            
 Depreciation and amortization                 9,038                14,372               
 (Loss) income from operations                 (4,947)              271,700              
                                                                                         
 Interest income                               5,000                12,043               
 Interest expense                              (5,908)              (2,940)              
 Other income (expense)                        3,999                (2,134)              
 Net (loss) income before tax provision        $ (1,856)            $ 278,669            
 Tax provision                                 —                    —                    
 Net (loss) income                             $ (1,856)            $ 278,669            
 Net (loss) income per share:                                                            
 Net (loss) income per share, basic            $ (0.00)             $ 0.12               
 Weighted-average shares outstanding, basic    2,381,864            2,342,229            
 Net (loss) income per share, diluted          $ (0.00)             $ 0.12               
 Weighted-average shares outstanding, diluted  2,381,864            2,372,946            

(https://www.globenewswire.com/NewsRoom/AttachmentNg/77ebd7c6-0c15-4bb2-8f1e-310034cfeea6)



GlobeNewswire, Inc. 2020
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