Datatrak International, Inc. Reports Results for Second Quarter and First Half of 2021

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on reddit
Share on email

CLEVELAND, OH, Aug. 13, 2021 (GLOBE NEWSWIRE) — via NewMediaWire — Datatrak International, Inc. (OTC Markets: DTRK), (“Datatrak” or the “Company”), a Software-as-a-Service (“SaaS”) provider of cloud-based technologies for the life sciences industry, today announced its operating results for the second quarter and the first half of 2021. 

Financial Highlights:

Datatrak continues to see steady revenue and an increase in the number of new customers through Q2 2021 as part of its initiative to reinvest earnings into our Enterprise Cloud eClinical Platform, which means adding the rest of the products a complete eClinical platform needs to be full service for our clients in the life sciences industry. As our new product line is being adopted, we are shifting attention and resources to expanding our sales and marketing efforts to meet the demand for the flood of decentralized and hybrid clinical trials along with the backlog of thousands of trials delayed by the COVID-19 pandemic. We believe Datatrak is well positioned for this opportunity.

As we transition through COVID-19 delays to new contracts, we expect to see new revenue generating contracts moving forward. Datatrak saw a 15% increase in the number of revenue generating contracts and an 11% increase in the number of customers for the second quarter of 2021 compared to the second quarter of 2020. New sales are partially accounted for in current revenues and partially recognized in future quarters’ revenues due to the long-term nature and accounting rules applying to revenue recognition in the clinical trial software business. The result is that positive new sales figures may take time to be reflected in the current period revenues. Revenue for the second quarter of 2021 was $1,604,000 compared to $1,745,000 for the second quarter of 2020. Direct costs totaled $545,000 for the three months ended June 30, 2021 compared to $467,000 for the three months ended June 30, 2020.  The increase in direct costs was due to higher amortization related to software development efforts as more new features and products, including the Company’s newest product, Datatrak Direct, are being placed into production. This amortization cost is a critical part of the strategic decision to reinvest earnings into expanding our product line. Datatrak Direct is a very important extension of our Enterprise Cloud and extremely relevant to remote patient advocacy in a post-Covid world. Datatrak Direct is our decentralized clinical trial product (also referred to as ePro, Virtual Trials, eCoa, eConsent, and other developing acronyms used in the industry). ISP costs also increased, due to internal initiatives, as well as employee costs. The Company’s gross margin was 66% for the three months ended June 30, 2021 compared to 73% for the three months ended June 30, 2020.  SG&A expenses were $1,447,000 for the three months ended June 30, 2021 compared to $1,314,000 the three months ended June 30, 2020. The increase in SG&A expenses for the three months ended June 30, 2021 compared to the three months ended June 30, 2020 was driven by higher employee expenses, mainly due to recruiting efforts, legal costs due to corporate initiatives, consulting, and travel. Depreciation and amortization were $1,000 and $3,000 for the three months ended June 30, 2021 and 2020, respectively. As a result of the items discussed, Datatrak had a loss from operations for the three months ended June 30, 2021 of ($390,000) compared to ($39,000) for the three months ended June 30, 2020. After other income of $891,000 for the three months ended June 30, 2021, which included an unrealized gain on marketable securities of $46,000 and gain on PPP loan forgiveness of $846,000, the Company’s net income was $501,000. For the three months ended June 30, 2020, the Company has other expense of ($2,000) which resulted in a net loss of ($41,000).

The Company saw a 7% increase in the number of revenue generating contracts and a 5% increase in the number of customers during the first half of 2021 compared to the first half of 2020. The Company’s revenue for the six months ended June 30, 2021 was $3,275,000 compared to $3,696,000 for the six months ended June 30, 2020. Revenue from new contract sales increased by $29,000 for the six months ended June 30, 2021 compared to the six months ended June 30, 2020, while revenue from contracts in the prior year-end backlog decreased $450,000 for the same comparative time period. Direct costs were $1,040,000 for the six months ended June 30, 2021 compared to $959,000 for the six months ended June 30, 2020.  Depreciation and amortization for capitalized software development drove the majority of the increase in direct costs due to the higher value of products placed in production over the past year, including the Company’s newest product, Datatrak Direct. ISP costs were also up due to internal initiatives. The Company’s gross margin was 68% for the six months ended June 30, 2021 compared to 74% for the six months ended June 30, 2020. SG&A expenses increased slightly to $2,732,000 for the six months ended June 30, 2021 compared to $2,707,000 for the six months ended June 30, 2020. The increase in SG&A expenses was driven by higher consulting and legal costs due to various corporate initiatives. The increases in these categories were partially offset by lower employee and travel costs for the six months ended June 30, 2021 compared to the six months ended June 30, 2020. Depreciation and amortization were $3,000 and $7,000 for the six months ended June 30, 2021 and 2020, respectively. As a result of the items discussed, Datatrak had a loss from operations of ($500,000) for the six months ended June 30, 2021 compared to income from operations of $23,000 for the six months ended June 30, 2020. After other income of $1,013,000 for the six months ended June 30, 2021, which included an unrealized gain on marketable securities of $162,000 and a gain on PPP loan forgiveness of $846,000, compared to other income of $2,000 for the six months ended June 30, 2020, the Company’s net income for the six months ended June 30, 2021 and 2020 was $513,000 and $25,000, respectively.

Datatrak’s backlog at June 30, 2021 was $12.3 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.

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 have seen that the availability of vaccines and various treatments with respect to COVID-19 begin to have an overall positive impact on business conditions, we cannot currently predict the continued recovery due to hesitancy of parts of the population to become vaccinated. We will continue to assess the impact of the COVID-19 pandemic on our business and will respond accordingly.

ALSO READ  Logiq Announces Issuance of Common Stock

Executive Highlights:

In April 2021, Datatrak launched Datatrak Direct, a mobile app for smartphones and tablets available in iOS and Android stores. “This is just one more industry-first for our customer’s ability to deploy both decentralized and hybrid clinical trials through our Enterprise Cloud Platform,” said Scott DeMell, VP of Sales at Datatrak. “Datatrak Direct is the only product in the market today that empowers pharma, device, biotech and CRO partners to develop decentralized, hybrid and imaging studies within a unified system and tool, without programming. As expected, we continue to see existing and new demand opportunities for direct, imaging & endpoint adjudication, along with our upcoming business intelligence, all within the Enterprise Cloud Platform.”

Jim Bob Ward, CEO at Datatrak, continued, “The COVID-19 Pandemic has created a structural shift away from patient site visits to a hybrid model that includes collecting clinical data from patients anytime and anywhere in the world. However, modern clinical trials require much more than site, patient and lab data for EDC, CTMS and big data analytics. Today’s global clinical trials require the multilingual ability to drive their own R&D programs as cost efficiently as possible. As a result, Datatrak is actively involved in training our customers and partners on the use of our Enterprise Cloud Platform.”

Join Datatrak thought leaders:

Tweet: Datatrak Reports Results for the Second Quarter and First Half of 2021

See the Earnings Release on Datatrak’s website: https://bit.ly/2VOo0Nk

About Datatrak International, 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:                                                  Employment Opportunities:               Shareholders:    
Scott.DeMell@datatrak.com                Laura.Stuebbe@datatrak.com        investor@datatrak.com

Datatrak International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet Data
 (Unaudited and Not Reviewed)

  June 30, 2021 December 31, 2020
Cash and cash equivalents $1,875,784 $2,634,490
Marketable securities 871,763 10,232
Certificate of deposit 125,126 125,095
Accounts receivable, net 732,190 1,836,321
Operating right-of-use asset, net 1,364,324 1,532,066
Property & equipment, net 1,764,358 1,646,768
Other      488,594      443,193
   Total assets $7,222,139 $8,228,165
     
Accounts payable and other current liabilities $1,264,398 $1,595,485
Deferred revenue  2,670,168 3,323,796
Other long-term liabilities 1,412,178 2,047,172
Shareholders’ equity   1,875,395   1,261,712
   Total liabilities and shareholders’ equity $7,222,139 $8,228,165
     
 

Datatrak International, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited and Not Reviewed) 

 
    For the 3 Months Ended June 30,  
                           2021                        2020  
  Revenue $1,603,818 $1,745,465  
  Direct costs     545,243     467,428  
     Gross profit 1,058,575 1,278,037  
         
  Selling, general and administrative expenses 1,447,216 1,313,622  
  Depreciation and amortization         1,496        2,872  
     Loss from operations (390,137) (38,457)  
         
  Interest income 16 121  
  Interest expense           (734)          (2,508)  
  Gain on marketable securities     46,376          172  
  Gain on PPP forgiveness     845,938              —  
     Net income (loss) before tax provision $  501,459 $  (40,672)  
  Tax provision             —              —  
     Net income (loss) $  501,459 $  (40,672)  
       Net income (loss) per share:      
            Net income (loss) per share, basic  $        0.21 $      (0.02)  
            Weighted-average shares outstanding, basic  2,416,185  2,382,849  
            Net income (loss) per share, diluted  $        0.21  $      (0.02)    
            Weighted-average shares outstanding, diluted  2,434,694  2,382,849  

Datatrak International, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited and Not Reviewed) 

 

    For the 6 Months Ended June 30,  
                           2021                        2020  
  Revenue $3,274,926 $3,696,131  
  Direct costs   1,040,258     958,634  
     Gross profit 2,234,668 2,737,497  
         
  Selling, general and administrative expenses 2,731,548 2,707,314  
  Depreciation and amortization        3,141        6,887  
     (Loss) income from operations (500,021) 23,296  
         
  Interest income 31 4,942  
  Interest expense           5,143          (2,854)  
  Gain (loss) on marketable securities 161,591 (516)  
  Gain on PPP forgiveness     845,938          —  
     Net income before tax provision $  512,682 $    24,868  
  Tax provision              —              —  
     Net income  $  512,682 $    24,868  
       Net income per share:      
            Net income per share, basic  $        0.21 $        0.01  
            Weighted-average shares outstanding, basic  2,411,814  2,377,563  
            Net income per share, diluted  $        0.21   $        0.01    
            Weighted-average shares outstanding, diluted  2,435,488  2,403,224  

Datatrak International, Inc. Reports Results for Second Quarter and First Half of 2021

Source

Spread the love

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on reddit
Share on email

Check out these posts too