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Datatrak International, Inc. Reports First Quarter Results for 2021CLEVELAND, OH, May 05, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- 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: Tweet: Datatrak Reports First Quarter Results for 2021 See the Earnings Release on Datatrak’s website: < href="https://www.globenewswire.com/Tracker?data=OM3pcmYdfKriLysfytFTTecTkXNd4S5Gy08csT7fGy6dHayuK9HmMUGJF7ZpvDGhGp9y8WVFR5arPXIFgGRz9xYG4ZAu8VEabVWpSxP3LjQ=" rel="nofollow" target="_blank">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 Contacts: Employment Opportunities: Laura Stuebbe Shareholders: Alex Tabatabai Datatrak International, Inc. and Subsidiaries
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