Datatrak International, Inc. Reports First Quarter Results for 2021
Datatrak International, Inc. (DTRK) reported its Q1 2021 results, showing a revenue decline to $1,671,000 from $1,951,000 in Q1 2020. Despite this, the company achieved a 14% increase in revenue-generating contracts and an 8% rise in customer numbers. Gross profit margin dropped to 70% from 75%. Datatrak recorded an operational loss of $110,000 compared to a profit of $62,000 in the previous year. Notably, the company's backlog decreased slightly to $13.3 million. The company also secured a $750,000 line of credit with KeyBank.
- 14% increase in revenue-generating contracts
- 8% increase in customer numbers
- SG&A expenses decreased from $1,394,000 to $1,284,000
- Forgiveness of PPP loan reflected positively in upcoming financials
- Launch of new product Datatrak Direct enhancing patient engagement
- Revenue decreased from $1,951,000 to $1,671,000
- Operational loss of $110,000 compared to a profit of $62,000 in Q1 2020
- Gross profit margin declined from 75% to 70%
- Backlog decreased from $13.7 million to $13.3 million
CLEVELAND, 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
Datatrak’s backlog at March 31, 2021 was
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
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.”
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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 | ||
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 | ||
Accounts payable and other current liabilities | ||
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 | ||
Datatrak International, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Unaudited and Not Reviewed) | ||
For the 3 Months Ended March 31, | ||
2021 | 2020 | |
Revenue | ||
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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