DATATRAK International reports 21% increase in third quarter 2013 revenue

DATATRAK International, Inc. (OTCQX: DTRK), the leader in developing cloud-based, unified eClinical^® technologies and delivering related services for the clinical trials industry, today announced its operating results for the third quarter of 2013.

"This record setting quarter is a direct result of our success in delivering real benefits to our clients who recognize they can have both cost savings and better functionality with DATATRAK ONE^™. Excitement over our new CLINICAL ERP release produced the highest backlog in Company history. DATATRAK is committed to excellence and will continue to invest in our products and our people to drive top line growth," said Laurence P. Birch, Chairman of the Board and CEO.

Birch concluded, "Some of our competition has been raising prices while DATATRAK delivers real cost reductions in data efficiencies at a lower price point. Our clients leverage our intrinsically unified platform to optimize the entire clinical trial process, allowing them to focus on the trial, not the technology. More and more, sophisticated clinical operations executives are realizing they can have the unified system today that our competitors are only promising they may deliver sometime in the future – and those executives are choosing DATATRAK ONE^™."

Highlights for third-quarter 2013 include:

• 16% increase in revenue the first nine months of 2013 as compared to the same period in 2012
• Third-quarter revenue of $3.0 million – a 21% increase year-over-year
• Cash balance at September 30, 2013 of $2.6 million reflects a 2% increase in cash year-over-year
• Third-quarter Gross Profit Margin remained stable at 83%
• Backlog at September 30, 2013 totaled approximately $22 million – a 19% year-over-year increase and the highest balance ever reported
• 91% of new clients year-to-date utilized more than one product within the DATATRAK ONE^™ software suite
• Added CROS NT, an international CRO, as a Connect Partner
• Highlighted three speakers as invited industry Thought Leaders at the 2013 Society for Clinical Data Management Conference:
  • Dr. Bill Gluck – Risk-Based Approach to Monitoring
  • Mr. Aaron Gadberry – Quality-Centric Metadata
  • Mr. Bill O'Mara – Outsourcing Technology and Procedures

Financial Highlights:
Revenue increased by 21% to $3.0 million in the third quarter of 2013 compared to $2.5 million in the third quarter of 2012 due to strong new contract sales which fueled backlog increases throughout 2012 and 2013. Gross profit margin remained stable at 83% for the three months ended September 30, 2013 compared to 84% for the three months ended September 30, 2012. The Company's income from operations for the three months ended September 30, 2013 was $134,000 compared to a loss from operations of $(456,000) for the corresponding period in the prior year. Quarter-over-quarter costs remained relatively flat while reflecting the Company's strategy of planned re-investment to grow the top-line revenue through new products and functionalities, new sales and marketing programs and expanded services.

DATATRAK's backlog at September 30, 2013 was $21.9 million compared to a backlog of $17.8 million at December 31, 2012. 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. The improvement in backlog from December 31, 2012 to September 30, 2013 was due to new contract sales, change orders and contract amendments.