DATATRAK sees Momentum in New Deals

DATATRAK sees Momentum in New Deals

Ken Nagy, CFA

On August 10, 2011, DATATRAK International, Inc. (DATA - Analyst Report), a technology and service provider of electronic clinical trial technology solutions for the clinical trials industry, reported solid second quarter results with a 13 percent year over year increase in sales with revenue expanding to $2.121 million during the three months ended June 30, 2011.

The addition of a $4.4 million in new contract sales during the second quarter, representing the largest quarterly amount in over 5 years, benefited second quarter sales results as well as helped DATATRAK increase new sales for the first six months of 2011 by 30 percent over new sales for the comparable period of 2010. This improvement confirms significant strength and development in milestones by the Company as partially evidenced by new contract sales.

The strong and positive trend of continuing new contract sales appears to be an ongoing occurrence as DATATRAK has announced three additional new contracts sales since the end of the second quarter June 30, 2011.

The new contracts include a multi-year consulting agreement that was signed in July 2011, in which DATATRACK is to provide clinical data management and trial design services to one of its existing global biopharmaceutical client.

More recently, in October 2011, the Company announced the signing of two new contract sales.

In early October, a multi-year Enterprise Agreement was signed with a specialty biologics and vaccines company in which the biotech client will utilize the DATATRAK ONE™ unified software suite to conduct a series of trials.

An additional fresh sales agreement was signed in mid-October with a new client, in which a cardiovascular academic contract research organization signed a contract for three Phase II / III cardiac studies.

These three cardiac studies will employ the electronic data capture, randomization, inventory supply, medical coding and electronic training functionality of the Company’s DATATRAK ONE™ unified software suite.

It should be noted that the signing of these newest contract sales solidifies DATATRAK’s Clinical and Consulting Services (DCCS™) offering,  which accelerates clients drug and device development time lines.

In addition the recent sales demonstrates the industry’s need for DATATRAK’s unified product suite which offers a single solution to conducting clinical trials from Concept to Cure™.

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