DataTrak International, Inc. (DTRK)

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DATATRAK International, Inc. Announces First Quarter Results for 2011
Datatrak Intl (USOTC:DATA)
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Today : Monday 16 May 2011
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DATATRAK International, Inc. (OTCQX: DATA), a technology and services company focused on global eClinical solutions for the clinical trials industry, today announced its operating results for the first quarter of 2011. Highlights include: $1.9 million revenue, a stable gross profit margin and the highest quarter ending cash balance in 15 months.

"DATATRAK continues to focus on strategic investments that maximize our organic growth," noted Laurence P. Birch, DATATRAK's Chairman of the Board and CEO. "Our commitment to exceptional customer service is evidenced in the additional services now offered through our DATATRAK Clinical and Consulting Services™ unit. These new services in addition to the advantages of our proprietary unified technology are the foundation for our emergence as a leader in the eClinical marketplace." Birch continued, "In order to safeguard our position, our partners and our clients, DATATRAK's 2011 focus has expanded to aggressively protecting our intellectual property."

Corporate Highlights:

Revenue for the first quarter of 2011 increased 13% over the first quarter of 2010
Cash balance of $1.184 million at March 31, 2011 increased 46% over the $811,000 cash balance of March 31, 2010
Continued positive cash flow from operations
Gross profit margin remained relatively stable at 81% for the first quarter of 2011 compared to 82% for same period in 2010, despite an increased headcount to support DATATRAK's new Clinical and Consulting Services unit
Attended the 14th Annual DIA Workshop in Japan with partner NTT DATA
Added contracts with 5 new clients in the first quarter, including previously released:
In January, awarded a Phase II device study by a leading global healthcare supplier headquartered in Europe
In March, awarded first study with Kreara Solutions, an Indian CRO - the trial, to be managed by Kreara, will be conducted in Japan and employ several CROs based in Japan, India and the US
Expanded CRO activity to include bidding with 25 CROs in the first quarter
Scaled cloud offering to support client growth by relocating datacenter to a specialized collocation facility
Opened a new office in the Research Park Triangle, headed by Dr. Bill Gluck, formerly of Gilead Sciences, Inc.
Increased visibility in the industry:
Chris Wilke, DATATRAK's CTO, presented "Using Technology to Improve the Clinical Trial Process" at DIA's 23rd Annual EuroMeeting
Dr. Bill Gluck, DATATRAK's VP Clinical and Consulting Services, presented, "Quality Data is a Team Effort" at the DIA Clinical Data Quality Summit in Arlington, Virginia

Financial Highlights:

Revenue for the first quarter of 2011 increased 13% to $1,888,000 compared to $1,678,000 in the same period of 2010. The gross profit margin remained relatively stable at 81% for the three months ended March 31, 2011 compared to 82% for the first three months of 2010. The slight decrease in the Company's gross margin reflects the increase in revenue offset by a higher headcount to support DATATRAK's Clinical and Consulting Services™ business.

DATATRAK's loss from operations in the first quarter of 2011 was $(198,000) compared to income from operations of $11,000 in the same quarter of the prior year. The 2011 first quarter loss from operations includes: (i) research and development expense of $273,000, (ii) stock compensation expense of $72,000, and (iii) non-cash items of $112,000. The 2010 first quarter income from operations includes: (i) reversal of severance expense of $182,000, (ii) research and development expense of $254,000, (iii) stock compensation expense of $22,000, and (iv) non-cash items of $77,000.

DATATRAK's backlog at March 31, 2011 was $10.5 million compared to a backlog of $11.2 million at December 31, 2010. Without unforeseen study cancellations, backlog would have increased for the quarter due to robust new contract sales. Backlog is defined as the remaining value of signed contracts or authorization letters to commence services. The Company does not include in its backlog potential contracts or authorization letters that have passed the verbal stage but have not been signed. 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 been a poor predictor of the Company's short-term revenue.

"As planned," continued Birch, "We are now investing for growth through additional investments in sales, marketing and product development as well as investing to protect our valuable intellectual property. This is an exciting time for DATATRAK. We have great technology supported by a great team, and we are executing to continuously deliver outstanding products and services to a growing number of customers."

About DATATRAK International, Inc.

DATATRAK International is a worldwide technology and services company delivering eClinical solutions and related services 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 eClinical® software solution, deployed worldwide through an ASP or Enterprise Transfer offering, supports Phase I - Phase IV drug and devices studies in multiple languages throughout the world. DATATRAK has offices located in Cleveland, Ohio; Bryan, Texas; and Cary (RTP), North Carolina. For more information, visit http://www.datatrak.net.

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. For a list of certain of the factors that may cause actual results to differ materially from those contemplated in these forward looking statements, please see the Company's annual report filed with the OTC Markets on March 24, 2011 announcing its results for the full-year period ending December 31, 2010. 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.