Datatrak positive for 2010 despite $1.9m operating loss
Despite the dip in revenues Datatrak drew encouragement from aspects of its performance and believes there is no longer substantial doubt about the company continuing as a going concern.
In 2009 Datatrak “focused solely on maximising operational performance, including re-establishment and strengthening of our relationships with existing and potential clients", explained Laurence Birch, chairman of the company’s board.
Having implemented these measures Birch believes Datatrak has strengthened its financial position. Furthermore, the company has continued to invest in research and development, spending $1m in 2009, and Datatrak believes this will allow for continued product expansion.
Datatrak achieved quarter-on-quarter growth in backlog, which totalled $9.5m at the end of 2009. The third and fourth quarter growth in backlog represents the first quarter-on-quarter increases in almost two years and this has given Datatrak reason to be optimistic about the year ahead.
Backlog is predicted to continue growing throughout 2010. Buoyed by this upturn, and cost reductions, Datatrak has asserted that there is no longer substantial doubt about the company continuing as a going concern.
Measures taken by Datatrak have reduced the annual cost structure from $14m in 2008 to $8m in 2009. Birch added that the 2009 financial performance “validates that the course corrections made within the company over the last two years are coming to fruition”.
Datatrak’s full year revenues declined by 31 per cent to $6.9m. Loss from operations was $1.9m compared to $19.5m in 2008. The loss in 2008 included non-cash asset impairment charges of $12.8m.
