Datatrak International, a technology and services company focused on eClinical solutions, reported third quarter revenues fell 34% to $1.55 million compared with the prior year quarter but its net loss narrowed.

Compared to the prior year third quarter, combined direct cost and selling, general and administrative expenses decreased approximately $1.8 million, or nearly in half.

Datatrak reported a net loss of $(424,000), or $(0.03) per share on a basic and diluted basis, compared with a net loss of $(1.6 million), or $(0.12) per share on a basic and diluted basis, for the same time period of 2008.  Last year's third quarter net loss included a charge of $835,000 related to its German subsidiary office closing. In addition, the company's financial results for the prior year third quarter were negatively impacted by legal costs of $234,000 associated with litigation, which was favorably concluded in December 2008 resulting in the forgiveness of $3 million previously owed by Datatrak.

At Sept. 30, backlog was $8.89 million compared with $8.55 million at June 30. The Sept. 30 backlog amount represents the first quarter-over-quarter increase in backlog since the first quarter of 2008.

During the third quarter, the company’s cash balance declined $303,000 to $1.33 million at Sept. 30., compared with $1.63 million as of June 30.

"We believe the increase in backlog is a very good indicator that clinical trial sponsors are ready to move forward with projects which were on hold earlier this year,” said Laurence Birch, chairman of the board of Datatrak.