Datatrak, an electronic data capture company, reported its second quarter revenue slumped 37% to $3.07 million and a net loss of $2.97 million or $0.22 per share on a basic and diluted basis. These results compared with revenue of $4.83 million and a net loss of $702,000, or $0.06 per share basic and diluted basis, in the second quarter of 2006. Datatrak laid off 17 employees in the second quarter, recording severance charges totaling $337,000.
The employee reductions in June are expected to decrease annual direct costs by approximately $515,000 and annual expenses by approximately $875,000, for a total cost reduction of approximately $1.4 million per year.
“During the second quarter, we instituted monumental changes at Datatrak,” stated Jeffrey Green, president and chief executive officer of Datatrak. “These changes have not only been related to cost cutting, but also relate to the current reorganization of our entire sales and marketing strategy that clearly was not producing the growth we believe possible with our product offerings. Though it may sound like a contradiction to some, while cost cutting in some areas, we are investing heavily in sales and marketing.”