Click here to close now.

Welcome!

Microsoft Cloud Authors: Liz McMillan, Elizabeth White, Pat Romanski, Jaynesh Shah, Carmen Gonzalez

News Feed Item

VirtualScopics Reports 3rd Quarter 2012 Results

Earnings call scheduled for 11am ET today

ROCHESTER, N.Y., Nov. 9, 2012 /PRNewswire/ -- VirtualScopics, Inc. (NASDAQ: VSCP), a leading provider of quantitative medical imaging, today reported revenues of $3,328,217 for the third quarter of 2012 compared to revenues of $3,268,807 in the third quarter of 2011. Gross profit for the quarter ended September 30, 2012 was $1,462,056 compared to $1,496,626 for the quarter ended September 30, 2011. Operating loss for the third quarter of 2012 was $53,293 compared to operating income of $19,559 in the third quarter of 2011. Earnings before interest, taxes, depreciation and amortization, and excluding stock compensation expense and gain (loss) from derivative financial instrument ("Adjusted EBITDA") for the third quarter of 2012 was $192,045 compared to $341,669 in the comparable period in 2011.

Year to date, ending September 30, 2012, results were as follows:

  • Total revenues of $10,366,236 compared to $10,780,710 for the first nine months of 2011.
  • Gross profit of $4,216,907 compared to $4,917,385 in first nine months of 2011.
  • Adjusted EBITDA of $347,124 compared to $1,223,846 in the comparable period in 2011.
  • Working capital as of September 30, 2012 was $9,510,696 compared to $6,353,054 at December 31, 2011.

"In the third quarter we continued to experience the impact of the slowdown in new project awards, delays in the initiation of new studies, and the resulting impact on our top line," said Jeff Markin, president and chief executive officer of VirtualScopics.  He stated, "While our third quarter revenues exceeded our prior year third quarter revenues, the rate of growth and the overall level of revenue are below our capability and expectation. Accordingly we have made, and will continue to make, changes to our selling and operational processes to maximize new project bookings and overall client satisfaction." He concluded, "We are optimistic that because of our strong client relationships, the strengthening of the PPD alliance, and our industry reputation, this slowdown will be temporary and we anticipate returning to our historical growth rates."

"In light of the softness in our revenues during 2012, we are continuing to actively monitor our level of necessary expenditures," stated Molly Henderson, chief business and financial officer of VirtualScopics. She added, "We believe the softness in the level of new project awards will improve and, therefore, anticipate continuing to make the important investments in market opportunities that will support our long-term strategic growth." She continued, "This includes our efforts in the field of personalized medicine which we are continuing to advance." She concluded, "We have a significant amount of projects awaiting decisions and anticipate that we will receive word on these projects prior to the end of this year, thereby, giving us confidence as we enter 2013."

Jeff Markin and Molly Henderson will provide a business and third quarter 2012 financial update during the conference call this morning at 11:00 a.m. ET.  Interested participants should dial 877.407.8035 when calling within the United States or +1 201 689 8035 when calling internationally. This call can also be accessed at www.virtualscopics.com and will be available for 30 days after the call.

The Company provides Adjusted EBITDA as a supplemental measure to GAAP regarding the Company's operational performance. The Company defines Adjusted EBITDA as earnings less interest, taxes (if any), depreciation and amortization and further adjusted to exclude stock compensation expense and the unrealized gain (loss) on the change in fair value of derivative liabilities (mark to market adjustment for warrants).  This financial measure excludes the impact of certain items and, therefore, has not been calculated in accordance with GAAP. The Company's method of calculating Adjusted EBITDA, however, may differ from methods used by other companies, and, as a result, Adjusted EBITDA measures disclosed herein may not be comparable to other similarly titled measures used by other companies. The Company continues to provide information in accordance with GAAP. However, with the adoption of ASC 815-40 and the non-cash variable nature of stock compensation expense and their very substantial impact on the overall reported net income/loss, the Company believes it is also helpful for investors to receive additional information relating more specifically to the Company's operating results. Accordingly, the Company has presented Adjusted EBITDA which excludes the non-cash effects of ASC 815-40 and ASC 718 on its financial results. Management uses Adjusted EBITDA (a) to evaluate the Company's financial performance, (b) to set internal spending budgets, and (c) to measure operational profitability. In addition, investors have requested these non-GAAP financial measures as a means of providing consistent and comparable information with past reports of financial results. Pursuant to the requirements of Regulation G, the Company has provided a reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measure, net (loss)/income.

About VirtualScopics, Inc.
VirtualScopics, Inc. is a leading provider of quantitative imaging solutions to accelerate drug and medical device development in addition to improving patient care.  VirtualScopics has developed a robust software platform for analysis and modeling of both structural and functional medical images.  In combination with VirtualScopics' industry-leading experience and expertise in advanced imaging biomarker measurement, this platform provides a uniquely clear window into the biological activity of drugs and devices in clinical trial patients, allowing sponsors to make better decisions faster.  For more information about VirtualScopics, visit www.virtualscopics.com.

Forward-Looking Statements
The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created thereby. These forward-looking statements include, but are not limited to, statements regarding the expected benefits of the Company's investment in infrastructure and efforts to maximize new project bookings, new customer contract signings and awards and/or statements preceded by, followed by or that include the words "believes," "could," "expects," "anticipates," "estimates," "intends," "plans," "projects," "seeks," or similar expressions. Forward-looking statements deal with the Company's current plans, intentions, beliefs and expectations. Investors are cautioned that all forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.  Many of these risks and uncertainties are discussed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2011 filed with the Securities and Exchange Commission (the "SEC"), and in any subsequent reports filed with the SEC, all of which are available at the SEC's website at www.sec.gov. These include without limitation: the risk of cancellation or delay of customer contracts or specifically as it relates to contact awards, the risk that they may not get signed; and, the risk that the Company may not receive contract awards which it has sought.  Other risks include the company's dependence on its largest customers and risks of contract performance, protection of our intellectual property and the risks of infringement of the intellectual property rights of others. All forward-looking statements speak only as of the date of this press release and the Company undertakes no obligation to update such forward-looking statements.

-Financial tables to follow-

CONTACT:     

Investor Relations:

Company Contact:


Tim Ryan                           

Molly Henderson


The Shoreham Group                  

Chief Business and Financial Officer, Sr. Vice President


80 Eighth Ave, Ste 1107                    

500 Linden Oaks


New York, NY 10011

Rochester, New York 14625


+1 212 242.7777 Direct

+1 585 249.6231


[email protected]   



  

VirtualScopics, Inc. and Subsidiary

Condensed Consolidated Statements of Operations 

(unaudited)


















For the Three Months Ended September 30,


For the Nine Months Ended September 30,






2012


2011


2012


2011

























Revenues


$                 3,095,080


$      3,047,704


$           9,487,055


$           9,973,568

Reimbursement revenues


233,137


221,103


879,181


807,142



Total revenues


3,328,217


3,268,807


10,366,236


10,780,710













Cost of revenues


1,633,024


1,551,078


5,270,148


5,056,183

Cost of reimbursement revenues

233,137


221,103


879,181


807,142



Total cost of services


1,866,161


1,772,181


6,149,329


5,863,325




Gross profit


1,462,056


1,496,626


4,216,907


4,917,385













Operating expenses










Research and development


397,803


320,024


1,111,967


984,730


Sales and marketing


312,140


254,696


954,605


864,409


General and administrative


578,107


594,683


1,848,007


1,882,865


Stock-based compensation expense


125,906


194,050


421,092


631,984


Depreciation and amortization


101,393


113,614


320,003


364,062




Total operating expenses


1,515,349


1,477,067


4,655,674


4,728,050

Operating (loss) income 


(53,293)


19,559


(438,767)


189,335













Other income (expense)










Interest income


1,044


1,671


2,174


15,903


Other expense


(7,206)


(6,724)


(12,920)


(24,665)


Unrealized (loss) gain on change in 










  fair value of derivative liabilities


(19,794)


548,420


(306,247)


509,621

Total other (expense) income


(25,956)


543,367


(316,993)


500,859


Net (loss) income


(79,249)


562,926


(755,760)


690,194













Preferred stock deemed dividend


-


-


1,806,919


-

Preferred stock dividends


42,000


12,000


95,333


36,989













Net (loss) income available to common stockholders


$                   (121,249)


$          550,926


$          (2,658,012)


$               653,205













Weighted average number of common shares outstanding










basic 


29,747,262


29,329,816


29,608,684


28,809,385


diluted


29,747,762


32,524,658


29,608,684


33,471,117













Basic and diluted (loss) earnings per common share


$                           0.00


$                0.02


$                   (0.09)


$                     0.02













*

Cost of revenues includes non-cash stock-based compensation expense of $18,039 and $14,446 for the three months ended


September 30, 2012 and 2011, respectively and $44,796 and $38,465 for the nine months ended September 30, 2012 and 2011, respectively.

  

VirtualScopics, Inc. and Subsidiary

Condensed Consolidated Balance Sheets






September 30,


December 31,


2012


2011

Assets

(unaudited)







Current assets




Cash 

$      8,060,832


$     5,737,009

Accounts receivable, net

2,728,663


2,435,496

Prepaid expenses and other current assets

406,438


361,376

Total current assets

11,195,933


8,533,881

Patents, net

1,497,922


1,582,938

Property and equipment, net

418,976


514,230

Other assets

10,856


27,140

Total assets

$    13,123,687


$   10,658,189





Liabilities and Stockholders' Equity








Current liabilities




Accounts payable and accrued expenses

$         913,262


$        843,275

Accrued payroll

474,099


759,470

Unearned revenue

240,266


421,486

 Derivative liabilities

57,610


156,596

Total current liabilities

1,685,237


2,180,827





Commitments and Contingencies

-


-





Stockholders' Equity




Convertible preferred stock, $0.001 par value; 15,000,000 shares authorized;




Series A 8,400 shares authorized; issued and outstanding, 2,190 at September 30, 2012 and December 31, 2011; liquidation preference $1,000 per share

2


2

Series B 6,000 shares authorized; issued and outstanding, 600 at September 30, 2012 and December 31, 2011; liquidation preference $1,000 per share

1


1

Series C-1 3,000 shares authorized; issued and outstanding, 3,000 and 0 shares at September 30, 2012 and December 31, 2011, respectively; liquidation preference $1,000 per share

3


-

Series C-2 3,000 shares authorized; issued and outstanding, 0 shares at September 30, 2012 and December 31, 2011; liquidation preference $1,000 per share

-


-

Common Stock, $0.001 par value; 85,000,000 shares authorized; issued and outstanding, 29,747,762 and 29,370,687 shares at September 30, 2012 and December 31, 2011, respectively 

29,748


29,371

Additional paid-in capital

21,599,404


17,882,936

Accumulated deficit

(10,190,708)


(9,434,948)

Total stockholders' equity

11,438,450


8,477,362

Total liabilities and stockholders' equity

$    13,123,687


$   10,658,189


  



Three Months Ended

Three Months Ended

Adjusted EBITDA (non-GAAP measurement):


September 30, 2012

September 30, 2011



(unaudited)

(unaudited)





Net (loss) income


$                   (79,249)

$                  562,926

Interest income and other expenses


6,162

5,053

Depreciation and amortization


101,393

113,614

Stock-based compensation expense 


143,945

208,496

Unrealized loss (gain) on change in fair value of derivative liabilities


19,794

(548,420)

  Adjusted EBITDA


$                  192,045

$                  341,669

  Basic and diluted Adjusted EBITDA per common share, non-GAAP


$                        0.01

$                        0.01







Nine Months Ended

Nine Months Ended

Adjusted EBITDA (non-GAAP measurement):


September 30, 2012

September 30, 2011



(unaudited)

(unaudited)





Net (loss) income


$                 (755,760)

$                  690,194

Interest income and other expenses


10,746

8,762

Depreciation and amortization


320,003

364,062

Stock-based compensation expense 


465,888

670,449

Unrealized loss (gain) on change in fair value of derivative liabilities


306,247

(509,621)

  Adjusted EBITDA


$                  347,124

$               1,223,846

  Basic and diluted Adjusted EBITDA per common share, non-GAAP


$                        0.01

$                        0.04

 

 

SOURCE VirtualScopics, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
The multi-trillion economic opportunity around the "Internet of Things" (IoT) is emerging as the hottest topic for investors in 2015. As we connect the physical world with information technology, data from actions, processes and the environment can increase sales, improve efficiencies, automate daily activities and minimize risk. In his session at @ThingsExpo, Ed Maguire, Senior Analyst at CLSA Americas, will describe what is new and different about IoT, explore financial, technological and real-world impact across consumer and business use cases. Why now? Significant corporate and venture...
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between conference participants in three dimensional space. This has been shown to significantly improve comprehe...
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
The enterprise market will drive IoT device adoption over the next five years. In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, will analyze how companies will adopt IoT products and the associated cost of adopting those products. John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI Intelligence, he worked analyzing bank technology for Corporate Insight and The Clearing House Pay...
The Domain Name Service (DNS) is one of the most important components in networking infrastructure, enabling users and services to access applications by translating URLs (names) into IP addresses (numbers). Because every icon and URL and all embedded content on a website requires a DNS lookup loading complex sites necessitates hundreds of DNS queries. In addition, as more internet-enabled ‘Things' get connected, people will rely on DNS to name and find their fridges, toasters and toilets. According to a recent IDG Research Services Survey this rate of traffic will only grow. What's driving t...
SYS-CON Events announced today that MetraTech, now part of Ericsson, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Ericsson is the driving force behind the Networked Society- a world leader in communications infrastructure, software and services. Some 40% of the world’s mobile traffic runs through networks Ericsson has supplied, serving more than 2.5 billion subscribers.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
The world is at a tipping point where the technology, the device and global adoption are converging to such a point that we will see an explosion of a world where smartphone devices not only allow us to talk to each other, but allow for communication between everything – serving as a central hub from which we control our world – MediaTek is at the heart of both driving this and allowing the markets to drive this reality forward themselves. The next wave of consumer gadgets is here – smart, connected, and small. If your ambitions are big, so are ours. In his session at @ThingsExpo, Jack Hu, D...
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some form of XaaS – software, platform, and infrastructure as a service.
The recent trends like cloud computing, social, mobile and Internet of Things are forcing enterprises to modernize in order to compete in the competitive globalized markets. However, enterprises are approaching newer technologies with a more silo-ed way, gaining only sub optimal benefits. The Modern Enterprise model is presented as a newer way to think of enterprise IT, which takes a more holistic approach to embracing modern technologies.
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impact.
There's no doubt that the Internet of Things is driving the next wave of innovation. Google has spent billions over the past few months vacuuming up companies that specialize in smart appliances and machine learning. Already, Philips light bulbs, Audi automobiles, and Samsung washers and dryers can communicate with and be controlled from mobile devices. To take advantage of the opportunities the Internet of Things brings to your business, you'll want to start preparing now.
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at @ThingsExpo, Robin Raymond, Chief Architect at Hookflash, will walk through the shifting landscape of traditional telephone and voice services ...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...