Welcome!

Microsoft Cloud Authors: Elizabeth White, Mihai Corbuleac, Pat Romanski, David Bermingham, Steven Mandel

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
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, will discuss how research has demonstrated the value of Machine Learning in delivering next generation analytics to im...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
This is not a small hotel event. It is also not a big vendor party where politicians and entertainers are more important than real content. This is Cloud Expo, the world's longest-running conference and exhibition focused on Cloud Computing and all that it entails. If you want serious presentations and valuable insight about Cloud Computing for three straight days, then register now for Cloud Expo.
IoT device adoption is growing at staggering rates, and with it comes opportunity for developers to meet consumer demand for an ever more connected world. Wireless communication is the key part of the encompassing components of any IoT device. Wireless connectivity enhances the device utility at the expense of ease of use and deployment challenges. Since connectivity is fundamental for IoT device development, engineers must understand how to overcome the hurdles inherent in incorporating multipl...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
SYS-CON Events announced today that Stratoscale, the software company developing the next generation data center operating system, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Stratoscale is revolutionizing the data center with a zero-to-cloud-in-minutes solution. With Stratoscale’s hardware-agnostic, Software Defined Data Center (SDDC) solution to store everything, run anything and scale everywhere...
Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified – now it's a component-based well-performing framework. This immersive one-day workshop at 18th Cloud Expo, led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and the product company SuranceBay, will provide you with everything you wanted to know about Angular 2.
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including cloud...