ROCHESTER, N.Y., Feb. 27, 2008 (PRIME NEWSWIRE) -- VirtualScopics, Inc. (Nasdaq:VSCP), leading provider of image-based solutions to the pharmaceutical, biotechnology and medical device industries, today reported record revenues of $5.6 million for the year ended December 31, 2007, compared to $4.7 million for the full-year 2006. Fourth quarter 2007 revenues increased 24%, year over year, to approximately $1.5 million.
Net loss for the year ended December 31, 2007 was $4,321,384 compared to $3,704,181 for the year ended December 31, 2006. The net loss for the fourth quarter 2007 was approximately $1,107,476 compared to a loss of $520,813 in the fourth quarter 2006. The company's unrestricted cash balance as of December 31, 2007 was approximately $4 million.
Some of the highlights of the fourth quarter and full year 2007 included:
-- Award of first Phase III trial featuring the company's tumor
volume measurement as the primary endpoint.
-- Record level of awarded contracts totaling $17 million, an 80%
increase over the comparable period in 2006.
-- Opening of a European sales office.
-- Completion of $4.35 million capital raise.
-- Award of the company's ninth patent allowing for more accurate
and precise measurement of anatomical structures when compared
to manual methods.
"We had very significant achievements in 2007 while also building a strong foundation for the future growth of the company. We recorded a record level of sales and new contract awards, invested in our operational infrastructure to support later stage clinical trials, doubled our sales force and secured the cash necessary to deliver on our plan," said Jeff Markin, President and Chief Executive Officer. He added, "These efforts will allow us to significantly expand the reach of our company while continuing to offer great value and service to our customers, ultimately enabling the company to deliver strong performance in 2008 and beyond."
Jeff Markin and Chief Financial Officer, Molly Henderson will provide a business update and discuss these results during the conference call on Thursday, February 28, 2008 at 11:00 a.m. EDT. Interested participants should call 877-407-0778 when calling within the United States or 201-689-8565 when calling internationally. There will be a playback available until March 28, 2008. To listen to the playback, please call 877-660-6853 when calling within the United States or 201-612-7415 when calling internationally. For the replay, please use account number: 286, conference ID number: 275527.
About VirtualScopics, Inc.
VirtualScopics, Inc. is a leading provider of imaging solutions to accelerate drug and medical device development. 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 new customer contract signings and awards in 2007 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-KSB for the fiscal year ended December 31, 2006 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. 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.
VirtualScopics, Inc. and Subsidiary
Consolidated Statements of Operations
Three Months Ended Year Ended
December 31, December 31,
2007 2006 2007 2006
(unaudited) (unaudited) (unaudited)
Revenues $ 1,462,336 $ 1,177,569 $ 5,647,049 $ 4,739,538
Cost of services 948,975 617,707 3,680,409 2,640,098
----------- ----------- ----------- -----------
Gross profit 513,361 559,862 1,966,640 2,099,440
----------- ----------- ----------- -----------
Operating
expenses:
Research and
development 315,706 315,646 1,440,312 1,110,761
Sales and
marketing 193,546 202,680 749,329 742,176
General and
administrative 580,490 561,475 2,268,668 2,237,306
Stock-based
compensation
expense 443,428 (91,865) 1,484,884 1,399,813
Depreciation
and
amortization 122,642 123,772 485,520 468,384
----------- ----------- ----------- -----------
Total
operating
expenses 1,655,812 1,111,708 6,428,713 5,958,440
----------- ----------- ----------- -----------
Operating loss (1,142,451) (551,846) (4,462,073) (3,859,000)
Other income
(expense)
Interest income 39,324 42,468 153,968 178,344
Other expense (4,349) (11,435) (13,279) (23,525)
----------- ----------- ----------- -----------
Total other income 34,975 31,033 140,689 154,819
----------- ----------- ----------- -----------
Net Loss $(1,107,476) $ (520,813) $(4,321,384) $(3,704,181)
=========== =========== =========== ===========
Deemed dividend
on preferred
stock 1,381,163 -- 1,381,163 --
Preferred stock
cash dividend 12,567 -- 99,433 --
----------- ----------- ----------- -----------
Net loss
attributable
to common
stockholders $(2,501,206) $ (520,813) $(5,801,980) $(3,704,181)
=========== =========== =========== ===========
Basic and
diluted net
loss per
common share $ (0.11) $ (0.02) $ (0.25) $ (0.17)
=========== =========== =========== ===========
Weighted
average
number of
common shares
outstanding
Basic and
diluted 23,148,152 22,295,652 23,058,820 22,295,652
----------- ----------- ----------- -----------
VirtualScopics, Inc. and Subsidiary
Consolidated Balance Sheet
(unaudited)
December 31, 2007
Assets
Current assets
Cash and cash equivalents $ 3,955,835
Restricted cash 455,583
Accounts receivable 648,300
Prepaid expenses and other assets 306,301
-----------
Total current assets 5,366,019
-----------
Restricted cash 43,216
Patents, net 1,948,785
Property and equipment, net 542,679
Other assets 280,317
-----------
Total assets $ 8,181,016
===========
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued expenses $ 626,693
Accrued payroll 221,013
Unearned revenue 279,275
-----------
Total current liabilities 1,126,981
-----------
Commitments and Contingencies
Stockholders' Equity
Preferred stock, $0.001 par value;
15,000,000 shares authorized; 8,400 shares
designated Series A; 4,001 issued and
outstanding; liquidation preference $1,000 per
share 4
6,000 shares designated Series B; 4,230 issued
and outstanding; liquidation preference
$1,000 per share 4
Common Stock, $0.001 par value; 85,000,000 shares
authorized; 23,225,664 shares issued and
outstanding 23,226
Additional paid-in capital 15,715,557
Accumulated deficit (8,684,756)
-----------
Total stockholders' equity 7,054,035
-----------
Total liabilities and stockholders' equity $ 8,181,016
===========