ROCHESTER, N.Y., April 30, 2008 (PRIME NEWSWIRE) -- VirtualScopics, Inc. (Nasdaq:VSCP), a leading developer of image-based solutions to the pharmaceutical, biotechnology and medical device industries, announced today that revenues for the first quarter 2008 rose to over $1.6 million, a 28% increase over prior year's comparable quarter. Operating loss for the quarter ended March 31, 2008 was $951,655 compared to $1,269,118 for the prior year's comparable period.
"We are pleased by the significant growth in revenues during the quarter," stated Jeff Markin, president and chief executive officer of VirtualScopics. "We are equally pleased with the over $300,000 reduction in the operating loss for the first quarter 2008 compared to the first quarter in 2007. During the quarter we added three new customers, signed a Master Service Agreement with a top 10 pharmaceutical company and received notification of a patent award and a patent issuance." He added, "We fully anticipate this momentum to continue as we execute on our operating and financial plans for 2008."
Jeff Markin and Chief Financial Officer, Molly Henderson will provide a business update and discuss these results during the annual stockholders' meeting at 9:00am on Thursday, May 8, 2008 at the Sheraton Manhattan, 811 Seventh Avenue, New York, New York 10019.
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, 2007 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 Condensed Consolidated Statements of Operations (unaudited) Three Months Ended March 31, -------------------------- 2008 2007 ----------- ----------- Revenues $ 1,634,103 $ 1,278,405 Cost of services 1,029,984 800,519 ----------- ----------- Gross profit 604,119 477,886 ----------- ----------- Operating expenses: Research and development 251,829 406,955 Sales and marketing 288,874 212,116 General and administrative 494,441 604,017 Stock-based compensation expense 403,063 406,204 Depreciation and amortization 117,567 117,712 ----------- ----------- Total operating expenses 1,555,774 1,747,004 ----------- ----------- Operating Loss (951,655) (1,269,118) Other income (expense) Interest income 28,725 49,370 Other expense (1,583) (1,978) ----------- ----------- Total other income 27,142 47,392 ----------- ----------- Net Loss (924,513) (1,221,726) ----------- ----------- Series B preferred stock cash dividend 85,240 -- ----------- ----------- Net loss attributable to common stockholders $(1,009,753) $(1,221,726) =========== =========== Basic and diluted net loss per common share $ (0.04) $ (0.05) =========== =========== Weighted average number of common shares outstanding Basic and diluted 23,246,067 22,972,266 =========== =========== VirtualScopics, Inc. and Subsidiary Condensed Consolidated Balance Sheet March 31, December 31, 2008 2007 ----------- ----------- Assets (Unaudited) Current assets Cash and cash equivalents $ 3,623,244 $ 3,955,835 Restricted cash 365,003 455,583 Accounts receivable 677,126 648,300 Prepaid expenses and other assets 369,341 306,301 ----------- ----------- Total current assets 5,034,714 5,366,019 ----------- ----------- Restricted cash -- 43,216 Patents, net 1,941,477 1,948,785 Property and equipment, net 503,632 542,679 Other assets 249,435 280,317 ----------- ----------- Total assets $ 7,729,258 $ 8,181,016 =========== =========== Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued expenses $ 751,880 $ 626,693 Accrued payroll 284,198 221,013 Unearned revenue 258,508 279,275 ----------- ----------- Total current liabilities 1,294,586 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; 3,976 issued and outstanding at March 31, 2008 and 4,001 at December 31, 2007; liquidation preference $1,000 per share 4 4 6,000 shares designated Series B; 4,226 issued and outstanding at March 31, 2008 and 4,230 at December 31, 2007; liquidation preference $1,000 per share 4 4 Common Stock, $0.001 par value; 85,000,000 shares authorized; 23,249,744 shares issued and outstanding at March 31, 2008 and 23,225,664 at December 31, 2007 23,250 23,226 Additional paid-in capital 15,921,250 15,616,124 Accumulated deficit (9,509,836) (8,585,323) ----------- ----------- Total stockholders' equity 6,434,672 7,054,035 ----------- ----------- Total liabilities and stockholders' equity $ 7,729,258 $ 8,181,016 =========== ===========