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VirtualScopics Achieves Operating Cash Flow Breakeven in the Fourth Quarter 2008; Reports Record 2008 Revenue and Gross Profit
Date:2/25/2009

v. 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.

(1) Operating cash flow breakeven = Operating loss less depreciation, amortization and stock compensation expense

-Financial tables to follow-

                         VirtualScopics, Inc. and Subsidiary
                       Consolidated Statements of Operations

                             For the Three Months       For the Year Ended
                               Ended December 31,           December 31,
                              2008         2007         2008         2007
                            (unaudited)  (unaudited)  (unaudited)

    Revenues                $1,947,501   $1,462,336   $7,130,518   $5,647,049
    Cost of services           973,979      948,975    4,031,198,   3,680,409
          Gross profit         973,522      513,361    3,099,320    1,966,640

    Operating expenses
      Research and
       development             243,553      315,706      941,193    1,440,312
      Sales and marketing      282,854      193,546    1,219,882      749,329
      General and
       administrative          446,054      580,490    2,035,077    2,268,668
      Stock-based
       compensation expense    199,392      443,428    1,123,283    1,484,884
      Depreciation and
       amortization            115,584      122,642      466,149      485,520
          Total operating
           expenses       
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SOURCE VirtualScopics, Inc.
Copyright©2009 PR Newswire.
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