ROCHESTER, N.Y., Aug. 12 /PRNewswire-FirstCall/ -- VirtualScopics, Inc. (Nasdaq: VSCP), a leading provider of quantitative imaging for clinical trials, today announced its financial results for the quarter and six months ended June 30, 2009.
Highlights include:
- Revenues for the second quarter of 2009 increased 47% to $2.5 million, compared to prior year's second quarter revenues of $1.7 million.
- Gross profit for the second quarter of 2009 increased 96% to $1.4 million, compared to $0.7 million in the second quarter of 2008.
- Gross margin increased to 55% in the second quarter ended June 30, 2009, compared to 41% in the second quarter of 2008, a 34% improvement.
- Earnings before interest, taxes, deprecation and amortization, and excluding stock compensation of $269,016 and a loss from derivative financial instrument of $205,914 ("Adjusted EBITDA"), was $180,846 for the quarter ended June 30, 2009 compared to an Adjusted EBITDA loss of ($467,119) for the comparable period in 2008.
- For the six months ended June 30, 2009, Adjusted EBITDA was $221,791 compared to a loss of ($899,727) for the first six months of 2008.
- Net loss for the quarter ended June 30, 2009 was ($413,123) compared to a net loss of ($851,110) for the second quarter of 2008. For the six months ended June 30, 2009, net loss was ($1,169,236) compared to a net loss of ($1,775,623) for the six months ended June 30, 2008.
"This has been a transformational year for VirtualScopics," stated Jeff Markin, president and chief executive officer of VirtualScopics. "We have successfully progressed the company from a consumer of cash to a generator of cash. I am especially pleased that we have accomplished this by building a strong operational foundation with a talented and committed team that is focused on our customers and returning value to our stockholders."
"The second quarter of 2009 was the strongest financial quarter of the company's history," said Molly Henderson, chief business and financial officer of VirtualScopics, Inc. She continued, "On all significant comparative financial metrics, we demonstrated solid results. Our year to date Adjusted EBITDA improved over $1,100,000 compared to the same period last year. This significant improvement captures the essence of our progress over the past twelve months as well as the strength of our business." She concluded, "We are very pleased with our financial results for the first half of 2009 and remain optimistic on our outlook for 2009."
Jeff Markin and Molly Henderson will provide a business update and discuss these results during a conference call on Thursday, August 13, 2009 at 11:00 a.m. EDT. Interested participants should call 888-352-6795 when calling within the United States or 719-325-2192 when calling internationally. The call can also be accessed at www.virtualscopics.com and will be available for 30 days after the call.
The Company defines Adjusted EBITDA as earnings less interest, taxes (if any), depreciation and amortization as further adjusted to exclude stock compensation expense and the loss on derivative instrument (mark to market adjustment for warrants). The Company provides Adjusted EBITDA as a supplemental measure to GAAP regarding the Company's operational performance. 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 EITF 07-05 and the non-cash variable nature of stock compensation expense and their very substantial impact on the overall reported net losses, 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 EITF 07-05 and FAS 123R 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, below.
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 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, 2008 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 contract 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.
-Financial tables to follow-
VirtualScopics, Inc. and Subsidiary
Condensed Consolidated Statements of Operations
(unaudited)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
2009 2008 2009 2008
Revenues $2,541,316 $1,733,299 $4,675,685 $3,367,402
Cost of services 1,147,980 1,021,536 2,162,564 2,051,520
--------- --------- --------- ---------
Gross profit 1,393,336 711,763 2,513,121 1,315,882
--------- ------- --------- ---------
Gross margin 55% 41% 54% 39%
Operating expenses
Research
and development 258,180 212,825 493,735 464,654
Sales and
marketing 357,222 384,237 639,676 673,111
General and
administrative 590,496 580,435 1,149,843 1,074,876
Stock-based
compensation expense 269,016 284,228 554,348 687,291
Depreciation and
amortization 119,126 116,765 236,636 234,332
------- ------- ------- -------
Total operating
expenses 1,594,040 1,578,490 3,074,238 3,134,264
--------- --------- --------- ---------
Operating loss (200,704) (866,727) (561,117) (1,818,382)
Other income (expense)
Interest income 87 17,002 3,280 45,727
Other expense (6,592) (1,385) (8,076) (2,968)
Loss on derivative
financial instrument (205,914) - (603,323) -
-------- --- -------- ---
Total other
(expense) income (212,419) 15,617 (608,119) 42,759
-------- ------ -------- ------
Net Loss (413,123) (851,110) (1,169,236) (1,775,623)
Series B preferred
stock cash dividend 84,520 84,520 169,040 169,760
------ ------ ------- -------
Net loss attributable
to common stockholders $(497,643) $(935,630) $(1,338,276)$(1,945,383)
========= ========= =========== ==========
Basic and diluted
net loss per common share $(0.02) $(0.04) $(0.06) $(0.08)
====== ====== ====== ======
Weighted average number
of common shares
outstanding
basic and diluted 23,738,855 23,358,625 23,636,886 23,302,346
========== ========== ========== ==========
VirtualScopics, Inc. and Subsidiary
Condensed Consolidated Balance Sheets
June 30, December 31,
2009 2008
Assets (unaudited)
Current assets
Cash and cash equivalents $3,157,927 $3,143,904
Accounts receivable 1,395,565 1,021,110
Prepaid expenses and other current
assets 355,104 263,297
------- -------
Total current assets 4,908,596 4,428,311
Patents, net 1,877,522 1,920,446
Property and equipment, net 428,960 355,479
Other assets 95,023 156,788
------ -------
Total assets $7,310,101 $6,861,024
========== ==========
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued expenses $984,035 $659,009
Accrued payroll 452,081 554,425
Unearned revenue 609,493 291,594
Derivative liability 1,026,231 -
--------- -
Total current liabilities 3,071,840 1,505,028
--------- ---------
Stockholders' Equity
Convertible preferred stock, $0.001 par
value; 15,000,000 shares authorized;
8,400 shares designated Series A; issued
and outstanding: 3,773 at June 30,
2009, 3,976 at December 31, 2008;
liquidation preference $1,000 per share 4 4
6,000 shares designated Series B; issued
and outstanding: 4,226 at June 30, 2009
and December 31, 2008; liquidation
preference $1,000 per share 4 4
Common Stock, $0.001 par value;
85,000,000 shares authorized; issued
and outstanding, 23,758,632 at June
30, 2009 and 23,502,352 at December
31, 2008 23,759 23,503
Additional paid-in capital 13,881,704 16,546,550
Accumulated deficit (9,667,210) (11,214,065)
---------- -----------
Total stockholders' equity 4,238,261 5,355,996
--------- ---------
Total liabilities and stockholders'
equity $7,310,101 $6,861,024
========== ==========
Three Months Three Months
Ended Ended
Adjusted EBITDA (non-GAAP measurement): June 30, 2009 June 30, 2008
Net loss ($413,123) ($851,110)
Interest income ($87) ($17,002)
Depreciation and Amortization $119,126 $116,765
Stock-based compensation expense
(non-cash) $269,016 $284,228
Loss on derivative financial instrument
(non-cash) $205,914 -
-------- ---
Adjusted EBITDA $180,846 ($467,119)
-------- ---------
Basic and diluted, Adjusted EBITDA per
common share, non-GAAP
$0.01 ($0.02)
===== ======
Six Months Six Months
Ended Ended
Adjusted EBITDA (non-GAAP June 30, 2009 June 30, 2008
measurement):
Net loss ($1,169,236) ($1,775,623)
Interest income ($3,280) ($45,727)
Depreciation and Amortization $236,636 $234,332
Stock-based compensation expense
(non-cash) $554,348 $687,291
Loss on derivative financial
instrument (non-cash) $603,323 -
-------- ---
Adjusted EBITDA $221,791 ($899,727)
-------- ---------
Basic and diluted, Adjusted EBITDA
per common share, non-GAAP
$0.01 ($0.04)
===== ======
CONTACT: Company Contact:
Molly Henderson
Chief Business and Financial Officer
500 Linden Oaks
Rochester, New York 14625
(585)249.6231
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| SOURCE VirtualScopics, Inc. Copyright©2009 PR Newswire. All rights reserved |
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