VirtualScopics Reports Record Third Quarter 2008 Revenue and Gr...( Gross profit grows by nearly 10...),Health

Gross profit grows by nearly 100%, operating loss reduced by 44%

ROCHESTER, N.Y., Nov. 4 /PRNewswire-FirstCall/ -- VirtualScopics, Inc. (Nasdaq: VSCP), a leading provider of quantitative imaging for clinical trials, announced today that revenues for the third quarter of 2008 were over $1.8 million, a 33% increase over prior year's third quarter. Revenues for the nine months ended September 30, 2008 were approximately $5.2 million compared to nearly $4.2 million in the comparable period in 2007. The gross profit for the third quarter of 2008 was $809,916 compared to $406,945 in the third quarter of 2007, representing a 99% increase. Gross margin increased to 45%, in the third quarter ended September 30, 2008 compared to 30% in the third quarter of 2007, a 50% improvement. The Company's operating loss for the quarter ended September 30, 2008 was reduced by $431,470, or 44%, to $553,968 compared to $985,438 for the prior year's comparable period.

"We are proud to report the significant financial accomplishments made during the third quarter and for the first nine months of this year," stated Jeff Markin, president and chief executive officer of VirtualScopics. "The 33% increase in revenues coupled with the nearly doubling of our gross profit, and our good cost control, positions us very well to achieve our financial targets for this year." He further added, "Of equal importance was the significant reduction in operating cash outflow during the third quarter of 2008. Our cash outflow from operations (operating loss less depreciation, amortization and stock compensation expense) was reduced by 64% or $362,000 when compared to the comparable quarter of 2007." Mr. Markin concluded, "We are extremely pleased that the plan we put i
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