ROCHESTER, N.Y., Aug. 14, 2014 /PRNewswire/ -- VirtualScopics,
Inc. (NASDAQ: VSCP), a leading provider of clinical trial imaging
solutions, today reported the financial results for the second
quarter and six months ended June 30,
2014. Awards outstanding and bookings for the first six
months of 2014 increased to $17.6
million, more than double the $7.7
million reported during the same period in 2013. Year
to date 2014 awards outstanding and bookings are approximately
$23.5 million, 115% of the
$20.5 million recognized in the full
year 2013 with over four months still left in the year.
"We are very pleased with these year over year comparisons and
the fact that the positive momentum established in the first
quarter of 2014 is continuing," said Eric
T. Converse, president and chief executive officer. "New
business wins this year include the return of two big pharma
companies to VirtualScopics and a Phase III clinical study with a
significant new customer in addition to our first-ever program
award in the first quarter of 2014. We believe this year's
significant increase in awards outstanding and bookings will result
in improved revenues and the company's return to profitability in
2015."
"During the second quarter of 2014," Mr. Converse continued, "we
completed a number of strategic initiatives that centered around
the formation of an international commercial and operational
alliance with London-based IXICO
plc, the brain health company. Less than two months after signing
our strategic alliance, we have already experienced the benefit of
our two companies working together with our first joint win of an
award. Additionally, in June we opened a joint office in
New Hope, Pennsylvania, in the
heart of the Big Pharma corridor where many of our customers are
located. VirtualScopics and IXICO also announced the
formation of a joint Scientific Advisory Board with seven initial
members that will focus on current and future roles of imaging in
clinical trials for early and late phase oncology, cardiology,
metabolic disorders and neurology studies."
Revenues for the second quarter of 2014 were $2,648,747 compared to $3,706,677 in the second quarter of 2013.
Revenues for the first six months of 2014 were $5,001,732 compared to $6,239,264 in the first six months of 2013.
In the second quarter of 2013, the company completed a six week,
Phase III breast cancer study that generated over $1 million in revenue. In addition, the
decrease in revenues in the 2014 periods is indicative of the
related slowdown in the amount of new projects awarded in 2012, the
timing of the initiation of projects, and the large number of
studies that ended during 2013 and the first six months of
2014.
VirtualScopics reported a net loss for the second quarter of
2014 of $731,531 compared to net
income of $134,286 in the second
quarter of 2013. In the first six months of 2014, the company
reported a net loss of $1,377,904
compared to a net loss of $978,661 in
the 2013 six months period. The net loss in the 2014 periods
is primarily related to the decrease in the volume of revenue and
VirtualScopics' increased investments in infrastructure, systems,
training and human capital offset by no additional monies being
spent on the personalized medicine application.
"We look forward to our positive new business development
efforts continuing in the second half of 2014," Mr. Converse
said. "The entire VirtualScopics team is focused on providing
the highest quality customer service and unsurpassed innovative
imaging solutions for all of our pharmaceutical and contract
research organization (CRO) customers. We will continue to
invest in our business and believe the investments we are making
this year will result in the company's future prosperity."
Conference Call and Webcast Information
The company's management will host a conference call and webcast
today at 8:30 a.m. ET to discuss the
company's second quarter and six months 2014 financial results and
business outlook. The conference call dial in information,
webcast URL and replay information is as follows:
- Domestic Call Dial In: 877-407-8035
- International Call Dial In: 201-689-8035
- Conference Call ID: 13587794
An accompanying slide presentation to enhance managements'
formal remarks, as well as a webcast of the call, can be accessed
at www.virtualscopics.com/webcasts.aspx or at:
http://www.investorcalendar.com/IC/CEPage.asp?ID=173036.
A replay and slide presentation will be available one hour after
the conclusion of the conference call for 90 days, and can be
accessed accordingly:
- Replay Domestic Call Dial In: 877-660-6853
- Replay International Call Dial In: 201-612-7415
- Replay Conference Call ID: 13587794
- Webcast and slide presentation can be accessed at
www.virtualscopics.com/webcasts.aspx or at:
http://www.investorcalendar.com/IC/CEPage.asp?ID=173036.
About VirtualScopics, Inc.
VirtualScopics, Inc. (NASDAQ:VSCP) is a leading provider of
clinical trial imaging solutions to accelerate drug and medical
device development. For risk-averse, time-constrained
Clinical Trial Study Teams, Medical Directors and Imaging
Scientists who require quality imaging data delivered on-time,
within budget and on a consistent basis, VirtualScopics' clinical
trial imaging solutions are an inspired true exception to commonly
accepted services provided by other clinical trial imaging
providers. Because of the scientific and operational
flexibility and responsiveness they can offer, VirtualScopics'
clinical trial imaging solutions deliver special performance
advantages compared to other image service providers that offer
common, every day clinical trial imaging services. For more
information about VirtualScopics, Inc. please 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, new office in New Hope, Pennsylvania, the Scientific
Advisory Board, the strategic alliance with IXICO plc, the increase
in awards outstanding and bookings 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,
2013 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 risk 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.
For More Information, Contact:
Donna N. Stein, APR, Fellow PRSA
Managing Partner,
Donna Stein & Partners
315-361-4672
Email: dstein1@twcny.rr.com
Financial Tables to Follow
VirtualScopics, Inc.
and Subsidiary
|
Condensed
Consolidated Statements of Operations
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Six
Months Ended
|
|
June
30,
|
|
June
30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
Revenues
|
$ 2,542,048
|
|
$ 3,546,607
|
|
$ 4,789,001
|
|
$ 5,829,438
|
Reimbursement
revenues
|
106,699
|
|
160,070
|
|
212,731
|
|
409,826
|
Total
revenues
|
2,648,747
|
|
3,706,677
|
|
5,001,732
|
|
6,239,264
|
|
|
|
|
|
|
|
|
Cost of
services
|
1,601,679
|
|
1,776,524
|
|
3,090,758
|
|
3,274,063
|
Cost of reimbursement
revenues
|
106,699
|
|
160,070
|
|
212,731
|
|
409,826
|
Total cost of
services
|
1,708,378
|
|
1,936,594
|
|
3,303,489
|
|
3,683,889
|
Gross
profit
|
940,369
|
|
1,770,083
|
|
1,698,243
|
|
2,555,375
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Research &
development
|
306,289
|
|
349,754
|
|
592,185
|
|
803,164
|
Sales &
marketing
|
482,807
|
|
430,153
|
|
827,884
|
|
787,805
|
General &
administrative
|
807,642
|
|
777,354
|
|
1,494,643
|
|
1,772,656
|
Depreciation &
amortization
|
75,526
|
|
90,554
|
|
162,028
|
|
186,867
|
Total operating
expenses
|
1,672,264
|
|
1,647,815
|
|
3,076,740
|
|
3,550,492
|
|
|
|
|
|
|
|
|
Operating (loss)
income
|
(731,895)
|
|
122,268
|
|
(1,378,497)
|
|
(995,117)
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Other
income
|
1,051
|
|
12,425
|
|
2,057
|
|
18,304
|
Other
expense
|
(687)
|
|
(407)
|
|
(1,464)
|
|
(1,848)
|
Total other
income
|
364
|
|
12,018
|
|
593
|
|
16,456
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
(731,531)
|
|
134,286
|
|
(1,377,904)
|
|
(978,661)
|
|
|
|
|
|
|
|
|
Preferred stock
dividends
|
42,000
|
|
42,000
|
|
84,000
|
|
84,000
|
Net (loss) income
available to common stockholders
|
$ (773,531)
|
|
$ 92,286
|
|
$ (1,461,904)
|
|
$ (1,062,661)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
2,992,853
|
|
2,979,952
|
|
2,992,421
|
|
2,979,952
|
Weighted average
diluted shares outstanding
|
2,992,853
|
|
3,467,138
|
|
2,992,421
|
|
2,979,952
|
Basic and diluted
(loss) earnings per share
|
$
(0.26)
|
|
$
0.03
|
|
$
(0.49)
|
|
$
(0.36)
|
VirtualScopics,
Inc.
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
2014
|
|
2013
|
|
(Unaudited)
|
|
|
Assets
|
Current
assets
|
|
|
|
Cash
|
$
5,573,576
|
|
$
7,330,630
|
Accounts receivable, net
|
1,861,735
|
|
1,725,070
|
Prepaid expenses and other current assets
|
371,341
|
|
397,699
|
Total
current assets
|
7,806,652
|
|
9,453,399
|
|
|
|
|
Patents, net
|
1,271,586
|
|
1,334,420
|
Property and equipment, net
|
261,608
|
|
221,700
|
Total
assets
|
$
9,339,846
|
|
$ 11,009,519
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
Current
liabilities
|
|
|
|
Accounts payable and accrued expenses
|
$
840,540
|
|
$
846,071
|
Accrued payroll
|
685,595
|
|
837,611
|
Unearned revenue
|
588,187
|
|
745,028
|
Dividends payable
|
335,333
|
|
293,333
|
Total
current liabilities
|
2,449,655
|
|
2,722,043
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
Convertible preferred
stock, $0.001 par value; 1,000,000 and 15,000,000 shares authorized
at June 30, 2014 and December 31, 2013, respectively;
|
|
|
|
Series C-1 3,000
shares authorized; issued and outstanding, 3,000 shares at June 30,
2014 and December 31, 2013; liquidation preference $1,000 per
share
|
3
|
|
3
|
Series B 6,000 shares
authorized; issued and outstanding, 600 shares at June 30, 2014 and
December 31, 2013; liquidation preference $1,000 per
share
|
1
|
|
1
|
Series A 8,400 shares
authorized; issued and outstanding, 2,190 shares at June 30, 2014
and December 31, 2013; liquidation preference $1,000 per
share
|
2
|
|
2
|
Series C-2 3,000
shares authorized; issued and outstanding, 0 shares at June 30,
2014 and December 31, 2013; liquidation preference $1,000 per
share
|
-
|
|
-
|
Common stock, $0.001
par value; 20,000,000 and 85,000,000 shares authorized at June 30,
2014 and December 31, 2013, respectively;
|
|
|
|
issued 2,992,853
shares at June 30, 2014 and December 31, 2013, respectively;
outstanding, 2,992,853 and 2,991,869 shares at June 30, 2014 and
December 31, 2013, respectively
|
2,993
|
|
2,992
|
Additional paid in capital
|
21,973,237
|
|
21,992,619
|
Accumulated deficit
|
(15,086,045)
|
|
(13,708,141)
|
Total
stockholders' equity
|
6,890,191
|
|
8,287,476
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
9,339,846
|
|
$ 11,009,519
|
SOURCE VirtualScopics, Inc.