ROCHESTER, N.Y., Oct. 4, 2012 /PRNewswire/ -- VirtualScopics, Inc. (NASDAQ: VSCP), a leading provider of quantitative imaging solutions, today announced that 2012 revenues are expected to be below the company's previous outlook as a result of delays in new study initiations and analysis services, as well as a slow-down in decisions on pending outstanding proposals. The company now expects 2012 revenues to be between $12.5 million and $13 million, compared to the previous expectation of $14 million to $15 million.
"We have experienced customer delays in analysis services on a few large Phase III studies and a slowdown in new project awards which will impact our 2012 revenues," said Jeff Markin, president and chief executive officer of VirtualScopics. He stated, "While we are disappointed with our top line performance in 2012, we remain optimistic in our ability to translate a significant amount of the proposals that are awaiting a decision into contracts. In light of this, and recognizing that there is a several month cycle for new contracts to translate into earned revenue, we feel it's necessary to adjust our previously stated outlook." He concluded, "The fundamentals of the business are strong; we have a high level of client satisfaction for studies underway, a large and growing sales pipeline, a strong cash balance, and we are confident we will see a rebound in new project awards as we close out the year."
About VirtualScopics, Inc.
VirtualScopics, Inc. is a leading provider of quantitative imaging solutions to accelerate drug and medical device development in addition to improving patient care. 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.
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, 2011 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.
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SOURCE VirtualScopics, Inc.