ROCHESTER, N.Y., May 9 /PRNewswire-FirstCall/ -- VirtualScopics, Inc. , a leading developer of image-based biomarker solutions, announced today that sales for the first quarter 2007 rose to $1.3 million, a 25% increase over prior year's comparable quarter. For the quarter ended March 31, 2007, 50% of the revenues were generated by Phases I and II clinical studies and 50% were generated by pre-clinical or research projects. This compares to 37% from Phases I and II and 63% from pre-clinical or research projects, for the quarter ended March 31, 2006. Net loss for the quarter ended March 31, 2007 was $1,221,726 compared to $994,133 for the prior year's comparable period.
"We are pleased by the anticipated shift of our business into later stage clinical trials, as these trials are typically larger in dollar value. As a result of this shift and the $4.1 million in previously announced new contract signings so far this year, we made significant investments in our operational infrastructure to increase capacity and efficiency, during the first quarter of 2007. We expect that these investments will expand our capacity, enabling us to continue to deliver high quality, quantitative image analysis to our customers on a global basis," stated Jeff Markin, president and chief executive officer of VirtualScopics. "So far in 2007, we have hired 12 new employees and based on these new additions, we believe we have a solid foundation to continue to grow the business."
Jeff Markin and Chief Financial Officer, Molly Henderson will provide a business update and discuss these results during the conference call on Thursday, May 10, 2007 at 11:00 a.m. EDT. Interested participants should call 877-407-0778 when calling within the United States or 201-689-8565 when calling internationally. There will be a playback available until June 10, 2007. To listen to the playback, please call 877-660-6853 when calling within the United States or 201-612-7415 when calling internationally. For the replay, please use account number: 286, conference ID number: 241229.
About VirtualScopics, Inc.
VirtualScopics, Inc. is a provider of advanced medical image analysis services. The company evolved from research first carried out at the University of Rochester Medical Center and School of Engineering. VirtualScopics has created a suite of image analysis tools used in detecting and analyzing specific structures in volumetric medical images, as well as characterizing minute changes in structures over time, providing vital information to support clinical trials and diagnostic applications. The firm's proprietary software algorithms can assemble hundreds of separate medical images taken during an MRI session into a single, three-dimensional model, bringing a new and previously unobtainable source of data to clinical researchers. 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 in 2007 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-KSB for the fiscal year ended December 31, 2006 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: risks related to the dependence on our strategic alliance with Pfizer until we can further diversify our customer base; risks of contract performance; and risks of contract termination. 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.
CONTACT: Tracy Bagatelle-Black CONTACT: Tim Ryan Bagatelle-Black Trout Group Public Relations Investor Relations 661/263-1842 (646) 378-2924 tracy@bagatelleblack.comtryan@troutgroup.com VirtualScopics, Inc. Consolidated Statements of Operations (unaudited) Three Months Ended March 31, 2007 2006 Revenue $1,278,405 $1,024,353 Cost of services 800,519 640,747 Gross profit 477,886 383,606 Operating expenses: Research and development 406,955 239,299 Sales and marketing 212,116 186,582 General and administrative 604,017 451,872 Stock-based compensation expense 406,204 424,884 Depreciation and amortization 117,712 104,497 Total operating expenses 1,747,004 1,407,134 Operating loss (1,269,118) (1,023,528) Other income (expense) Interest income 49,370 36,572 Other expense (1,978) (7,177) Total other income 47,392 29,395 Net Loss $(1,221,726) $(994,133) Net loss per share Basic and diluted $(0.05) $(0.05) Weighted average shares used in computing net loss per share Basic and diluted 22,972,266 21,889,075 VirtualScopics, Inc. Consolidated Balance Sheet As of March 31, 2007 (unaudited) Assets Current assets Cash $2,654,130 Accounts receivable 822,650 Prepaid expenses and other assets 329,945 Total current assets 3,806,725 Patents, net 1,949,176 Property and equipment, net 547,019 Other assets 372,964 Total assets $6,675,884 Liabilities and Stockholders' Equity Current liabilities Notes payable, current portion $60,763 Accounts payable and accrued expenses 449,148 Accrued stock-based compensation expense 221,189 Accrued payroll 372,357 Unearned revenue 355,430 Total liabilities 1,458,887 Stockholders' Equity Preferred stock, $0.001 par value; liquidation preference $1,000 per share; 15,000,000 shares authorized; 8,400 shares designated Series A; 4,310 issued and outstanding 4 Common stock, $0.001 par value; 85,000,000 shares authorized; 22,977,226 shares issued and outstanding 22,977 Additional paid-in capital 10,679,681 Accumulated deficit (5,485,665) Total stockholders' equity 5,216,997 Total liabilities and stockholders' equity $6,675,884
VirtualScopics, LLCCONTACT: Tracy Bagatelle-Black of Bagatelle-Black Public Relations,+1-661-263-1842, tracy@bagatelleblack.com; or Tim Ryan of Trout GroupInvestor Relations, +1-646-378-2924, tryan@troutgroup.com, both forVirtualScopics, LLC
Web site: http://www.virtualscopics.com/
