ROCHESTER, N.Y., Feb. 15 /PRNewswire-FirstCall/ -- VirtualScopics, Inc. , a leading developer of image-related biomarkers, today announced sales for the full-year 2005 rose to approximately $3.5 million, a 38% increase over prior year. Fourth quarter sales increased 15% year over year to $796,797.
Net loss for the full-year was $2,044,931, an improvement of $306,155 over 2004. The net loss for the fourth quarter 2005 was $728,945 which includes approximately $250,000 of charges related to the transaction between ConsultAmerica, Inc. and VirtualScopics, LLC in November 2005, as compared to a loss of $626,593 in the fourth quarter 2004.
Some of the highlights of the fourth quarter and full year 2005 included: - Renewed Pfizer, Inc. strategic alliance agreement - Completed a $7.0 million capital raise - Added three new prominent board of director members - Received contracts from 14 new customers including top 10 pharmaceutical firms - Awarded 2 patents - Published pivotal oncology paper - Received notification of an up to $2.65 million Department of Defense award
"VirtualScopics closed the year on a strong note. We achieved the highest sales in the company's history, made our debut in the public markets, added prominent board members and significantly grew our customer base. We are thrilled with the momentum we've achieved in recent months and look forward to a good 2006 as we focus on increasing shareholder value," said Robert Klimasewski, president and chief executive officer of VirtualScopics. "Furthermore, I am pleased with the important additions to our staff in 2005. Toni Handzel, our director of quality assurance and regulatory affairs, and Lisa Bamford, our director of operations, have joined a talented group of employees and each has already made significant contributions."
The company will host a conference call tomorrow Thursday, February 16, 2006 at 11:00 a.m. EST to discuss these results. 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 February 23, 2006. 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: 19241.
This call is being Web cast by Vcall and can be accessed at www.virtualscopics.com. The Web cast will be available for 30 days after the call.
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 awards of a potential contract from the U.S. Department of Defense and the expected benefits to the Company from that award and its existing contract with Pfizer 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 Current Report on Form 8-K for November 4, 2005 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 diversify our customer base; risks of contract performance; risks of contract termination; and, our ability to successfully enter into a contract with the Department of Defense for the award we obtained and our ability to do so on terms favorable to us. Factors that could cause or contribute to such differences include, but are not limited to, those discussed from time to time in reports filed by the Company with the Securities and Exchange Commission.
CONTACT: Tracy Bagatelle-Black Bagatelle-Black Public Relations 661/263-1842 tracy@bagatelleblack.com VirtualScopics, Inc. Consolidated Statements of Operations For the Periods Ended December 31, 2005 (unaudited) and 2004 Quarter Ended Year Ended December 31, December 31, 2005 2004 2005 2004 (unaudited) (unaudited) (unaudited) Revenue $796,797 $695,378 $3,472,870 $2,516,351 Cost of services 467,835 384,807 2,195,951 1,563,979 Gross profit 328,962 310,571 1,276,919 952,372 Expenses Research and development 194,370 307,635 853,085 1,238,665 Sales and marketing 110,153 129,826 443,063 496,360 General and administrative 757,724 498,698 2,032,514 1,566,835 Total expenses 1,062,247 936,159 3,328,662 3,301,860 Other income (expense) Interest income 17,472 4,718 35,574 27,441 Other expense (13,132) (5,723) (28,762) (29,039) Net loss $(728,945) $(626,593) $(2,044,931) $(2,351,086) Deemed Dividends on Preferred Stock $6,021,880 - $6,021,880 - Net loss attributable to common stockholders $(6,750,825) $(626,593) $(8,066,811) $(2,351,086) Net loss per share attributable to common stockholders Basic and diluted (.31) (.03) (.37) (.11) Weighted average shares used in computing net loss per share attributable to common stockholders - basic and diluted 21,889,075 21,889,075 21,889,075 21,889,075 VirtualScopics, Inc. Consolidated Balance Sheets December 31, 2005 (unaudited) and 2004 2005 2004 (unaudited) Assets Current assets Cash and cash equivalents $ 6,407,610 $ 3,538,446 Accounts receivable 497,773 186,463 Prepaid and other assets 419,834 185,294 Total current assets 7,325,217 3,910,203 Patents, net 1,869,669 1,827,626 Property and equipment, net 319,124 312,128 Other assets 544,005 729,299 Total assets $ 10,058,015 $ 6,779,256 Liabilities and Stockholders' Equity Current liabilities Notes payable, including accrued interest $ 72,000 $ 72,000 Accounts payable and accrued expenses 477,676 176,475 Accrued payroll 309,139 211,959 Unearned revenue 567,268 1,663,770 Total current liabilities 1,426,083 2,124,204 Notes payable - long term 84,428 256,634 Commitments and Contingencies Stockholders' Equity Preferred stock, $0.001 par value, liquidation preference $1,000 per share; 15,000,000 shares authorized; 7,000 issued and outstanding 7 - Common stock, $0.001 par value; 85,000,000 shares authorized; 21,889,075 21,889 21,889 shares issued and outstanding Additional paid-in capital 10,570,539 4,376,529 Accumulated deficit (2,044,931) - Total stockholders' equity 8,547,504 4,398,418 Total liabilities and stockholders' equity $ 10,058,015 $ 6,779,256
VirtualScopics, LLCCONTACT: Tracy Bagatelle-Black of Bagatelle-Black Public Relations,+1-661-263-1842, or tracy@bagatelleblack.com, for VirtualScopics, Inc.
Web site: http://www.virtualscopics.com/
