ROCHESTER, N.Y., Feb. 13 /PRNewswire-FirstCall/ -- VirtualScopics, Inc. , a leading developer of image-based biomarker solutions, today announced record sales. For the full-year 2006, sales rose to approximately $4.7 million, a 36% increase over prior year. Fourth quarter sales for 2006 increased 48% to nearly $1.2 million over the same period last year.
Net loss for the full year of 2006 was $2,304,368, excluding $2,229,375 of non-cash compensation expense related to the adoption of a new accounting rule. Excluding all non-cash items, the net loss for the year ended December 31, 2006 was $1,835,984, compared to last year's $1,638,335. The approximately $200,000 increase in the net loss for 2006 is directly related to nearly $600,000 in additional costs associated with being a public company as well as planned investments in research and development and sales and marketing. These increases were offset by a 64% increase in gross profit of $822,521 in 2006 as compared to 2005. Net loss for the quarter ended December 31, 2006 was $612,678, excluding $737,697 of non-cash compensation expense related to the adoption of a new accounting rule. Excluding all non-cash items, the net loss for the three months ended December 31, 2006 was $488,906 compared to last year's $616,869. On a fully reporting basis, the company had a loss of $4,533,743 in 2006 compared to $2,044,931 in 2005. In the fourth quarter, the fully reported loss was $1,350,375 compared to $728,945 in the same period in 2005.
Some of the highlights of the fourth quarter and full year 2006 included: - Approved for listing on the NASDAQ Capital Market - Added to Russell Microcap Index - Early renewal of strategic alliance agreement with a key customer - Awarded two pivotal patents - Signed $8.5 million in new customer contracts, a 67% increase over 2005 - Performed work on 69 projects in 2006 as compared to 49 in 2005
"2006 was a solid year for VirtualScopics. We achieved the highest sales in the company's history, made our debut on the NASDAQ Capital Market, recorded a 41% increase in our project base and a record number of new contracts. We are thrilled with the momentum we've achieved in recent months and look forward to a strong 2007," said Jeff Markin, President and Chief Executive Officer of VirtualScopics.
The company will be holding a conference call on Wednesday, February 14, 2007 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 March 16, 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: 230233.
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 leading provider of imaging solutions to accelerate drug and medical device development. 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
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 to the Company from the renewal of the Company's strategic alliance with a key customer, the expected benefits of new customer contracts 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 10-KSB for December 31, 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 execute on a contract with the Department of Defense for the award we obtained and our ability to do so on terms favorable to us. All forward-looking statements included in this press release are based on our current expectations about future events, based on information available at the time of the release, and the Company assumes no obligation to update any forward- looking statements.
CONTACT: Tracy Bagatelle-Black Bagatelle-Black Public Relations (661)263-1842 tracy@bagatelleblack.com Tim Ryan Trout Group Investor Relations (646)378-2924 tryan@troutgroup.com VirtualScopics, Inc. Balance Sheet December 31, 2006 2005 (unaudited) Assets Current assets Cash and cash equivalents $3,901,153 $6,407,610 Accounts receivable 662,019 497,773 Prepaid expenses and other assets 239,821 419,834 Total current assets 4,802,993 7,325,217 Patents, net 1,934,060 1,869,669 Property and equipment, net 560,033 319,124 Other assets 403,846 544,005 Total assets $7,700,932 $10,058,015 Liabilities and Stockholders' Equity Current liabilities Notes payable, current portion $80,446 $72,000 Accounts payable and accrued expenses 437,481 477,676 Accrued payroll 488,065 309,139 Unearned revenue 515,019 567,268 Total current liabilities 1,521,011 1,426,083 Notes payable, net of current portion - 84,428 Total liabilities 1,521,011 1,510,511 Commitments and Contingencies Stockholders' Equity Preferred stock, $0.001 par value; 15,000,000 shares authorized; 8,400 shares designated Series A; 4,346 issued and outstanding; liquidation preference $1,000 per share 4 7 Common Stock, $0.001 par value; 85,000,000 shares authorized; 22,962,826 shares issued and outstanding 22,963 21,889 Additional paid-in capital 11,250,455 9,085,366 Accumulated deficit (5,093,501) (559,758) Total stockholders' equity 6,179,921 8,547,504 Total liabilities and stockholders' equity $7,700,932 $10,058,015 VirtualScopics, Inc. Consolidated Statements of Operations Three Months Ended December 31, Year Ended December 31, 2006 2005 2006 2005 (unaudited) (unaudited) Revenue $1,177,569 $796,797 $4,739,538 $3,472,870 Cost of services 617,707 467,835 2,640,098 2,195,951 Gross profit 559,862 328,962 2,099,440 1,276,919 48% 41% 44% 37% Operating expenses: Research and development 315,646 194,370 1,110,761 853,085 Sales and marketing 202,680 110,153 742,176 443,063 General and administrative 561,475 645,648 2,237,306 1,625,918 Stock compensation expense 737,697 - 2,229,375 - Depreciation and amortization 123,772 112,076 468,384 406,596 Total operating expenses 1,941,270 1,062,247 6,788,002 3,328,662 Operating loss (1,381,408) (733,285) (4,688,562) (2,051,743) Other income (expense) Interest income 42,468 17,472 178,344 35,574 Other expense (11,435) (13,132) (23,525) (28,762) Total other income 31,033 4,340 154,819 6,812 Net Loss $(1,350,375) $(728,945) $(4,533,743) $(2,044,931) Deemed Dividends on Preferred Stock - 4,283,021 - 4,283,021 Net loss attributable to common stock holders (1,350,375) (5,011,966) $(4,533,743) (6,327,952) Net loss per share attributable to common stockholders Basic and diluted $(0.06) $(0.25) $(0.20) $(0.35) Weighted average shares used in computing net loss per share attributable to common stockholders - basic and diluted 22,932,783 20,153,340 22,295,652 18,039,072
VirtualScopics, LLCCONTACT: Tracy Bagatelle-Black of Bagatelle-Black Public Relations,+1-661-263-1842, or tracy@bagatelleblack.com; or Tim Ryan of Trout GroupInvestor Relations, +1-646-378-2924, or tryan@troutgroup.com
Web site: http://www.virtualscopics.com//
