ROCHESTER, N.Y., May 15, 2014 /PRNewswire/ -- VirtualScopics, Inc. (NASDAQ: VSCP), a leading provider of quantitative imaging solutions, today reported the financial results for the first quarter ended March 31, 2014. Awards outstanding and bookings signed during the 2014 first quarter more than tripled to $13.6 million as of March 31, 2014, as compared to $4 million recorded as of March 31, 2013. During the first quarter of 2014, VirtualScopics was engaged in 99 different projects as compared to 88 in the first quarter of 2013.
"We are very pleased with these year over year comparisons," said Eric Converse, interim president and chief executive officer. "Most importantly, the company's business activities in the first quarter of 2014 are indicative of the acute focus we have placed on strengthening our core business—Phase I, Phase II and Phase III clinical trials—and the investments we have been making in our people, infrastructure and systems to improve the quantitative imaging solutions we offer to our customers at some of the world's largest pharmaceutical companies and contract research organizations (CROs)."
Revenues for the first quarter of 2014 were $2,353,000 compared to revenues of $2,533,000 reported in the first quarter of 2013, representing a 7% decline. This decrease in revenues is related to a slowdown in the amount of new projects awarded in 2012, the timing of the initiation of projects and the studies that ended during 2013 and in the first three months of 2014.
"It's important to remember that a project's revenue cycle depends on a number of factors, including the time it takes for a drug trial to begin, which varies due to the time required to set up trial sites and to recruit participants," explained Mr. Converse. "Also, during the life of a project, studies, not uncommonly, expand in size, which can increase our potential revenue. However, there are also situations when the sponsor doesn't recruit the number of participants or set up the number of sites originally budgeted for, or the drug simply fails and then a study could come to a premature end."
VirtualScopics reported a net loss for the first quarter of 2014 of $646,000 as compared to a net loss in the first quarter of 2013 of $1,113,000. The decrease in the net loss is primarily attributable to decreased operating expenses which were substantially higher last year due to professional fees to support our personalized medicine initiative during the first quarter of 2013 as well as other, one time higher costs. However, the company anticipates expenses to trend upwards through the remainder of 2014 due to increased investments for growth.
"I am encouraged by the increase in RFPs, awards, bookings and number of activities thus far in 2014 and the positive momentum created by everyone on the VirtualScopics' team and look to see this momentum continue," Mr. Converse said. "The international alliance we are pursuing with IXICO plc as announced on March 7, 2014, is an opportunity for both companies to expand and enhance their global capabilities and collective quantitative imaging solutions. By putting our combined technologies and expertise to work in clinical trials targeting a number of disease categories we believe we can continue to make an even greater contribution to diagnostic imaging and a difference in the field of healthcare."
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 first quarter 2014 financial results and business outlook. The conference call dial-in information, webcast url and replay information is as follows:
- Domestic Callers: 877-407-8035
- International Callers: 201-689-8035
- Conference Call ID: 13581706
An accompanying slide presentation to enhance management's formal remarks, as well as a webcast of the call, can be accessed at: http://www.investorcalendar.com/IC/CEPage.asp?ID=172692
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:
About VirtualScopics, Inc.
VirtualScopics, Inc. (NASDAQ:VSCP) is a leading provider of quantitative imaging solutions to accelerate drug and medical device development. For risk-adverse, 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 and new customer contract signings and awards, its potential alliance with IXICO 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 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.
Tables to Follow
|
VirtualScopics, Inc. and Subsidiary
|
|
Condensed Consolidated Statements of Operations
|
|
(unaudited)
|
|
|
|
|
|
For the Three Months Ended
|
|
March 31,
|
|
2014
|
|
2013
|
|
|
|
|
|
Revenues
|
$ 2,246,954
|
|
$ 2,282,831
|
|
Reimbursement revenues
|
106,032
|
|
249,756
|
|
Total revenues
|
2,352,986
|
|
2,532,587
|
|
|
|
|
|
Cost of services
|
1,489,079
|
|
1,497,539
|
|
Cost of reimbursement revenues
|
106,032
|
|
249,756
|
|
Total cost of services
|
1,595,111
|
|
1,747,295
|
|
Gross profit
|
757,875
|
|
785,292
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
Research & development
|
285,896
|
|
453,411
|
|
Sales & marketing
|
345,077
|
|
357,652
|
|
General & administrative
|
687,002
|
|
995,302
|
|
Depreciation & amortization
|
86,502
|
|
96,313
|
|
Total operating expenses
|
1,404,477
|
|
1,902,678
|
|
Operating loss
|
( 646,602 )
|
|
( 1,117,386 )
|
|
|
|
|
|
Other income (expense)
|
|
|
|
|
Other income
|
1,037
|
|
5,880
|
|
Other expense
|
( 808 )
|
|
( 1,442 )
|
|
Total other income
|
229
|
|
4,438
|
|
Net loss
|
( 646,373 )
|
|
( 1,112,948 )
|
|
|
|
|
|
Preferred stock dividends
|
42,000
|
|
42,000
|
|
|
|
|
|
Net loss available to common stockholders
|
$ ( 688,373 )
|
|
$ ( 1,154,948 )
|
|
|
|
|
|
Weighted average number of common shares outstanding
|
|
|
|
|
Basic and diluted
|
2,991,990
|
|
2,979,952
|
|
|
|
|
|
Basic and diluted loss per common share
|
$ ( 0.23 )
|
|
$ ( 0.39 )
|
|
VirtualScopics, Inc. and Subsidiary
|
|
Condensed Consolidated Balance Sheets
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
2014
|
|
2013
|
|
Assets
|
(unaudited)
|
|
|
|
Current assets
|
|
|
|
|
Cash
|
$ 6,837,572
|
|
$ 7,330,630
|
|
Accounts receivable, net
|
1,642,792
|
|
1,725,070
|
|
Prepaid expenses and other current assets
|
432,467
|
|
397,699
|
|
Total current assets
|
8,912,831
|
|
9,453,399
|
|
|
|
|
|
Patents, net
|
1,306,034
|
|
1,334,420
|
|
Property and equipment, net
|
198,171
|
|
221,700
|
|
Other assets
|
-
|
|
-
|
|
Total assets
|
10,417,036
|
|
11,009,519
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
Current liabilities
|
|
|
|
|
Accounts payable and accrued expenses
|
$ 958,253
|
|
$ 846,071
|
|
Accrued payroll
|
495,972
|
|
837,611
|
|
Unearned revenue
|
1,028,987
|
|
745,028
|
|
Dividends payable
|
293,333
|
|
293,333
|
|
Total current liabilities
|
2,776,545
|
|
2,722,043
|
|
|
|
|
|
Commitments and Contingencies
|
|
|
|
|
|
|
|
|
Stockholders' Equity
|
|
|
|
|
Convertible preferred stock, $0.001 par value; 15,000,000 shares
|
|
|
|
|
authorized;
|
|
|
|
|
Series C-1; 3,000 shares authorized; issued and outstanding,
3,000 shares at March 31, 2014 and December 31, 2013,
respectively; liquidation preference $1,000 per share
|
3
|
|
3
|
|
Series B; 6,000 shares authorized; issued and outstanding, 600
at March 31, 2014 and December 31, 2013, liquidation
preference $1,000 per share
|
1
|
|
1
|
|
Series A; 8,400 shares authorized; issued and outstanding,
2,190 at March 31, 2014 and December 31, 2013, respectively,
liquidation preference $1,000 per share
|
2
|
|
2
|
|
Series C-2; 3,000 shares authorized; issued and outstanding, 0
shares at March 31, 2014 and December 31, 2013, respectively;
liquidation preference $1,000 per share
|
-
|
|
-
|
|
Common stock, $0.001 par value; 85,000,000 shares authorized;
|
|
|
|
|
issued 2,992,853 shares at March 31, 2014 and December 31,
2013; outstanding, 2,992,853 and 2,991,869 shares at March
31, 2014 and December 31, 2013, respectively
|
2,993
|
|
2,992
|
|
Additional paid in capital
|
21,992,006
|
|
21,992,619
|
|
Accumulated deficit
|
( 14,354,514 )
|
|
( 13,708,141 )
|
|
Total stockholders' equity
|
7,640,491
|
|
8,287,476
|
|
Total liabilities and stockholders' equity
|
$ 10,417,036
|
|
$ 11,009,519
|
For More Information, Contact:
Donna N. Stein, APR, Fellow PRSA
Managing Partner
Donna Stein & Partners
315-361-4672
Email: dstein1@twcny.rr.com
SOURCE VirtualScopics, Inc.