VirtualScopics, Inc. (Nasdaq: VSCP), a leading provider of quantitative imaging for clinical trials, today reported revenues of $3,221,593 for the second quarter of 2010 compared to revenues of $2,541,316 in the second quarter of 2009, a 27% increase. Excluding work performed in 2009 for the Department of Defense under projects that ended in 2009, the company posted a 34% increase in second quarter 2010 revenues as compared to the second quarter of 2009 and a 45% increase in revenues during the first half of 2010 compared to the first half of 2009. Gross profit for the quarter ended June 30, 2010 was $1,647,172 compared to $1,393,336 for the quarter ended June 30, 2009. Net income for the quarter ended June 30, 2010 was $341,024 compared to a net loss of $413,123 for the quarter ended June 30, 2009.
Highlights for the first half of 2010 include:
- Total revenues of $6,292,599, an increase of $1,616,914, or 35%, compared to the first half of 2009.
- Recurring revenues from its clinical trial business increased $1,966,051, or 45%, compared to the first half of 2009.
- Gross profit of $3,252,790 compared to $2,513,121 in first half of 2009, a 29% increase.
- Operating income of $223,908 compared to an operating loss of $561,117 in first half of 2009, a $785,025 improvement.
- Earnings before interest, taxes, depreciation and amortization, and excluding stock compensation expense and gain (loss) from derivative financial instrument ("Adjusted EBITDA") was $868,706 compared to $229,867 in the comparable period in 2009, an over 250% improvement.
- Net income was $349,116 compared to a net loss of $1,169,236 during the first half of 2009.
"We are extremely pleased with the financial performance we delivered in the second quarter and first half of 2010. While the industry as a whole continues to suffer from project delays and an overall softness in demand we have continued to demonstrate revenue growth, cash generation, and operating profit," stated Jeff Markin, chief executive officer of VirtualScopics. He added, "We continue to invest in our infrastructure, service offerings, and additional technical and operational resources to meet the current and future needs of our customers while expanding our global presence in Europe. We believe our financial performance continues to demonstrate that we bring a unique combination of scientific expertise, broad therapeutic and imaging modality experience, robust study processes, and operational flexibility that is valued by our clients and offers differentiation in the industry."
"From the top line to our net income, we have continued to report strong results, especially over the past twelve months and in light of the softening of the market," said Molly Henderson, chief business and financial officer of VirtualScopics. She added, "We continue to see an increasing demand for our services within existing projects and in novel therapeutic areas, especially in the medical device space. Our strategic initiatives are aimed at further penetrating the global clinical trial market while capitalizing on opportunities to expand our offerings. The execution of these initiatives and the achievement of our stated financial targets will be our focus for the remainder of 2010."