Medical imaging solutions provider VirtualScopics (VSCP) has incurred a first quarter loss despite a healthy growth in sales. The Rochester, New York-based company posted a net loss of $200,381 (or a cent a share) in the quarter versus a modest profit of $8,092 (or break-even earnings) a year-ag.
VirtualScopics was hit by higher operating expenses and greater losses on derivative instruments. The results missed the Zacks Consensus Estimate of earnings of a penny a share.
Revenues soared 19% year over year to roughly $3.7 million, but missed the Zacks Consensus Estimate of $4 million. Gross margin fell to 43.7% from 52% a year ago due to higher cost of services, which shot up 40% year over year.
Operating expenses climbed 8% year over year to roughly $1.6 million. Research and development expenses jumped 25% to $0.3 million as the company made additional investment during the quarter to beef up its therapeutic area expertise (including initiation of clinical study in asthma).
VirtualScopics exited the quarter with cash of $3.77 million, down 15% year over year, with no debt.
VirtualScopics offers its imaging solutions to pharmaceutical, biotechnology and medical device industries. The company provides a range of imaging software and applications that are used for image-based detection and measurement of anatomical structures and metabolic activity.
The company remained committed to investing in infrastructure, services and additional technical and operational resources to address customer needs and broaden its global foothold. VirtualScopics, during the first quarter, further developed its infrastructure to more efficiently handle its global Phase III clinical studies.
VirtualScopics, in September 2010, joined forces with Germany-based full-service contract research organization (“CRO”) ABX-CRO. The collaboration will offer integrated solutions to pharmaceutical and medical devices customers, leveraging the combined experience and complementary expertise in functional medical imaging techniques.
Moreover, the company formed an alliance in October 2010, with North Carolina-based leading CRO PPD Inc. (PPDI) to deliver a set of clinical and medical imaging solutions to help biopharmaceutical companies to make rapid decisions on developing their oncology compounds.
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