Virtualscopics reports record Q2 2009 financials

www.virtualscopics.comAug 12 2009

VirtualScopics, Inc. (Nasdaq: VSCP), a leading provider of quantitative imaging for clinical trials, today announced its financial results for the quarter and six months ended June 30, 2009.

Highlights include:

• Revenues for the second quarter of 2009 increased 47% to $2.5 million, compared to prior year's second quarter revenues of $1.7 million.
• Gross profit for the second quarter of 2009 increased 96% to $1.4 million, compared to $0.7 million in the second quarter of 2008.
• Gross margin increased to 55% in the second quarter ended June 30, 2009, compared to 41% in the second quarter of 2008, a 34% improvement.
• Earnings before interest, taxes, deprecation and amortization, and excluding stock compensation of $269,016 and a loss from derivative financial instrument of $205,914 ("Adjusted EBITDA"), was $180,846 for the quarter ended June 30, 2009 compared to an Adjusted EBITDA loss of ($467,119) for the comparable period in 2008.
• For the six months ended June 30, 2009, Adjusted EBITDA was $221,791 compared to a loss of ($899,727) for the first six months of 2008.
• Net loss for the quarter ended June 30, 2009 was ($413,123) compared to a net loss of ($851,110) for the second quarter of 2008. For the six months ended June 30, 2009, net loss was ($1,169,236) compared to a net loss of ($1,775,623) for the six months ended June 30, 2008.

"This has been a transformational year for VirtualScopics," stated Jeff Markin, president and chief executive officer of VirtualScopics. "We have successfully progressed the company from a consumer of cash to a generator of cash. I am especially pleased that we have accomplished this by building a strong operational foundation with a talented and committed team that is focused on our customers and returning value to our stockholders."

"The second quarter of 2009 was the strongest financial quarter of the company's history," said Molly Henderson, chief business and financial officer of VirtualScopics, Inc. She continued, "On all significant comparative financial metrics, we demonstrated solid results. Our year to date Adjusted EBITDA improved over $1,100,000 compared to the same period last year. This significant improvement captures the essence of our progress over the past twelve months as well as the strength of our business." She concluded, "We are very pleased with our financial results for the first half of 2009 and remain optimistic on our outlook for 2009."