VirtualScopics, Inc. Reports Second Quarter and Six Months 2014 Financial Results; Awards Outstanding and Bookings Reflect a Two-Fold Increase Over 2013 First Six Months
By a News Reporter-Staff News Editor at Clinical Trials Week -- VirtualScopics, Inc. (NASDAQ: VSCP), a leading provider of clinical trial imaging solutions, reported the financial results for the second quarter and six months ended June 30, 2014. Awards outstanding and bookings for the first six months of 2014 increased to $17.6 million, more than double the $7.7 million reported during the same period in 2013. Year to date 2014 awards outstanding and bookings are approximately $23.5 million, 115% of the $20.5 million recognized in the full year 2013 with over four months still left in the year (see also VirtualScopics, Inc.).
"We are very pleased with these year over year comparisons and the fact that the positive momentum established in the first quarter of 2014 is continuing," said Eric T. Converse, president and chief executive officer. "New business wins this year include the return of two big pharma companies to VirtualScopics and a Phase III clinical study with a significant new customer in addition to our first-ever program award in the first quarter of 2014. We believe this year's significant increase in awards outstanding and bookings will result in improved revenues and the company's return to profitability in 2015."
"During the second quarter of 2014," Mr. Converse continued, "we completed a number of strategic initiatives that centered around the formation of an international commercial and operational alliance with London-based IXICO plc, the brain health company. Less than two months after signing our strategic alliance, we have already experienced the benefit of our two companies working together with our first joint win of an award. Additionally, in June we opened a joint office in New Hope, Pennsylvania, in the heart of the Big Pharma corridor where many of our customers are located. VirtualScopics and IXICO also announced the formation of a joint Scientific Advisory Board with seven initial members that will focus on current and future roles of imaging in clinical trials for early and late phase oncology, cardiology, metabolic disorders and neurology studies."
Revenues for the second quarter of 2014 were $2,648,747 compared to $3,706,677 in the second quarter of 2013. Revenues for the first six months of 2014 were $5,001,732 compared to $6,239,264 in the first six months of 2013. In the second quarter of 2013, the company completed a six week, Phase III breast cancer study that generated over $1 million in revenue. In addition, the decrease in revenues in the 2014 periods is indicative of the related slowdown in the amount of new projects awarded in 2012, the timing of the initiation of projects, and the large number of studies that ended during 2013 and the first six months of 2014.
VirtualScopics reported a net loss for the second quarter of 2014 of $731,531 compared to net income of $134,286 in the second quarter of 2013. In the first six months of 2014, the company reported a net loss of $1,377,904 compared to a net loss of $978,661 in the 2013 six months period. The net loss in the 2014 periods is primarily related to the decrease in the volume of revenue and VirtualScopics' increased investments in infrastructure, systems, training and human capital offset by no additional monies being spent on the personalized medicine application.
"We look forward to our positive new business development efforts continuing in the second half of 2014," Mr. Converse said. "The entire VirtualScopics team is focused on providing the highest quality customer service and unsurpassed innovative imaging solutions for all of our pharmaceutical and contract research organization (CRO) customers. We will continue to invest in our business and believe the investments we are making this year will result in the company's future prosperity."
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