Medical imaging solutions provider VirtualScopics (VSCP) has posted a turnaround in third-quarter fiscal 2010. The Rochester, New York-based company registered a net income of $628,699 in the quarter versus a net loss of $215,907 a year-ago, riding on solid top line growth. Third quarter earnings of 2 cents per share beat the Zacks Consensus Estimate by a penny.
Revenues jumped 28% year over year to roughly $3.6 million, helped by healthy demand for the company’s services across novel therapeutic markets. However, sales missed the Zacks Consensus Estimate of $4 million. Revenues for the nine-month period (ended September 30) climbed 32% year over year to $9.9 million.
Gross margin for the quarter declined to 53% from 57% a year ago on account of higher cost of services, which zoomed 41% year over year. Operating expenses rose 6% year over year to roughly $1.5 million.
VirtualScopics exited the quarter with cash of $4 million, up 9.6% year over year. It remains a zero debt company.
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 opened an office in central Europe in August 2010, which will focus on its thriving international customer base and explore business opportunities in Europe.
VirtualScopics joined forces with Germany-based full-service contract research organization (“CRO”) ABX-CRO in September 2010. This marked the union of two of the bellwethers in molecular imaging for the clinical trials of drugs and medical devices. The collaboration will focus on offering integrated solutions to pharmaceutical and medical devices customers, leveraging the combined experience and complementary expertise in functional medical imaging techniques.
Moreover, VirtualScopics recently formed an alliance 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. The pooling of the technologies and expertise of the two entities is expected to enable both companies to accelerate their drug development programs.
