VirtualScopics Beats by a Whisker - Analyst Blog
November 16 2011 - 3:30AM
Zacks
Medical imaging solutions provider
VirtualScopics’ (VSCP) third-quarter 2011 earnings
of 2 cents a share beat the Zacks Consensus Estimate by a penny
while matching the year-ago earnings. The New York-based company’s
net income (attributable to common stockholders) clipped roughly
10.5% year over year to $562,926.
The bottom line was hit by lower
revenues which fell 9% year over year to $3.27 million. The company
noted that sales were impacted by the slow
ramp-up of some clinical studies and slowdown of a large Phase III
trial. Gross margin declined to 46% from 53% a year ago
largely due to lower sales. Operating income tumbled 95% year over
year to $19,559.
Operating expenses rose
modestly year over year to roughly $1.48 million. Research and
development expenses climbed 18% to $320,024. Sales and marketing
costs fell 3% to $254,696.
VirtualScopics ended the third
quarter with cash of roughly $5.17 million, up 29% year over year,
with no debt.
VirtualScopics offers its imaging
solutions to pharmaceutical, biotechnology and medical devices
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 collaborated, in
October 2010,
with North Carolina-based CRO PPD
Inc. (PPDI) to deliver a set of
clinical and medical imaging solutions to help
biopharmaceutical companies to make rapid decisions for developing
their oncology compounds.
VirtualScopics, in its third
quarter call, noted that it has filed 510(k) with the U.S. Food and
Drug Administration (“FDA”) for its first personalized medicine
application.
Based on tepid third quarter results, the company now expects sales
of $14 million-$14.5 million for fiscal 2011, down from its earlier
view of $16 million. VirtualScopics envisions sales to pick
up in first-half 2012, in part, driven by the PPD alliance.
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VIRTUALSCOPICS (VSCP): Free Stock Analysis Report
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