ROCHESTER, N.Y., Aug. 12 VirtualScopics, Inc.(Nasdaq: VSCP), a leading provider of quantitative imaging for clinicaltrials, announced today that revenues for the first half of 2008 rose tonearly $3.4 million, a 20% increase over prior year's comparable period.Revenues for the second quarter ended June 30, 2008 were over $1.7 millioncompared to $1.5 million in the second quarter of 2007. The gross margin forthe second quarter of 2008 was 41% compared to 37% in the second quarter of2007, leading to a 25% improvement in gross profit. Operating loss for thequarter ended June 30, 2008 was $866,727 compared to $1,065,066 for the prioryear's comparable period.
"We are very pleased by the growth in revenue and gross margin through thefirst half of 2008 which we believe further validates our operating model,"stated Jeff Markin, president and chief executive officer of VirtualScopics."These improvements in quarterly performance coupled with the greater than$20,000,000 in project backlog gives us confidence in the strength and demandof our business and the services we offer in the marketplace." He added, "Wefully anticipate this momentum to continue as we execute on our operating andfinancial plans for 2008."
Jeff Markin and Chief Business and Financial Officer, Molly Henderson willprovide a business update and discuss these results during the conference callon Wednesday, August 13, 2008 at 11:00 a.m. EDT. Interested participantsshould call 877-407-0778 when calling within the United States or 201-689-8565when calling internationally. There will be a playback available untilSeptember 13, 2008. To listen to the playback, please call 877-660-6853 whencalling within the United States or 201-612-7415 when calling internationally.For the replay, please use account number: 286, conference ID number: 293002
About VirtualScopics, Inc.
VirtualScopics, Inc. is a leading provider of imaging solutions toaccelerate drug and medical device development. VirtualScopics has developeda robust software platform for analysis and modeling of both structural andfunctional medical images. In combination with VirtualScopics'industry-leading experience and expertise in advanced imaging biomarkermeasurement, this platform provides a uniquely clear window into thebiological activity of drugs and devices in clinical trial patients, allowingsponsors to make better decisions faster. For more information aboutVirtualScopics, visit www.virtualscopics.com.
The statements contained in this press release that are not purelyhistorical are forward-looking statements within the meaning of Section 27A ofthe Securities Act of 1933, as amended and Section 21E of the SecuritiesExchange Act of 1934, as amended, and are intended to be covered by the safeharbors created thereby. These forward-looking statements include, but are notlimited to, statements regarding the expected benefits of the Company'sinvestment in infrastructure and new customer contract signings and awards in2008 and/or statements preceded by, followed by or that include the words"believes," "could," "expects," "anticipates," "estimates," "intends,""plans," "projects," "seeks," or similar expressions. Forward-lookingstatements deal with the Company's current plans, intentions, beliefs andexpectations. Investors are cautioned that all forward-looking statementsinvolve risks and uncertainties that could cause actual results to differmaterially from those in the forward-looking statements. Many of these risksand uncertainties are discussed in the Company's Annual Report on Form 10-KSBfor the fiscal year ended December 31, 2007 filed with the Securities andExchange Commission (the "SEC"), and in any subsequent reports filed with theSEC, all of which are available at the SEC's website at www.sec.gov. Theseinclude without limitation: the risk of cancellation or delay of customerc