Medical imaging solutions provider VirtualScopics’ (VSCP - Snapshot Report) 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. () 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.