VirtualScopics Inc.’s stock tumbled more than 5 percent Tuesday after the medical image analysis company reported a net loss in the second quarter that reflected a slowdown in project awards and delays in initiation of new clinical studies.
Shares of VirtualScopics (NasdaqCM: VSCP) Tuesday afternoon were trading at 86 cents, down from Monday’s close of 91 cents.
VirtualScopics posted a net loss of nearly $2 million, or 6 cents a share, compared with a profit of $315,650 or a penny a share, a year ago. Adjusted earnings before interest, taxes, depreciation and amortization for the second quarter totaled $72,973 compared with $489,234 in 2011.
Revenue for the quarter fell more than 13 percent to $3.3 million from $3.85 million a year ago. Gross profit for the quarter ended June 30 was $1.3 million, compared with $1.8 million in 2011.
VirtualScopics officials said the company is making significant changes to its selling and operational processes that include the appointment of a new vice president of marketing and business development and two new sales staffers.
“Although the amount of new project awards has been slower than we experienced in previous years, we have seen an increasing number of requests for proposals throughout 2012,” said Jeffrey Markin, president and CEO.
Molly Henderson, chief business and financial officer, said the firm is continuing to monitor its expenses while making necessary investments in new market opportunities.
The company had nearly $8 million in cash at the end of June.
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