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Slowdown in new project awards and delays in the initiation of new studies hurt VirtualScopics Inc.’s third-quarter results, dropping its stock more than 5 percent.
Shares of VirtualScopics (NasdaqCM: VSCP) were trading at 72 cents midday Friday, down from Thursday’s close of 76 cents.
The medical image analysis company Friday reported a net loss of $121,249, or zero cents a share, compared with earnings of $550,926, or 2 cents a share, a year ago. Adjusted earnings before interest, taxes, depreciation and amortization for the quarter ended Sept. 30 was $192,045 compared with $341,669 in 2011.
Revenue for the third quarter totaled $3.3 million, roughly flat with a year ago. Gross profit, also close to the same as a year ago, was $1.5 million. Operating loss was $53,293 compared with operating income of $19,559 in 2011.
Jeffrey Markin, president and CEO of VirtualScopics, noted the growth rate and level of revenue was below its capability and expectation.
“Accordingly we have made, and will continue to make, changes to our selling and operational processes to maximize new project bookings and overall client satisfaction,” he said.
Molly Henderson, chief business and financial officer of VirtualScopics, said she expected the level of new project awards to improve.
“We have a significant amount of projects awaiting decisions and anticipate that we will receive word on these projects prior to the end of this year, thereby, giving us confidence as we enter 2013,” she said.
The company is keeping tabs on expenses, Henderson said. As of Sept. 30, VirtualScopics had $8 million in cash, up from $5.7 million on Dec. 31, 2011.
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