Medical imaging solutions provider VirtualScopics’(NasdaqCM:VSCP - News) second-quarter 2011 earnings of a penny per share matched the Zacks Consensus Estimate and the year-ago earnings. The Rochester, New York-based company’s net income (attributable to common stockholders) rose roughly 6% year over year to $315,650.
Revenues surged 20% year over year to $3.85 million, but modestly missed the Zacks Consensus Estimate of $4 million. Gross margin declined to 47.3% from 50.9% a year ago largely due to higher cost of services, which jumped 32% year over year. Operating income zoomed 75% year over year to $158,029.
Operating expenses climbed roughly 7% year over year to roughly $1.7 million. Research and development expenses shot up 31% to $350,449. Sales and marketing costs fell 9% to $307,618.
VirtualScopics exited the second quarter with cash of roughly $4.6 million, up 9.5% year over year. It remains a zero debt entity.
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 leading 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.
The company, in its second quarter call, noted that the partnership has begun to pay off as it was awarded several new projects during first-half 2011. Driven by the PPD alliance, VirtualScopics envisions strong demand for its solutions in the second half.
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