Medical imaging solution provider VirtualScopics (VSCP) has swung to profit in second-quarter fiscal 2010 riding on solid top-line growth. The Rochester, New York-based company posted a net income of $0.34 million (or 1 cent a share) in the quarter versus a net loss of $0.41 million (or 2 cents a share) a year-ago.
Revenues zoomed 27% year-over-year to $3.22 million, ahead of the Zacks Consensus Estimate of $3 million, boosted by increased demand for the company’s services across novel therapeutic markets including medical devices. Sales for the first-half of fiscal 2010 surged 35% year-over-year to $6.3 million on the back of healthy revenues from the company’s clinical trial business, which climbed 45% year-over-year.
Gross margin, however, dipped to 51% from 55% a year-ago on account of higher cost of services that shot up 37% year-over-year. Operating expenses fell roughly 2% year-over-year to $1.57 million.
VirtualScopics exited the first-half with cash equivalents of $4.2 million, up 32% year-over-year. It remains a zero debt company.
The company offers it’s imaging solutions to pharmaceutical, biotechnology and medical device industries. They provide a range of imaging software and applications that are being 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 recently opened an office in central Europe which will focus on its thriving international customer base and explore business opportunities in Europe. This new office joins the company’s first European office in UK which was opened in 2008.