VirtualScopics, Inc. Reports 2015 Third Quarter Revenues Increase 18% From Prior Year Period And Company Achieves Positive Adjusted EBITDA

ROCHESTER, N.Y., Oct. 29, 2015 -- VirtualScopics, Inc. (VSCP), a leading provider of clinical trial imaging solutions, today reported financial results for the third quarter and nine months ended September 30, 2015.

Revenues for the third quarter of 2015 increased 18% to $3,224,407 compared to $2,741,241 for the third quarter of 2014. The company reported positive Adjusted EBITDA in the third quarter of 2015 of $132,101 as compared to negative Adjusted EBITDA of $842,772 in the third quarter of 2014. VirtualScopics reported a net loss for the third quarter of 2015 of $24,779, or $0.02 loss per share, representing a 97% improvement from a net loss of $955,523, or $0.33 loss per share, reported in the third quarter of 2014.

Revenues for the first nine months of 2015 were $9,057,975, a 17% increase over the $7,742,974 reported for the prior year period.  The company reported a net loss for the first nine months of 2015 of $1,124,443, or $0.42 loss per share, representing a 52% improvement from the net loss of $2,333,427, or $0.82 loss per share, for the same period in 2014.

"We are very pleased with the company's strong performance during the third quarter of 2015," said Eric T. Converse, president and chief executive officer of VirtualScopics. "This quarter is the first time the company has achieved positive Adjusted EBITDA since the second quarter of 2013, a trend we believe will continue to improve for the remainder of this year and beyond. I am very proud of the entire VirtualScopics team."

"In addition," Converse continued, "the backlog has grown to $31.9 million and we believe it will continue to grow. Our decision to focus on our core competencies has proven to be the right decision as we continue to strengthen our relationships with large pharma and develop new relationships with biotechs. This year we were chosen to be the sole imaging provider for several of our customers and most recently we were awarded a phase III oncology trial from yet another large pharma company."

"We are pleased to have achieved strong margins for both 2015 reporting periods over the prior year's periods," said Jim Groff, VirtualScopics' chief financial officer. "In the third quarter of 2015, margins improved to 42% as compared to 34% in the third quarter of 2014. For the first nine months of 2015 margins improved to 37% as compared to 34% achieved last year. The margin improvement thus far in 2015 reflects the increase in the startup of new projects, which yield higher margins during their startup phase, along with a continued focus on our core offerings and investment in our infrastructure and people."

Conference Call and Webcast Information
The company's management will host a conference and webcast today at 4:30 p.m. ET to discuss the company's 2015 third quarter and nine months financial results and business outlook. The conference call dial-in information, webcast URL and replay information is as follows:

• Domestic Call Dial In:  877-407-8035
• International Call Dial In:  201-689-8035
• Conference Call ID:  13622413

An accompanying slide presentation to enhance managements' formal remarks, as well as a webcast of the call, can be accessed at the following links:
   http://virtualscopics.investorroom.com/webcasts or
   http://www.investorcalendar.com/IC/CEPage.asp?ID=174428.

A replay and slide presentation will be available one hour after the conclusion of the conference call for 90 days, and can be accessed accordingly:

   Replay Domestic Dial In:  877-660-6853
   Replay International Dial In:  201-612-7415
   Replay Conference Call ID:  13622413

The webcast and slide presentation can be accessed at the following links:
   http://virtualscopics.investorroom.com/webcasts or 
   http://www.investorcalendar.com/IC/CEPage.asp?ID=174428.

About VirtualScopics, Inc.
VirtualScopics, Inc. (VSCP) is a leading provider of clinical trial imaging solutions to accelerate drug and medical device development. For risk-averse, time-constrained Clinical Trial Study Teams, Medical Directors and Imaging Scientists who require quality imaging data delivered on-time, within budget and on a consistent basis, VirtualScopics' clinical trial imaging solutions are an inspired true exception to commonly accepted services provided by other clinical trial imaging providers.  Because of the scientific and operational flexibility and responsiveness available, VirtualScopics' clinical trial imaging solutions deliver special performance advantages compared to other image service providers that offer common, every day clinical trial imaging services. For more information about VirtualScopics, Inc., please visit www.virtualscopics.com.

Non-GAAP Financial Information
VirtualScopics provides Adjusted EBITDA as a supplemental measure to Generally Accepted Accounting Principles ("GAAP") regarding the company's operational performance. The company defines Adjusted EBITDA as earnings less interest, taxes (if any), depreciation and amortization as further adjusted to exclude stock-based compensation expense. This financial measure excludes the impact of certain items and, therefore, has not been calculated in accordance with GAAP. VirtualScopics' method of calculating Adjusted EBITDA may differ from methods used by other companies, and, as a result, Adjusted EBITDA measures disclosed herein may not be comparable to other similarly titled measures used by other companies. VirtualScopics continues to provide information in accordance with GAAP. However, given the non-cash variable nature of stock-based compensation expense and its substantial impact on the overall reported net income/loss, the company believes it is also helpful for investors to receive additional information relating more specifically to VirtualScopics' operating results. Accordingly, VirtualScopics has presented Adjusted EBITDA which excludes the non-cash effects of stock-based compensation expense on its financial results. Management uses Adjusted EBITDA (a) to evaluate the company's financial performance, (b) to set internal spending budgets, and (c) to measure operational profitability. Pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"), VirtualScopics has provided a reconciliation of Adjusted EBITDA to its most directly comparable GAAP financial measure, net income/(loss), in the financial reconciliation following the financial statements below, titled "GAAP Reconciliation: Net Income/Loss and Adjusted EBITDA."

Forward-looking Statements
The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of the Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created thereby. These forward-looking statements include, but are not limited to, statements regarding continued positive Adjusted EBITDA, the expected benefits of the Company's investment in infrastructure, sales and marketing efforts, the continued increase in backlog, expectations for the startup of new projects and the performance of existing projects and/or statements preceded by, followed by or that include the words "believes", "could", "expects", "anticipates", "estimates", "intends", "plans", "projects", "seeks", or similar expressions. Forward-looking statements deal with the company's current plans, intentions, beliefs and expectations.  Investors are cautioned that all forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.  Many of these risks and uncertainties are discussed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014 filed with the SEC, and in any subsequent reports filed with the SEC, all of which are available at the SEC's website at www.sec.gov. These include without limitation: the risk of cancellation or delay of customer contracts or that contract awards do not turn into signed contracts. Other risks include the company's dependence on its largest customers and risk of contract performance, protection of our intellectual property and the risks of infringement on the intellectual property rights of others.  All forward-looking statements speak only as of the date of this press release and the company undertakes no obligation to update such forward-looking statements.

For More Information, Contact:
Donna N. Stein, APR, Fellow PRSA
Managing Partner
Donna Stein & Partners
315-361-4672
Email:  This email address is being protected from spambots. You need JavaScript enabled to view it.