Date: Oct 25, 2013 Author: M. Daneman Source: democratandchronicle.com (
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After heading Brighton-based medical imaging company VirtualScopics Inc. since 2006, CEO Jeff Markin is out, replaced by an interim CEO.
According to the company, Markin "stepped down to pursue other interests."
Interim CEO Eric Converse is managing director with Dutch investment firm Nedamco Capital. Before VirtualScopics, Markin spent a number of years at Eastman Kodak Co. in various executive positions.
According to the company, the CEO change follows a series of steps by board Chairman Mostafa Analoui aimed at growth, a broader international footprint and a deeper portfolio of services. Analoui, a board member since 2008, was named chairman in August. He is head of Healthcare and Life Sciences at New York investment bank Livingston Group LLC.
In a statement, Analoui said, "This is certainly a unique transitional period for VirtualScopics, as we believe our innovative technology and continued investment in both research and talent have positioned us quite well to generate value for our customers, shareholders and employees. We want to recognize the significant achievements the company has made under Jeff's leadership and wish him well in his future endeavors. The board looks forward to working with Eric to guide the company through this transition and we remain confident in our ability to successfully execute this next stage of VirtualScopics' growth."
The VirtualScopics board has hired executive search firm Korn/Ferry International to head up the hunt for a permanent CEO.
The company started in 2000, formed out of technology discovered by University of Rochester researchers.
The CEO change comes as VirtualScopics has weathered some rough recent history. Revenues peaked in 2011 at $14.3 million for the year before dipping to $13 million in 2012. For the first six months of this fiscal year, revenues were down about 9 percent from the same span the year earlier, at $5.8 million.
Meanwhile, the company's most-recent fiscal quarter was its first profitable one since 2011. But the company, in its latest earnings, indicated a turnaround might be at hand following its beefing up of its West Coast and European sales forces and reorganization of its sales operations. As a result, the company said in August, "Although the amount of new project awards has been slower than we experienced in previous years, we did see an increased number of requests for proposals in 2012 and the first six months of 2013 (and) we believe that this increase in requests for proposals ... will help increase the level of business activity."
VirtualScopics stock closed Friday at $4.40, down 30 cents or more than 6 percent.
Markin's departure marks the second major executive to leave VirtualScopics in recent weeks. Chief Financial Officer/Chief Business Officer Molly Henderson left Aug. 31 as her family moved to Europe.
MDANEMAN@DemocratandChronicle.com
