Versus Technology Announces Fiscal Year Results

Marketwired

TRAVERSE CITY, MI--(Marketwire -12/21/11)- Versus Technology, Inc. (Pinksheets: VSTI.PK - News) ("Versus" or the "Company") announced revenues of $2,605,000 for the quarter ended October 31, 2011, compared to revenues of $1,600,000 for the same period in 2010. Fourth quarter revenues represent a 62.8% improvement over the same quarter of the prior year and the fourth consecutive quarter of growth. For the full fiscal year ended October 31, 2011, revenues totaled $6,589,000 compared to revenues of $7,703,000 for fiscal year 2010. Versus' revenue can vary significantly depending on the timing and delivery of major customer projects. Accordingly, revenues reported in any one quarter are not necessarily indicative of what full year results will be.

Gross profit for the current year's fourth quarter as a percentage of revenue was 72.7% compared to 67.3% for the same quarter of the prior year. Fiscal 2011 gross profit as a percentage of revenue was 71.0% compared to 71.3% in fiscal 2010.

Fourth quarter operating expenses other than cost of revenue totaled $1,190,000, or 45.7% of revenues, compared to $858,000, or 53.6% of revenues, in 2010. Operating expenses other than cost of revenues for the full year increased from $4,826,000, or 62.3% of revenues in 2010 to $4,964,000, or 75.3% of revenues, in 2011. The increase is the direct result of continued investment in growth strategies directed at building the sales organization and dealer network.

Net income for the quarter ended October 31, 2011, was $704,000 compared to net income of $222,000 for the same period in 2010. For the full year, the Company reported a net loss of $278,000 compared to net income of $675,000 for fiscal 2010.

For additional information, please refer to the attached unaudited consolidated financial statements.

About Versus Technology, Inc.
Established in 1988, Versus Technology, Inc. specializes in real-time location systems (RTLS) for healthcare. Used for enterprise patient tracking, bed management, asset tracking, and nurse call automation, Versus Advantages™ improves patient flow and documentation of caregiver and patient interactions, while enhancing communication and efficiency. Exclusively endorsed by the American Hospital Association, the Versus Advantages infrared (IR) and Active RFID solution is responsible for clinical-grade location and automation at a number of hospitals, clinics and long-term care facilities throughout North America. To learn more about Versus Technology, Inc. (Pinksheets: VSTI.PK - News), our technology and client successes, visit www.versustech.com and take the Advantages Tour.

Safe Harbor Provision

This document may contain forward-looking statements relating to future events, such as the development of new products, the commencement of production, or the future financial performance of the Company. These statements fall within the meaning of forward-looking information as defined in the Private Securities Litigation Reform Act of 1995. These statements are subject to a number of important risks and uncertainties that could cause actual results to differ materially including, but not limited to, economic, competitive, governmental, and technological factors affecting the Company's markets and market growth rates, products and their rate of commercialization, services, prices and adequacy of financing, and other factors. The Company undertakes no obligation to update, amend, or clarify forward-looking statements, whether because of new information, future events, or otherwise.

REPORT OF MANAGEMENT

The accompanying consolidated balance sheets of Versus Technology, Inc. and Subsidiary as of October 31, 2011, and October 31, 2010, and the related consolidated statements of operations and cash flows for the fiscal year ended October 31, 2011, and 2010, have been prepared by management.

Management has elected to omit the statement of shareholders' equity and substantially all of the footnote disclosures required by accounting principles generally accepted in the United States. If the omitted statement and disclosures were included in the financial statements, they might influence the user's conclusions about the Company's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.

The reader should refer to the Versus Technology, Inc. 2011 Annual Report which is available upon request for further details regarding the Company's financial position at October 31, 2011.

 


                   VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
                         Consolidated Balance Sheets


                                                           October 31,
                                                          2011        2010
                                                     ----------- -----------
Assets

Current assets
  Cash and cash equivalents                          $ 1,380,000 $ 2,083,000
  Accounts receivable                                  1,965,000   1,467,000
  Inventories, net                                       741,000     836,000
  Prepaid expenses and other current assets              211,000     161,000
                                                     ----------- -----------

Total current assets                                   4,297,000   4,547,000
                                                     ----------- -----------

Property and equipment
  Machinery and equipment                                631,000     450,000
  Furniture and fixtures                                  99,000     108,000
  Leasehold improvements                                 429,000     429,000
                                                     ----------- -----------

                                                       1,159,000     987,000
  Less accumulated depreciation                          696,000     707,000
                                                     ----------- -----------

Net property and equipment                               463,000     280,000

Goodwill                                               1,533,000   1,533,000

Other intangible assets, net                             128,000     138,000

Other noncurrent assets                                   10,000      10,000
                                                     ----------- -----------

Total assets                                         $ 6,431,000 $ 6,508,000
                                                     =========== ===========


See accompanying report of management.

The full annual report is available upon request.



                   VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
                         Consolidated Balance Sheets


                                                        October 31,
                                                      2011           2010
                                               -------------- --------------
Liabilities and shareholders' equity

Current liabilities
  Accounts payable                             $     599,000  $     543,000
  Accrued expenses                                   499,000        407,000
  Deferred revenue from customer advance
  payments                                           306,000        371,000
                                               -------------- --------------

Total liabilities (all current)                    1,404,000      1,321,000
                                               -------------- --------------




Shareholders' equity
                                                   1,016,000      1,016,000
  Common stock $0.01 par value; 120,000,000
   shares authorized; 101,608,325 issued and
   outstanding (95,325,325 in 2009)
  Additional paid-in capital                      43,245,000     43,128,000
  Accumulated deficit                            (39,235,000)   (38,957,000)
                                               -------------- --------------

Total shareholders' equity                         5,027,000      5,187,000
                                               -------------- --------------

Total liabilities and shareholders' equity     $   6,431,000  $   6,508,000
                                               ============== ==============


See accompanying report of management.

The full annual report is available upon request.



                   VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
                    Consolidated Statements of Operations


                             Three months ended     Year ended October 31,
                                October 31,
                              2011        2010        2011         2010
                          ----------- ----------- ----------- --------------

Revenues                                                         $
                          $ 2,605,000 $ 1,600,000 $ 6,589,000      7,703,000
                          ----------- ----------- ----------- --------------

Operating Expenses
  Cost of revenues            712,000     524,000   1,908,000      2,214,000
  Research and development    170,000     178,000     770,000        835,000
  Sales and marketing         828,000     570,000   3,329,000      2,801,000
  General and
   administrative             192,000     110,000     865,000      1,190,000
                          ----------- ----------- ----------- --------------

Total Operating Expenses    1,902,000   1,382,000   6,872,000      7,040,000
                          ----------- ----------- ----------- --------------
Income (Loss) From
 Operations
                              703,000     218,000   (283,000)        663,000
                          ----------- ----------- ----------- --------------

Interest income                 1,000       4,000       5,000         12,000
                          ----------- ----------- ----------- --------------

Net Income (Loss)         $   704,000 $   222,000 $ (278,000)    $   675,000
                          =========== =========== =========== ==============

Basic and Diluted Net
 Income (Loss) Per Share                                         $
                          $      0.01 $         - $       (-)           0.01
                          =========== =========== =========== ==============


See accompanying report of management.

The full annual report is available upon request.



                   VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
                    Consolidated Statements of Cash Flows


                                                     Year ended October 31,
                                                       2011         2010
                                                   ------------ ------------
Cash flows from operating activities
  Net (loss) income                                $  (278,000) $   675,000
  Adjustments to reconcile net (loss) income to
   net cash (used in) provided by operating
   activities:
  Depreciation and amortization                        106,000       73,000
  Share-based compensation                             117,000      118,000
  Changes in operating assets and liabilities
   which provided (used) cash:
  Accounts receivable                                 (498,000)    (145,000)
  Inventories                                           95,000     (167,000)
  Prepaid expenses and other current assets            (50,000)      15,000
  Accounts payable                                      56,000       88,000
  Accrued expenses                                      92,000       41,000
  Deferred revenue from customer advance payments
                                                       (65,000)    ( 39,000)
                                                   ------------ ------------

Net cash (used in) provided by operating
 activities                                           (425,000)     659,000
                                                   ------------ ------------

Cash used in investing activities
  Additions to property and equipment                 (278,000)     (54,000)
  Increase in other noncurrent assets                        -      (96,000)
                                                   ------------ ------------

Net cash used in investing activities                 (278,000)    (150,000)
                                                   ------------ ------------

Cash flows from financing activities
  Issuance of common stock upon exercise of stock
   options                                                   -      273,000

Net (decrease) increase in cash and cash
 equivalents                                          (703,000)     782,000

Cash and cash equivalents, at the beginning of the
 year                                                2,083,000    1,301,000
                                                   ------------ ------------

Cash and cash equivalents, at the end of the year
                                                   $ 1,380,000  $ 2,083,000
                                                   ============ ============


See accompanying report of management.

The full annual report is available upon request.



Contact:
Investors/Analysts contact:
Joseph E. Winowiecki
Chief Financial Officer
Media please contact:
Stephanie Bertschy
Director of Marketing
Versus Technology, Inc.
(231) 946-5868


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