Versatile Reports Second Quarter Results

Marketwired

VANCOUVER, CANADA--(Marketwire - Feb 5, 2013) - Versatile Systems Inc. (TSX VENTURE:VV) announces its results for the second quarter of the 2013 fiscal year.

Revenue for the three months ended December 31, 2012 was $9,550,579, generating a gross profit of $1,842,628 or 19.3% of sales compared to $9,147,552, generating a gross profit of $1,951,833 or 21.3% of sales for the same quarter last year. The Net Loss for the quarter amounted to $494,389 ($0.00 per share) compared to the Net Loss of $263,695 ($0.00 per share) for the same period last year. 

Highlights for the quarter included:

  • Revenue for the three months ended December 31, 2012 was $9,550,579 compared to $9,147,552 for the same quarter last year, an increase of $403,027;

  • The gross profit for the three months ended December 31, 2012 was $1,842,628 or 19.3% of sales compared to $1,951,833 or 21.3% of sales for the same quarter last year;

  • The research and development expense for the quarter amounted to $322,849 compared to $275,847 for the same quarter last year. The Company incurred $105,277 for research and development activities related to an iPad application for Mobiquity Route™ and $176,317 primarily related to Smart Sign TM; and

  • Deferred revenue at December 31, 2012 was $5,969,441 (of which $4,924,276 is expected to be recognized in the next four quarters) compared to $6,712,216 at June 30, 2012, a decrease of $742,775.

Revenue for the six months ended December 31, 2012 was $17,466,427 generating a gross profit of $3,675,407 or 21.0% of sales compared to $18,186,764 generating a gross profit of $3,742,211 or 20.6% of sales for the same period last year. The Net Loss for the period amounted to $898,683 ($0.01 per share) compared to $677,522 ($0.00 per share) for the same period last year.

About Versatile

Versatile provides business solutions that enable companies to improve sales, marketing and distribution of their products. Versatile also provides information technology services for the implementation, maintenance and security of mission-critical computer environments. Versatile has the ability to architect solutions involving both proprietary and third party components. For more information: www.versatile.com.

Forward-Looking Statements

This document may contain forward-looking statements relating to Versatile''s operations or to the environment in which it operates, which are based on Versatile''s operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict or are beyond Versatile''s control. A number of important factors including those set forth in other public filings could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place any undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. Versatile disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

All amounts are expressed in U.S. dollars unless otherwise stated. © 2013 Versatile Systems Inc. All rights reserved.

Versatile Systems Inc.
Condensed Consolidated Statements of Financial Position
(Unaudited - Prepared by Management)
 
Expressed in U.S. dollars December 31, 2012    June 30, 2012  
    (unaudited)        
ASSETS            
Current Assets            
  Cash and cash equivalents $ 70,780   $ 434,725  
  Accounts receivable   5,585,111     5,994,377  
  Prepaid expenses   4,443,223     4,152,994  
  Inventory   2,272,065     2,347,110  
    12,371,179     12,929,206  
Long-term accounts receivable   88,673     181,366  
Long-term prepaid expenses   938,983     1,278,432  
Investment in Equus   2,026,574     2,105,473  
Capital Assets   200,905     251,591  
Intangible assets   159,812     167,206  
Deferred income tax assets   880,407     880,407  
Goodwill   2,718,970     2,718,970  
  $ 19,385,503   $ 20,512,651  
LIABILITIES            
Current Liabilities            
  Line of credit $ 2,967,124   $ 1,988,675  
  Accounts payable and accrued liabilities   5,076,473     5,544,888  
  Current portion of deferred revenue   4,924,276     5,292,359  
    12,967,873     12,825,922  
Deferred Revenue   1,045,165     1,419,857  
    14,013,038     14,245,779  
SHAREHOLDERS'' EQUITY            
  Share Capital   54,433,709     54,433,709  
  Equity Reserve   4,633,592     4,629,219  
  Deficit   (53,357,117 )   (52,458,434 )
  Accumulated other comprehensive loss   (337,719 )   (337,622 )
    5,372,465     6,266,872  
  $ 19,385,503   $ 20,512,651  
 
 
Versatile Systems Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited - Prepared by Management)
 
Expressed in U.S. dollars Three months ended December 31     Six months ended December 31  
    2012     2011     2012     2011  
          (Restated)           (Restated)  
   
SALES $ 9,550,579   $ 9,147,552   $ 17,466,427   $ 18,186,764  
COST OF SALES   7,707,951     7,195,719     13,791,020     14,444,553  
    1,842,628     1,951,833     3,675,407     3,742,211  
EXPENSES                        
  Selling and marketing   1,085,949     1,098,187     2,148,492     2,118,118  
  General and administrative   845,714     827,851     1,654,730     1,788,978  
  Research and development   322,849     275,847     559,095     519,957  
  Amortization of capital assets   36,753     38,092     77,001     86,511  
  Share-based compensation   2,187     4,279     4,373     8,749  
  Foreign exchange loss (gain)   (2,588 )   21,287     9,546     22,111  
    2,290,864     2,265,543     4,453,237     4,544,424  
LOSS FROM OPERATIONS   (448,236 )   (313,710 )   (777,830 )   (802,213 )
  Interest expense   (19,899 )   (7,594 )   (38,814 )   (12,817 )
  Equity loss from Investment in Equus   (25,259 )   (25,534 )   (78,899 )   (79,450 )
  Loss on sale of capital assets and investments   -     (1,534 )   -     (1,534 )
                         
LOSS BEFORE INCOME TAXES   (493,394 )   (348,372 )   (895,543 )   (896,014 )
Current income tax expense   (995 )   (995 )   (3,140 )   (2,340 )
Deferred income tax recovery   -     85,672     -     220,832  
                         
NET LOSS $ (494,389 ) $ (263,695 ) $ (898,683 ) $ (677,522 )
   
Other comprehensive loss                        
  Foreign exchange translation   (1,015 )   (6,670 )   (97 )   (6,670 )
Total comprehensive loss $ (495,404 ) $ (270,365 ) $ (898,780 ) $ (684,192 )
   
LOSS PER SHARE (basic and diluted)   ($0.00 )   ($0.00 )   ($0.01 )   ($0.00 )
 
 
Versatile Systems Inc.
Condensed Consolidated Statements of Changes in Shareholders'' Equity
(Unaudited - Prepared by Management)
 
Expressed in U.S. dollars   Share Capital   Warrant Reserve   Equity Reserve   Deficit    Accumulated other comprehensive loss     Total  
                (Restated)     (Restated)     (Restated)  
   
Balance, June 30, 2011 $ 54,433,709 $ 42,000 $ 4,578,470 $ (37,741,276 ) $ (326,261 ) $ 20,986,642  
Net loss   -   -   -   (677,522 )   -     (677,522 )
Foreign exchange on the translation of VMS-UK   -   -   -   -     (6,670 )   (6,670 )
Expiration of warrants   -       -   -     -     -  
Share-based compensation expense   -   -   8,749   -     -     8,749  
Balance, December 31, 2011   54,433,709   42,000   4,587,219   (38,418,798 )   (332,931 )   20,311,199  
   
   
Balance, June 30, 2012   54,433,709   -   4,629,219   (52,458,434 )   (337,622 )   6,266,872  
Net loss   -   -   -   (898,683 )   -     (898,683 )
Foreign exchange on the translation of VMS-UK   -   -   -   -     (97 )   (97 )
Share-based compensation expense   -   -   4,373   -     -     4,373  
Balance, December 31, 2012 $ 54,433,709 $ - $ 4,633,592 $ (53,357,117 ) $ (337,719 ) $ 5,372,465  
 
 
Versatile Systems Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited - Prepared by Management)
 
Expressed in U.S. dollars   Three months ended December 31     Six months ended December 31  
    2012     2011     2012     2011  
          (Restated)           (Restated)  
   
OPERATING ACTIVITIES                        
  Net loss $ (494,389 ) $ (263,695 ) $ (898,683 ) $ (677,522 )
  Items not involving cash                        
    Amortization of capital assets   36,753     42,491     77,001     95,000  
    Share-based compensation   2,187     4,279     4,373     8,749  
    Loss on sale of capital assets and investments   -     1,534     -     1,534  
    Equity loss from Investment in Equus   25,259     25,534     78,899     79,450  
    Unrealized foreign exchange loss (gain)   1,092     (16,712 )   1,092     (16,712 )
    Deferred income taxes   -     (85,672 )   -     (220,832 )
Cash flow used in operations before other items   (429,098 )   (292,241 )   (737,318 )   (730,333 )
    Net change in non-cash working capital   (462,265 )   (194,553 )   (584,966 )   139,438  
    (891,363 )   (486,794 )   (1,322,284 )   (590,895 )
INVESTING ACTIVITIES                        
  Short term investments   -     (14,776 )   -     (14,776 )
  Proceeds from disposition of capital assets   -     19,089     -     20,430  
  Intangible assets - contract cost additions   (59,574 )   (69,639 )   (137,979 )   (172,786 )
  Intangible assets - contract cost recognized   60,797     62,200     145,373     143,445  
  Purchase of capital assets   (7,938 )   (102,095 )   (27,504 )   (109,304 )
    (6,715 )   (105,221 )   (20,110 )   (132,991 )
FINANCING ACTIVITIES                        
  Proceeds from (Repayment of) line of credit   703,174     160,144     978,449     (122,642 )
    703,174     160,144     978,449     (122,642 )
   
Decrease in cash and cash equivalents   (194,904 )   (431,871 )   (363,945 )   (846,528 )
   
Cash and cash equivalents, beginning of period   265,684     563,999     434,725     978,656  
   
Cash and cash equivalents, end of period $ 70,780   $ 132,128   $ 70,780   $ 132,128  
Contact:
Versatile Systems Inc.
John Hardy
CEO
1-800-262-1633
Versatile Systems Inc.
Fraser Atkinson
CFO
1-800-262-1633
Versatile Systems Inc.
International: 001-206-979-6760
www.versatile.com

Rates

View Comments (0)