Versus Technology Announces First Quarter Results

Marketwired

TRAVERSE CITY, MI--(Marketwire -03/09/12)- Versus Technology, Inc. (Pinksheets: VSTI.PK - News) ("Versus" or the "Company") announced record first quarter revenues of $2,138,000 for the fiscal quarter ended January 31, 2012, an 85.5% increase over revenues of $1,153,000 for the same period in 2011. Versus' quarterly revenues can vary significantly depending upon the timing of delivery of major customer projects. Accordingly, the revenues reported in any one quarter are not necessarily indicative of what full year results will be.

Gross profits as a percentage of revenues were 69.5% for the quarter compared to 67.0% for the same period in 2011. Operating expenses excluding cost of revenues totaled $1,384,000, or 64.7% of revenues, which exceeded prior year by $46,000, or 3.3%.

Versus reported a pre-tax income of $102,000 for the quarter, compared to a pre-tax loss of $562,000 for the same period in 2011.

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 January 31, 2012, and October 31, 2011, and the related consolidated statements of income and cash flows for the three-month periods ended January 31, 2012 and 2011, 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 for further details regarding the Company's financial position at October 31, 2011.

Joseph E. Winowiecki
EVP and Chief Financial Officer

March 8, 2012

 

                   VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
                         Consolidated Balance Sheets
                                 (Unaudited)


                                                 ------------- -------------
                                                   31-Jan-12     31-Oct-11
                                                 ------------- -------------
Assets
Current assets
  Cash and cash equivalents                      $   1,665,000 $   1,380,000
  Accounts receivable                                1,584,000     1,965,000
  Inventories                                          718,000       741,000
  Prepaid expenses and other current assets            179,000       211,000
                                                 ------------- -------------

Total current assets                                 4,146,000     4,297,000
                                                 ------------- -------------

Property and equipment
  Machinery and equipment                              644,000       631,000
  Furniture and fixtures                                99,000        99,000
  Leasehold improvements                               429,000       429,000
                                                 ------------- -------------

                                                     1,172,000     1,159,000
  Less accumulated depreciation                        726,000       696,000
                                                 ------------- -------------

Net property and equipment                             446,000       463,000

Goodwill                                             1,533,000     1,533,000

Other intangible assets, net                           129,000       128,000

Other noncurrent assets                                 44,000        10,000
                                                 ------------- -------------

Total assets                                     $   6,298,000 $   6,431,000
                                                 ============= =============

See accompanying report of management.

 


                   VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
                        Consolidated Balance Sheets
                                (Unaudited)

                                                 ------------  ------------
                                                   31-Jan-12     31-Oct-11
                                                 ------------  ------------
Liabilities and shareholders' equity

Current Liabilities
  Accounts payable                               $    509,000  $    599,000
  Accrued expenses                                    331,000       499,000
  Deferred revenue from customer advance
   payments                                           295,000       306,000
                                                 ------------  ------------

Total liabilities (all current)                     1,135,000     1,404,000
                                                 ------------  ------------

Shareholders' equity
  Common stock $0.01 par value; 150,000,000
   shares authorized; 101,608,325 issued and
   outstanding                                      1,016,000     1,016,000
  Additional paid-in capital                       43,279,000    43,254,000
  Accumulated deficit                             (39,132,000)  (39,234,000)
                                                 ------------  ------------

Total shareholders' equity                          5,163,000     5,027,000
                                                 ------------  ------------

Total liabilities and shareholders' equity       $  6,298,000  $  6,431,000
                                                 ============  ============

See accompanying report of management.

 


                   VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
                     Consolidated Statements of Income
                                (Unaudited)
                                                       Three Months Ended
                                                           January 31,
                                                         2012       2011
                                                     ----------- ----------

Revenues                                             $ 2,138,000 $1,153,000

Operating Expenses
  Cost of revenues                                       653,000    380,000
  Research and development                               202,000    199,000
  Sales and marketing                                    912,000    905,000
  General and administrative                             270,000    234,000
                                                     ----------- ----------

Total Operating Expenses                               2,037,000  1,718,000

Income From Operations                                   101,000   (565,000)
                                                     ----------- ----------

Interest income                                            1,000      3,000
                                                     ----------- ----------

Net Income (Loss)                                    $   102,000 $ (562,000)
                                                     =========== ==========

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

See accompanying report of management.

 


                   VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
                   Consolidated Statements of Cash Flows
                                (Unaudited)
                                                       Three Months Ended
                                                           January 31,
                                                        2012        2011
                                                     ----------  ----------
Cash flows from Operating Activities
  Net income (loss)                                  $  102,000    (562,000)
  Adjustments to reconcile net income (loss) to net
   cash used in operating activities:
    Depreciation                                         30,000      18,000
    Amortization                                          2,000       3,000
    Non-cash equity based compensation                   34,000      33,000
  Changes in operating assets and liabilities:
    Accounts receivable                                 381,000     296,000
    Inventories                                          23,000    (181,000)
    Prepaid expenses and other current assets            32,000     (82,000)
    Accounts payable                                    (90,000)    (22,000)
    Accrued expenses                                   (168,000)   (149,000)
    Deferred revenues                                   (11,000)    (14,000)
                                                     ----------  ----------

Net cash provided by (used in) operating activities     335,000    (660,000)
                                                     ----------  ----------

Cash flows from investing activities
  Additions to property and equipment                    13,000     (13,000)
  Increase in other intangible assets                    (3,000)          -
  Increase in other noncurrent assets                   (34,000)          -
                                                     ----------  ----------

Net cash used in investing activities                   (50,000)    (13,000)
                                                     ----------  ----------

Net Increase (Decrease) in Cash and Cash Equivalents    285,000    (673,000)

Cash and Cash Equivalents, at the beginningof the
 period                                               1,380,000   2,083,000
                                                     ----------  ----------

Cash and Cash Equivalents, at the end of the period  $1,665,000  $1,410,000
                                                     ==========  ==========

See accompanying report of management.

Contact:
Investors/Analysts contact:
Joseph E. Winowiecki
Chief Financial Officer

Media contact:
Stephanie Bertschy
Director of Marketing
Versus Technology, Inc.
(231) 946-5868


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