Versus Technology Announces Second Quarter Results

Marketwired

TRAVERSE CITY, MI--(Marketwire -05/29/12)- Versus Technology, Inc. (VSTI.PK) ("Versus" or the "Company") today announces significant year-to-date growth and its third consecutive profitable quarter.

Revenues for the quarter ended April 30, 2012, increased 89.2% from the same quarter of the prior year, totaling $2,480,000 compared to revenues of $1,311,000 in 2011. Revenues for the six months ended April 30, 2012, increased 87.4% to $4,618,000, compared to $2,464,000 for the six months ended April 30, 2011.

Versus also made significant gains in net income, reporting $198,000 for the second quarter of fiscal 2012 compared to a net loss of $405,000 for the same quarter of the prior year. For the six months ended April 30, 2012, the Company reported net income of $300,000, compared to a net loss of $967,000 for the six months ended April 30, 2011.

Gross profits as a percentage of revenues were 68.3% for the current year's second quarter compared to 70.8% for the same quarter of the prior year. Fiscal 2012 year-to-date gross profit as a percentage of revenues is 68.8% compared to 69.0% year-to-date in fiscal 2011.

As Versus continues to invest in its sales, marketing and technology growth strategies, operating expenses other than cost of revenues for the second quarter totaled $1,498,000 representing an increase of $163,000, or 12.2%, over the prior year total of $1,335,000. Operating expenses other than cost of revenues for the six months ended April 30, 2012, totaled $2,882,000, an increase of $259,000. This represents a 9.9% increase in operating expenses over the same period last year compared to an 87.4% increase in revenues.

Versus' quarterly results can vary significantly depending on the timing and delivery of major customer projects. Accordingly, results reported in any one quarter are not necessarily indicative of what full year results will be.

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. (VSTI.PK), 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 April 30, 2012, and October 31, 2011, and the related consolidated statements of income and cash flows for the six-month periods ended April 30, 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

May 29, 2012

 

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


-------------- --------------
30-Apr-12 31-Oct-11
-------------- --------------
Assets
Current assets
Cash and cash equivalents $ 1,604,000 $ 1,380,000
Accounts receivable 2,282,000 1,965,000
Inventories 739,000 741,000
Prepaid expenses and other current assets 138,000 211,000
-------------- --------------

Total current assets 4,763,000 4,297,000
-------------- --------------

Property and equipment
Machinery and equipment 649,000 631,000
Furniture and fixtures 99,000 99,000
Leasehold improvements 429,000 429,000
-------------- --------------

1,177,000 1,159,000
Less accumulated depreciation 756,000 696,000
-------------- --------------

Net property and equipment 421,000 463,000

Goodwill and other intangible assets 1,533,000 1,533,000

Other intangible assets, net 127,000 128,000

Other noncurrent assets 46,000 10,000
-------------- --------------

Total assets $ 6,890,000 $ 6,431,000
============== ==============

Liabilities and shareholders' equity

Current Liabilities
Accounts payable $ 639,000 $ 599,000
Accrued expenses 459,000 499,000
Deferred revenue from customer advance 348,000
payments 306,000
-------------- --------------

Total liabilities (all current) 1,446,000 1,404,000
-------------- --------------

Shareholders' equity
Common stock $0.01 par value; 150,000,000
shares authorized; 102,569,900
issued and outstanding 1,025,000 1,016,000
Additional paid-in capital 43,353,000 43,254,000
Accumulated deficit (38,934,000) (39,234,000)
-------------- --------------

Total shareholders' equity 5,444,000 5,027,000
-------------- --------------

Total liabilities and shareholders' equity $ 6,890,000 $ 6,431,000
============== ==============

See accompanying report of management.

 

VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Statements of Operations
(Unaudited)

Three months ended April 30, Six months ended April 30,
2012 2011 2012 2011
------------- ------------- ------------- ------------
Revenues $ 2,480,000 $ 1,311,000 $ 4,618,000 $ 2,464,000
------------- ------------- ------------- ------------

Operating Expenses
Cost of revenues 786,000 383,000 1,439,000 763,000
Research and
development 214,000 236,000 416,000 435,000
Sales and
marketing 980,000 884,000 1,892,000 1,789,000
General and
administrative 304,000 215,000 574,000 449,000
------------- ------------- ------------- ------------

Total Operating
Expenses 2,284,000 1,718,000 4,321,000 3,436,000
------------- ------------- ------------- ------------

Income (Loss) From
Operations 196,000 (407,000) 297,000 (972,000)
------------- ------------- ------------- ------------

Other Income
(Expense)
Interest income 2,000 2,000 3,000 5,000
------------- ------------- ------------- ------------

Net Income
(Loss) $ 198,000 $ (405,000) $ 300,000 $ (967,000)
============= ============= ============= ============

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

See accompanying report of management.

 

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

Six Months Ended April 30,
2012 2011
------------- -------------
Cash flows from Operating Activities
Net income (loss) $ 300,000 $ (967,000)
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating
activities:
Depreciation 60,000 41,000
Amortization 4,000 5,000
Non-cash equity based compensation 62,000 67,000
Changes in operating assets and liabilities:
Accounts receivable (317,000) 465,000
Inventories 2,000 (130,000)
Prepaid expenses and other current assets 73,000 (37,000)
Accounts payable 40,000 (76,000)
Accrued expenses (40,000) (80,000)
Deferred revenues 42,000 (66,000)
------------- -------------

Net cash provided by (used in) operating
activities 226,000 (778,000)
------------- -------------

Cash used in investing activities
Additions to property and equipment (18,000) (190,000)
Increase in other noncurrent assets (39,000) -
------------- -------------

Net cash used in investing activities (57,000) (190,000)
------------- -------------

Cash flows from financing activities
Issuance of common stock 55,000 -
------------- -------------

Net cash provided by financing activities 55,000 -
------------- -------------

Net Increase (Decrease) in Cash and Cash
Equivalents 224,000 (968,000)

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

Cash and Cash Equivalents, at the end of the
period $ 1,604,000 $ 1,115,000
============= =============

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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