Versus Technology Announces Third Quarter Results

Marketwired

TRAVERSE CITY, MI--(Marketwire -08/29/12)- Versus Technology, Inc. (VSTI) ("Versus" or the "Company") announced revenues of $2,200,000 for its third fiscal quarter ended July 31, 2012, a 44.7% increase compared to revenues of $1,520,000 for the same quarter of the prior year. Revenues for the nine months ended July 31, 2012, were $6,818,000, an increase of $2,924,000, or 71.2%, compared to $3,894,000 for the nine months ended July 31, 2011.

The Company's continued growth resulted in its fourth consecutive quarter of profits reporting net income for the quarter ended July 31, 2012, of $110,000 compared to a loss of $15,000 for the quarter ended July 31, 2011. Net income for the nine months ended July 31, 2012, was $410,000 compared to a loss of $962,000 for the same period in fiscal 2011.

Gross profits as a percentage of revenues were 70.8% for the current year's third quarter compared to 71.5% for the same quarter of the prior year. Fiscal 2012 year-to-date gross profit as a percentage of revenues is 69.5% compared to 70.0% year-to-date in fiscal 2011.

Versus continues to invest in its sales, marketing and technology growth strategies. As a result, operating expenses other than cost of revenues for the third quarter totaled $1,449,000 representing an increase of $346,000, or 31.4%, over the prior year total of $1,103,000. Operating expenses other than cost of revenues for the nine months ended July 31, 2012, totaled $4,331,000, an increase of $557,000. This represents a 14.8% increase in operating expenses over the same period last year compared to a 71.2% increase in revenues.

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.

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), 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 July 31, 2012, and October 31, 2011, and the related consolidated statements of income and cash flows for the nine-month periods ended July 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
Chief Financial Officer

August 29, 2012

 

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

--------------------------
31-July-12 31-Oct-11
------------ ------------
Assets
Current assets
Cash and cash equivalents $ 1,925,000 $ 1,380,000
Accounts receivable 1,964,000 1,965,000
Inventories 819,000 741,000
Prepaid expenses and other current assets 178,000 211,000
------------ ------------

Total current assets 4,886,000 4,297,000
------------ ------------

Property and equipment
Machinery and equipment 656,000 631,000
Furniture and fixtures 99,000 99,000
Leasehold improvements 429,000 429,000
------------ ------------

1,184,000 1,159,000
Less accumulated depreciation 787,000 696,000
------------ ------------

Net property and equipment 397,000 463,000

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

Other intangible assets, net 203,000 128,000

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

Total assets $ 7,065,000 $ 6,431,000
============ ============

See accompanying report of management.

 

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

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

Current Liabilities
Accounts payable $ 569,000 $ 599,000
Accrued expenses 461,000 499,000
Deferred revenue from customer advance
payments 381,000 306,000
------------ ------------

Total liabilities (all current) 1,411,000 1,404,000
------------ ------------

Shareholders' equity
Common stock $0.01 par value; 150,000,000
shares authorized; 103,894,638 issued and
outstanding 1,037,000 1,016,000
Additional paid-in capital 43,443,000 43,245,000
Accumulated deficit (38,826,000) (39,234,000)
------------ ------------

Total shareholders' equity 5,654,000 5,027,000
------------ ------------

Total liabilities and shareholders' equity $ 7,065,000 $ 6,431,000
============ ============

See accompanying report of management.

 

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

Three months ended Nine months ended
July 31, July 31,
2012 2011 2012 2011
---------- ---------- ---------- ----------

Revenues $2,200,000 $1,520,000 $6,818,000 $3,984,000
---------- ---------- ---------- ----------

Operating Expenses
Cost of revenues 643,000 433,000 2,082,000 1,196,000
Research and development 222,000 165,000 638,000 600,000
Sales and marketing 931,000 712,000 2,823,000 2,501,000
General and administrative 296,000 226,000 870,000 673,000
---------- ---------- ---------- ----------

Total Operating Expenses 2,092,000 1,536,000 6,413,000 4,970,000
---------- ---------- ---------- ----------

Income (Loss) From
Operations 108,000 (16,000) 405,000 (986,000)
---------- ---------- ---------- ----------

Other Income (Expense)
Interest income 2,000 1,000 5,000 4,000
---------- ---------- ---------- ----------

Net Income (Loss) $ 110,000 $ (15,000) $ 410,000 $ (982,000)
========== ========== ========== ==========

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

See accompanying report of management.

 

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

Nine Months Ended July 31,
2012 2011
------------ ------------
Cash flows from Operating Activities
Net income (loss) $ 410,000 $ (982,000)
Adjustments to reconcile net income (loss) to
net cash provided by (used in) operating
activities:
Depreciation 91,000 67,000
Amortization 7,000 7,000
Non-cash equity based compensation 90,000 101,000
Changes in operating assets and liabilities:
Accounts receivable 1,000 578,000
Inventories (78,000) (54,000)
Prepaid expenses and other current assets 33,000 (22,000)
Accounts payable (30,000) (164,000)
Accrued expenses (38,000) (101,000)
Deferred revenues 75,000 (68,000)
------------ ------------

Net cash provided by (used in) operating
activities 561,000 (638,000)
------------ ------------

Cash used in investing activities
Additions to property and equipment (61,000) (191,000)
Increase in other noncurrent assets (82,000) -
------------ ------------

Net cash used in investing activities 143,000) (191,000)
------------ ------------

Cash flows from financing activities
Issuance of common stock 127,000 -
------------ ------------

Net cash provided by financing activities 127,000 -
------------ ------------

Net Increase (Decrease) in Cash and Cash
Equivalents 545,000 (829,000)

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 $ 1,925,000 $ 1,254,000
============ ============

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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