TRAVERSE CITY, Mich., March 6 /PRNewswire-FirstCall/ -- Versus Technology, Inc. ("Versus" or the "Company") (OTC Pink Sheets: VSTI) announced revenues of $1,613,000 for the fiscal quarter ended January 31, 2009, a 13% increase over revenues of $1,426,000 for the same period in 2008. The growth in revenue is attributable, in part, to more than a four-fold increase in software sales and a doubling of service 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.
Gross profits as a percentage of revenues were 76% for the quarter compared to 71% for the same period in 2008. The increase in gross profit percentage is attributable to the increase in software sales and service. Operating expenses other than cost of revenues for the quarter were 74% of revenues compared to 81% of revenues for the quarter ended January 31, 2008.
Versus reported a pre-tax net income of $37,000 for the quarter, compared to a net loss of $130,000 for the same period in 2008.
For additional information, please refer to the attached unaudited consolidated financial statements.
About Versus Technology, Inc.
Versus Technology, Inc. is the leader in the development and sale of context-aware real-time location systems (RTLS) used for enterprise patient tracking, bed management and asset tracking to improve patient flow and caregiver/patient communications in hospitals, clinics and long-term care facilities. Versus also develops dual infrared and Active RFID tags and other location tracking hardware to make locating systems more precise, security systems more intelligent, nurse call systems automatic, and hospital asset tracking systems more efficient. Indoor positioning through Versus' RTLS enhances existing hospital software and patient care systems with real-time, reliable bed-level location information. The patented Versus IR and Active RFID patient and asset tracking system is exclusively endorsed by the American Hospital Association and is a key component of their Patient Flow Platform -- which includes a select group of vendors that provide proven solutions to enhance patient flow and improve patient safety. (www.versustech.com; Pink Sheets: VSTI.PK)
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, 2009, and October 31, 2008, and the related consolidated statements of operations and cash flows for the three-month periods ended January 31, 2009 and 2008, 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. 2008 Annual Report which is available at www.versustech.com/annual_reports.htm for further details regarding the Company's financial position at October 31, 2008.
Joseph E. Winowiecki Chief Financial Officer March 6, 2009 VERSUS TECHNOLOGY, INC. AND SUBSIDIARY Consolidated Balance Sheets (Unaudited) January 31, 2009 October 31, 2008 Assets Current assets Cash and cash equivalents $1,975,000 $1,709,000 Accounts receivable 1,194,000 1,359,000 Inventories 663,000 720,000 Prepaid expenses and other current assets 173,000 175,000 Total current assets 4,005,000 3,963,000 Property and equipment Machinery and equipment 404,000 403,000 Furniture and fixtures 100,000 100,000 Leasehold improvements 420,000 420,000 924,000 923,000 Less accumulated depreciation 610,000 594,000 Net property and equipment 314,000 329,000 Goodwill 1,533,000 1,533,000 Deposits 9,000 9,000 Total assets $5,861,000 $5,834,000 See accompanying report of management. VERSUS TECHNOLOGY, INC. AND SUBSIDIARY Consolidated Balance Sheets (Unaudited) January 31, 2009 October 31, 2008 Liabilities and shareholders' equity Current Liabilities Short-term borrowings $400,000 $400,000 Accounts payable 297,000 274,000 Accrued expenses 279,000 359,000 Deferred revenue from customer advance payments 277,000 256,000 Total liabilities (all current) 1,253,000 1,289,000 Shareholders' equity Common stock $0.01 par value; 120,000,000 shares authorized; 95,325,325 (92,781,325 -- 2008) issued and outstanding 953,000 953,000 Additional paid-in capital 42,711,000 42,686,000 Accumulated deficit (39,056,000) (39,094,000) Total shareholders' equity 4,608,000 4,545,000 Total liabilities and shareholders' equity $5,861,000 $5,834,000 See accompanying report of management. VERSUS TECHNOLOGY, INC. AND SUBSIDIARY Consolidated Statements of Operations (Unaudited) Three Months Ended January 31, 2009 2008 Revenues $1,613,000 $1,426,000 Operating Expenses Cost of revenues 391,000 413,000 Research and development 164,000 177,000 Sales and marketing 766,000 738,000 General and administrative 260,000 245,000 Total Operating Expenses 1,581,000 1,573,000 Income (Loss) From Operations 32,000 (147,000) Other Income (Expense) Interest income 5,000 18,000 Net foreign currency transaction losses - (1,000) Total Other Income (Expense) 5,000 17,000 Net Income (Loss) $37,000 $(130,000) Basic and Diluted Net Income Per Share $- $- See accompanying report of management. VERSUS TECHNOLOGY, INC. AND SUBSIDIARY Consolidated Statements of Cash Flows (Unaudited) Three Months Ended January 31, 2009 2008 Operating Activities Net income (loss) $37,000 $(130,000) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation 16,000 9,000 Amortization of intangibles - - Non-cash equity based compensation 26,000 26,000 Changes in operating assets and liabilities: Accounts receivable 164,000 (35,000) Inventories 57,000 9,000 Prepaid expenses and other current assets 2,000 (28,000) Accounts payable 22,000 (179,000) Accrued expenses (79,000) (52,000) Deferred revenues from customer advance payments 22,000 12,000 Net cash provided by (used in) operating activities 267,000 (368,000) Investing Activity Additions to property and equipment (1,000) (195,000) Net Increase (Decrease) in Cash and Cash Equivalents 266,000 (563,000) Cash and Cash Equivalents, at the beginning of the period 1,709,000 2,428,000 Cash and Cash Equivalents, at the end of the period $1,975,000 $1,865,000 See accompanying report of management.
|SOURCE Versus Technology, Inc.|
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