TRAVERSE CITY, Mich., Dec. 29 /PRNewswire-FirstCall/ -- Versus Technology, Inc. ("Versus" or the "Company") announced revenues of $5,774,000 for the fiscal year ended Oct. 31, 2008, compared to revenues of $5,566,000 for fiscal year 2007. Revenues for the fiscal quarter ended Oct. 31, 2008, were $1,748,000 compared to revenues of $2,012,000 for the same period in 2007. Versus' quarterly revenues can vary significantly depending on the timing and delivery of major customer projects. Accordingly, revenues reported in any one quarter are not necessarily indicative of what full year results will be.
Gross profits as a percentage of revenues increased to 71% for the year compared to 68% for 2007. For the quarter, gross profits were 70% compared to 71% for the same period in 2007.
The Company reported a net loss of $808,000 for the fiscal year ended Oct. 31, 2008, compared to a net loss of $208,000 for fiscal 2007. The increase in the reported net loss for the year was primarily attributable to a 26% increase in research and development and sales and marketing expenses. Net income for the fiscal quarter ended Oct. 31, 2008, was $15,000 compared to net income of $335,000 for the same period in 2007.
For additional information, please refer to the attached unaudited consolidated financial statements.
About Versus Technology, Inc.
Versus Technology, Inc. (Pink Sheets: VSTI.PK) (http://www.versustech.com) (Versus) is the leader in the development and sale of context-aware systems used for the management of patient flow and medical assets and to improve caregiver/patient communications in medical and long-term care facilities. Versus also supplies Active RFID/IR tags and readers that make locating systems more precise, security systems more intelligent, data collection routines automatic, and asset management systems more efficient. Versus' systems, which are currently installed in hospitals, corporate facilities, government facilities, and other complexes, permit the automatic and accurate registry of essential management and business information. By monitoring the precise location of personnel or equipment and automatically recording events associated with their locations, the systems offer real-time asset and staff locating, automatic data collection, access/egress control, and a passive source of location data that facilitates scheduling and communication interfaces. Versus' proprietary locating systems are sold primarily through an expanding network of resellers and dealers.
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 October 31, 2008, and October 31, 2007, and the related consolidated statements of operations and cash flows for the periods ended October 31, 2008 and 2007, have been prepared by management.
Management has elected to omit substantially all of the footnote disclosures required by accounting principles generally accepted in the United States. If the omitted 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. 2007 Annual Report which is available at http://www.versustech.com/annual_reports.htm for further details regarding the 2007 results. The full annual report for 2008 will be published at http://www.versustech.com when available.
Richard W. Ebersole Chief Financial Officer December 29, 2008 VERSUS TECHNOLOGY, INC. AND SUBSIDIARY Consolidated Balance Sheets October 31, 2008 2007 Assets Current assets Cash and cash equivalents $1,709,000 $2,428,000 Accounts receivable, including $123,000 unbilled ($91,000 - 2007) 1,359,000 1,134,000 Inventories 720,000 824,000 Prepaid expenses and other current assets 175,000 127,000 Total current assets 3,963,000 4,513,000 Property and equipment Machinery and equipment 403,000 374,000 Furniture and fixtures 100,000 92,000 Leasehold improvements 420,000 160,000 Construction in progress - 14,000 923,000 640,000 Less accumulated depreciation 594,000 542,000 Net property and equipment 329,000 98,000 Goodwill 1,533,000 1,533,000 Deposits 9,000 9,000 Total assets $ 5,834,000 $ 6,153,000 See accompanying report of management. The full annual report will be published athttp://www.versustech.com when available. VERSUS TECHNOLOGY, INC. AND SUBSIDIARY Consolidated Balance Sheets October 31, 2008 2007 Liabilities and shareholders' equity Current Liabilities Short-term borrowings $400,000 $ - Accounts payable 274,000 523,000 Accrued expenses 359,000 263,000 Deferred revenue from customer advance payments 256,000 242,000 Total liabilities (all current) 1,289,000 1,028,000 Shareholders' equity Common stock $0.01 par value; 120,000,000 shares authorized; 95,325,325 (92,781,325 - 2007) issued and outstanding 953,000 928,000 Additional paid-in capital 42,686,000 42,483,000 Accumulated deficit (39,094,000) (38,286,000) Total shareholders' equity 4,545,000 5,125,000 Total liabilities and shareholders' equity $5,834,000 $6,153,000 See accompanying report of management. The full annual report will be published athttp://www.versustech.com when available. VERSUS TECHNOLOGY, INC. AND SUBSIDIARY Consolidated Statements of Operations Three months ended October 31, Year ended October 31, 2008 2007 2008 2007 Revenues $1,748,000 $2,012,000 $5,774,000 $5,566,000 Operating Expenses Cost of revenues 516,000 581,000 1,684,000 1,810,000 Research and development 193,000 154,000 793,000 610,000 Sales and marketing 768,000 775,000 3,136,000 2,508,000 General and administrative 261,000 183,000 1,014,000 907,000 Total Operating Expenses 1,738,000 1,693,000 6,627,000 5,835,000 Income (Loss) From Operations 10,000 319,000 (853,000) (269,000) Other Income (Expense) Interest income 6,000 16,000 46,000 61,000 Interest expense (1,000) - (1,000) - Total Other Income, Net 5,000 16,000 45,000 61,000 Net Income (Loss) $15,000 $335,000 $(808,000) $(208,000) Basic and Diluted Net Income (Loss) Per Share $ - $ - $(0.01) $(-) See accompanying report of management. The full annual report will be published athttp://www.versustech.com when available. VERSUS TECHNOLOGY, INC. AND SUBSIDIARY Consolidated Statements of Cash Flows Year ended October 31, 2008 2007 Cash flows from operating activities Net loss $(808,000) $(208,000) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization 52,000 74,000 Bad debts (recoveries) 4,000 (13,000) Share-based compensation 111,000 110,000 Changes in operating assets and liabilities: Accounts receivable (229,000) 662,000 Inventories 104,000 (248,000) Prepaid expenses and other current assets (48,000) (65,000) Accounts payable (249,000) 45,000 Accrued expenses 96,000 1,000 Deferred revenues from customer advance payments 14,000 131,000 Net cash (used in) provided by operating activities (953,000) 489,000 Cash used in investing activities Additions to property and equipment (283,000) (65,000) Cash flows from financing activities Issuance of common stock 117,000 603,000 Increase in short-term borrowings 400,000 - Net cash provided by financing activities 517,000 603,000 Net (decrease) increase in cash and cash equivalents (719,000) 1,027,000 Cash and cash equivalents, at the beginning of the period 2,428,000 1,401,000 Cash and cash Equivalents, at the end of the period $1,709,000 $2,428,000 See accompanying report of management. The full annual report will be published athttp://www.versustech.com when available.
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