Versus Technology Announces Third Quarter Results
FOR: VERSUS TECHNOLOGY, INC.
AUG 29, 2012 - 16:03 ET
TRAVERSE CITY, MI--(Marketwire - August 29, 2012) - Versus Technology, Inc. (
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. (
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 July 31, |
Nine months ended 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.
Investors/Analysts contact:
Joseph E. Winowiecki
Chief Financial Officer
Media contact:
Stephanie Bertschy
Director of Marketing
Versus Technology, Inc.
(231) 946-5868
