Versus Technology Announces First Quarter Results
TRAVERSE CITY, MI -- (Marketwire) -- 03/21/11 -- Versus Technology, Inc. (PINKSHEETS: VSTI) ("Versus" or the "Company") announced revenues of $1,153,000 for the fiscal quarter ended January 31, 2011, a 35.7% decline over revenues of $1,793,000 for the same period in 2010.
As was the case in the first quarter of fiscal 2011, 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 67.0% for the quarter compared to 68.0% for the same period in 2010. Operating expenses, excluding cost of revenues, exceeded prior year by $224,000, or 20.1%, primarily due to additional sales staff hired in the fourth quarter of fiscal 2010.
Versus reported a pre-tax loss of $562,000 for the quarter, compared to pre-tax net income of $105,000 for the same period in 2010.
For additional information, please refer to the unaudited consolidated financial statements below.
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. (PINKSHEETS: 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 January 31, 2011, and October 31, 2010, and the related consolidated statements of income and cash flows for the three-month periods ended January 31, 2011 and 2010, 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. 2010 Annual Report for further details regarding the Company's financial position at October 31, 2010.
Joseph E. Winowiecki
Chief Financial Officer
March 18, 2011
VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Balance Sheets
(Unaudited)
---------------------------
31-Jan-11 31-Oct-10
------------- -------------
Assets
Current assets
Cash and cash equivalents $ 1,410,000 $ 2,083,000
Accounts receivable 1,171,000 1,467,000
Inventories 1,017,000 836,000
Prepaid expenses and other current assets 243,000 161,000
------------- -------------
Total current assets 3,841,000 4,547,000
------------- -------------
Property and equipment
Machinery and equipment 453,000 450,000
Furniture and fixtures 118,000 108,000
Leasehold improvements 429,000 429,000
------------- -------------
1,000,000 987,000
Less accumulated depreciation 725,000 707,000
------------- -------------
Net property and equipment 275,000 280,000
Goodwill 1,533,000 1,533,000
Other intangible assets, net 135,000 138,000
Other noncurrent assets 10,000 10,000
------------- -------------
Total assets $ 5,794,000 $ 6,508,000
============= =============
See accompanying report of management.
VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Balance Sheets
(Unaudited)
--------------------------
31-Jan-11 31-Oct-10
------------ ------------
Liabilities and shareholders' equity
Current Liabilities
Accounts payable $ 521,000 $ 543,000
Accrued expenses 258,000 407,000
Deferred revenue from customer advance
payments 357,000 371,000
------------ ------------
Total liabilities (all current) 1,136,000 1,321,000
------------ ------------
Shareholders' equity
Common stock $0.01 par value; 120,000,000
shares authorized; 101,608,325 issued and
outstanding 1,016,000 1,016,000
Additional paid-in capital 43,161,000 43,128,000
Accumulated deficit (39,519,000) (38,957,000)
------------ ------------
Total shareholders' equity 4,658,000 5,187,000
------------ ------------
Total liabilities and shareholders' equity $ 5,794,000 $ 6,508,000
============ ============
See accompanying report of management.
VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Statements of Income
(Unaudited)
Three Months Ended
January 31,
2011 2010
------------ -------------
Revenues $ 1,153,000 $ 1,793,000
Operating Expenses
Cost of revenues 380,000 574,000
Research and development 199,000 175,000
Sales and marketing 905,000 698,000
General and administrative 234,000 241,000
------------ -------------
Total Operating Expenses 1,718,000 1,688,000
Income From Operations (565,000) 105,000
------------ -------------
Other Income (Expense)
Interest income 3,000 2,000
Net foreign currency
transaction gain (loss) - 2,000
------------ -------------
Total Other Income (Expense) 3,000 -
------------ -------------
Net Income (Loss) $ (562,000) $ 105,000
============ =============
Basic and Diluted Net
Income Per Share $ (0.0055) $ 0.0010
============ =============
See accompanying report of management.
VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended
January 31,
2011 2010
------------ ------------
Cash flows from Operating Activities
Net (loss) income $ (562,000) $ 105,000
Adjustments to reconcile net (loss) income
to net cash used in operating activities:
Depreciation 18,000 16,000
Amortization 3,000 1,000
Non-cash equity based compensation 33,000 30,000
Changes in operating assets and liabilities:
Accounts receivable 296,000 (68,000)
Inventories (181,000) 83,000
Prepaid expenses and other current assets (82,000) 50,000
Accounts payable (22,000) (156,000)
Accrued expenses (149,000) (90,000)
Deferred revenues (14,000) (65,000)
------------ ------------
Net cash used in operating activities (660,000) (94,000)
------------ ------------
Cash flows from investing activities
Additions to property and equipment (13,000) (9,000)
Increase in other noncurrent assets - (16,000)
------------ ------------
Net cash used in investing activities (13,000) (25,000)
------------ ------------
Cash flows from financing activities
Issuance of common stock - 129,000
------------ ------------
Net cash provided by financing activities - 129,000
------------ ------------
Net (Decrease) Increase in Cash and Cash
Equivalents (673,000) 10,000
Cash and Cash Equivalents, at the beginning
of the period 2,083,000 1,301,000
------------ ------------
Cash and Cash Equivalents, at the end of
the period $ 1,410,000 $ 1,311,000
============ ============
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