Versus Technology Announces Second Quarter Results
TRAVERSE CITY, MI -- (Marketwire) -- 05/31/11 -- Versus Technology, Inc. ("Versus" or the "Company") (PINKSHEETS: VSTI) announced revenues of $1,311,000 for its second fiscal quarter ended April 30, 2011, a 47.8% decrease compared to revenues of $2,513,000 for the same quarter of the prior year. Revenues for the six months ended April 30, 2011, were $2,464,000, compared to $4,306,000 for the six months ended April 30, 2010, a 42.8% decrease.
As was the case in the second fiscal quarter of 2010, 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 were 70.8% for the current year's second quarter compared to 76.8% for the same quarter of the prior year. Fiscal 2011 year-to-date gross profit as a percentage of revenues is 69.0% compared to 73.1% year-to-date in fiscal 2010.
As a result of lower revenues year-to-date, management implemented cost-cutting measures resulting in operating expenses, other than cost of revenues, which were 17.9% below prior year in the second quarter and 2.5% below prior fiscal year-to-date.
Versus reported a net loss of $405,000 for the second quarter of fiscal 2011 compared to net income of $312,000 for the same quarter of the prior year. The Company reported net loss of $967,000 for the six months ended April 30, 2011, compared to net income of $416,000 for the six months ended April 30, 2010.
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. (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 April 30, 2011, and October 31, 2010, and the related consolidated statements of income and cash flows for the six-month periods ended April 30, 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
May 31, 2011
VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Balance Sheet
(Unaudited)
30-Apr-11 31-Oct-10
----------- -----------
Assets
Current assets
Cash and cash equivalents $ 1,115,000 $ 2,083,000
Accounts receivable 1,002,000 1,467,000
Inventories 966,000 836,000
Prepaid expenses and other current assets 198,000 161,000
----------- -----------
Total current assets 3,281,000 4,547,000
----------- -----------
Property and equipment
Machinery and equipment 606,000 450,000
Furniture and fixtures 135,000 108,000
Leasehold improvements 429,000 429,000
----------- -----------
1,170,000 987,000
Less accumulated depreciation 742,000 707,000
----------- -----------
Net property and equipment 428,000 280,000
Goodwill and other intangible assets 1,533,000 1,533,000
Other intangible assets, net 134,000 138,000
Other noncurrent assets 10,000 10,000
----------- -----------
Total assets $ 5,386,000 $ 6,508,000
=========== ===========
See accompanying report of management.
VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Balance Sheet
(Unaudited)
30-Apr-11 31-Oct-10
----------- -----------
Liabilities and shareholders' equity
Current Liabilities
Accounts payable $ 467,000 $ 543,000
Accrued expenses 327,000 407,000
Deferred revenue from customer advance
payments 305,000 371,000
----------- -----------
Total liabilities (all current) 1,099,000 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 43,195,000 43,128,000
Accumulated deficit (39,924,000) (38,957,000)
----------- -----------
Total shareholders' equity 4,287,000 5,187,000
----------- -----------
Total liabilities and shareholders' equity $ 5,386,000 $ 6,508,000
=========== ===========
See accompanying report of management.
VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Statements of Operations
(Unaudited)
Three months ended Six months ended
April 30, April 30,
2011 2010 2011 2010
------------ ------------ ------------ ------------
Revenues $ 1,311,000 $ 2,513,000 $ 2,464,000 $ 4,306,000
------------ ------------ ------------ ------------
Operating Expenses
Cost of revenues 383,000 583,000 763,000 1,157,000
Research and
development 236,000 216,000 435,000 391,000
Sales and
marketing 884,000 812,000 1,789,000 1,500,000
General and
administrative 215,000 598,000 449,000 850,000
------------ ------------ ------------ ------------
Total Operating
Expenses 1,718,000 2,209,000 3,436,000 3,898,000
------------ ------------ ------------ ------------
Income (Loss) From
Operations (407,000) (304,000) (972,000) (408,000)
------------ ------------ ------------ ------------
Other Income
(Expense)
Interest income 2,000 2,000 5,000 4,000
Net foreign
currency
transaction
gain (loss) - 6,000 - 4,000
------------ ------------ ------------ ------------
Total Other Income,
Net 2,000 8,000 5,000 8,000
------------ ------------ ------------ ------------
Net Income (Loss) $ (405,000) $ 312,000 $ (967,000) $ 416,000
============ ============ ============ ============
Basic and Diluted
Net Income (Loss)
Per Share $ - $ - $ - $ -
============ ============ ============ ============
See accompanying report of management.
VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended
April 30,
2011 2010
----------- -----------
Cash flows from Operating Activities
Net (loss) income $ (967,000) $ 416,000
Adjustments to reconcile net (loss) income to
net cash provided by (used in) operating
activities:
Depreciation 41,000 33,000
Amortization 5,000 2,000
Non-cash equity based compensation 67,000 84,000
Changes in operating assets and liabilities:
Accounts receivable 465,000 (208,000)
Inventories (130,000) 120,000
Prepaid expenses and other current assets (37,000) 51,000
Accounts payable (76,000) 201,000
Accrued expenses (80,000) 73,000
Deferred revenues (66,000) (99,000)
----------- -----------
Net cash provided by (used in) operating
activities (778,000) 673,000
----------- -----------
Cash used in investing activities
Additions to property and equipment (190,000) (34,000)
Increase in other noncurrent assets - (16,000)
----------- -----------
Net cash used in investing activities (190,000) (50,000)
----------- -----------
Cash flows from financing activities
Issuance of common stock - 274,000
----------- -----------
Net cash (used in) provided by financing
activities - 274,000
----------- -----------
Net Increase (Decrease) in Cash and Cash
Equivalents (968,000) 897,000
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 $ 1,115,000 $ 2,198,000
=========== ===========
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