TRAVERSE CITY, Mich., Aug. 25 Versus Technology, Inc. ("Versus" or the "Company") announced revenues of $1,155,000 for its third fiscal quarter ended July 31, 2009, a 1.8% decrease compared to revenues of $1,176,000 for the same quarter of the prior year. Revenues for the nine months ended July 31, 2009, were $3,905,000, compared to $4,026,000 for the nine months ended July 31, 2008, a 3.0% decrease. 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.
Advertisement
Gross profits as a percentage of revenues were 69.4% for the current year's third quarter compared to 71.1% for the same quarter of the prior year. Operating expenses, other than cost of revenues, decreased 9.8% for the current year's third quarter compared to the same quarter of the prior year.
Advertisement
Versus reported a net loss of $360,000 for the current year's third quarter compared to a net loss of $448,000 for the same quarter of the prior year. The Company reported a net loss of $731,000 for the nine months ended July 31, 2009, compared to a net loss of $825,000 for the nine months ended July 31, 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 July 31, 2009, and October 31, 2008, and the related consolidated statements of operations and cash flows for the nine-month period ended July 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
August 25, 2009
VERSUS TECHNOLOGY, INC. AND SUBSIDIARY Consolidated Balance Sheets (Unaudited) 31-Jul-09 31-Oct-08 --------- --------- Assets Current assets Cash and cash equivalents $1,621,000 $1,709,000 Accounts receivable 543,000 1,359,000 Inventories 630,000 720,000 Prepaid expenses and other current assets 184,000 175,000 ------- ------- Total current assets 2,978,000 3,963,000 --------- --------- Property and equipment Machinery and equipment 426,000 403,000 Furniture and fixtures 100,000 100,000 Leasehold improvements 420,000 420,000 ------- ------- 946,000 923,000 Less accumulated depreciation 641,000 594,000 ------- ------- Net property and equipment 305,000 329,000 Goodwill 1,533,000 1,533,000 Deposits 9,000 9,000 ----- ----- Total assets $4,825,000 $5,834,000 ========= ========= See accompanying report of management. VERSUS TECHNOLOGY, INC. AND SUBSIDIARY Consolidated Balance Sheets (Unaudited) 31-Jul-09 31-Oct-08 --------- --------- Liabilities and shareholders' equity Current Liabilities Short-term borrowings $- $400,000 Accounts payable 297,000 274,000 Accrued expenses 262,000 359,000 Deferred revenue from customer advance payments 374,000 256,000 ------- ------- Total liabilities (all current) 933,000 1,289,000 ------- --------- Shareholders' equity Common stock $0.01 par value; 120,000,000 shares authorized; 95,325,325 and 92,781,325 issued and outstanding 953,000 953,000 Additional paid-in capital 42,764,000 42,686,000 Accumulated deficit (39,825,000) (39,094,000) ---------- ---------- Total shareholders' equity 3,892,000 4,545,000 --------- --------- Total liabilities and shareholders' equity $4,825,000 $5,834,000 ========= ========= See accompanying report of management. VERSUS TECHNOLOGY, INC. AND SUBSIDIARY Consolidated Statements of Operations (Unaudited) Three Months Ended Nine Months Ended July 31, July 31, 2009 2008 2009 2008 ---- ---- ---- ---- Revenues $1,155,000 $1,176,000 $3,905,000 $4,026,000 Operating Expenses Cost of revenues 353,000 340,000 1,150,000 1,166,000 Research and development 172,000 218,000 502,000 601,000 Sales and marketing 735,000 814,000 2,326,000 2,371,000 General and administrative 259,000 261,000 670,000 752,000 ------- ------- ------- ------- Total Operating Expenses 1,519,000 1,633,000 4,648,000 4,890,000 Loss From Operations (364,000) (457,000) (743,000) (864,000) -------- -------- -------- -------- Other Income (Expense) Interest income 4,000 9,000 12,000 40,000 Net foreign currency transaction gain (loss) - - - (1,000) ------ ------ ------ ------ Total Other Income (Expense) 4,000 9,000 12,000 39,000 ----- ----- ------ ------ Net Loss $(360,000) $(448,000) $(731,000) $(825,000) ========= ======== ========= ========= Basic and Diluted Net Loss Per Share $( - ) $( - ) $( - ) $( - ) ==== ==== ==== ==== See accompanying report of management. VERSUS TECHNOLOGY, INC. AND SUBSIDIARY Consolidated Statements of Cash Flows (Unaudited) 2009 2008 ---- ---- Operating Activities Net income (loss) $(731,000) $(825,000) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation 48,000 35,000 Non-cash equity based compensation 78,000 82,000 Changes in operating assets and liabilities: Accounts receivable 815,000 473,000 Inventories 91,000 (79,000) Prepaid expenses and other current assets (9,000) (64,000) Accounts payable 22,000 (53,000) Accrued expenses (97,000) (39,000) Deferred revenues from customer advance payments 119,000 (104,000) ------- --------- Net cash provided by (used in) operating activities 336,000 (574,000) ------- --------- Investing Activity Additions to property and equipment (24,000) (281,000) ------- --------- Financing Activities Issuance of Common Stock - 117,000 Paydown of Debt (400,000) - --------- --------- Net Increase (Decrease) in Cash and Cash Equivalents (88,000) (738,000) 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 $1,621,000 $1,690,000 ========== ========== See accompanying report of management.
SOURCE Versus Technology, Inc.
