TRAVERSE CITY, Mich., Dec. 28 Versus Technology,Inc. ("Versus" or the "Company") announced revenues of $2,012,000 for thefiscal quarter ended October 31, 2007, compared to revenues of $2,177,000 forthe same period in 2006. Revenues for the year ended October 31, 2007, were$5,566,000 compared to revenues of $5,812,000 for 2006. Versus' quarterlyrevenues can vary significantly depending on the timing and delivery of majorcustomer projects. Accordingly, revenues reported in any one quarter are notnecessarily indicative of what full year results will be.
Gross profits as a percentage of revenues increased to 71% for the quarterfrom 66% for the same period in 2006. For the year, gross profits increasedto 67% compared to 64% in 2006.
The Company reported net income of $335,000 for the quarter compared tonet income of $540,000 for the same period in 2006. Net losses for the yearsended October 31, 2007 and 2006, were $208,000 and $1,692,000, respectively.The decrease in the reported net loss for the year was primarily attributableto the absence in 2007 of interest expense and accretion of debt discount thatresulted from the 2006 redemption and conversion to common stock of theCompany's Series B Debentures.
Versus generated positive cash flow from operations of $489,000 for theyear ended October 31, 2007, compared to a use of cash from operations of$585,000 for the year ended October 31, 2006.
For additional information, please refer to the attached unauditedconsolidated financial statements.
Versus Technology, Inc. (Pink Sheets: VSTI) (www.versustech.com) (Versus)is the leader in the development and sale of context-aware systems used forthe management of patient flow and medical assets and to improvecaregiver/patient communications in medical and long-term care facilities.Versus also supplies Active RFID/IR tags and readers that make locatingsystems more precise, security systems more intelligent, data collectionroutines 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 accurateregistry of essential management and business information. By monitoring theprecise location of personnel or equipment and automatically recording eventsassociated with their locations, the systems offer real-time asset and stafflocating, automatic data collection, access/egress control, and a passivesource of location data that facilitates scheduling and communicationinterfaces. Versus' proprietary locating systems are sold primarily throughan expanding network of resellers and dealers.
Safe Harbor Provision
This document may contain forward-looking statements relating to futureevents, such as the development of new products, the commencement ofproduction, or the future financial performance of the Company. Thesestatements fall within the meaning of forward-looking information as definedin the Private Securities Litigation Reform Act of 1995. These statements aresubject to a number of important risks and uncertainties that could causeactual results to differ materially including, but not limited to, economic,competitive, governmental, and technological factors affecting the Company'smarkets and market growth rates, products and their rate of commercialization,services, prices and adequacy of financing, and other factors. The Companyundertakes no obligation to update, amend, or clarify forward-lookingstatements, 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, 2007, and October 31, 2006, and the relatedconsolidated statements of operations and cash flows for the periods endedOctober 31, 2007 and 2006, have been prepared by