Versatile Systems Inc.
TSX VENTURE : VV

Versatile Systems Inc.

May 24, 2006 04:01 ET

Versatile Launches Private Label Credit Solution for Retailers

SEATTLE, WASHINGTON--(CCNMatthews - May 24, 2006) -

Web-based applications deliver measurable benefits

Versatile Systems Inc. (TSX VENTURE:VV) today announced the launch of the Mobiquity Self Service Kiosk System (Mobiquity Kiosk™) which enables retailers to automatically settle private label credit purchases at the time of order placement. The Mobiquity Kiosk™ is designed for retailers who sell big ticket items by commissioned sales staff in a retail showroom environment. The solution delivers improved sales performance at the showroom level while providing valuable customer information and business metrics.

Versatile has been certified by, and has partnered with several of the leading financial institutions who provide private label credit in the United States. In conjunction with these financial institutions, Versatile has been conducting several pilot projects at various customer sites throughout the United States and has recently deployed its one hundredth Mobiquity Kiosk™. Versatile's price per Mobiquity Kiosk™ ranges from U.S. $8,500 to U.S. $9,500. Versatile also receives ancillary fees for training, support and installation.

The Mobiquity Kiosk™ changes the way that retailers interact with their customer base. Through the use of Versatile's proprietary kiosk hardware and software, the retailer may significantly increase sales and profitability by changing the paradigm for private label credit usage. Typically, a consumer goes through the purchase selection process then proceeds to checkout for payment. During the selection process, spending is typically based on known payment resources, usually cash and available bank card reserve. At checkout, the retailer offers an additional payment resource, private label credit, which does not impact the consumers other resources. If accepted, this new resource does not impact overall spending as the selection process has already been completed.

In the Mobiquity Kiosk™ model, the consumer is greeted at the door and directed to a safe, easy and secure kiosk location to apply for private label credit. If accepted, the consumer now has a new payment resource available before the selection process starts. Versatile's customers are seeing increases in average ticket sales up to 30%. In addition, private label banks typically provide a rebate based on usage of their credit facility as opposed to the payment required to utilize traditional bank card facilities. As Versatile's target retailers have annual revenues between $100 million and $1 billion, this impact can be very significant to both top and bottom lines.

The Mobiquity Kiosk™ solution was first implemented at Levin Furniture, a retailer with more than 10 locations in Pennsylvania and Ohio. "By encouraging customers to apply for credit before they begin shopping, the kiosk-based system has contributed to a 30% increase in our average sales ticket since the system was installed," said Basil Hawanchak of Levin Furniture. "It also has enabled us to further reduce our accounting costs and to more proactively communicate with our customer base."

The Mobiquity Transaction Engine™ infrastructure ensures that all data is received and routed securely from the retailer's host system while processing all transactions. Utilizing Web-enabled technology, Mobiquity Kiosk's web-based software solutions allow retailers to extend the capability of their legacy software applications. Retailers can track the information crucial to determining buying habits thereby creating greater opportunity for customer control and higher levels of customer satisfaction. The Mobiquity Kiosk™ system offers the security critical for a successful deployment.

The Mobiquity Kiosk™ provides the retailer with the ability to automatically settle private label purchases at the time of order placement. The new process enables the complete status of the order to be available on the customer's statement. The customer is reminded of any outstanding items or group discounts they were given at the time of the order, thus reducing consumer inquiries for both the retailer and the private label bank. It also includes a web-based Point-of-Sale screen to authorize funds that enable the customer to pick the best possible financing terms available to them, including handling all the complexities of multi-tender transactions.

"Versatile is targeting big ticket retailers with this product who are generating in the range of $100 million to $1 billion in annual revenue, have typically between 10 and 1000 locations, and who use or need private label credit", said John Hardy, Chairman and CEO of Versatile. "Versatile has identified more than 200 companies that meet this requirement. Using an average selling price of US $8,500 per kiosk, this implies a market opportunity of US $250 million, which we will pursue with our financial institution partners."

About Versatile

Versatile provides business solutions that enable companies to improve sales, marketing and distribution of their products. By using Versatile's technology, companies in the consumer packaged goods, and transportation industries have gained the benefits of supply chain visibility, shortened fulfillment cycles and improved customer satisfaction. Versatile also provides information technology services for the implementation, maintenance and security of mission-critical computing environments. Versatile has the ability to architect solutions involving both proprietary and third party components. For more information go to www.versatile.com.

Forward-Looking Statements

This document may contain forward-looking statements relating to Versatile's operations or to the environment in which it operates, which are based on Versatile's operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict or are beyond Versatile's control. A number of important factors including those set forth in other public filings could cause actual outcomes and results to differ materially from those expressed in these forward looking statements. Consequently readers should not place any undue reliance on such forward-looking statements. In addition, these forward looking statements relate to the date on which they are made. Versatile disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

All funds are stated in U.S. dollars.

(C) 2006 Versatile Systems Inc. All rights reserved.


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Versatile Systems Inc.
    John Hardy
    Chairman and CEO
    1-800-262-1633
    or
    Versatile Systems Inc.
    Fraser Atkinson
    CFO
    1-800-262-1633
    www.versatile.com