SOURCE: Versus Technology, Inc

Versus Technology, Inc

March 09, 2012 10:04 ET

Versus Technology Announces First Quarter Results

TRAVERSE CITY, MI--(Marketwire - Mar 9, 2012) - Versus Technology, Inc. (PINKSHEETS: VSTI) ("Versus" or the "Company") announced record first quarter revenues of $2,138,000 for the fiscal quarter ended January 31, 2012, an 85.5% increase over revenues of $1,153,000 for the same period in 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 69.5% for the quarter compared to 67.0% for the same period in 2011. Operating expenses excluding cost of revenues totaled $1,384,000, or 64.7% of revenues, which exceeded prior year by $46,000, or 3.3%.

Versus reported a pre-tax income of $102,000 for the quarter, compared to a pre-tax loss of $562,000 for the same period in 2011.

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 January 31, 2012, and October 31, 2011, and the related consolidated statements of income and cash flows for the three-month periods ended January 31, 2012 and 2011, 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. 2011 Annual Report for further details regarding the Company's financial position at October 31, 2011.

Joseph E. Winowiecki
EVP and Chief Financial Officer

March 8, 2012

VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Balance Sheets
(Unaudited)
31-Jan-12 31-Oct-11
Assets
Current assets
Cash and cash equivalents $ 1,665,000 $ 1,380,000
Accounts receivable 1,584,000 1,965,000
Inventories 718,000 741,000
Prepaid expenses and other current assets 179,000 211,000
Total current assets 4,146,000 4,297,000
Property and equipment
Machinery and equipment 644,000 631,000
Furniture and fixtures 99,000 99,000
Leasehold improvements 429,000 429,000
1,172,000 1,159,000
Less accumulated depreciation 726,000 696,000
Net property and equipment 446,000 463,000
Goodwill 1,533,000 1,533,000
Other intangible assets, net 129,000 128,000
Other noncurrent assets 44,000 10,000
Total assets $ 6,298,000 $ 6,431,000

See accompanying report of management.

VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Balance Sheets
(Unaudited)
31-Jan-12 31-Oct-11
Liabilities and shareholders' equity
Current Liabilities
Accounts payable $ 509,000 $ 599,000
Accrued expenses 331,000 499,000
Deferred revenue from customer advance payments
295,000

306,000
Total liabilities (all current) 1,135,000 1,404,000
Shareholders' equity
Common stock $0.01 par value; 150,000,000 shares authorized; 101,608,325 issued and outstanding 1,016,000 1,016,000
Additional paid-in capital 43,279,000 43,254,000
Accumulated deficit (39,132,000 ) (39,234,000 )
Total shareholders' equity 5,163,000 5,027,000
Total liabilities and shareholders' equity $ 6,298,000 $ 6,431,000

See accompanying report of management.

VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Statements of Income
(Unaudited)
Three Months Ended January 31,
2012 2011
Revenues $ 2,138,000 $ 1,153,000
Operating Expenses
Cost of revenues 653,000 380,000
Research and development 202,000 199,000
Sales and marketing 912,000 905,000
General and administrative 270,000 234,000
Total Operating Expenses 2,037,000 1,718,000
Income From Operations 101,000 (565,000 )
Interest income 1,000 3,000
Net Income (Loss) $ 102,000 $ (562,000 )
Basic and Diluted Net
Income Per Share $ - $ (0.01 )

See accompanying report of management.

VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended January 31,
2012 2011
Cash flows from Operating Activities
Net income (loss) $ 102,000 (562,000 )
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation 30,000 18,000
Amortization 2,000 3,000
Non-cash equity based compensation 34,000 33,000
Changes in operating assets and liabilities:
Accounts receivable 381,000 296,000
Inventories 23,000 (181,000 )
Prepaid expenses and other current assets 32,000 (82,000 )
Accounts payable (90,000 ) (22,000 )
Accrued expenses (168,000 ) (149,000 )
Deferred revenues (11,000 ) (14,000 )
Net cash provided by (used in) operating activities 335,000 (660,000 )
Cash flows from investing activities
Additions to property and equipment 13,000 (13,000 )
Increase in other intangible assets (3,000 ) -
Increase in other noncurrent assets (34,000 ) -
Net cash used in investing activities (50,000 ) (13,000 )
Net Increase (Decrease) in Cash and Cash Equivalents 285,000 (673,000 )
Cash and Cash Equivalents, at the beginningof the period 1,380,000 2,083,000
Cash and Cash Equivalents, at the end of the period $ 1,665,000 $ 1,410,000

See accompanying report of management.

Contact Information

  • Investors/Analysts contact:
    Joseph E. Winowiecki
    Chief Financial Officer


    Media contact:
    Stephanie Bertschy
    Director of Marketing
    Versus Technology, Inc.
    (231) 946-5868