SOURCE: VERSUS TECHNOLOGY, INC.

Versus Technology, Inc.

December 28, 2009 15:18 ET

Versus Technology Announces Fiscal Year Results

TRAVERSE CITY, MI--(Marketwire - December 28, 2009) - Versus Technology, Inc. ("Versus" or the "Company") (PINKSHEETS: VSTI) announced revenues of $5,574,000 for the fiscal year ended October 31, 2009, compared to revenues of $5,774,000 for fiscal year 2008. Revenues for the fiscal quarter ended October 31, 2009, were $1,669,000 compared to revenues of $1,748,000 for the same period in 2008. 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.

Despite the decline in revenues, careful management of operating expenses resulted in a reduced loss of $538,000 for the fiscal year ended October 31, 2009, compared to a net loss of $808,000 for fiscal 2008. Operating expenses for fiscal 2009 totaled $4,468,000, a 10% decline from the prior year.

Net income for the fiscal quarter ended October 31, 2009, was $192,000 compared to net income of $15,000 for the same period in 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) (PINKSHEETS: VSTI)

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 October 31, 2009, and October 31, 2008, and the related consolidated statements of operations and cash flows for the periods ended October 31, 2009 and 2008, have been prepared by management.

Management has elected to omit substantially all of the footnote disclosures required by accounting principles generally accepted in the United States. If the omitted 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 2008 results. The full annual report for 2009 will be published at www.versustech.com when available.

                                                   Joseph E. Winowiecki
                                                   Chief Financial Officer
December 28, 2009


                  VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
                        Consolidated Balance Sheets

                                                          October 31,
                                                    -----------------------
                                                       2009        2008
                                                    ----------- -----------
Assets

Current assets
  Cash and cash equivalents                         $ 1,301,000 $ 1,709,000
  Accounts receivable, including $136,000
   unbilled ($123,000 in 2008)                        1,322,000   1,359,000
  Inventories, net                                      669,000     720,000
  Prepaid expenses and other current assets             176,000     175,000
                                                    ----------- -----------

Total current assets                                  3,468,000   3,963,000
                                                    ----------- -----------

Property and equipment
  Machinery and equipment                               429,000     403,000
  Furniture and fixtures                                100,000     100,000
  Leasehold improvements                                421,000     420,000
                                                    ----------- -----------

                                                        950,000     923,000
  Less accumulated depreciation                         657,000     594,000
                                                    ----------- -----------

Net property and equipment                              293,000     329,000

Goodwill                                              1,533,000   1,533,000

Other noncurrent assets                                  57,000       9,000
                                                    ----------- -----------

Total assets                                        $ 5,351,000 $ 5,834,000
                                                    =========== ===========


See accompanying report of management.

The full annual report will be published at www.versustech.com when
available.





                  VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
                        Consolidated Balance Sheets

                                                        October 31,
                                                  ------------------------
                                                      2009         2008
                                                  -----------  -----------
Liabilities and shareholders' equity

Current liabilities
  Short-term borrowings                           $         -  $   400,000
  Accounts payable                                    455,000      274,000
  Accrued expenses                                    366,000      359,000
  Deferred revenue from customer advance
   Payments                                           409,000      256,000
                                                  -----------  -----------

Total liabilities (all current)                     1,230,000    1,289,000
                                                  -----------  -----------

Commitments and contingencies
  (Notes 4 and 6)

Shareholders’ equity
  Common stock $0.01 par value; 120,000,000
   shares authorized; 95,325,325 issued and
   outstanding                                        953,000      953,000
  Additional paid-in capital                       42,800,000   42,686,000
  Accumulated deficit                             (39,632,000) (39,094,000)
                                                  -----------  -----------

Total shareholders’ equity                          4,121,000    4,545,000
                                                  -----------  -----------

Total liabilities and shareholders’ equity        $ 5,351,000  $ 5,834,000
                                                  ===========  ===========


See accompanying report of management.

The full annual report will be published at www.versustech.com when
available.




                  VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
                  Consolidated Statements of Operations



                           Three months ended
                               October 31,          Year ended October 31,
                            2009        2008         2009         2008
                        ------------ -----------  -----------  -----------

Revenues                $  1,669,000 $ 1,748,000  $ 5,574,000  $ 5,774,000
                        ------------ -----------  -----------  -----------

Operating Expenses
   Cost of revenues          505,000     516,000    1,655,000    1,684,000
   Research and
    development              166,000     193,000      668,000      793,000
   Sales and marketing       609,000     768,000    2,880,000    3,136,000
   General and
    administrative           200,000     261,000      920,000    1,014,000
                        ------------ -----------  -----------  -----------

Total Operating
 Expenses                  1,480,000   1,738,000    6,123,000    6,627,000
                        ------------ -----------  -----------  -----------

Income (Loss) From
 Operations                  189,000      10,000     (549,000)    (853,000)
                        ------------ -----------  -----------  -----------

Other Income (Expense)
  Interest income              3,000       6,000       15,000       46,000
  Interest expense                 -      (1,000)      (4,000)      (1,000)
                        ------------ -----------  -----------  -----------

Total Other Income, Net        3,000       5,000       11,000       45,000
                        ------------ -----------  -----------  -----------

Net Income (Loss)       $    192,000 $    15,000  $  (538,000) $  (808,000)
                        ============ ===========  ===========  ===========

Basic and Diluted Net
 Income (Loss) Per
 Share                  $          - $         -  $     (0.01) $     (0.01)
                        ============ ===========  ===========  ===========




                  VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
                  Consolidated Statements of Cash Flows

                                                  Year ended October 31,
                                                --------------------------
                                                    2009          2008
                                                ------------  ------------
Cash flows from operating activities
  Net loss                                      $   (538,000) $   (808,000)
  Adjustments to reconcile net loss to net
   cash provided by (used in) operating
   activities:
    Depreciation                                      64,000        52,000
    Bad debts                                              -         4,000
    Share-based compensation                         114,000       111,000
    Changes in operating assets and liabilities
     which provided (used) cash:
      Accounts receivable                             37,000      (229,000)
      Inventories                                     51,000       104,000
      Prepaid expenses and other current assets       (1,000)      (48,000)
      Accounts payable                               181,000      (249,000)
      Accrued expenses                                 7,000        96,000
      Deferred revenues from customer advance
       Payments                                      153,000       14,000
                                                ------------  ------------

Net cash provided by (used in) operating
 activities                                           68,000      (953,000)
                                                ------------  ------------

Cash used in investing activities
  Additions to property and equipment                (28,000)     (283,000)
  Increase in other noncurrent assets                (48,000)            -
                                                ------------  ------------

Net cash used in investing activities                (76,000)     (283,000)
                                                ------------  ------------

Cash flows from financing activities
  Net short-term borrowings (repayments)            (400,000)      400,000
  Issuance of common stock                                 -       117,000
                                                ------------  ------------

Net cash (used in) provided by financing
 activities                                         (400,000)      517,000
                                                ------------  ------------

Net decrease in cash and cash equivalents           (408,000)     (719,000)

Cash and cash equivalents, at the beginning
 of the year                                       1,709,000     2,428,000
                                                ------------  ------------

Cash and cash equivalents, at the end of
the year                                        $  1,301,000  $  1,709,000
                                                ============  ============


See accompanying report of management.

The full annual report will be published at www.versustech.com when
available.

Contact Information


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

    Media please contact:
    Stephanie Bertschy
    Director of Marketing

    Versus Technology, Inc.
    (231) 946-5868