SOURCE: VERSUS TECHNOLOGY, INC.

RTLS, patient flow, asset tracking, RFID, real-time location, locating, workflow automation

December 22, 2010 07:02 ET

Versus Technology Announces Fiscal Year Results

TRAVERSE CITY, MI--(Marketwire - December 22, 2010) - Versus Technology, Inc. (PINKSHEETS: VSTI) ("Versus" or the "Company") announced revenues of $7,703,000 for the fiscal year ended October 31, 2010, compared to revenues of $5,574,000 for fiscal year 2009. Revenues for the fiscal quarter ended October 31, 2010, were $1,600,000 compared to revenues of $1,669,000 for the same period in 2009. 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.

Fiscal 2010 gross profit as a percentage of revenue was 71.3% compared to 70.3% in fiscal 2009. Gross profit for the current year's fourth quarter as a percentage of revenue was 67.3% compared to 69.7% for the same quarter of the prior year. As a result of higher revenues contributing to fixed cost coverage, operating expenses, other than cost of revenues, as a percentage of revenues improved from 80.2% in fiscal 2009 to 62.7% in fiscal 2010.

Versus management is pleased to report that revenue growth and conservative management of expenses enabled the Company to report net income of $675,000 for the fiscal year ended October 31, 2010, compared to a net loss of $538,000 for the fiscal year ended October 31, 2009. Net income for the fiscal quarter ended October 31, 2010, was $222,000 compared to net income of $192,000 for the same period in 2009.

For additional information, please refer to the unaudited consolidated financial statements below.

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 October 31, 2010, and October 31, 2009, and the related consolidated statements of operations and cash flows for the fiscal year ended October 31, 2010, and 2009, 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. 2010 Annual Report which is available upon request for further details regarding the Company's financial position at October 31, 2010.

                                   Joseph E. Winowiecki
                                   Chief Financial Officer

December 22, 2010




                  VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
                        Consolidated Balance Sheets

                                                        October 31,
                                                  -------------------------
                                                      2010         2009
                                                  ------------ ------------
Assets

Current assets
   Cash and cash equivalents                      $  2,083,000 $  1,301,000
   Accounts receivable                               1,467,000    1,322,000
   Inventories, net                                    836,000      669,000
   Prepaid expenses and other current assets           161,000      176,000
                                                  ------------ ------------

Total current assets                                 4,547,000    3,468,000
                                                  ------------ ------------

Property and equipment
   Machinery and equipment                             450,000      429,000
   Furniture and fixtures                              108,000      100,000
   Leasehold improvements                              429,000      421,000
                                                  ------------ ------------

                                                       987,000      950,000
   Less accumulated depreciation                       707,000      657,000
                                                  ------------ ------------

Net property and equipment                             280,000      293,000

Goodwill                                             1,533,000    1,533,000
Other intangible assets, net                           138,000       48,000

Other noncurrent assets                                 10,000        9,000
                                                  ------------ ------------

Total assets                                      $  6,508,000 $  5,351,000
                                                  ============ ============


See accompanying report of management.

The full annual report is available upon request.





                  VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
                        Consolidated Balance Sheets

                                                        October 31,
                                                  ------------------------
                                                      2010         2009
                                                  -----------  -----------
Liabilities and shareholders' equity

Current liabilities
   Accounts payable                               $   543,000  $   455,000
   Accrued expenses                                   407,000      366,000
   Deferred revenue from customer advance
     payments                                        371,000       409,000
                                                  -----------  -----------

Total liabilities (all current)                     1,321,000    1,230,000
                                                  -----------  -----------

Shareholders' equity
   Common stock $0.01 par value;
    120,000,000 shares authorized;
    101,608,325 issued and outstanding
    (95,325,325 in 2009)                            1,016,000      953,000
   Additional paid-in capital                      43,128,000   42,800,000
   Accumulated deficit                            (38,957,000) (39,632,000)
                                                  -----------  -----------

Total shareholders' equity                          5,187,000    4,121,000
                                                  -----------  -----------

Total liabilities and shareholders' equity        $ 6,508,000  $ 5,351,000
                                                  ===========  ===========


See accompanying report of management.

The full annual report is available upon request.




                        VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
                        Consolidated Statements of Operations

                             Three Months Ended         Year ended
                                 October 31,            October 31,
                           ----------------------- -----------------------
                               2010        2009        2010        2009
                           ----------- ----------- ----------- -----------
Revenues                   $ 1,600,000 $ 1,669,000 $ 7,703,000 $ 5,574,000

Operating Expenses
   Cost of revenues            524,000     505,000   2,214,000   1,655,000
   Research and development    178,000     166,000     835,000     668,000
   Sales and marketing         570,000     609,000   2,801,000   2,880,000
   General and
    administrative             110,000     200,000   1,190,000     920,000
                           ----------- ----------- ----------- -----------

Total Operating Expenses     1,382,000   1,480,000   7,040,000   6,123,000

Income (Loss) From
 Operations                    218,000     189,000     663,000    (549,000)
                           ----------- ----------- ----------- -----------

Other Income (Expense)
   Interest income               4,000       3,000      12,000      15,000
   Interest expense                  -           -           -      (4,000)
                           ----------- ----------- ----------- -----------

Total Other Income
 (Expense)                       4,000       3,000      12,000      11,000
                           ----------- ----------- ----------- -----------

Net Income (Loss)          $   222,000 $   192,000 $   675,000 $  (538,000)
                           =========== =========== =========== ===========

Basic and Diluted Net
 Income Per Share          $     0.002 $     0.002 $     0.007 $    (0.006)
                           =========== =========== =========== ===========


See accompanying report of management.

The full annual report is available upon request.




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

                                                  Year ended October 31,
                                                --------------------------
                                                    2010          2009
                                                ------------  ------------
Cash flows from operating activities
   Net income (loss)                            $    675,000  $   (538,000)
   Adjustments to reconcile net income (loss)
    to net cash provided by operating
    activities:
     Depreciation and amortization                    73,000        64,000
     Share-based compensation                        118,000       114,000
     Changes in operating assets and
      liabilities which provided (used)
      cash:
         Accounts receivable                        (145,000)       37,000
         Inventories                                (167,000)       51,000
         Prepaid expenses and other current
          assets                                      15,000        (1,000)
         Accounts payable                             88,000       181,000
         Accrued expenses                             41,000         7,000
         Deferred revenues from customer
          advance payments                           (39,000)      153,000
                                                ------------  ------------

Net cash provided by operating activities            659,000        68,000
                                                ------------  ------------

Cash used in investing activities
   Additions to property and equipment               (54,000)      (28,000)
   Increase in other noncurrent assets               (96,000)      (48,000)
                                                ------------  ------------

Net cash used in investing activities               (150,000)      (76,000)
                                                ------------  ------------

Cash flows from financing activities
   Net repayment of short-term borrowings                  -      (400,000)
   Issuance of common stock upon exercise of
    stock options                                    273,000             -
                                                ------------  ------------

Net cash provided by (used in) financing
 activities                                          273,000      (400,000)
                                                ------------  ------------

Net increase (decrease) in cash and cash
 equivalents                                         782,000      (408,000)


Cash and cash equivalents, at the beginning
 of the year                                       1,301,000     1,709,000
                                                ------------  ------------

Cash and cash equivalents, at the end of
 the year                                       $  2,083,000  $  1,301,000
                                                ============  ============


See accompanying report of management.

The full annual report is available upon request.

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