SOURCE: VERSUS TECHNOLOGY, INC.

Versus Technology, Inc.

December 21, 2011 15:30 ET

Versus Technology Announces Fiscal Year Results

TRAVERSE CITY, MI--(Marketwire - Dec 21, 2011) - Versus Technology, Inc. (PINKSHEETS: VSTI) ("Versus" or the "Company") announced revenues of $2,605,000 for the quarter ended October 31, 2011, compared to revenues of $1,600,000 for the same period in 2010. Fourth quarter revenues represent a 62.8% improvement over the same quarter of the prior year and the fourth consecutive quarter of growth. For the full fiscal year ended October 31, 2011, revenues totaled $6,589,000 compared to revenues of $7,703,000 for fiscal year 2010. Versus' revenue 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.

Gross profit for the current year's fourth quarter as a percentage of revenue was 72.7% compared to 67.3% for the same quarter of the prior year. Fiscal 2011 gross profit as a percentage of revenue was 71.0% compared to 71.3% in fiscal 2010.

Fourth quarter operating expenses other than cost of revenue totaled $1,190,000, or 45.7% of revenues, compared to $858,000, or 53.6% of revenues, in 2010. Operating expenses other than cost of revenues for the full year increased from $4,826,000, or 62.3% of revenues in 2010 to $4,964,000, or 75.3% of revenues, in 2011. The increase is the direct result of continued investment in growth strategies directed at building the sales organization and dealer network.

Net income for the quarter ended October 31, 2011, was $704,000 compared to net income of $222,000 for the same period in 2010. For the full year, the Company reported a net loss of $278,000 compared to net income of $675,000 for fiscal 2010.

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 October 31, 2011, and October 31, 2010, and the related consolidated statements of operations and cash flows for the fiscal year ended October 31, 2011, and 2010, 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 which is available upon request for further details regarding the Company's financial position at October 31, 2011.

VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Balance Sheets
October 31,
2011 2010
Assets
Current assets
Cash and cash equivalents $ 1,380,000 $ 2,083,000
Accounts receivable 1,965,000 1,467,000
Inventories, net 741,000 836,000
Prepaid expenses and other current assets 211,000 161,000
Total current assets 4,297,000 4,547,000
Property and equipment
Machinery and equipment 631,000 450,000
Furniture and fixtures 99,000 108,000
Leasehold improvements 429,000 429,000
1,159,000 987,000
Less accumulated depreciation 696,000 707,000
Net property and equipment 463,000 280,000
Goodwill 1,533,000 1,533,000
Other intangible assets, net 128,000 138,000
Other noncurrent assets 10,000 10,000
Total assets $ 6,431,000 $ 6,508,000
See accompanying report of management.
The full annual report is available upon request.
VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Balance Sheets
October 31,
2011 2010
Liabilities and shareholders' equity
Current liabilities
Accounts payable $ 599,000 $ 543,000
Accrued expenses 499,000 407,000
Deferred revenue from customer advance
payments

306,000

371,000
Total liabilities (all current) 1,404,000 1,321,000
Shareholders' equity




1,016,000




1,016,000
Common stock $0.01 par value; 120,000,000 shares authorized; 101,608,325 issued and outstanding (95,325,325 in 2009)
Additional paid-in capital 43,245,000 43,128,000
Accumulated deficit (39,235,000 ) (38,957,000 )
Total shareholders' equity 5,027,000 5,187,000
Total liabilities and shareholders' equity $ 6,431,000 $ 6,508,000
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 October 31, Year ended October 31,
2011 2010 2011 2010

Revenues

$

2,605,000

$

1,600,000

$

6,589,000

$

7,703,000
Operating Expenses
Cost of revenues 712,000 524,000 1,908,000 2,214,000
Research and development 170,000 178,000 770,000 835,000
Sales and marketing 828,000 570,000 3,329,000 2,801,000
General and administrative 192,000 110,000 865,000 1,190,000
Total Operating Expenses 1,902,000 1,382,000 6,872,000 7,040,000
Income (Loss) From Operations

703,000


218,000


(283,000)


663,000
Interest income 1,000 4,000 5,000 12,000
Net Income (Loss) $ 704,000 $ 222,000 $ (278,000) $ 675,000
Basic and Diluted Net Income (Loss) Per Share
$

0.01

$

-

$

(-)

$

0.01
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,
2011 2010
Cash flows from operating activities
Net (loss) income $ (278,000 ) $ 675,000
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization 106,000 73,000
Share-based compensation 117,000 118,000
Changes in operating assets and liabilities which provided (used) cash:
Accounts receivable (498,000 ) (145,000 )
Inventories 95,000 (167,000 )
Prepaid expenses and other current assets (50,000 ) 15,000
Accounts payable 56,000 88,000
Accrued expenses 92,000 41,000
Deferred revenue from customer advance payments
(65,000

)

( 39,000

)
Net cash (used in) provided by operating activities (425,000 ) 659,000
Cash used in investing activities
Additions to property and equipment (278,000 ) (54,000 )
Increase in other noncurrent assets - (96,000 )
Net cash used in investing activities (278,000 ) (150,000 )
Cash flows from financing activities
Issuance of common stock upon exercise of stock options
-

273,000

Net (decrease) increase in cash and cash equivalents


(703,000


)


782,000
Cash and cash equivalents, at the beginning of the year
2,083,000

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

1,380,000

$

2,083,000
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