SOURCE: VERSUS TECHNOLOGY, INC.

Versus Technology, Inc.

September 01, 2011 12:02 ET

Versus Technology Announces Third Quarter Results

TRAVERSE CITY, MI--(Marketwire - Sep 1, 2011) - Versus Technology, Inc. (PINKSHEETS: VSTI) ("Versus" or the "Company") announced revenues of $1,520,000 for its third fiscal quarter ended July 31, 2011, a 15.4% decrease compared to revenues of $1,797,000 for the same quarter of the prior year. Revenues for the nine months ended July 31, 2011, were $3,894,000, compared to $6,103,000 for the nine months ended July 31, 2010, a 36.2% decrease.

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 71.5% for the current year's third quarter compared to 69.8% for the same quarter of the prior year. Fiscal 2011 year-to-date gross profit as a percentage of revenues is 69.3% compared to 71.2% year-to-date in fiscal 2010.

Operating expenses other than cost of revenues for the third quarter ended July 31, 2011, totaled $1,103,000, a 10.3% decrease, compared to third quarter fiscal 2010 operating expenses of $1,229,000. Year-to-date operating expenses totaled $3,774,000, a 5.0% decrease, compared to prior year-to-date operating expenses of $3,970,000.

Versus reported a net loss of $15,000 for the third quarter of fiscal 2011 compared to net income of $38,000 for the same quarter of the prior year. The Company reported net loss of $982,000 for the nine months ended July 31, 2011, compared to net income of $450,000 for the nine months ended July 31, 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 July 31, 2011, and October 31, 2010, and the related consolidated statements of income and cash flows for the nine-month periods ended July 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. 2010 Annual Report for further details regarding the Company's financial position at October 31, 2010.

Joseph E. Winowiecki
Chief Financial Officer

September 1, 2011

VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Balance Sheet
(Unaudited)
31-July-11 31-Oct-10
Assets
Current assets
Cash and cash equivalents $ 1,254,000 $ 2,083,000
Accounts receivable 889,000 1,467,000
Inventories 890,000 836,000
Prepaid expenses and other current assets 183,000 161,000
Total current assets 3,216,000 4,547,000
Property and equipment
Machinery and equipment 544,000 450,000
Furniture and fixtures 99,000 108,000
Leasehold improvements 429,000 429,000
1,072,000 987,000
Less accumulated depreciation 668,000 707,000
Net property and equipment 404,000 280,000
Goodwill and other intangible assets 1,533,000 1,533,000
Other intangible assets, net 131,000 138,000
Other noncurrent assets 10,000 10,000
Total assets $ 5,294,000 $ 6,508,000

See accompanying report of management.

VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Balance Sheet
(Unaudited)
31-July-11 31-Oct-10
Liabilities and shareholders' equity
Current Liabilities
Accounts payable $ 379,000 $ 543,000
Accrued expenses 307,000 407,000
Deferred revenue from customer advance payments 303,000 371,000
Total liabilities (all current) 989,000 1,321,000
Shareholders' equity
Common stock $0.01 par value; 120,000,000
shares authorized; 101,608,325
issued and outstanding


1,016,000


1,016,000
Additional paid-in capital 43,229,000 43,128,000
Accumulated deficit (39,940,000 ) (38,957,000 )
Total shareholders' equity 4,305,000 5,187,000
Total liabilities and shareholders' equity $ 5,294,000 $ 6,508,000

See accompanying report of management.

VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Statements of Operations
(Unaudited)
Three months ended July 31, Nine months ended July 31,
2011 2010 2011 2010

Revenues
$
1,520,000
$
1,797,000
$
3,894,000
$
6,103,000
Operating Expenses
Cost of revenues 433,000 534,000 1,196,000 1,691,000
Research and development 165,000 266,000 600,000 657,000
Sales and marketing 712,000 733,000 2,501,000 2,233,000
General and administrative 226,000 230,000 673,000 1,080,000
Total Operating Expenses 1,536,000 1,763,000 4,970,000 5,661,000

Income (Loss) From
Operations


(16,000
)

34,000


(986,000
)

442,000
Other Income (Expense)
Interest income 1,000 4,000 4,000 8,000
Total Other Income, Net 1,000 4,000 4,000 8,000
Net Income (Loss) $ (15,000 ) $ 38,000 $ (982,000 ) $ 450,000
Basic and Diluted Net Income (Loss) Per Share $
-
$
-
$
-
$
-

See accompanying report of management.

VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended July 31,
2011 2010
Cash flows from Operating Activities
Net (loss) income $ (982,000 ) $ 450,000
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation 67,000 50,000
Amortization 7,000 3,000
Non-cash equity based compensation 101,000 139,000
Changes in operating assets and liabilities:
Accounts receivable 578,000 35,000
Inventories (54,000 ) 75,000
Prepaid expenses and other current assets (22,000 ) 6,000
Accounts payable (164,000 ) 113,000
Accrued expenses (101,000 ) 75,000
Deferred revenues (68,000 ) (102,000 )
Net cash provided by (used in) operating activities (638,000 ) 844,000
Cash used in investing activities
Additions to property and equipment (191,000 ) (45,000 )
Increase in other noncurrent assets - (89,000 )
Net cash used in investing activities (191,000 ) (134,000 )
Cash flows from financing activities
Issuance of common stock - 273,000
Net cash (used in) provided by financing activities - 273,000
Net Increase (Decrease) in Cash and Cash Equivalents
(829,000
)
983,000
Cash and Cash Equivalents, at the beginning of the period 2,083,000 1,301,000
Cash and Cash Equivalents, at the end of the period $ 1,254,000 $ 2,284,000

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