SOURCE: VERSUS TECHNOLOGY, INC.

Versus Technology, Inc.

August 29, 2012 16:03 ET

Versus Technology Announces Third Quarter Results

TRAVERSE CITY, MI--(Marketwire - Aug 29, 2012) - Versus Technology, Inc. (PINKSHEETS: VSTI) ("Versus" or the "Company") announced revenues of $2,200,000 for its third fiscal quarter ended July 31, 2012, a 44.7% increase compared to revenues of $1,520,000 for the same quarter of the prior year. Revenues for the nine months ended July 31, 2012, were $6,818,000, an increase of $2,924,000, or 71.2%, compared to $3,894,000 for the nine months ended July 31, 2011.

The Company's continued growth resulted in its fourth consecutive quarter of profits reporting net income for the quarter ended July 31, 2012, of $110,000 compared to a loss of $15,000 for the quarter ended July 31, 2011. Net income for the nine months ended July 31, 2012, was $410,000 compared to a loss of $962,000 for the same period in fiscal 2011. 

Gross profits as a percentage of revenues were 70.8% for the current year's third quarter compared to 71.5% for the same quarter of the prior year. Fiscal 2012 year-to-date gross profit as a percentage of revenues is 69.5% compared to 70.0% year-to-date in fiscal 2011. 

Versus continues to invest in its sales, marketing and technology growth strategies. As a result, operating expenses other than cost of revenues for the third quarter totaled $1,449,000 representing an increase of $346,000, or 31.4%, over the prior year total of $1,103,000. Operating expenses other than cost of revenues for the nine months ended July 31, 2012, totaled $4,331,000, an increase of $557,000. This represents a 14.8% increase in operating expenses over the same period last year compared to a 71.2% increase in revenues.

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.

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, 2012, and October 31, 2011, and the related consolidated statements of income and cash flows for the nine-month periods ended July 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
Chief Financial Officer

August 29, 2012

 
VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Balance Sheet
(Unaudited)
             
    31-July-12   31-Oct-11
Assets            
Current assets            
  Cash and cash equivalents   $ 1,925,000   $ 1,380,000
  Accounts receivable     1,964,000     1,965,000
  Inventories     819,000     741,000
  Prepaid expenses and other current assets     178,000     211,000
             
Total current assets     4,886,000     4,297,000
             
Property and equipment            
  Machinery and equipment     656,000     631,000
  Furniture and fixtures     99,000     99,000
  Leasehold improvements     429,000     429,000
             
      1,184,000     1,159,000
  Less accumulated depreciation     787,000     696,000
             
Net property and equipment     397,000     463,000
             
Goodwill and other intangible assets     1,533,000     1,533,000
             
Other intangible assets, net     203,000     128,000
             
Other noncurrent assets     46,000     10,000
             
Total assets   $ 7,065,000   $ 6,431,000
             

See accompanying report of management.

 
VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Balance Sheet
(Unaudited)
             
    31-July-12     31-Oct-11  
Liabilities and shareholders' equity                
                 
Current Liabilities                
  Accounts payable   $ 569,000     $ 599,000  
  Accrued expenses     461,000       499,000  
  Deferred revenue from customer advance payments     381,000       306,000  
                 
Total liabilities (all current)     1,411,000       1,404,000  
                 
Shareholders' equity                
  Common stock $0.01 par value; 150,000,000 shares authorized; 103,894,638 issued and outstanding     1,037,000       1,016,000  
  Additional paid-in capital     43,443,000       43,245,000  
  Accumulated deficit     (38,826,000 )     (39,234,000 )
                 
Total shareholders' equity     5,654,000       5,027,000  
                 
Total liabilities and shareholders' equity   $ 7,065,000     $ 6,431,000  
                 

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,
 
    2012   2011     2012   2011  
                     
Revenues   $ 2,200,000   $ 1,520,000     $ 6,818,000   $ 3,984,000  
                             
Operating Expenses                            
  Cost of revenues     643,000     433,000       2,082,000     1,196,000  
  Research and development     222,000     165,000       638,000     600,000  
  Sales and marketing     931,000     712,000       2,823,000     2,501,000  
  General and administrative     296,000     226,000       870,000     673,000  
                             
Total Operating Expenses     2,092,000     1,536,000       6,413,000     4,970,000  
                             
Income (Loss) From Operations     108,000     (16,000 )     405,000     (986,000 )
                             
Other Income (Expense)                            
  Interest income     2,000     1,000       5,000     4,000  
                             
Net Income (Loss)   $ 110,000   $ (15,000 )   $ 410,000   $ (982,000 )
                             
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,  
    2012   2011  
Cash flows from Operating Activities              
  Net income (loss)   $ 410,000   $ (982,000 )
  Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:              
    Depreciation     91,000     67,000  
    Amortization     7,000     7,000  
    Non-cash equity based compensation     90,000     101,000  
  Changes in operating assets and liabilities:              
    Accounts receivable     1,000     578,000  
    Inventories     (78,000 )   (54,000 )
    Prepaid expenses and other current assets     33,000     (22,000 )
    Accounts payable     (30,000 )   (164,000 )
    Accrued expenses     (38,000 )   (101,000 )
    Deferred revenues     75,000     (68,000 )
               
Net cash provided by (used in) operating activities     561,000     (638,000 )
               
Cash used in investing activities              
  Additions to property and equipment     (61,000 )   (191,000 )
  Increase in other noncurrent assets     (82,000 )   -  
               
Net cash used in investing activities     143,000 )   (191,000 )
               
Cash flows from financing activities              
  Issuance of common stock     127,000     -  
               
Net cash provided by financing activities     127,000     -  
               
Net Increase (Decrease) in Cash and Cash Equivalents     545,000     (829,000 )
               
Cash and Cash Equivalents, at the beginning of the period     1,380,000     2,083,000  
               
Cash and Cash Equivalents, at the end of the period   $ 1,925,000   $ 1,254,000  
               

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