Science & Technology
Science and Technology
Science and Technology
Wed, June 2, 2010 
TRAVERSE CITY, MI--(Marketwire - June 2, 2010) - Versus Technology, Inc. (
As was the case in the second fiscal quarter ended April 30, 2010, 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.
Gross profits as a percentage of revenues were 76.8% for the current year's second quarter compared to 69.2% for the same quarter of the prior year. Fiscal 2010 year-to-date gross profit as a percentage of revenues is 73.1% compared to 71.0% year-to-date in fiscal 2009.
Operating expenses, other than cost of revenues, increased 35.8% and 17.5% for the current year's second quarter and fiscal year-to-date, respectively, compared to the same period of the prior year. The increase in operating expenses is due to increased service expenses to support the Company's growing customer base and certain one-time professional fees.
Versus reported net income of $312,000 for the second quarter of fiscal 2010 compared to a net loss of $407,000 for the same quarter of the prior year. The Company reported net income of $416,000 for the six months ended April 30, 2010, compared to a net loss of $371,000 for the six months ended April 30, 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 worldwide. To learn more about Versus Technology, Inc. (
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 April 30, 2010, and October 31, 2009, and the related consolidated statements of operations and cash flows for the six-month period ended April 30, 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. 2009 Annual Report which is available upon request for further details regarding the Company's financial position at October 31, 2009.
Joseph E. Winowiecki Chief Financial Officer June 2, 2010 VERSUS TECHNOLOGY, INC. AND SUBSIDIARY Consolidated Balance Sheets (Unaudited) 30-Apr-10 31-Oct-09 ----------- ----------- Assets Current assets Cash and cash equivalents $ 2,198,000 $ 1,301,000 Accounts receivable 1,530,000 1,322,000 Inventories 549,000 669,000 Prepaid expenses and other current assets 125,000 176,000 ----------- ----------- Total current assets 4,402,000 3,468,000 ----------- ----------- Property and equipment Machinery and equipment 440,000 429,000 Furniture and fixtures 104,000 100,000 Leasehold improvements 422,000 421,000 ----------- ----------- 966,000 950,000 Less accumulated depreciation 672,000 657,000 ----------- ----------- Net property and equipment 294,000 293,000 Goodwill and other intangible assets 1,533,000 1,533,000 Other noncurrent assets 71,000 57,000 ----------- ----------- Total assets $ 6,300,000 $ 5,351,000 =========== =========== See accompanying report of management. VERSUS TECHNOLOGY, INC. AND SUBSIDIARY Consolidated Balance Sheets (Unaudited) 30-Apr-10 31-Oct-09 ----------- ----------- Liabilities and shareholders' equity Current Liabilities Accounts payable $ 656,000 $ 455,000 Accrued expenses 439,000 366,000 Deferred revenue 310,000 409,000 ----------- ----------- Total liabilities (all current) 1,405,000 1,230,000 ----------- ----------- Shareholders' equity Common stock $0.01 par value; 120,000,000 shares authorized; 98,274,325 and 95,325,325 issued and outstanding 1,016,000 953,000 Additional paid-in capital 43,095,000 42,800,000 Accumulated deficit (39,216,000) (39,632,000) ----------- ----------- Total shareholders' equity 4,895,000 4,121,000 ----------- ----------- Total liabilities and shareholders' equity $ 6,300,000 $ 5,351,000 =========== =========== See accompanying report of management. VERSUS TECHNOLOGY, INC. AND SUBSIDIARY Consolidated Statements of Operations (Unaudited) Three Months Ended Six Months Ended April 30, April 30, 2010 2009 2010 2009 ------------ ----------- ------------ ----------- Revenues $ 2,513,000 $ 1,137,000 $ 4,306,000 $ 2,750,000 Operating Expenses Cost of revenues 583,000 350,000 1,157,000 797,000 Research and development 216,000 166,000 391,000 330,000 Sales and marketing 812,000 805,000 1,500,000 1,591,000 General and administrative 598,000 226,000 850,000 411,000 ------------ ----------- ------------ ----------- Total Operating Expenses 2,209,000 1,547,000 3,898,000 3,129,000 Income (Loss) From Operations 304,000 (410,000) 408,000 (379,000) ------------ ----------- ------------ ----------- Other Income (Expense) Interest income 2,000 3,000 4,000 8,000 Net foreign currency transaction gain (loss) 6,000 - 4,000 - ------------ ----------- ------------ ----------- Total Other Income (Expense) 8,000 3,000 8,000 8,000 ------------ ----------- ------------ ----------- Net Income (Loss) $ 312,000 $ (407,000) $ 416,000 $ (371,000) ============ =========== ============ =========== Basic and Diluted Net Income Per Share $ - $ (-) $ - $ (-) ============ =========== ============ =========== See accompanying report of management. VERSUS TECHNOLOGY, INC. AND SUBSIDIARY Consolidated Statements of Cash Flows (Unaudited) Six Months Ended April 30, 2010 2009 ----------- ----------- Cash flows from Operating Activities Net income (loss) $ 416,000 $ (371,000) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation 33,000 32,000 Amortization 2,000 - Non-cash equity based compensation 84,000 52,000 Changes in operating assets and liabilities: Accounts receivable (208,000) 613,000 Inventories 120,000 61,000 Prepaid expenses and other current assets 51,000 (21,000) Accounts payable 201,000 52,000 Accrued expenses 73,000 (46,000) Deferred revenues (99,000) 65,000 ----------- ----------- Net cash provided by (used in) operating activities 673,000 437,000 ----------- ----------- Cash used in investing activities Additions to property and equipment (34,000) (5,000) Increase in other noncurrent assets (16,000) (-) ----------- ----------- Net cash used in investing activities (50,000) (5,000) ----------- ----------- Cash flows from financing activities Net short-term borrowings (repayments) - (400,000) Issuance of common stock 274,000 - ----------- ----------- Net cash (used in) provided by financing activities 274,000 (400,000) ----------- ----------- Net Increase (Decrease) in Cash and Cash Equivalents 897,000 32,000 Cash and Cash Equivalents, at the beginning of the period 1,301,000 1,709,000 ----------- ----------- Cash and Cash Equivalents, at the end of the period $ 2,198,000 $ 1,741,000 =========== =========== See accompanying report of management.
