http://www.versustech.com () -
Versus Technology, Inc. ("Versus" or the "Company") (PINKSHEETS: VSTI) announced revenues of $5,574,000 for the fiscal year ended October 31, 2009, compared to revenues of $5,774,000 for fiscal year 2008. Revenues for the fiscal quarter ended October 31, 2009, were $1,669,000 compared to revenues of $1,748,000 for the same period in 2008. 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.
Despite the decline in revenues, careful management of operating expenses resulted in a reduced loss of $538,000 for the fiscal year ended October 31, 2009, compared to a net loss of $808,000 for fiscal 2008. Operating expenses for fiscal 2009 totaled $4,468,000, a 10% decline from the prior year.
Net income for the fiscal quarter ended October 31, 2009, was $192,000 compared to net income of $15,000 for the same period in 2008.
For additional information, please refer to the attached unaudited consolidated financial statements.
About Versus Technology, Inc.
Versus Technology, Inc. is the leader in the development and sale of context-aware real-time location systems (RTLS) used for enterprise patient tracking, bed management and asset tracking to improve patient flow and caregiver/patient communications in hospitals, clinics and long-term care facilities. Versus also develops dual infrared and Active RFID tags and other location tracking hardware to make locating systems more precise, security systems more intelligent, nurse call systems automatic, and hospital asset tracking systems more efficient. Indoor positioning through Versus' RTLS enhances existing hospital software and patient care systems with real-time, reliable bed-level location information. The patented Versus IR and Active RFID patient and asset tracking system is exclusively endorsed by the American Hospital Association and is a key component of their Patient Flow Platform -- which includes a select group of vendors that provide proven solutions to enhance patient flow and improve patient safety. (www.versustech.com (http://www.versustech.com) ) (PINKSHEETS: VSTI)
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, 2009, and October 31, 2008, and the related consolidated statements of operations and cash flows for the periods ended October 31, 2009 and 2008, have been prepared by management.
Management has elected to omit substantially all of the footnote disclosures required by accounting principles generally accepted in the United States. If the omitted 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. 2008 Annual Report which is available at www.versustech.com/annual_reports.htm (http://www.versustech.com/annual_reports.htm) for further details regarding the 2008 results. The full annual report for 2009 will be published at www.versustech.com (http://www.versustech.com) when available.
Joseph E. Winowiecki
Chief Financial Officer December 28, 2009
VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Balance Sheets
October 31,
-----------------------
2009 2008
----------- ----------- Assets Current assets
Cash and cash equivalents $ 1,301,000 $ 1,709,000
Accounts receivable, including $136,000
unbilled ($123,000 in 2008) 1,322,000 1,359,000
Inventories, net 669,000 720,000
Prepaid expenses and other current assets 176,000 175,000
----------- ----------- Total current assets 3,468,000 3,963,000
----------- ----------- Property and equipment
Machinery and equipment 429,000 403,000
Furniture and fixtures 100,000 100,000
Leasehold improvements 421,000 420,000
----------- -----------
950,000 923,000
Less accumulated depreciation 657,000 594,000
----------- ----------- Net property and equipment 293,000 329,000 Goodwill 1,533,000 1,533,000 Other noncurrent assets 57,000 9,000
----------- ----------- Total assets $ 5,351,000 $ 5,834,000
See accompanying report of management. The full annual report will be published at www.versustech.com (http://www.versustech.com) when available. VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Balance Sheets
October 31,
------------------------
2009 2008
----------- ----------- Liabilities and shareholders' equity Current liabilities
Short-term borrowings $ - $ 400,000
Accounts payable 455,000 274,000
Accrued expenses 366,000 359,000
Deferred revenue from customer advance
Payments 409,000 256,000
----------- ----------- Total liabilities (all current) 1,230,000 1,289,000
----------- ----------- Commitments and contingencies
(Notes 4 and 6) Shareholders< equity
Common stock $0.01 par value; 120,000,000
shares authorized; 95,325,325 issued and
outstanding 953,000 953,000
Additional paid-in capital 42,800,000 42,686,000
Accumulated deficit (39,632,000) (39,094,000)
----------- ----------- Total shareholders< equity 4,121,000 4,545,000 ----------- ----------- Total liabilities and shareholders< equity $ 5,351,000 $ 5,834,000 See accompanying report of management. The full annual report will be published at www.versustech.com (http://www.versustech.com) when available. VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Statements of Operations
Three months ended
October 31, Year ended October 31,
2009 2008 2009 2008
------------ ----------- ----------- ----------- Revenues $ 1,669,000 $ 1,748,000 $ 5,574,000 $ 5,774,000
------------ ----------- ----------- ----------- Operating Expenses
Cost of revenues 505,000 516,000 1,655,000 1,684,000
Research and
development 166,000 193,000 668,000 793,000
Sales and marketing 609,000 768,000 2,880,000 3,136,000
General and
administrative 200,000 261,000 920,000 1,014,000
------------ ----------- ----------- ----------- Total Operating
Expenses 1,480,000 1,738,000 6,123,000 6,627,000
------------ ----------- ----------- ----------- Income (Loss) From
Operations 189,000 10,000 (549,000) (853,000)
------------ ----------- ----------- ----------- Other Income (Expense)
Interest income 3,000 6,000 15,000 46,000
Interest expense - (1,000) (4,000) (1,000)
------------ ----------- ----------- ----------- Total Other Income, Net 3,000 5,000 11,000 45,000
------------ ----------- ----------- ----------- Net Income (Loss) $ 192,000 $ 15,000 $ (538,000) $ (808,000)
Basic and Diluted Net Income (Loss) Per
Share $ - $ - $ (0.01) $ (0.01)
VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows
Year ended October 31,
--------------------------
2009 2008
------------ ------------ Cash flows from operating activities
Net loss $ (538,000) $ (808,000)
Adjustments to reconcile net loss to net
cash provided by (used in) operating
activities:
Depreciation 64,000 52,000
Bad debts - 4,000
Share-based compensation 114,000 111,000
Changes in operating assets and liabilities
which provided (used) cash:
Accounts receivable 37,000 (229,000)
Inventories 51,000 104,000
Prepaid expenses and other current assets (1,000) (48,000)
Accounts payable 181,000 (249,000)
Accrued expenses 7,000 96,000
Deferred revenues from customer advance
Payments 153,000 14,000
------------ ------------ Net cash provided by (used in) operating
activities 68,000 (953,000)
------------ ------------ Cash used in investing activities
Additions to property and equipment (28,000) (283,000)
Increase in other noncurrent assets (48,000) -
------------ ------------ Net cash used in investing activities (76,000) (283,000)
------------ ------------ Cash flows from financing activities
Net short-term borrowings (repayments) (400,000) 400,000
Issuance of common stock - 117,000
------------ ------------ Net cash (used in) provided by financing
activities (400,000) 517,000
------------ ------------ Net decrease in cash and cash equivalents (408,000) (719,000) Cash and cash equivalents, at the beginning
of the year 1,709,000 2,428,000
------------ ------------ Cash and cash equivalents, at the end of the year $ 1,301,000 $ 1,709,000
See accompanying report of management. The full annual report will be published at www.versustech.com (http://www.versustech.com) when available.
