VERSUS TECHNOLOGY, INC. 
By Gross profits as a percentage of revenues increased to 71% for the year compared to 68% for 2007. For the quarter, gross profits were 70% compared to 71% for the same period in 2007.
The Company reported a net loss of
For additional information, please refer to the attached unaudited consolidated financial statements.
About Versus Technology, Inc.
Versus Technology, Inc. (Pink Sheets: VSTI.PK) (http://www.versustech.com) (Versus) is the leader in the development and sale of context-aware systems used for the management of patient flow and medical assets and to improve caregiver/patient communications in medical and long-term care facilities. Versus also supplies Active RFID/IR tags and readers that make locating systems more precise, security systems more intelligent, data collection routines automatic, and asset management systems more efficient. Versus' systems, which are currently installed in hospitals, corporate facilities, government facilities, and other complexes, permit the automatic and accurate registry of essential management and business information. By monitoring the precise location of personnel or equipment and automatically recording events associated with their locations, the systems offer real-time asset and staff locating, automatic data collection, access/egress control, and a passive source of location data that facilitates scheduling and communication interfaces. Versus' proprietary locating systems are sold primarily through an expanding network of resellers and dealers.
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
Management has elected to omit substantially all of the footnote
disclosures required by accounting principles generally accepted in
The reader should refer to the Versus Technology, Inc. 2007 Annual Report which is available at http://www.versustech.com/annual_reports.htm for further details regarding the 2007 results. The full annual report for 2008 will be published at http://www.versustech.com when available.
Richard W. Ebersole
Chief Financial Officer
December 29, 2008
VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Balance Sheets
October 31,
2008 2007
Assets
Current assets
Cash and cash equivalents $1,709,000 $2,428,000
Accounts receivable, including
$123,000 unbilled ($91,000 - 2007) 1,359,000 1,134,000
Inventories 720,000 824,000
Prepaid expenses and other
current assets 175,000 127,000
Total current assets 3,963,000 4,513,000
Property and equipment
Machinery and equipment 403,000 374,000
Furniture and fixtures 100,000 92,000
Leasehold improvements 420,000 160,000
Construction in progress - 14,000
923,000 640,000
Less accumulated depreciation 594,000 542,000
Net property and equipment 329,000 98,000
Goodwill 1,533,000 1,533,000
Deposits 9,000 9,000
Total assets $ 5,834,000 $ 6,153,000
See accompanying report of management.
The full annual report will be published at http://www.versustech.com when
available.
VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Balance Sheets
October 31,
2008 2007
Liabilities and shareholders' equity
Current Liabilities
Short-term borrowings $400,000 $ -
Accounts payable 274,000 523,000
Accrued expenses 359,000 263,000
Deferred revenue from customer
advance payments 256,000 242,000
Total liabilities (all current) 1,289,000 1,028,000
Shareholders' equity
Common stock $0.01 par value; 120,000,000
shares authorized; 95,325,325
(92,781,325 - 2007)
issued and outstanding 953,000 928,000
Additional paid-in capital 42,686,000 42,483,000
Accumulated deficit (39,094,000) (38,286,000)
Total shareholders' equity 4,545,000 5,125,000
Total liabilities and shareholders' equity $5,834,000 $6,153,000
See accompanying report of management.
The full annual report will be published at http://www.versustech.com when
available.
VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Statements of Operations
Three months ended October 31, Year ended October 31,
2008 2007 2008 2007
Revenues $1,748,000 $2,012,000 $5,774,000 $5,566,000
Operating Expenses
Cost of
revenues 516,000 581,000 1,684,000 1,810,000
Research and
development 193,000 154,000 793,000 610,000
Sales and
marketing 768,000 775,000 3,136,000 2,508,000
General and
administrative 261,000 183,000 1,014,000 907,000
Total Operating
Expenses 1,738,000 1,693,000 6,627,000 5,835,000
Income (Loss)
From Operations 10,000 319,000 (853,000) (269,000)
Other Income (Expense)
Interest income 6,000 16,000 46,000 61,000
Interest expense (1,000) - (1,000) -
Total Other
Income, Net 5,000 16,000 45,000 61,000
Net Income (Loss) $15,000 $335,000 $(808,000) $(208,000)
Basic and Diluted Net
Income (Loss)
Per Share $ - $ - $(0.01) $(-)
See accompanying report of management.
The full annual report will be published at http://www.versustech.com when
available.
VERSUS TECHNOLOGY, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows
Year ended October 31,
2008 2007
Cash flows from operating activities
Net loss $(808,000) $(208,000)
Adjustments to reconcile net loss to net cash
(used in) provided by operating activities:
Depreciation and amortization 52,000 74,000
Bad debts (recoveries) 4,000 (13,000)
Share-based compensation 111,000 110,000
Changes in operating assets and liabilities:
Accounts receivable (229,000) 662,000
Inventories 104,000 (248,000)
Prepaid expenses and other current assets (48,000) (65,000)
Accounts payable (249,000) 45,000
Accrued expenses 96,000 1,000
Deferred revenues from customer
advance payments 14,000 131,000
Net cash (used in) provided by
operating activities (953,000) 489,000
Cash used in investing activities
Additions to property and equipment (283,000) (65,000)
Cash flows from financing activities
Issuance of common stock 117,000 603,000
Increase in short-term borrowings 400,000 -
Net cash provided by financing activities 517,000 603,000
Net (decrease) increase in cash
and cash equivalents (719,000) 1,027,000
Cash and cash equivalents, at
the beginning of the period 2,428,000 1,401,000
Cash and cash Equivalents, at
the end of the period $1,709,000 $2,428,000
See accompanying report of management.
The full annual report will be published at http://www.versustech.com when
available.
SOURCE Versus Technology, Inc.
