TRAVERSE CITY, Mich.,
Gross profits as a percentage of revenues were 71% for the current year's first quarter compared to 61% for the same quarter of the prior year. Operating expenses, other than cost of revenues, increased 27% for the current year's first quarter compared to the same quarter of the prior year, primarily due to an increase in sales and marketing expenses.
Versus reported a net loss of
For additional information, please refer to the attached unaudited consolidated financial statements.
Versus Technology, Inc. (Pink Sheets: VSTI.PK) (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.
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 the statement of shareholders' equity and
substantially all of the footnote disclosures required by accounting
principles generally accepted in the
The reader should refer to the Versus Technology, Inc. 2007 Annual Report
which is available at www.versustech.com/annual_reports.htm for further
details regarding the Company's financial position at
Richard W. Ebersole Chief Financial Officer VERSUS TECHNOLOGY, INC. AND SUBSIDIARY Consolidated Balance Sheets (Unaudited) January 31, 2008 October 31, 2007 Assets Current Assets Cash and cash equivalents $ 1,865,000 $ 2,428,000 Accounts receivable 1,169,000 1,134,000 Inventories 815,000 824,000 Prepaid expenses and other current assets 155,000 127,000 Total Current Assets 4,004,000 4,513,000 Property and Equipment Machinery and equipment 384,000 374,000 Furniture and fixtures 92,000 92,000 Leasehold improvements 160,000 160,000 Construction in progress 199,000 14,000 835,000 640,000 Less accumulated depreciation 551,000 542,000 Net Property and Equipment 284,000 98,000 Goodwill 1,533,000 1,533,000 Patents and Other Intangible Assets, net of accumulated amortization of $1,991,000 - - Other Non-Current Assets 9,000 9,000 $ 5,830,000 $ 6,153,000 See accompanying report of management. VERSUS TECHNOLOGY, INC. AND SUBSIDIARY Consolidated Balance Sheets (Unaudited) January 31, 2008 October 31, 2007 Liabilities and Shareholders' Equity Current Liabilities Accounts payable $ 344,000 $ 523,000 Accrued expenses 211,000 263,000 Deferred revenue from customer advance payments 254,000 242,000 Total Current Liabilities 809,000 1,028,000 Commitments and Contingencies Shareholders' Equity Common stock $0.01 par value; 120,000,000 shares authorized; 92,781,325 shares issued and outstanding 928,000 928,000 Additional paid-in capital 42,509,000 42,483,000 Accumulated deficit ( 38,416,000 ) ( 38,286,000 ) Total Shareholders' Equity 5,021,000 5,125,000 $ 5,830,000 $ 6,153,000 See accompanying report of management. VERSUS TECHNOLOGY, INC. AND SUBSIDIARY Consolidated Statements of Operations (Unaudited) Three Months Ended January 31, 2008 2007 Revenues $1,426,000 $1,133,000 Operating Expenses Cost of revenues 413,000 440,000 Research and development 177,000 155,000 Sales and marketing 738,000 520,000 General and administrative 245,000 237,000 Total Operating Expenses 1,573,000 1,352,000 Loss From Operations ( 147,000 ) ( 219,000 ) Other Income (Expense) Interest income 18,000 12,000 Net foreign currency transaction losses ( 1,000 ) ( 5,000 ) Total Other Income (Expense) 17,000 7,000 Net Loss $( 130,000 ) $( 212,000 ) Basic and Diluted Net Loss Per Share $- $- See accompanying report of management. VERSUS TECHNOLOGY, INC. AND SUBSIDIARY Consolidated Statements of Cash Flows (Unaudited) Three Months Ended January 31, 2008 2007 Operating Activities Net loss $( 130,000 ) $( 212,000 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation 9,000 8,000 Amortization of intangibles - 41,000 Non-cash equity based compensation 26,000 28,000 Changes in operating assets and liabilities: Accounts receivable ( 35,000 ) 671,000 Inventories 9,000 ( 66,000 ) Prepaid expenses and other current assets ( 28,000 ) ( 35,000 ) Accounts payable ( 179,000 ) ( 89,000 ) Accrued expenses ( 52,000 ) ( 30,000 ) Deferred revenues from customer advance payments 12,000 ( 6,000 ) Net cash provided by (used in) operating activities ( 368,000 ) 310,000 Investing Activity Additions to property and equipment ( 195,000 ) ( 15,000 ) Net Increase (Decrease) in Cash and Cash Equivalents ( 563,000 ) 295,000 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 $ 1,865,000 $ 1,696,000 See accompanying report of management.
SOURCE Versus Technology, Inc.