VERSUS TECHNOLOGY, INC. 
By 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.
