Welcome!

News Feed Item

Versatile Reports Second Quarter Results

MECHANICSBURG, PENNSYLVANIA -- (Marketwired) -- 02/24/14 -- Versatile Systems Inc. (TSX VENTURE: VV), announces its results for the second quarter of the 2014 fiscal year.

Revenue for the three months ended December 31, 2013 was $9,857,689, generating a gross profit of $1,686,298 or 17.1 percent of sales compared to $9,550,579, generating a gross profit of $1,842,628 or 19.3 percent of sales for the same quarter last year. The net loss for the quarter amounted to $951,894 ($0.01 per share), which includes non-recurring expenses of $407,419, compared to a net loss of $494,389 ($0.00 per share) for the same quarter last year.

Highlights for the quarter included:

--  Revenue for the three months ended December 31, 2013 was $9,857,689
    compared to $9,550,579 for the same quarter last year, an increase of
    $307,110;
--  The gross profit for the three months ended December 31, 2013 was
    $1,686,298 or 17.1 percent of sales compared to $1,842,628 or 19.3
    percent of sales for the same quarter last year;
--  The research and development expense for the quarter amounted to
    $239,981 compared to $322,849 for the same quarter last year; and
--  Deferred revenue at December 31, 2013 was $6,577,606 (of which
    $5,661,284 is expected to be recognized in the next four quarters)
    compared to $6,835,938 at June 30, 2013.

During the current quarter, the company appointed Kenny Kahn as the chief executive officer and Kelly Boyer as the interim chief financial officer. The company also announced that it will close its Vancouver, Canada head office in order to centralize finance and administrative functions at its operations facility, located in Mechanicsburg, Pa.

Revenue for the six months ended December 31, 2013 was $16,497,164 generating a gross profit of $2,967,155 or 18.0 percent of sales compared to $17,466,427 generating a gross profit of $3,675,407 or 21.0 percent of sales for the same period last year. The net loss for the period amounted to $2,201,315 ($0.01 per share) compared to $898,683 ($0.01 per share) for the same period last year.

About Versatile

Versatile is a multi-disciplinary technology company with solutions across the mobile, digital signage, IT infrastructure, software and hardware landscape. The company's products are utilized by Fortune 500 companies, leading financial institutions and large and small retail organizations. For more information, please visit www.versatilecredit.com, www.versatilemobile.com and www.versatile.com.

Forward-Looking Statements

This document may contain forward-looking statements relating to Versatile's operations or to the environment in which it operates, which are based on Versatile's operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict or are beyond Versatile's control. A number of important factors including those set forth in other public filings could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place any undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. Versatile disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Neither TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. All amounts are expressed in U.S. dollars unless otherwise stated. © 2014 Versatile Systems Inc. All rights reserved.

----------------------------------------------------------------------------
----------------------------------------------------------------------------
Versatile Systems Inc.
Condensed Consolidated Statements of Financial Position
(Unaudited - Prepared by Management)
----------------------------------------------------------------------------

Expressed in U.S. dollars                  December 31, 2013  June 30, 2013
                                           ---------------------------------
                                                  (unaudited)
ASSETS
Current Assets
  Cash and cash equivalents                    $      63,111  $      83,724
  Investment in Equus                              1,798,203  $   1,798,203
  Accounts receivable                              7,228,114      6,379,629
  Prepaid expenses                                 5,028,710      4,588,012
  Inventory                                        1,778,501      2,406,355
                                           ---------------------------------
                                                  15,896,639     15,255,923

Long-term accounts receivable                          1,140         14,368
Long-term prepaid expenses                           831,568      1,140,311
Capital Assets                                       155,430        189,274
Intangible assets                                    166,936        169,959
Deferred income tax assets                           336,275        336,275
Goodwill                                           2,718,970      2,718,970
                                           ---------------------------------
                                               $  20,106,958  $  19,825,080
                                           ---------------------------------
                                           ---------------------------------

LIABILITIES
Current Liabilities
  Line of credit and bank overdraft            $   4,126,960  $   3,602,269
  Accounts payable and accrued liabilities         8,413,006      6,963,126
  Bridge Loan                                        739,376              -
  Current portion of deferred revenue              5,661,284      5,586,738
                                           ---------------------------------
                                                  18,940,626     16,152,133
Deferred Revenue                                     916,322      1,249,200
                                           ---------------------------------
                                                  19,856,948     17,401,333
                                           ---------------------------------
SHAREHOLDERS' EQUITY
  Share Capital                                   54,433,709     54,433,709
  Equity Reserve                                   4,637,968      4,637,968
  Deficit                                        (58,514,351)   (56,313,036)
  Accumulated other comprehensive loss              (307,315)      (334,894)
                                           ---------------------------------
                                                     250,011      2,423,747
                                           ---------------------------------

                                               $  20,106,958  $  19,825,080
                                           ---------------------------------
                                           ---------------------------------

----------------------------------------------------------------------------
----------------------------------------------------------------------------
Versatile Systems Inc.
Condensed Consolidated Statements of Operations and Comprehensive Income
(Loss)
(Unaudited - Prepared by Management)
----------------------------------------------------------------------------

Expressed in U.S.               Three months ended Six months ended December
 dollars                               December 31                        31
                                 2013         2012         2013         2012
SALES                    $  9,857,689 $  9,550,579 $ 16,497,164 $ 17,466,427

COST OF SALES               8,171,391    7,707,951   13,530,009   13,791,020
                        ----------------------------------------------------

                            1,686,298    1,842,628    2,967,155    3,675,407
                        ----------------------------------------------------

EXPENSES
  Selling and marketing       784,437    1,085,949    1,655,226    2,148,492
  General and
   administrative           1,148,195      845,714    2,364,583    1,654,730
  Research and
   development                239,981      322,849      624,756      559,095
  Non recurring expenses      407,419            -      407,419            -
  Amortization of
   capital assets              19,945       36,753       40,947       77,001
  Share-based
   compensation                     -        2,187            -        4,373
  Foreign exchange
   (gain) loss                (5,293)      (2,588)      (2,669)        9,546
                        ----------------------------------------------------
                            2,594,684    2,290,864    5,090,262    4,453,237
                        ----------------------------------------------------

LOSS FROM OPERATIONS        (908,386)    (448,236)  (2,123,107)    (777,830)

  Interest expense           (42,376)     (19,899)     (75,620)     (38,814)
  Equity loss from
   Investment in Equus              -     (25,259)            -     (78,899)
  Loss on sale of
   capital assets                   -            -        (461)            -
                        ----------------------------------------------------
LOSS BEFORE INCOME TAXES    (950,762)    (493,394)  (2,199,188)    (895,543)

Current income tax
 expense                      (1,132)        (995)      (2,127)      (3,140)
                        ----------------------------------------------------

NET LOSS                 $  (951,894) $  (494,389) $(2,201,315) $  (898,683)
                        ----------------------------------------------------
                        ----------------------------------------------------

Other comprehensive
 income (loss)
  Foreign exchange
   translation                 18,085      (1,015)       27,579         (97)
                        ----------------------------------------------------
Total comprehensive loss $  (933,809) $  (495,404) $(2,173,736) $  (898,780)
                        ----------------------------------------------------
                        ----------------------------------------------------

LOSS PER SHARE (basic
 and diluted)                 ($0.01)      ($0.00)      ($0.01)      ($0.01)
                        ----------------------------------------------------
                        ----------------------------------------------------

Weighted average number
 of common shares
 oustanding, basic and
 diluted                  157,285,643  157,285,643  157,285,643  157,285,643
                        ----------------------------------------------------
                        ----------------------------------------------------

----------------------------------------------------------------------------
----------------------------------------------------------------------------
Versatile Systems Inc.
Condensed Consolidated Statements of Changes in Shareholders' Equity
(Unaudited - Prepared by Management)
----------------------------------------------------------------------------

Expressed in U.S. dollars


                                            Share      Equity
                                          Capital     Reserve       Deficit
                                    ----------------------------------------


Balance, June 30, 2012               $ 54,433,709 $ 4,629,219 $ (52,458,434)

Net loss                                        -           -      (898,683)
Foreign exchange on the translation
 of VMS-UK                                      -           -             -
Share-based compensation expense                -       4,373             -
                                    ----------------------------------------

Balance, December 31, 2012             54,433,709   4,633,592   (53,357,117)
                                    ----------------------------------------
                                    ----------------------------------------


Balance, June 30, 2013                 54,433,709   4,637,968   (56,313,036)

Net loss                                        -           -    (2,201,315)
Foreign exchange on the translation
 of VMS-UK                                      -           -             -
                                    ----------------------------------------

Balance, December 31, 2013           $ 54,433,709 $ 4,637,968 $ (58,514,351)
                                    ----------------------------------------
                                    ----------------------------------------


----------------------------------------------------------------------------
----------------------------------------------------------------------------
Versatile Systems Inc.
Condensed Consolidated Statements of Changes in Shareholders' Equity
(Unaudited - Prepared by Management)
----------------------------------------------------------------------------

Expressed in U.S. dollars
                                            Accumulated
                                                  other
                                          comprehensive
                                                   loss               Total
                                    ----------------------------------------


Balance, June 30, 2012               $         (337,622) $        6,266,872

Net loss                                              -            (898,683)
Foreign exchange on the translation
 of VMS-UK                                          (97)                (97)
Share-based compensation expense                      -               4,373
                                    ----------------------------------------

Balance, December 31, 2012                     (337,719)          5,372,465
                                    ----------------------------------------
                                    ----------------------------------------


Balance, June 30, 2013                         (334,894)          2,423,747

Net loss                                              -          (2,201,315)
Foreign exchange on the translation
 of VMS-UK                                       27,579              27,579
                                    ----------------------------------------

Balance, December 31, 2013           $         (307,315) $          250,011
                                    ----------------------------------------
                                    ----------------------------------------

----------------------------------------------------------------------------
----------------------------------------------------------------------------
Versatile Systems Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited - Prepared by Management)
----------------------------------------------------------------------------

Expressed in U.S.              Three months ended Six months ended December
 dollars                              December 31                        31
                                2013         2012         2013         2012
                        ----------------------------------------------------


OPERATING ACTIVITIES
Net loss                 $  (951,894) $  (494,389) $(2,201,315) $  (898,683)
Items not involving cash
  Amortization of
   capital assets             19,945       36,753       40,947       77,001
  Share-based
   compensation                -            2,187            -        4,373
  Loss on sale of
   capital assets              -                -          461            -
  Equity loss from
   Investment in Equus         -           25,259            -       78,899
  Unrealized foreign
   exchange loss                 991        1,092          991        1,092
                        ----------------------------------------------------
Cash flow used in
 operations before other    (930,958)    (429,098)  (2,158,916)    (737,318)
 items
  Net change in non-cash
   working capital           (56,169)    (462,265)     867,861     (584,966)
                        ----------------------------------------------------
                            (987,127)    (891,363)  (1,291,055)  (1,322,284)

INVESTING ACTIVITIES
  Proceeds from
   disposition of                  -            -        1,418            -
   capital assets
  Intangible assets -
   contract cost             (67,033)     (59,574)    (109,895)    (137,979)
   additions
  Intangible assets -
   contract cost            61,041         60,797      118,753      145,373
   recognized
  Purchase of capital
   assets                     (2,458)      (7,938)      (6,762)     (27,504)
                        ----------------------------------------------------
                              (8,450)      (6,715)       3,514      (20,110)
                        ----------------------------------------------------

FINANCING ACTIVITIES
  Proceeds from the
   bridge loan               742,237            -      742,237            -
  Proceeds from line of
   credit and bank           160,168      703,174      524,691      978,449
   overdraft
                        ----------------------------------------------------
                             902,405      703,174    1,266,928      978,449
                        ----------------------------------------------------

Decrease in cash and
 cash equivalents            (93,172)    (194,904)     (20,613)    (363,945)

Cash and cash
 equivalents, beginning      156,283      265,684       83,724      434,725
 of period
                        ----------------------------------------------------

Cash and cash
 equivalents, end of     $    63,111  $    70,780  $    63,111  $    70,780
 period
                        ----------------------------------------------------
                        ----------------------------------------------------

Contacts:
Versatile Systems Inc.
Kenny Kahn
CEO
717-620-2531
[email protected]
www.versatile.com

Daum Weigle Inc.
Jon Daum
858-538-9755
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone inn...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
The past few years have brought a sea change in the way applications are architected, developed, and consumed—increasing both the complexity of testing and the business impact of software failures. How can software testing professionals keep pace with modern application delivery, given the trends that impact both architectures (cloud, microservices, and APIs) and processes (DevOps, agile, and continuous delivery)? This is where continuous testing comes in. D
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive ov...
"WineSOFT is a software company making proxy server software, which is widely used in the telecommunication industry or the content delivery networks or e-commerce," explained Jonathan Ahn, COO of WineSOFT, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...