Welcome!

News Feed Item

Versatile Reports Third Quarter Results

MECHANICSBURG, PENNSYLVANIA -- (Marketwired) -- 05/30/14 -- Versatile Systems Inc. (TSX VENTURE:VV) announces its results for the third quarter of the 2014 fiscal year.

Revenue for the three months ended March 31, 2014 was $11,386,580, generating a gross profit of $1,974,726 or 17.3% of sales compared to $10,222,371, generating a gross profit of $1,697,798 or 16.6% of sales for the same quarter last year. The Net Loss for the quarter amounted to $560,852 ($0.00 per share), which includes non-recurring expenses of $27,286, compared to a Net Loss of $780,888 ($0.00 per share) for the same quarter last year.

Highlights for the quarter included:


--  Revenue for the three months ended March 31, 2014 was $11,386,580
    compared to $10,222,371 for the same quarter last year, an increase of
    $1,164,209; 
--  The gross profit for the three months ended March 31, 2014 was
    $1,974,726 or 17.3% of sales compared to $1,697,798 or 16.6% of sales
    for the same quarter last year; 
--  The research and development expense for the quarter amounted to
    $214,976 compared to $366,890 for the same quarter last year; and 
--  Deferred revenue at March 31, 2014 was $5,613,780 (of which $4,930,662
    is expected to be recognized in the next four quarters) compared to
    $6,835,938 at June 30, 2013. 

During this current quarter the Company continued to actively pursue its goal of improved financial and operational performance. "I am proud of the management team and the improving performance is the direct result of effectively remodeling the business," said Kenny Kahn the Company's Chief Executive Officer. "Since assembling this management team, Versatile has been able to improve operational performance quarter over quarter. I feel confident we can continue this trend and get our Company back to profitability."

Revenue for the nine months ended March 31, 2014 was $27,883,744 generating a gross profit of $4,941,881 or 17.7% of sales compared to $27,688,798 generating a gross profit of $5,373,205 or 19.4% of sales for the same period last year. The Net Loss for the period amounted to $2,762,167 ($0.02 per share) compared to $1,679,571 ($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 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)                                        
----------------------------------------------------------------------------
                                                                            
                                                    March 31,      June 30, 
Expressed in U.S. dollars                                2014          2013 
                                                ----------------------------
                                                  (unaudited)               
ASSETS                                                                      
Current Assets                                                              
  Cash and cash equivalents                      $    110,904  $     83,724 
  Investment in Equus                               1,798,203     1,798,203 
  Accounts receivable                               5,078,239     6,379,629 
  Prepaid expenses                                  4,262,076     4,588,012 
  Inventory                                         1,988,191     2,406,355 
                                                ----------------------------
                                                   13,237,613    15,255,923 
                                                                            
Long-term accounts receivable                             568        14,368 
Long-term prepaid expenses                            618,955     1,140,311 
Capital Assets                                        138,113       189,274 
Intangible assets                                     139,194       169,959 
Deferred income tax assets                            336,275       336,275 
Goodwill                                            2,718,970     2,718,970 
                                                ----------------------------
                                                 $ 17,189,688  $ 19,825,080 
                                                ----------------------------
                                                ----------------------------
LIABILITIES                                                                 
Current Liabilities                                                         
  Line of credit                                 $  4,083,417  $  3,602,269 
  Accounts payable and accrued liabilities          6,435,267     6,963,126 
  Current portion of deferred revenue               4,930,662     5,586,738 
                                                ----------------------------
                                                   15,449,346    16,152,133 
                                                                            
Deferred Revenue                                      683,118     1,249,200 
Convertible Loan                                      475,816             - 
                                                ----------------------------
                                                   16,608,280    17,401,333 
                                                ----------------------------
SHAREHOLDERS' EQUITY                                                        
  Share Capital                                    55,175,946    54,433,709 
  Equity Reserve                                    4,798,636     4,637,968 
  Deficit                                         (59,075,203)  (56,313,036)
  Accumulated other comprehensive loss               (317,972)     (334,894)
                                                ----------------------------
                                                      581,408     2,423,747 
                                                ----------------------------
                                                                            
                                                 $ 17,189,688  $ 19,825,080 
                                                ----------------------------
                                                ----------------------------
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Versatile Systems Inc.                                                      
Condensed Consolidated Statements of Operations and Comprehensive Income    
(Loss)                                                                      
(Unaudited - Prepared by Management)                                        
----------------------------------------------------------------------------
                                                                            
Expressed in U.S.                                                           
 dollars            Three months ended March 31  Nine months ended March 31 
                             2014          2013          2014          2013 
                    --------------------------------------------------------
                                                                            
                                                                            
SALES                $ 11,386,580  $ 10,222,371  $ 27,883,744  $ 27,688,798 
COST OF SALES           9,411,854     8,524,573    22,941,863    22,315,593 
                    --------------------------------------------------------
                        1,974,726     1,697,798     4,941,881     5,373,205 
                    --------------------------------------------------------
EXPENSES                                                                    
  Selling and                                                               
   marketing              910,969     1,183,700     2,566,195     3,332,192 
  General and                                                               
   administrative       1,267,490       859,206     3,632,073     2,513,936 
  Research and                                                              
   development            214,976       366,890       839,732       925,985 
  Non recurring                                                             
   expenses                27,286             -       434,705             - 
  Amortization of                                                           
   capital assets          20,118        24,408        61,065       101,409 
  Share-based                                                               
   compensation                 -         2,188             -         6,561 
  Foreign exchange                                                          
   (gain) loss            (14,679)       (7,348)      (17,348)        2,198 
                    --------------------------------------------------------
                        2,426,160     2,429,044     7,516,422     6,882,281 
                    --------------------------------------------------------
LOSS FROM OPERATIONS     (451,434)     (731,246)   (2,574,541)   (1,509,076)
  Interest expense                                                          
   and financing                                                            
   costs                 (108,218)      (24,766)     (183,838)      (63,580)
  Equity loss from                                                          
   Investment in                                                            
   Equus                        -       (23,881)            -      (102,780)
  Loss on sale of                                                           
   capital assets               -             -          (461)            - 
                    --------------------------------------------------------
LOSS BEFORE INCOME                                                          
 TAXES                   (559,652)     (779,893)   (2,758,840)   (1,675,436)
Current income tax                                                          
 expense                   (1,200)         (995)       (3,327)       (4,135)
                    --------------------------------------------------------
NET LOSS             $   (560,852) $   (780,888) $ (2,762,167) $ (1,679,571)
                    --------------------------------------------------------
                    --------------------------------------------------------
                                                                            
Other comprehensive                                                         
 income (loss)                                                              
  Foreign exchange                                                          
   translation            (10,657)        6,075        16,922         5,978 
                    --------------------------------------------------------
Total comprehensive                                                         
 loss                $   (571,509) $   (774,813) $ (2,745,245) $ (1,673,593)
                    --------------------------------------------------------
                    --------------------------------------------------------
                                                                            
LOSS PER SHARE                                                              
 (basic and diluted) $      (0.00) $      (0.00) $      (0.02) $      (0.01)
                    --------------------------------------------------------
                    --------------------------------------------------------
                                                                            
Weighted average                                                            
 number of common                                                           
 shares oustanding,                                                         
 basic and diluted    161,654,689   157,285,643   158,362,942   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                                  -               -      (1,679,571)
Foreign exchange on the                                                     
 translation of VMS-UK                    -               -               - 
Share-based compensation                                                    
 expense                                  -           6,561               - 
                            ------------------------------------------------
Balance, March 31, 2013          54,433,709       4,635,780     (54,138,005)
                            ------------------------------------------------
                            ------------------------------------------------
                                                                            
Balance, June 30, 2013           54,433,709       4,637,968     (56,313,036)
Shares issued during the                                                    
 period                             742,237               -               - 
Warrants issued during the                                                  
 period                                   -          33,714               - 
Conversion option with the                                                  
 convertible loan                         -         126,954               - 
Net loss                                  -               -      (2,762,167)
Foreign exchange on the                                                     
 translation of VMS-UK                    -               -               - 
                            ------------------------------------------------
Balance, March 31, 2014      $   55,175,946  $    4,798,636  $  (59,075,203)
                            ------------------------------------------------
                            ------------------------------------------------

Expressed in U.S. dollars                                   
                                Accumulated                 
                                      other                 
                              comprehensive                 
                                       loss           Total 
                            --------------------------------
                                                            
Balance, June 30, 2012       $     (337,622) $    6,266,872 
                                                            
Net loss                                  -      (1,679,571)
Foreign exchange on the                                     
 translation of VMS-UK                5,978           5,978 
Share-based compensation                                    
 expense                                  -           6,561 
                            --------------------------------
Balance, March 31, 2013            (331,644)      4,599,840 
                            --------------------------------
                            --------------------------------
                                                            
Balance, June 30, 2013             (334,894)      2,423,747 
Shares issued during the                                    
 period                                   -         742,237 
Warrants issued during the                                  
 period                                   -          33,714 
Conversion option with the                                  
 convertible loan                         -         126,954 
Net loss                                  -      (2,762,167)
Foreign exchange on the                                     
 translation of VMS-UK               16,922          16,922 
                            --------------------------------
Balance, March 31, 2014      $     (317,972) $      581,408 
                            --------------------------------
                            --------------------------------
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Versatile Systems Inc.                                                      
Condensed Consolidated Statements of Cash Flows                             
(Unaudited - Prepared by Management)                                        
----------------------------------------------------------------------------
                                                                            
Expressed in U.S.            Three months ended           Nine months ended 
 dollars                               March 31                    March 31 
                               2014        2013          2014          2013 
                        ----------------------------------------------------
                                                                            
OPERATING ACTIVITIES                                                        
  Net loss               $ (560,852) $ (780,888) $ (2,762,167) $ (1,679,571)
  Items not involving                                                       
   cash                                                                     
    Amortization of                                                         
     capital assets          20,118      24,408        61,065       101,409 
    Amortization of                                                         
     Financing costs         51,520           -        51,520             - 
    Share-based                                                             
     compensation                 -       2,188             -         6,561 
    Loss on sale of                                                         
     capital assets               -           -           461             - 
    Equity loss from                                                        
     Investment in Equus          -      23,881             -       102,780 
    Unrealized foreign                                                      
     exchange loss                                                          
     (gain)                       -        (409)          991           683 
                        ----------------------------------------------------
Cash flow used in                                                           
 operations before other                                                    
 items                     (489,213)   (730,820)   (2,648,129)   (1,468,138)
    Net change in non-                                                      
     cash working                                                           
     capital                (30,740)    675,027       837,121        90,061 
                        ----------------------------------------------------
                           (519,953)    (55,793)   (1,811,008)   (1,378,077)
INVESTING ACTIVITIES                                                        
  Proceeds from                                                             
   disposition of                                                           
   capital assets                 -           -         1,418             - 
  Intangible assets -                                                       
   contract cost                                                            
   additions                (30,195)    (52,185)     (140,090)     (190,164)
  Intangible assets -                                                       
   contract cost                                                            
   recognized                57,937      58,491       176,690       203,864 
  Purchase of capital                                                       
   assets                    (3,355)    (15,815)      (10,117)      (43,319)
                        ----------------------------------------------------
                             24,387      (9,509)       27,901       (29,619)
                        ----------------------------------------------------
FINANCING ACTIVITIES                                                        
  Proceeds from the                                                         
   bridge loan                    -           -       742,237             - 
  Repayment of the                                                          
   bridge loan             (742,237)          -      (742,237)            - 
    Issuance of common                                                      
     shares                 742,237           -       742,237             - 
    Proceeds from the                                                       
     convertible loan       586,902           -       586,902             - 
    Proceeds from line                                                      
     of credit              (43,543)     36,167       481,148     1,014,616 
                        ----------------------------------------------------
                            543,359      36,167     1,810,287     1,014,616 
                        ----------------------------------------------------
                                                                            
Increase (decrease) in                                                      
 cash and cash                                                              
 equivalents                 47,793     (29,135)       27,180      (393,080)
                                                                            
Cash and cash                                                               
 equivalents, beginning                                                     
 of period                   63,111      70,780        83,724       434,725 
                        ----------------------------------------------------
                                                                            
Cash and cash                                                               
 equivalents, end of                                                        
 period                  $  110,904  $   41,645  $    110,904  $     41,645 
                        ----------------------------------------------------
                        ----------------------------------------------------

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
Automation is enabling enterprises to design, deploy, and manage more complex, hybrid cloud environments. Yet the people who manage these environments must be trained in and understanding these environments better than ever before. A new era of analytics and cognitive computing is adding intelligence, but also more complexity, to these cloud environments. How smart is your cloud? How smart should it be? In this power panel at 20th Cloud Expo, moderated by Conference Chair Roger Strukhoff, pane...
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo Silicon Valley which will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is at the intersection of technology and business-optimizing tools, organizations and processes to bring measurable improvements in productivity and profitability," said Aruna Ravichandran, vice president, DevOps product and solutions marketing...
@DevOpsSummit at Cloud Expo taking place Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center, Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is ...
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
What's the role of an IT self-service portal when you get to continuous delivery and Infrastructure as Code? This general session showed how to create the continuous delivery culture and eight accelerators for leading the change. Don Demcsak is a DevOps and Cloud Native Modernization Principal for Dell EMC based out of New Jersey. He is a former, long time, Microsoft Most Valuable Professional, specializing in building and architecting Application Delivery Pipelines for hybrid legacy, and cloud ...
In his session at Cloud Expo, Alan Winters, an entertainment executive/TV producer turned serial entrepreneur, presented a success story of an entrepreneur who has both suffered through and benefited from offshore development across multiple businesses: The smart choice, or how to select the right offshore development partner Warning signs, or how to minimize chances of making the wrong choice Collaboration, or how to establish the most effective work processes Budget control, or how to ma...
We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA
SYS-CON Events announced today that Cloud Academy named "Bronze Sponsor" of 21st International Cloud Expo which will take place October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara, CA. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud com...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, Doug Vanderweide, an instructor at Linux Academy, discussed why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers wit...