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
SYS-CON Events announced today that MobiDev will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobile software company with over 200 develope...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
SYS-CON Events announced today that EastBanc Technologies will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. EastBanc Technologies has been working at the frontier of technology since 1999. Today, the firm provides full-lifecycle software development delivering flexible technology solutions that seamlessly integrate with existing systems – whether on premise or cloud. EastBanc Technologies partners with p...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 18th International CloudExpo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Isomorphic Software will exhibit at SYS-CON's [email protected] at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, high-productivity enterprise web applications for any device. SmartClient couples the industry’s broadest, deepest UI component set with a java server framework to deliver an end-...
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
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, wh...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...