Versatile Systems Inc VVVFF

RE: NCB update

[dwothers]

They mention the increased margin of the Kiosks, but there was no evidence of increased margin in the financial report, and versatile does not sufficiently break down their reporting figure out what is happening. Could be that they have terrific margin on these things, but the margin on the other core business is being squeezed. And it could be that they ended up selling the Kiosks for less and that margin they talk about has not been realized. Then you'd have to ask, could they actually get what they set out to get? "it is trading on an undemanding FY2008 EV/sales multiple of 0.6x based on our core business revenue forecast of US$66.6m." Truly, this is trying to suggest that revenue deserves some kind of valuation regardless of the quality of the revenue. The revenues are low margin. A comparable model would be me in the blue jean business and I have to pay $38 for each $50 pair of blue jeans I sell, and then out of the $12 I have to pay for my store, staff and all other bills. In Versatile's case they've issued more and more equity because they haven't managed to be able to pay their bills.