Marketwire
VANCOUVER, CANADA--(Marketwired - Nov. 13, 2013) - Versatile Systems Inc. (TSX VENTURE:VV) announces its results for the first quarter of the 2014 fiscal year.
Revenue for the three months ended September 30, 2013 was $6,639,475, generating a gross profit of $1,280,857 or 19.3% of sales compared to $7,915,848, generating a gross profit of $1,832,779 or 22.3% of sales for the same quarter last year. The Net Loss for the quarter amounted to $1,249,421 ($0.01 per share) compared to Net Loss of $404,294 ($0.00 per share) for the same quarter last year.
Highlights for the quarter included:
- Revenue for the three months ended September 30, 2013 was $6,639,475 compared to $7,915,848 for the same quarter last year;
- The gross profit for the three months ended September 30, 2013 was $1,280,857 or 19.3% of sales compared to $1,832,779 or 23.2% of sales for the same quarter last year;
- The research and development expense for the quarter amounted to $384,775 compared to $236,246 for the same quarter last year; and
- Deferred revenue at September 30, 2013 was $6,277,307 (of which $5,298,503 is expected to be recognized in the next four quarters) compared to $6,835,938 at June 30, 2013.
During the first quarter the Company made a number of changes in senior management and has undertaken a restructuring of the U.S. Eastern operations with the objective of returning to profitability.
About Versatile
Versatile provides business solutions that enable companies to improve sales, marketing and distribution of their products. Versatile also provides information technology services for the implementation, maintenance and security of mission-critical computer environments. Versatile has the ability to architect solutions involving both proprietary and third party components. For more information go to 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. © 2013 Versatile Systems Inc. All rights reserved.
| Versatile Systems Inc. |
| Condensed Consolidated Statements of Financial Position |
| (Unaudited - Prepared by Management) |
| Expressed in U.S. dollars |
September 30, 2013 |
|
|
June 30, 2013 |
|
| |
|
(unaudited) |
|
|
|
|
| ASSETS |
|
|
|
|
|
|
| Current Assets |
|
|
|
|
|
|
| |
Cash and cash equivalents |
$ |
156,283 |
|
$ |
83,724 |
|
| |
Investment in Equus |
|
1,798,203 |
|
$ |
1,798,203 |
|
| |
Accounts receivable |
|
3,017,827 |
|
|
6,379,629 |
|
| |
Prepaid expenses |
|
4,573,425 |
|
|
4,588,012 |
|
| |
Inventory |
|
2,271,741 |
|
|
2,406,355 |
|
| |
|
11,817,479 |
|
|
15,255,923 |
|
| Long-term accounts receivable |
|
3,255 |
|
|
14,368 |
|
| Long-term prepaid expenses |
|
894,865 |
|
|
1,140,311 |
|
| Capital Assets |
|
174,458 |
|
|
189,274 |
|
| Intangible assets |
|
160,954 |
|
|
169,959 |
|
| Deferred income tax assets |
|
336,275 |
|
|
336,275 |
|
| Goodwill |
|
2,718,970 |
|
|
2,718,970 |
|
| |
$ |
16,106,256 |
|
$ |
19,825,080 |
|
| LIABILITIES |
|
|
|
|
|
|
| Current Liabilities |
|
|
|
|
|
|
| |
Line of credit and bank overdraft |
$ |
3,966,792 |
|
$ |
3,602,269 |
|
| |
Accounts payable and accrued liabilities |
|
4,678,337 |
|
|
6,963,126 |
|
| |
Current portion of deferred revenue |
|
5,298,503 |
|
|
5,586,738 |
|
| |
|
13,943,632 |
|
|
16,152,133 |
|
| Deferred Revenue |
|
978,804 |
|
|
1,249,200 |
|
| |
|
14,922,436 |
|
|
17,401,333 |
|
| SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
| |
Share Capital |
|
54,433,709 |
|
|
54,433,709 |
|
| |
Equity Reserve |
|
4,637,968 |
|
|
4,637,968 |
|
| |
Deficit |
|
(57,562,457 |
) |
|
(56,313,036 |
) |
| |
Accumulated other comprehensive loss |
|
(325,400 |
) |
|
(334,894 |
) |
| |
|
1,183,820 |
|
|
2,423,747 |
|
| |
|
| |
$ |
16,106,256 |
|
$ |
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 September 30 |
|
| |
|
2013 |
|
|
2012 |
|
| SALES |
$ |
6,639,475 |
|
$ |
7,915,848 |
|
| COST OF SALES |
|
5,358,618 |
|
|
6,083,069 |
|
| |
|
1,280,857 |
|
|
1,832,779 |
|
| EXPENSES |
|
|
|
|
|
|
| |
Selling and marketing |
|
870,789 |
|
|
1,062,543 |
|
| |
General and administrative |
|
1,216,388 |
|
|
809,016 |
|
| |
Research and development |
|
384,775 |
|
|
236,246 |
|
| |
Amortization of capital assets |
|
21,002 |
|
|
40,248 |
|
| |
Share-based compensation |
|
- |
|
|
2,186 |
|
| |
Foreign exchange loss |
|
2,624 |
|
|
12,134 |
|
| |
|
2,495,578 |
|
|
2,162,373 |
|
| LOSS FROM OPERATIONS |
|
(1,214,721 |
) |
|
(329,594 |
) |
| |
|
|
|
|
|
|
| |
Interest expense |
|
(33,244 |
) |
|
(18,915 |
) |
| |
Equity loss from Investment in Equus |
|
- |
|
|
(53,640 |
) |
| |
Loss on sale of capital assets |
|
(461 |
) |
|
- |
|
| |
|
|
|
|
|
|
| LOSS BEFORE INCOME TAXES |
|
(1,248,426 |
) |
|
(402,149 |
) |
| Current income tax expense |
|
(995 |
) |
|
(2,145 |
) |
| NET LOSS |
$ |
(1,249,421 |
) |
$ |
(404,294 |
) |
| |
|
| Other comprehensive income (loss) |
|
|
|
|
|
|
| |
Foreign exchange translation |
|
9,494 |
|
|
(918 |
) |
| Total comprehensive loss |
$ |
(1,239,927 |
) |
$ |
(405,212 |
) |
| |
|
| LOSS PER SHARE (basic and diluted) |
|
($0.01 |
) |
|
$0.00 |
|
| |
|
| Weighted average number of common shares oustanding, |
|
|
|
|
|
|
| |
basic and diluted |
|
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 |
|
| |
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
| |
|
|
|
|
|
|
|
|
other |
|
|
|
|
| |
|
Share |
|
Equity |
|
|
|
|
comprehensive |
|
|
|
|
| |
|
Capital |
|
Reserve |
|
Deficit |
|
|
loss |
|
|
Total |
|
| |
|
| Balance, June 30, 2012 |
$ |
54,433,709 |
$ |
4,629,219 |
$ |
(52,458,434 |
) |
$ |
(337,622 |
) |
$ |
6,266,872 |
|
| Net loss |
|
- |
|
- |
|
(404,294 |
) |
|
- |
|
|
(404,294 |
) |
| Foreign exchange on the translation of VMS- |
|
- |
|
- |
|
- |
|
|
(918 |
) |
|
(918 |
) |
| Share-based compensation expense |
|
- |
|
2,186 |
|
- |
|
|
- |
|
|
2,186 |
|
| Balance, September 30, 2012 |
|
54,433,709 |
|
4,631,405 |
|
(52,862,728 |
) |
|
(338,540 |
) |
|
5,863,846 |
|
| |
|
| |
|
| Balance, June 30, 2013 |
|
54,433,709 |
|
4,637,968 |
|
(56,313,036 |
) |
|
(334,894 |
) |
|
2,423,747 |
|
| Net loss |
|
- |
|
- |
|
(1,249,421 |
) |
|
- |
|
|
(1,249,421 |
) |
| Foreign exchange on the translation of VMS- |
|
- |
|
- |
|
- |
|
|
9,494 |
|
|
9,494 |
|
| Balance, September 30, 2013 |
$ |
54,433,709 |
$ |
4,637,968 |
$ |
(57,562,457 |
) |
$ |
(325,400 |
) |
$ |
1,183,820 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Versatile Systems Inc. |
| Condensed Consolidated Statements of Cash Flows |
| (Unaudited - Prepared by Management) |
| Expressed in U.S. dollars |
|
Three months ended September 30 |
|
| |
|
2013 |
|
|
2012 |
|
| OPERATING ACTIVITIES |
|
|
|
|
|
|
| Net loss |
$ |
(1,249,421 |
) |
$ |
(404,294 |
) |
| Items not involving cash |
|
|
|
|
|
|
| |
Amortization of capital assets |
|
21,002 |
|
|
40,248 |
|
| |
Share-based compensation |
|
- |
|
|
2,186 |
|
| |
Loss on sale of capital assets |
|
461 |
|
|
- |
|
| |
Equity loss from Investment in Equus |
|
- |
|
|
53,640 |
|
| Cash flow used in operations before other items |
|
(1,227,958 |
) |
|
(308,220 |
) |
| |
Net change in non-cash working capital |
|
924,030 |
|
|
(122,701 |
) |
| |
|
(303,928 |
) |
|
(430,921 |
) |
| INVESTING ACTIVITIES |
|
|
|
|
|
|
| |
Proceeds from disposition of capital assets |
|
1,418 |
|
|
- |
|
| |
Intangible assets - contract cost additions |
|
(42,862 |
) |
|
(78,405 |
) |
| |
Intangible assets - contract cost recognized |
|
57,712 |
|
|
84,576 |
|
| |
Purchase of capital assets |
|
(4,304 |
) |
|
(19,566 |
) |
| |
|
11,964 |
|
|
(13,395 |
) |
| FINANCING ACTIVITIES |
|
|
|
|
|
|
| |
Proceeds from line of credit and bank overdraft |
|
364,523 |
|
|
275,275 |
|
| |
|
364,523 |
|
|
275,275 |
|
| |
|
| Increase (Decrease) in cash and cash equivalents |
|
72,559 |
|
|
(169,041 |
) |
| |
|
| Cash and cash equivalents, beginning of period |
|
83,724 |
|
|
434,725 |
|
| |
|
| Cash and cash equivalents, end of period |
$ |
156,283 |
|
$ |
265,684 |
|