Versatile Reports First Quarter 2015 Results

Versatile Systems Inc. (Trading symbol on the TSX Venture Exchange: VV) announces its results for the first quarter of 2015 fiscal year. Highlights of the Company’s operations for the quarter included:

• Revenue for the three months ended September 30, 2014 was $8,748,198 compared to $6,639,475 for the same quarter last year;
• The gross profit for the three months ended September 30 2014 was $1,464,157 or 16.7% of sales compared to $1,280,857 or 19.3% of sales for the same quarter last year;
• Net Loss for the quarter amounted to $443,269 ($0.00 per share) compared to Net Loss of $1,249,421 ($0.01 per share) for the same quarter last year;
• General and administrative expenses for the quarter amounted to $817,462 compared to $1,216,388 for the same quarter last year, a decrease of $398,926. As a percentage of sales the general and administrative expenses were 9.3% in the quarter compared to 18.3% in the same quarter last year;
• Selling and marketing expenses for the quarter amounted to $565,015 compared to $870,789 for the same quarter last year, a decrease of $305,774;
• The research and development expense for the quarter amounted to $250,881 compared to $384,775 for the same quarter last year;
• Deferred revenue at September 30, 2014 was $6,530,262 (of which $3,855,549 is expected to be recognized in the next four quarters) compared to $6,277,307 at September 30, 2013;
• On August 21, 2014, a convertible loan was repaid, eliminating future interest charges, but generating a noncash charge of $174,628 for write-down of the deferred finance charges associated with the derivative.

“I am pleased with the improvement in our overall financial performance during this current quarter,” said Bertrand des Pallieres, Versatile Systems’ Executive Chairman. “Our effort to control operating costs has resulted in an over 30 percent reduction in quarterly SG&A expenses compared to the average for our prior seven quarters. The Versatile management team will continue to identify and implement cost reduction opportunities as well as focus on higher growth and margin business segments with a goal of achieving profitability in the near term.”

About Versatile

Versatile is a technology company offering innovative solutions and trusted services to the retail, distribution and enterprise IT markets. The company’s three core businesses specialize in consumer credit and digital engagement solutions; mobile computing device sales, repair and software development; and IT project, contract staffing and hardware fabrication services. For more information, please visit 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.