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Versatile Reports Second Quarter Results
Wednesday, February 6, 2013Company Profile | Follow Company
Vancouver, BC, February 6, 2013--(T-Net)--Versatile Systems Inc. (TSX VENTURE:VV) announced its results for the second quarter of the 2013 fiscal year.
Revenue for the three months ended December 31, 2012 was $9,550,579, generating a gross profit of $1,842,628 or 19.3% of sales compared to $9,147,552, generating a gross profit of $1,951,833 or 21.3% of sales for the same quarter last year. The Net Loss for the quarter amounted to $494,389 ($0.00 per share) compared to the Net Loss of $263,695 ($0.00 per share) for the same period last year.
Highlights for the quarter included:
Revenue for the six months ended December 31, 2012 was $17,466,427 generating a gross profit of $3,675,407 or 21.0% of sales compared to $18,186,764 generating a gross profit of $3,742,211 or 20.6% of sales for the same period last year. The Net Loss for the period amounted to $898,683 ($0.01 per share) compared to $677,522 ($0.00 per share) for the same period last year.
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: 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.
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 | December 31, 2012 | June 30, 2012 | |||||
(unaudited) | |||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 70,780 | $ | 434,725 | |||
Accounts receivable | 5,585,111 | 5,994,377 | |||||
Prepaid expenses | 4,443,223 | 4,152,994 | |||||
Inventory | 2,272,065 | 2,347,110 | |||||
12,371,179 | 12,929,206 | ||||||
Long-term accounts receivable | 88,673 | 181,366 | |||||
Long-term prepaid expenses | 938,983 | 1,278,432 | |||||
Investment in Equus | 2,026,574 | 2,105,473 | |||||
Capital Assets | 200,905 | 251,591 | |||||
Intangible assets | 159,812 | 167,206 | |||||
Deferred income tax assets | 880,407 | 880,407 | |||||
Goodwill | 2,718,970 | 2,718,970 | |||||
$ | 19,385,503 | $ | 20,512,651 | ||||
LIABILITIES | |||||||
Current Liabilities | |||||||
Line of credit | $ | 2,967,124 | $ | 1,988,675 | |||
Accounts payable and accrued liabilities | 5,076,473 | 5,544,888 | |||||
Current portion of deferred revenue | 4,924,276 | 5,292,359 | |||||
12,967,873 | 12,825,922 | ||||||
Deferred Revenue | 1,045,165 | 1,419,857 | |||||
14,013,038 | 14,245,779 | ||||||
SHAREHOLDERS' EQUITY | |||||||
Share Capital | 54,433,709 | 54,433,709 | |||||
Equity Reserve | 4,633,592 | 4,629,219 | |||||
Deficit | (53,357,117 | ) | (52,458,434 | ) | |||
Accumulated other comprehensive loss | (337,719 | ) | (337,622 | ) | |||
5,372,465 | 6,266,872 | ||||||
$ | 19,385,503 | $ | 20,512,651 |
Versatile Systems Inc. |
Condensed Consolidated Statements of Operations and Comprehensive Loss |
(Unaudited - Prepared by Management) |
Expressed in U.S. dollars | Three months ended December 31 | Six months ended December 31 | |||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
(Restated) | (Restated) | ||||||||||||
SALES | $ | 9,550,579 | $ | 9,147,552 | $ | 17,466,427 | $ | 18,186,764 | |||||
COST OF SALES | 7,707,951 | 7,195,719 | 13,791,020 | 14,444,553 | |||||||||
1,842,628 | 1,951,833 | 3,675,407 | 3,742,211 | ||||||||||
EXPENSES | |||||||||||||
Selling and marketing | 1,085,949 | 1,098,187 | 2,148,492 | 2,118,118 | |||||||||
General and administrative | 845,714 | 827,851 | 1,654,730 | 1,788,978 | |||||||||
Research and development | 322,849 | 275,847 | 559,095 | 519,957 | |||||||||
Amortization of capital assets | 36,753 | 38,092 | 77,001 | 86,511 | |||||||||
Share-based compensation | 2,187 | 4,279 | 4,373 | 8,749 | |||||||||
Foreign exchange loss (gain) | (2,588 | ) | 21,287 | 9,546 | 22,111 | ||||||||
2,290,864 | 2,265,543 | 4,453,237 | 4,544,424 | ||||||||||
LOSS FROM OPERATIONS | (448,236 | ) | (313,710 | ) | (777,830 | ) | (802,213 | ) | |||||
Interest expense | (19,899 | ) | (7,594 | ) | (38,814 | ) | (12,817 | ) | |||||
Equity loss from Investment in Equus | (25,259 | ) | (25,534 | ) | (78,899 | ) | (79,450 | ) | |||||
Loss on sale of capital assets and investments | - | (1,534 | ) | - | (1,534 | ) | |||||||
LOSS BEFORE INCOME TAXES | (493,394 | ) | (348,372 | ) | (895,543 | ) | (896,014 | ) | |||||
Current income tax expense | (995 | ) | (995 | ) | (3,140 | ) | (2,340 | ) | |||||
Deferred income tax recovery | - | 85,672 | - | 220,832 | |||||||||
NET LOSS | $ | (494,389 | ) | $ | (263,695 | ) | $ | (898,683 | ) | $ | (677,522 | ) | |
Other comprehensive loss | |||||||||||||
Foreign exchange translation | (1,015 | ) | (6,670 | ) | (97 | ) | (6,670 | ) | |||||
Total comprehensive loss | $ | (495,404 | ) | $ | (270,365 | ) | $ | (898,780 | ) | $ | (684,192 | ) | |
LOSS PER SHARE (basic and diluted) | ($0.00 | ) | ($0.00 | ) | ($0.01 | ) | ($0.00 | ) |
Versatile Systems Inc. |
Condensed Consolidated Statements of Changes in Shareholders' Equity |
(Unaudited - Prepared by Management) |
Versatile Systems Inc. |
Condensed Consolidated Statements of Cash Flows |
(Unaudited - Prepared by Management) |
Expressed in U.S. dollars | Three months ended December 31 | Six months ended December 31 | ||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||
(Restated) | (Restated) | |||||||||||||
OPERATING ACTIVITIES | ||||||||||||||
Net loss | $ | (494,389 | ) | $ | (263,695 | ) | $ | (898,683 | ) | $ | (677,522 | ) | ||
Items not involving cash | ||||||||||||||
Amortization of capital assets | 36,753 | 42,491 | 77,001 | 95,000 | ||||||||||
Share-based compensation | 2,187 | 4,279 | 4,373 | 8,749 | ||||||||||
Loss on sale of capital assets and investments | - | 1,534 | - | 1,534 | ||||||||||
Equity loss from Investment in Equus | 25,259 | 25,534 | 78,899 | 79,450 | ||||||||||
Unrealized foreign exchange loss (gain) | 1,092 | (16,712 | ) | 1,092 | (16,712 | ) | ||||||||
Deferred income taxes | - | (85,672 | ) | - | (220,832 | ) | ||||||||
Cash flow used in operations before other items | (429,098 | ) | (292,241 | ) | (737,318 | ) | (730,333 | ) | ||||||
Net change in non-cash working capital | (462,265 | ) | (194,553 | ) | (584,966 | ) | 139,438 | |||||||
(891,363 | ) | (486,794 | ) | (1,322,284 | ) | (590,895 | ) | |||||||
INVESTING ACTIVITIES | ||||||||||||||
Short term investments | - | (14,776 | ) | - | (14,776 | ) | ||||||||
Proceeds from disposition of capital assets | - | 19,089 | - | 20,430 | ||||||||||
Intangible assets - contract cost additions | (59,574 | ) | (69,639 | ) | (137,979 | ) | (172,786 | ) | ||||||
Intangible assets - contract cost recognized | 60,797 | 62,200 | 145,373 | 143,445 | ||||||||||
Purchase of capital assets | (7,938 | ) | (102,095 | ) | (27,504 | ) | (109,304 | ) | ||||||
(6,715 | ) | (105,221 | ) | (20,110 | ) | (132,991 | ) | |||||||
FINANCING ACTIVITIES | ||||||||||||||
Proceeds from (Repayment of) line of credit | 703,174 | 160,144 | 978,449 | (122,642 | ) | |||||||||
703,174 | 160,144 | 978,449 | (122,642 | ) | ||||||||||
Decrease in cash and cash equivalents | (194,904 | ) | (431,871 | ) | (363,945 | ) | (846,528 | ) | ||||||
Cash and cash equivalents, beginning of period | 265,684 | 563,999 | 434,725 | 978,656 | ||||||||||
Cash and cash equivalents, end of period | $ | 70,780 | $ | 132,128 | $ | 70,780 | $ | 132,128 |
Contact:
Versatile Systems Inc.
John Hardy
CEO
1-800-262-1633
Versatile Systems Inc.
Fraser Atkinson
CFO
1-800-262-1633
Versatile Systems Inc.
International: 001-206-979-6760
www.versatile.com