VANCOUVER, CANADA — (Marketwire) — 02/23/12 — Versatile Systems Inc. (TSX VENTURE: VV)(AIM: VVS), announces its results for the second quarter of the 2012 fiscal year.
Revenue for the three months ended December 31, 2011 was $9,147,552 generating a gross profit of $1,951,833 or 21.3% of sales compared to $15,460,033 generating a gross profit of $2,968,137 or 19.2% of sales for the same quarter last year. The Net Loss for the quarter amounted to $244,831 ($0.00 per share) compared to Net Earnings of $178,965 ($0.01 per share) for the same period last year. The total comprehensive income for the quarter amounted to $103,019 compared to $320,380 for the same quarter last year.
“We are continuing to add new sales resources and obtain additional partnership opportunities with tier 1 technology companies such as Citrix, Hitachi Data Systems, NetApp, Red Hat, Splunk, and Symantec,” said John Hardy, Chairman and CEO of Versatile. “We have cautiously increased R&D and marketing activities to respond to strengthening interest from partners and customers. We are focused on increasing sales of our proprietary technology and look forward to demonstrating Versatile-s SmartSign at the Digital Signage Expo to be held in Las Vegas from March 6th to 9th, 2012.”
Deferred revenue at December 31, 2011 was $5,671,777 (of which $5,202,720 is expected to be recognized in the next four quarters) compared to $6,320,199 at June 30, 2011.
The research and development expense for the quarter amounted to $275,847 compared to $278,909 for the same quarter last year. During the current quarter, the Company incurred $133,744 for research and development activities related to Mobiquity Route, DEX and related mobile software products and $99,978 related to Self-service, Mobiquity Transaction Engine 3.0 and Mobiquity Kiosk.
The Company adopted IFRS in the first quarter of the current fiscal year. The Company has applied the transitional exceptions and exemptions to full retroactive application of IFRS in its preparation of an opening IFRS consolidated statement of financial position at July 1, 2010. The most significant changes include the reclassification of deferred contract costs to intangible assets and the reclassification of current deferred income taxes to long term. Further details of the conversion to IFRS are provided in Management-s Discussion and Analysis and in the Notes to the Company-s unaudited Consolidated Financial Statements, as at and for the six months ended December 31, 2011.
The following table provides a reconciliation of the Company-s working capital under IFRS and under the previous Canadian generally accepted accounting principles:
“The gross profit improved from 19.8% last quarter to 21.3% in the current quarter,” said Fraser
Atkinson, CFO of Versatile. “The Company has taken a number of measures to reduce costs. These steps, combined with continuing improvement of the gross profit to the historical average of 22.5%, will have a positive impact on cash flow.”
Revenue for the six months ended December 31, 2011 was $18,186,764 generating a gross profit of $3,742,211 or 20.6% of sales compared to $24,679,083 generating a gross profit of $5,071,964 or 20.6% of sales for the same period last year. The Net Loss for the period amounted to $604,742 ($0.00 per share) compared to Net Earnings of $89,651 ($0.00 per share) for the same period last year.
On January 3, 2012 the Company delisted its shares from trading on the AIM market of the London Stock Exchange, which was approved by the shareholders at the annual general meeting held on November 17, 2011.
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: .
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. © 2012 Versatile Systems Inc. All rights reserved.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Versatile Systems Inc.
John Hardy
Chairman and CEO
1-800-262-1633
International: 001-206-979-6760
Versatile Systems Inc.
Fraser Atkinson
CFO
1-800-262-1633
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