Reports Third Quarter Results
posted on May 04, 2009 02:21AM
Edit this title from the Fast Facts Section
|May 4, 2009|
|Versatile Reports Third Quarter Results|
|VANCOUVER, CANADA--(Marketwire - May 4, 2009) - Versatile Systems Inc. (TSX VENTURE:VV)(AIM:VVS), announces its results for the third quarter of the 2009 fiscal year.
Revenue for the three months ended March 31, 2009 was $10,877,354 generating a gross profit of $2,323,987 or 21.4% of sales compared to $14,519,869 generating a gross profit of $3,425,037 or 23.6% of sales for the same quarter last year. The Net Loss for the quarter, excluding the non-recurring expenses of $160,158, amounted to $412,797 ($0.00 per share) compared to a Net Loss of $67,622 ($0.00 per share) for the same period last year.
The EBITDA loss for the quarter, excluding the non-recurring expenses of $160,158, was $372,057 compared to an EBITDA of $4,245 for the same quarter last year. EBITDA is defined as net earnings before interest expense, income taxes, depreciation and amortization. The Company has included information concerning EBITDA because it believes that it may be used by certain investors as one measure of the Company's financial performance.
"Economic conditions continued to be challenging during the quarter, which led to lower revenue and gross profit," said John Hardy, Chairman and CEO of Versatile. "Nevertheless, excluding the non-recurring and R&D expenses, the Company was close to operational break even. We have made a considered decision to continue the R&D program in a measured way as the sale of proprietary products will drive future growth. In addition, we will continue to adjust our cost structures to match our revenue stream. As economic conditions improve, we will be well positioned with a leaner cost structure combined with an innovative product set."
Highlights for the quarter included:
- Cash and cash equivalents at March 31, 2009 was $2,100,645;
- Deferred revenue at March 31, 2009 was $7,515,600 (of which $6,447,454 is expected to be recognized in the next four quarters) compared to $7,986,465 at December 31, 2008, a decrease of $470,865;
- Revenue for the three months ended March 31, 2009 was $10,877,354 compared to $14,519,869 for the same period last year;
- The Company recorded a one time charge for non-recurring expenses of $160,158 for the quarter ended March 31, 2009 relating to an additional provision, the majority of which is financing costs, for transactions occurring in prior periods;
- Research and development expense for the quarter amounted to $278,701 compared to $397,591 for the same quarter last year;
- Several substantial orders for its core products and services, from its existing customer base, including $1,122,935 from the Bank of Oklahoma; and
- The Company announced cost reductions at the beginning of the quarter of approximately $1,670,000. The Company will continue a process of aligning its cost structure in relation to its revenue stream.
For the Mobiquity Route(TM) these included:
- Expanding the retail mode for self service customers; and
- Developing recovery from interrupted communication sessions.
For the Mobiquity Transaction Engine 3.0(TM) these included:
- Completing integration with the Asterisk open-source voice-over-IP solution;
- Completing integration with Motorola devices for real-time location services;
- Completing integration with Motorola Enterprise hand-held products; and
- Creating enterprise visibility module for the large venue marketplace;
For the Mobiquity Kiosk(TM), these included:
- Implementing multi-output services on the kiosks, allowing one kiosk computer to drive multiple applications (for example, a credit application and digital signage) at the same time;
- Improvements for remote management and monitoring software to provide greater web-based visibility and easier remote configuration of kiosks;
- Commencing the integration with a Canadian credit provider to provide instant credit for Canadian retailers; and
- Adding support for new Motorola 2D bar-code scanner.
Revenue for the nine months ended March 31, 2009 was $37,508,269 generating a gross profit of $9,116,482 or 24.3% of revenue compared to $45,658,542 generating a gross profit of $11,311,654 or 24.8% of revenue for the same period last year. The EBITDA loss for the period was $925,590 or $393,255 excluding the non-recurring expenses of $532,335 compared to an EBITDA of $1,134,024 for the same period last year. The Net Loss for the period amounted to $1,049,511 ($0.01 per share) compared to Net Earnings of $562,173 ($0.00 per share) for the same period last year.
"The Company has reduced its total expenses to the lowest level in the past three years," said Fraser Atkinson, CFO of Versatile. "The Company continues to maintain a strong financial position with no interest bearing debt."
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.