Monday August 31, 7:54 am Eastern Time
Company Press Release
Versus Technology Reports Third Quarter Results
Best-Ever Revenues, Narrowed Net Loss Highlight Quarter
TRAVERSE CITY, Mich.--(BUSINESS WIRE)--Aug. 31, 1998--Versus Technology, Inc. (OTC BB:VSTI - news) today
announced the results of its third quarter ended July 31, 1998, highlighted by significant profit improvement on a 175% increase
in revenues.
The Traverse City, Michigan-based developer and manufacturer of infrared (IR) location, data collection and communications
products reported net revenues of $840,000 in the fiscal 1998 third quarter, compared with net revenues of $306,000 in the
same period last year. Versus attributed the dramatic growth to continued penetration of its Versus Information System (VIS)
technology into the healthcare market and the impact of the Company's recent marketing agreement with Marquette Medical
Systems, Inc. The fiscal 1998 third quarter marked Versus' third consecutive quarter of record revenues since focusing on its
IR technology.
''Our commitment of resources toward product development and sales and marketing is fueling our significant top-line growth
and will continue to be a priority as we work to build on this progress,'' said Gary Gaisser, Versus Technology president and
chief executive officer. ''Versus has the leading-edge technology and a growing network of distribution channels and
relationships that will be key to sustaining our momentum.''
For the fiscal 1998 third quarter, Versus reported a narrowed net loss of $265,000, or $0.01 per share, compared with a net
loss of $797,000, or $0.02 per share, in fiscal 1997.
''We expect to continue to increase both sales and profitability in the coming quarters. Versus Technology's growing revenue
stream and new products coming online support this target, and we are dedicated to making it happen in the near-term,'' said
Gaisser.
Gaisser said a key contributor to this optimism is the planned launch in the fiscal 1999 first quarter of Versus' new generation
locating system. The innovations will propel the Company's VIS product into the leadership role in providing location
information and communications solutions to end-users. Versus Technology's patented infrared locating systems identify the
precise location of personnel and equipment, provide two-way wireless communications throughout a facility and can enable
the control of ingress and egress to restricted areas.
For the third quarter ended July 31, 1998, Versus Technology's gross profit as a percentage of revenues increased to 71.7%,
compared with 18.6% in the prior year same period. In addition, the Company's total operating expenses declined both in pure
dollars and as a percentage of revenues. Versus attributed the margin improvements to its significant growth in revenues and its
ability to implement operating and production efficiencies.
''We have eclipsed the market acceptance stage with our IR location products, and we are now seeing the distribution and
demand that attest to our emerging market leadership in the healthcare field,'' said Henry J. Tenarvitz, executive vice president
of operations for Versus Technology. ''We are committed to expanding the market coverage of our VIS technology both
within the healthcare industry and in other segments as we look to diversify our customer base and maximize our potential. We
believe this strategy is integral to sustainable growth for Versus and increased value for our shareholders.''
For the nine months ended July 31, 1998, Versus posted a net loss of $1.3 million, or $0.03 per share, on net revenues of $2.1
million, compared with a net loss of $2.0 million, or $0.05 per share, on net revenues of $992,000 for the same period a year
ago. Versus' nine-month revenue results represent a 111% increase over the prior year nine-month period and a 37% increase
over the Company's net revenues for all of fiscal 1997.
Versus said its strong revenue increase was due to its expanded sales and marketing efforts to healthcare providers, led by a
number of new initiatives. In the third quarter 1998, the Company announced a new marketing agreement with Marquette
Medical Systems to sell Versus' infrared locating systems to the acute care hospital market. The one-year agreement will
provide $1.75 million in revenue for Versus, approximately $420,000 of which is expected in the fourth quarter of fiscal 1998.
Versus also expanded its reseller network in the quarter with a new marketing agreement with Canadian healthcare systems
supplier Cleocom, Inc. The agreement to sell Versus' IR locating products in Canada marks the Company's first international
marketing and distribution agreement.
Through the first nine months of fiscal 1998, Versus reported its gross profit as a percentage of revenues increased to 56.4%,
compared with 19.5% in the same period in the prior year. The Company's strong revenue growth, combined with improved
production efficiencies, contributed to the gross margin increase, as well as Versus' narrowed operating loss in the 1998
nine-month period. Versus posted an operating loss of $1.3 million for the nine months ended July 31, 1998, compared with an
operating loss of $2.1 million in the same period in fiscal 1997
Versus Technology's infrared locating systems are currently used in a variety of installations throughout North America,
including Cedars-Sinai Medical Center in Los Angeles, CA, Baylor University Medical Center in Dallas, TX, VA Medical
Center in Ann Arbor, MI and Los Alamos National Laboratories, a high security government facility in New Mexico. Versus'
proprietary IR location and information systems are sold through an expanding network of resellers including Cleocom, Dukane
Corporation, Marquette (NASDAQ:MARQ - news), Rauland-Borg Corporation and Zettler Systems, Inc., which market the
products within their existing monitoring and nurse call registry systems.
Versus Technology, Inc. (http://www.versustech.com) is a leading innovator in infrared locating technology, which offers
real-time locating/data collection and two-way communication capabilities. The systems, which are currently installed in
hospitals, corporate facilities, government facilities and other complexes, permit the automatic, accurate registry of essential
management and business processes and can be used to monitor the precise location of personnel or equipment for health and
safety purposes, control access to secured areas and automatically record events associated with these activities.
Safe Harbor Statement:
The information provided in this press release may include forward-looking statements relating to future events, such as the
development of new products, the commencement of production, or the future financial performance of the Company. Actual
results may differ from such projections and are subject to certain risks including, without limitation, risks arising from: changes
in the rate of growth of the infrared location industry, increased competition in the industry, delays in developing and
commercializing new products, adequacy of financing and other factors described in the Company's most recent annual report
on Form 10-K filed with the Securities and Exchange Commission, which can be reviewed at sec.gov.
VERSUS TECHNOLOGY, INC.
Consolidated Statement of Operations
(Unaudited)
_____________________________________________________________________
Three Months Ended Nine Months Ended
July 31, July 31,
1998 1997 1998 1997
____________________ ________________________
Net Revenues $ 840,000 $ 306,000 $ 2,094,000 $ 992,000
Operating Expenses:
Cost of Revenues 238,000 249,000 914,000 799,000
Research and
Development 107,000 168,000 254,000 424,000
Sales and Marketing 267,000 224,000 864,000 615,000
General and
Administrative 503,000 495,000 1,386,000 1,296,000
_________ _________ ___________ ___________
1,115,000 1,136,000 3,418,000 3,134,000
Operating Income
(Loss) (275,000) (830,000) (1,324,000) (2,142,000)
Other Income (Expense)
Interest income 10,000 34,000 44,000 119,000
Interest expense -- (6,000) -- (20,000)
Other, net -- 5,000 -- (1,000)
_________ _________ ___________ ___________
10,000 33,000 44,000 98,000
Net Loss $(265,000) $(797,000) $(1,280,000) $(2,044,000)
_________ _________ ___________ ___________
_________ _________ ___________ ___________
Basic and Diluted
Net Loss Per Share $ (0.01) $ (0.02) $ (0.03) $ (0.05)
_________ _________ ___________ ___________
_________ _________ ___________ ___________
Contact:
Versus Technology, Inc.
Gary Gaisser, 616/946-5868
or
Seyferth & Associates, Inc.
Jeff Lambert or John Vonder Haar, 800/435-9539
SeyferthPR@aol.com |
