VANCOUVER, CANADA — (Marketwire) — 05/07/12 — Versatile Systems Inc. (TSX VENTURE: VV) announces its results for the third quarter of the 2012 fiscal year.
Revenue for the three months ended March 31, 2012 was $12,482,474 generating a gross profit of $2,335,833 or 18.7% of sales compared to $11,044,100 generating a gross profit of $2,675,686 or 24.2% of sales for the same quarter last year. The cash flow generated from operations before other items amounted to $129,706 for the three months ended March 31, 2012 compared to cash used in operations before other items of $292,241 in the second quarter, an improvement of 421,947. The Net Earnings for the quarter amounted to $63,682 ($0.00 per share) compared to Net Earnings of $32,838 ($0.00 per share) for the same period last year.
“We are pleased with the significant improvement in several key financial metrics, such as revenue, cash flow and net earnings,” said John Hardy, Chairman and CEO of Versatile. “We will continue to focus on operational efficiency, while cautiously investing in organic growth.”
Highlights for the quarter included:
The research and development expense for the quarter amounted to $199,568 compared to $278,226 for the same quarter last year. During the current quarter, the Company incurred $67,781 for research and development activities related to Mobiquity Route, DEX and related mobile software products and $96,655 related to Smart Sign, Mobiquity Transaction Engine 3.0 and Mobiquity Kiosk.
“The Company enjoyed a significant increase in cash flow from operations in the quarter,” said Fraser Atkinson, CFO of Versatile. “We will need to focus on improving the gross profit percentage in order to maintain profitability.”
Revenue for the nine months ended March 31, 2012 was $30,669,238 generating a gross profit of $6,078,044 or 19.8% of sales compared to $35,723,183 generating a gross profit of $7,747,650 or 21.7% of sales for the same period last year. The Net Loss for the period amounted to $541,060 ($0.00 per share) compared to Net Earnings of $122,489 ($0.00 per share) for the same period last year.
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 nine months ended March, 2012.
The following table provides a reconciliation of the Company-s working capital under IFRS and under the previous Canadian generally accepted accounting principles:
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 or International: 001-206-979-6760
Versatile Systems Inc.
Fraser Atkinson
CFO
1-800-262-1633
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