Versatile Reports First Quarter Results

 
TIDMVVS 
 
Versatile Reports First Quarter Results 
FOR:  VERSATILE SYSTEMS INC. 
 
TSX VENTURE SYMBOL:  VV 
AIM SYMBOL:  VVS 
 
October 26, 2009 
 
Versatile Reports First Quarter Results 
 
Cash flow from operations of $149,408 for the quarter 
 
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 26, 2009) - Versatile Systems Inc. (TSX 
VENTURE:VV)(AIM:VVS) announces its results for the first quarter of the 2010 fiscal year. 
 
Revenue for the three months ended September 30, 2009 was $11,616,225 generating a gross profit of 
$2,655,304 or 22.9% of sales compared to $14,303,851 generating a gross profit of $3,753,100 or 26.2% 
of sales for the same quarter last year. The Net Loss for the quarter amounted to $46,775 ($0.00 per 
share) compared to a Net Earnings of $56,615 ($0.00 per share) for the same period last year. 
 
"Economic conditions remained challenging throughout the first quarter," said John Hardy, Chairman and 
CEO of Versatile. "Nevertheless, we made enhancements to our product set, spending $246,670 on 
research and development which will help drive future growth. In addition, we secured major orders 
from customers in the telecommunications, cable, manufacturing and education verticals, which enabled 
the Company to generate positive cash flow from operations." 
 
Highlights for the quarter included: 
 
- Cash and cash equivalents and short term investments at September 30, 2009 was $2,999,104 compared 
to $2,002,530 at June 30, 2009, an increase of $996,574; 
 
- Revenue for the three months ended September 30, 2009 was $11,616,225 compared to $10,877,354 for 
the last quarter, an increase of $738,871; 
 
- Earnings before interest, taxes and amortization (EBITDA) of $115,795 for the three months ended 
September 30, 2009 compared to $252,572 for the same period last year; 
 
- The Net Loss for the quarter amounted to $46,775 ($0.00 per share) compared to Net Earnings of 
$56,615 ($0.00 per share) for the same period last year, a decrease of $103,390; 
 
- The cash flow generated from operations, before non-cash working capital items amounted to $149,408 
for the three months ended September 30, 2009 compared to cash flow generated from operations of 
$236,674 for the same period last year; 
 
- The research and development expense for the quarter amounted to $246,670 compared to $424,752 for 
the same quarter last year; 
 
- Deferred revenue at September 30, 2009 was $8,260,060 (of which $7,375,423 is expected to be 
recognized in the next four quarters) compared to $7,773,787 at September 30, 2008, an increase of 
$486,273; 
 
- The Company acquired 531,680 shares of Equus Total Return, Inc., which is a public company trading 
on the NYSE under the symbol EQS; 
 
- Completing development and certification of an Electronic Credit Application of Mobiquity Kiosk(TM) 
for a major Canadian bank to be deployed in a leading Canadian retailer and Canadian sports arena; and 
 
- Completing development and certification testing for a new Electronic Credit Application of 
Mobiquity Kiosk(TM) for a major United States healthcare financing lender. 
 
The working capital as of September 30, 2009 was $2,593,260, an increase of $22,839 compared to the 
working capital of $2,570,421 at June 30, 2009. The cash flow generated from operations, before non- 
cash working capital items amounted to $149,408 for the three months ended September 30, 2009 compared 
to cash flow generated from operations of $236,674 for the same period last year. 
 
During the current quarter, the Company incurred $134,655 for research and development activities 
related to Mobiquity Route(TM), DEX and related mobile software products and $106,139 related to 
Mobiquity Transaction Engine 3.0(TM), Mobiquity Kiosk(TM) and research on Virtualization. 
 
"The Company's cost structure in the current quarter is at its lowest level in four years," said 
Fraser Atkinson, CFO of Versatile. "Consequently, the Company was able to generate positive EBITDA and 
cash flow from operations." 
 
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. 
 
(C) 2009 Versatile Systems Inc. All rights reserved. 
 
 
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FOR FURTHER INFORMATION PLEASE CONTACT: 
 
Versatile Systems Inc. 
John Hardy 
Chairman and CEO 
1-800-262-1633 or International: 001-206-979-6760 
 
OR 
 
Versatile Systems Inc. 
Fraser Atkinson 
CFO 
1-800-262-1633 
www.versatile.com 
 
OR 
 
NCB Stockbrokers Limited (Nominated Adviser) 
Christopher Caldwell or Barclay Clibborn 
[phone] 
 
The TSX Venture Exchange and the AIM market of the London Stock Exchange have not reviewed and do not 
accept responsibility for the adequacy or accuracy of this release. 
 
 
 
Versatile Systems Inc.