FORM 8-K
CURRENT REPORT
Pursuant to
Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 19, 2009
VISUAL
MANAGEMENT SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
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Nevada |
333-133936 |
68-0634458 |
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(State or other jurisdiction of |
(Commission File Number) |
(IRS Employer Identification |
1000 Industrial Way
North, Suite C
Toms River, New Jersey 08755
(Address of principal executive offices, including zip
code)
Registrants telephone number, including area code: (732) 281-1355
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2 (b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4 (c)) |
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SECTION 2 - |
FINANCIAL INFORMATION |
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ITEM 2.02 |
RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
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On May 19, 2009, we issued a news release to report our financial results for the fiscal quarter ended March 31, 2009. A copy of the release is furnished as Exhibit 99.1 to this current report. |
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The information furnished under Item 2.02 of this current report, including Exhibit 99.1 hereto, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. |
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SECTION 9. FINANCIAL STATEMENTS AND EXHIBITS |
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ITEM 9.01 |
FINANCIAL STATEMENTS AND EXHIBITS |
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(c) |
Exhibits: |
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Exhibit No. |
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Description |
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99.1 |
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News Release dated May 19, 2009, of |
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Visual Management Systems, Inc. Re: Financial Results |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Visual Management Systems, Inc. |
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(Registrant) |
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By: |
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/s/ Jason Gonzalez |
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Name: |
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Jason Gonzalez |
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Title: |
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President and Chief Executive Officer |
Dated: May 27, 2009
2
VISUAL
MANAGEMENT SYSTEMS CEO
DISCUSSION OF QUARTERLY EARNINGS REPORT
TOMS RIVER, NJ - - May 19, 2009 Visual Management Systems, Inc. (otcbb: VMSY), a leading developer, manufacturer and provider of video surveillance technologies announced its first quarter 2009 earnings on Friday, May 15th. Jason Gonzalez, the companys Chairman and CEO stated, I believe that our 10Q for the first quarter of 2009 clearly reflects the impact that our turnaround measures have made. While our integration revenues were reduced, the improved efficiencies helped us achieve positive cash flows from operations for the first time since the company became publicly-held.
Top-line revenues from consolidated operations declined from $1,577,000 to $851,000 as the company began its transition from being integration-centric to a new, sharper focus on revenue generation from software development and licensing. Gross profit margins, however, increased from 47% to 52%. The increase in gross profit margin came as a result of better installation efficiency and decreased material costs. Being able to streamline our installation department, reduce a significant amount of overhead, and reshape the traditional operations of the company during these difficult economic times has been challenging, Gonzalez added. However, the improvements in our operational efficiency have been effective. Our revenues from service, maintenance and support have increased, our cost of sales is lower and more manageable and we have been able to focus a significant amount of time to marketing our products through domestic and international channels in an OEM capacity.
Operating expenses were reduced by nearly 50% from $1,810,000 to $920,000. This reduction occurred as a result of several factors including reduced investor relations costs, a streamlined work force and lower registration penalties. Cash flow from operations was approximately $38,000 positive versus a negative $545,000 during the same period last year. Generating positive cash flow from operations in this economy is a strong indication that the austerity measures we put in effect in late 2008 made a big difference in the first quarter of this year. As we plan ahead, we feel the company is much better equipped to face the economic challenges and we are optimistic about the opportunities that a general economic recovery may present. Gonzalez said.
The first quarter of 2009 generated a net loss of $681,000 versus a loss of $2,135,000 for the same period of 2008. This eighty percent improvement is reflected in a loss per share of $.06 compared with a loss of $.29 in the same period last year. Mr. Gonzalez said, The general trends indicate continued improvement. The members of the Board and specifically the audit committee have worked diligently with our CFO and General Counsel to dissect our financial data and assist management to identify areas where we can improve.
Gonzalez concluded by saying, While the economic conditions remain difficult we are seeing order flow consistent with our expectations and the company is making progress on its new initiatives. The Board and I are excited about some of the new opportunities we are exploring. As these projects develop, the changes and controls implemented in the preceding two quarters should prove very beneficial.
About Visual Management Systems
Visual Management Systems, Inc. (OTC Bulletin Board: VMSY) (VMS) provides video surveillance solutions to small and mid-size enterprises. VMSs products and services help
businesses, government agencies and educational institutions prevent crime, ensure safety, enhance productivity and improve service. Since its inception, VMS has been committed to developing and implementing industry-leading video security technology at affordable price points. For more information, visit http://www.vmscctv.com or call 877-323-CCTV.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performances or achievements express or implied by such forward-looking statements. The forward-looking statements are subject to risks and uncertainties including, without limitation, changes in levels of competition, possible loss of customers, the companys ability to attract and retain key personnel, the companys ability to raise capital, the continued cooperation of creditors and vendors, national and local economic conditions, the ability of the company to reach agreements with the proposed distributor, joint venture and integration partners discussed in this release, conditions and trends in the video surveillance and security industries in general, the ability of the company to attract enterprise-scale customers, changes in interest rates, commercial acceptance of the companys products, the effect of government regulation on the companys operations and other factors described from time to time in the companys filings with the Securities and Exchange Commission.
SOURCE Visual Management Systems, Inc.