Victoria-based Versatile Systems Inc. (TSX:VV) reported a 25% drop in sales in the third quarter ending March 31, 2009.
Revenue fell to $10.9 million from $14.5 million in 2008's third quarter due to difficult economic conditions.
The company, which develops marketing and supply chain distribution software, reported a third-quarter net loss of $572,955 compared with its third-quarter 2008 net loss of $67,622. The third quarter's loss included a non-recurring expense charge of $160,158 relating to additional provisions for transactions in prior periods.
To offset the drop in sales, Versatile has reduced its expenses to the lowest level in three years. The company announced roughly $1.7 million in cost cuts at the beginning of the quarter and plans to continue aligning its cost structure in relation to its revenue stream.
Despite the recession, the company said it plans to continue its research and development program with revenue from the sale of its proprietary products expected to drive future growth. Research and development costs amounted to $278,701 compared with $397,591 in 2008's third quarter.
Versatile's share price range during the past week: between $0.075 and $0.09; 52-week high: $0.22; 52-week low: $0.055.