Visual Management Systems CEO Discussion of Quarterly Earnings Report

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Tue May 19, 2009 9:16am EDT

  TOMS RIVER, NJ, May 19 (MARKET WIRE) -- 
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
company's 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 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. (OTCBB: VMSY) ('VMS') provides video
surveillance solutions to small and mid-size enterprises. VMS's 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 company's
ability to attract and retain key personnel, the company's 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 company's products, the effect of
government regulation on the company's operations and other factors
described from time to time in the company's filings with the Securities
and Exchange Commission.

    

CONTACT:
Jason Gonzalez
CEO
Visual Management Systems, Inc.
(OTCBB: VMSY)
www.vmscctv.com
732-281-1355

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