Welcome!

News Feed Item

VIQ Solutions Reports First Quarter 2014 Results

MARKHAM, ONTARIO -- (Marketwired) -- 05/22/14 -- VIQ Solutions Inc. ("VIQ Solutions" or the "Corporation") (TSX VENTURE:VQS), a world leader in computer-based digital audio and video capture and management, today reported its financial results for the three month period ended March 31, 2014. Results are reported in Canadian dollars and are prepared in accordance with International Financial Reporting Standards ("IFRS").

"We have started to see an increase in business activity in the global market for digital recording and management for large-scale integrated projects which capture, manage and store digital records," said David Outhwaite, President and Chief Executive Officer of VIQ Solutions. "Our pipeline of opportunities continues to grow on a global basis in the digital media capture and management industry and we are working to convert these market opportunities into significant contract wins."

Financial Highlights for the Quarter

--  Revenue was $3.0 million for the three month period ended March 31, 2014
    as compared to $3.9 million for the same period in 2013, representing a
    decrease in revenue of 22% primarily due to the loss of a material
    contract in Western Australia for our Spark & Cannon business in June
    2013; 
    
--  Revenue from the computer products and services business unit was $0.6
    million for the three month period ended March 31, 2014 as compared to
    $0.5 million for the same period in 2013, representing an increase of
    23%; 
    
--  Selling and administrative expenses were $1.1 million for the three
    month period ended March 31, 2014 as compared to $1.4 million from the
    three month period ended March 31, 2013 due to the operational
    efficiencies that were implemented in 2013; 
    
--  Research and development expenses were $120,398 for the three month
    period ended March 31, 2014 as compared to $183,624 for the previous
    year representing a decrease of $63,226 or 35%; 
    
--  EBITDA(1) loss for the three month period ended March 31, 2014 was
    $15,928 as compared to positive EBITDA of $171,176 for the same period
    in 2013; 
    
--  Net loss for the three month period ended March 31, 2014 was $81,081 as
    compared to net income of $113,483 for the same period in 2013.
    Comprehensive income for the three month period ended March 31, 2014 was
    $47,638 as compared to $159,916 for the same period in 2013; 
    
--  Cash flow used in operating activities was $118,465 for the three month
    period ended March 31, 2014 as compared to a cash inflow of $447,757 for
    the same period in 2013. The decrease in cash from operations relates
    primarily due to a decline in net income and changes in our investment
    in working capital; and 
    
--  Subsequent to the period, the Corporation obtained a short-term bridge
    loan with a face value of $700,000 bearing interest at a rate of 13% per
    annum. The loan is repayable on the one-year anniversary and is secured
    by a general security agreement covering all assets of the Corporation.
    A portion of the proceeds were used to retire the principal and interest
    owing on the existing $200,000 secured bridge loan. 

Note

1. EBITDA is a non-IFRS earnings measure which does not have any standardized meaning prescribed by IFRS and therefore may not be comparable to EBITDA presented by other companies. EBITDA represents earnings before interest expense, income taxes, depreciation and amortization. This measure is important to management since it is used by potential investors to evaluate the Corporation's operating performance and ability to incur and service debt, and as a valuation metric. Investors are cautioned that this non-IFRS financial measure should not be construed as an alternative to other measures of financial performance calculated in accordance with IFRS.

Additional Information

The unaudited first quarter 2014 condensed consolidated interim financial statements and results of operations and Management's Discussion and Analysis of Results and Financial Condition for the three month period ended March 31, 2014 will be posted on VIQ Solutions' website (under Investor Relations) at www.viqsolutions.com and on SEDAR's website at www.sedar.com. The financial information included in this release is qualified in its entirety and should be read together with the unaudited first quarter 2014 condensed consolidated interim financial statements and the audited consolidated financial statements for the year ended December 31, 2013, including the notes thereto.

About VIQ Solutions Inc.

VIQ Solutions is a global leader in computer-based digital audio and video capture and management. We develop software solutions that capture, digitize, and compress audio and video data, which is securely stored in a multi-tiered server system where it is easily searchable and shareable. Our innovative media processor technology allows users to remotely control audio-video capture in multiple locations from a single satellite location, allowing large-scale and complex installations to be managed efficiently by fewer resources. VIQ Solutions' technologies are installed in courts, legislative assemblies, law enforcement and hearing rooms around the world.

Forward-looking Statements

Certain statements included in this news release constitute forward looking statements or forward looking information under applicable securities legislation. Such forward looking statements or information are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Forward looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project" or similar words suggesting future outcomes or statements regarding an outlook. Forward looking statements or information in this news release include, but are not limited to, management's targets for the Corporation's growth in 2014.

Forward looking statements or information is based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although VIQ Solutions believes that the expectations reflected in such forward looking statements or information are reasonable, undue reliance should not be placed on forward looking statements because VIQ Solutions can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this news release, assumptions have been made regarding, among other things, the Corporation's recent initiatives, and that sales and prospects may provide incremental value for shareholders. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used.

Forward looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by VIQ Solutions and described in the forward looking statements or information. These risks and uncertainties may cause actual results to differ materially from the forward looking statements or information. Readers are cautioned that the foregoing list is not exhaustive of all possible risks and uncertainties.

The forward looking statements or information contained in this news release are made as of the date hereof and VIQ Solutions undertakes no obligation to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise unless required by applicable securities laws. The forward looking statements or information contained in this news release are expressly qualified by this cautionary statement.

VIQ Solutions Inc.                                                          
Condensed Consolidated Interim Balance Sheets                               
(Expressed in Canadian dollars)                                             
(Unaudited)                                                                 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                   March 31,   December 31, 
                                                        2014           2013 
----------------------------------------------------------------------------
                                                                            
Assets                                                                      
                                                                            
Current assets                                                              
 Cash                                          $     696,670  $     789,197 
 Trade and other receivables                       1,632,147      1,166,612 
 Inventories                                           3,697          4,880 
 Prepaid expenses                                     56,601         73,913 
----------------------------------------------------------------------------
                                                   2,389,115      2,034,602 
Non-current assets                                                          
 Restricted cash                                     113,870        146,753 
 Property and equipment                              674,557        668,832 
 Goodwill                                          1,606,826      1,543,695 
 Deferred tax assets                                 305,465        282,993 
----------------------------------------------------------------------------
                                               $   5,089,833  $   4,676,875 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Liabilities                                                                 
                                                                            
Current liabilities                                                         
 Trade and other payables                      $   1,307,274  $     983,364 
 Short-term debt                                     198,875        197,994 
 Provisions                                          426,753        434,108 
 Unearned revenue                                    252,428        219,769 
 Deferred lease incentives                            19,552         18,685 
 Current portion of obligations under finance                               
  lease                                              102,620         98,396 
 Current portion of long-term debt                    22,692         22,692 
----------------------------------------------------------------------------
                                                   2,330,194      1,975,008 
Non-current liabilities                                                     
 Provisions                                          127,391        106,752 
 Deferred lease incentives                             4,888          8,485 
 Obligations under finance lease                     138,716        157,502 
 Long-term debt                                       19,697         25,370 
----------------------------------------------------------------------------
Total liabilities                                  2,620,886      2,273,117 
----------------------------------------------------------------------------
                                                                            
Equity                                                                      
                                                                            
Capital stock                                     11,578,213     11,578,213 
Contributed surplus                                1,883,246      1,865,695 
Accumulated other comprehensive income (loss)        120,558         (8,161)
Deficit                                          (11,113,070)   (11,031,989)
----------------------------------------------------------------------------
                                                   2,468,947      2,403,758 
----------------------------------------------------------------------------
Total equity and liabilities                   $   5,089,833  $   4,676,875 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
VIQ Solutions Inc.                                                          
Condensed Consolidated Interim Statements of Comprehensive Income           
(Expressed in Canadian dollars)                                             
(Unaudited)                                                                 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                Three months ended March 31 
                                                        2014           2013 
----------------------------------------------------------------------------
                                                                            
Revenue                                        $   3,049,774  $   3,906,662 
                                                                            
Cost of sales                                      1,856,796      2,246,161 
----------------------------------------------------------------------------
Gross profit                                       1,192,978      1,660,501 
----------------------------------------------------------------------------
                                                                            
Expenses                                                                    
 Selling, general and administrative expenses      1,140,148      1,354,314 
 Research and development expenses                   120,398        183,624 
----------------------------------------------------------------------------
                                                   1,260,546      1,537,938 
----------------------------------------------------------------------------
                                                                            
Income (loss) from operations                        (67,568)       122,563 
                                                                            
Finance loss                                                                
 Interest income                                       2,879          7,484 
 Interest expense                                    (15,459)        (7,699)
 Foreign exchange loss                                  (933)        (8,865)
----------------------------------------------------------------------------
Net finance loss                                     (13,513)        (9,080)
                                                                            
Net income (loss) for the period               $     (81,081) $     113,483 
                                                                            
Item that may be reclassified to profit or                                  
 loss:                                                                      
                                                                            
 Exchange differences on translating foreign                                
  operations                                         128,719         46,433 
----------------------------------------------------------------------------
Comprehensive income for the period            $      47,638  $     159,916 
----------------------------------------------------------------------------
                                                                            
Net income (loss) per share                                                 
 Basic and diluted                             $       (0.00) $        0.00 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Weighted average number of common shares                                    
 outstanding - basic                              90,957,000     90,638,538 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Weighted average number of common shares                                    
 outstanding - diluted                            90,957,000     90,707,886 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
VIQ Solutions Inc.                                                          
Condensed Consolidated Interim Statements of Cash Flows                     
(Expressed in Canadian dollars)                                             
(Unaudited)                                                                 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                Three months ended March 31 
                                                        2014           2013 
----------------------------------------------------------------------------
                                                                            
Cash provided by (used in):                                                 
Operating activities                                                        
Net income (loss) for the period               $     (81,081) $     113,483 
Items not affecting cash:                                                   
 Depreciation                                         49,694         49,994 
 Stock-based compensation                             17,551         21,655 
 Provisions                                           20,639         13,659 
 Interest accretion on bridge loan                       881              - 
 Amortization of deferred lease incentive             (2,730)        (4,305)
 Unrealized foreign exchange gain                    (25,594)          (819)
 Changes in non-cash operating working capital       (97,825)       254,090 
----------------------------------------------------------------------------
                                                                            
Cash from (used in) operating activities            (118,465)       447,757 
----------------------------------------------------------------------------
                                                                            
Investing activities                                                        
 Purchase of property and equipment                  (14,162)       (16,257)
 Change in restricted cash                            44,300              - 
----------------------------------------------------------------------------
                                                                            
Cash from (used in) investing activities              30,138        (16,257)
----------------------------------------------------------------------------
                                                                            
Financing activities                                                        
 Repayment of long-term debt                          (5,673)        (5,673)
 Finance lease payments                              (31,521)       (15,958)
----------------------------------------------------------------------------
                                                                            
Cash used for financing activities                   (37,194)       (21,631)
----------------------------------------------------------------------------
                                                                            
Net increase (decrease) in cash during the                                  
 period                                             (125,521)       409,869 
                                                                            
Cash, beginning of period                            789,197      1,129,107 
                                                                            
Effect of exchange rate changes on cash               32,994         13,679 
                                                                            
----------------------------------------------------------------------------
Cash, end of period                            $     696,670  $   1,552,655 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Contacts:
VIQ Solutions
David Outhwaite
President & CEO
(905) 948-8266 ext. 250
[email protected]

VIQ Solutions
Karen Hersh
Chief Financial Officer
(905) 948-8266 ext. 240
[email protected]
www.viqsolutions.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busine...
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
SYS-CON Events announced today that Nihon Micron will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Nihon Micron Co., Ltd. strives for technological innovation to establish high-density, high-precision processing technology for providing printed circuit board and metal mount RFID tags used for communication devices. For more inf...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Services at NetApp, will describe how NetApp designed a three-year program of work to migrate 25PB of a major telco's enterprise data to a new STaaS platform, and then secured a long-term contract to manage and operate the platform. This significant program blended the best of NetApp’s solutions and services capabilities to enable this telco’s successful adoption of private cloud storage and launchi...
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
As hybrid cloud becomes the de-facto standard mode of operation for most enterprises, new challenges arise on how to efficiently and economically share data across environments. In his session at 21st Cloud Expo, Dr. Allon Cohen, VP of Product at Elastifile, will explore new techniques and best practices that help enterprise IT benefit from the advantages of hybrid cloud environments by enabling data availability for both legacy enterprise and cloud-native mission critical applications. By rev...
As popularity of the smart home is growing and continues to go mainstream, technological factors play a greater role. The IoT protocol houses the interoperability battery consumption, security, and configuration of a smart home device, and it can be difficult for companies to choose the right kind for their product. For both DIY and professionally installed smart homes, developers need to consider each of these elements for their product to be successful in the market and current smart homes.