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 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

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
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, discussed how VPaaS enables you to move fast, creating scalable video experiences that reach your aud...
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, discussed recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model for ...
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effici...
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
"MathFreeOn.com is a line coding platform for engineers and scientists. When they want to solve an engineering problem and they have to use software - they have to pay a lot of money for licenses - but with MathFreeOn you don't have to pay a lot of money. Just go to our site and write the code and you can check the result right away," explained Simon Lee, CMO of MathFreeOn, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Cla...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
In his session at 19th Cloud Expo, Claude Remillard, Principal Program Manager in Developer Division at Microsoft, contrasted how his team used config as code and immutable patterns for continuous delivery of microservices and apps to the cloud. He showed how the immutable patterns helps developers do away with most of the complexity of config as code-enabling scenarios such as rollback, zero downtime upgrades with far greater simplicity. He also demoed building immutable pipelines in the cloud ...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...