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
Digital transformation has increased the pace of business creating a productivity divide between the technology haves and have nots. Managing financial information on spreadsheets and piecing together insight from numerous disconnected systems is no longer an option. Rapid market changes and aggressive competition are motivating business leaders to reevaluate legacy technology investments in search of modern technologies to achieve greater agility, reduced costs and organizational efficiencies. ...
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Le...
Machine learning provides predictive models which a business can apply in countless ways to better understand its customers and operations. Since machine learning was first developed with flat, tabular data in mind, it is still not widely understood: when does it make sense to use graph databases and machine learning in combination? This talk tackles the question from two ends: classifying predictive analytics methods and assessing graph database attributes. It also examines the ongoing lifecycl...
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitoring and Cost Management … But How? Overwhelmingly, even as enterprises have adopted cloud computing and are expanding to multi-cloud computing, IT leaders remain concerned about how to monitor, manage and control costs across hybrid and multi-cloud deployments. It’s clear that traditional IT monitoring and management approaches, designed after all for on-premises data centers, are falling short in ...
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
When applications are hosted on servers, they produce immense quantities of logging data. Quality engineers should verify that apps are producing log data that is existent, correct, consumable, and complete. Otherwise, apps in production are not easily monitored, have issues that are difficult to detect, and cannot be corrected quickly. Tom Chavez presents the four steps that quality engineers should include in every test plan for apps that produce log output or other machine data. Learn the ste...
A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to great conferences, helping you discover new conferences and increase your return on investment.
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...
Everyone wants the rainbow - reduced IT costs, scalability, continuity, flexibility, manageability, and innovation. But in order to get to that collaboration rainbow, you need the cloud! In this presentation, we'll cover three areas: First - the rainbow of benefits from cloud collaboration. There are many different reasons why more and more companies and institutions are moving to the cloud. Benefits include: cost savings (reducing on-prem infrastructure, reducing data center foot print, redu...
SYS-CON Events announced today that Silicon India 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. Published in Silicon Valley, Silicon India magazine is the premiere platform for CIOs to discuss their innovative enterprise solutions and allows IT vendors to learn about new solutions that can help grow their business.
We are seeing a major migration of enterprises applications to the cloud. As cloud and business use of real time applications accelerate, legacy networks are no longer able to architecturally support cloud adoption and deliver the performance and security required by highly distributed enterprises. These outdated solutions have become more costly and complicated to implement, install, manage, and maintain.SD-WAN offers unlimited capabilities for accessing the benefits of the cloud and Internet. ...
You want to start your DevOps journey but where do you begin? Do you say DevOps loudly 5 times while looking in the mirror and it suddenly appears? Do you hire someone? Do you upskill your existing team? Here are some tips to help support your DevOps transformation. Conor Delanbanque has been involved with building & scaling teams in the DevOps space globally. He is the Head of DevOps Practice at MThree Consulting, a global technology consultancy. Conor founded the Future of DevOps Thought Leade...
Founded in 2000, Chetu Inc. is a global provider of customized software development solutions and IT staff augmentation services for software technology providers. By providing clients with unparalleled niche technology expertise and industry experience, Chetu has become the premiere long-term, back-end software development partner for start-ups, SMBs, and Fortune 500 companies. Chetu is headquartered in Plantation, Florida, with thirteen offices throughout the U.S. and abroad.
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.