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
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., discussed how these tools can be leveraged to develop a lasting competitive advantage ...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost ...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, will provide a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to ...
Consumers increasingly expect their electronic "things" to be connected to smart phones, tablets and the Internet. When that thing happens to be a medical device, the risks and benefits of connectivity must be carefully weighed. Once the decision is made that connecting the device is beneficial, medical device manufacturers must design their products to maintain patient safety and prevent compromised personal health information in the face of cybersecurity threats. In his session at @ThingsExpo...
SYS-CON Events announced today that Massive Networks 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. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
From 2013, NTT Communications has been providing cPaaS service, SkyWay. Its customer’s expectations for leveraging WebRTC technology are not only typical real-time communication use cases such as Web conference, remote education, but also IoT use cases such as remote camera monitoring, smart-glass, and robotic. Because of this, NTT Communications has numerous IoT business use-cases that its customers are developing on top of PaaS. WebRTC will lead IoT businesses to be more innovative and address...
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
Because IoT devices are deployed in mission-critical environments more than ever before, it’s increasingly imperative they be truly smart. IoT sensors simply stockpiling data isn’t useful. IoT must be artificially and naturally intelligent in order to provide more value In his session at @ThingsExpo, John Crupi, Vice President and Engineering System Architect at Greenwave Systems, will discuss how IoT artificial intelligence (AI) can be carried out via edge analytics and machine learning techn...
FinTechs use the cloud to operate at the speed and scale of digital financial activity, but are often hindered by the complexity of managing security and compliance in the cloud. In his session at 20th Cloud Expo, Sesh Murthy, co-founder and CTO of Cloud Raxak, showed how proactive and automated cloud security enables FinTechs to leverage the cloud to achieve their business goals. Through business-driven cloud security, FinTechs can speed time-to-market, diminish risk and costs, maintain continu...
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market acr...
Existing Big Data solutions are mainly focused on the discovery and analysis of data. The solutions are scalable and highly available but tedious when swapping in and swapping out occurs in disarray and thrashing takes place. The resolution for thrashing through machine learning algorithms and support nomenclature is through simple techniques. Organizations that have been collecting large customer data are increasingly seeing the need to use the data for swapping in and out and thrashing occurs ...