Welcome!

News Feed Item

VIQ Solutions Reports Second Quarter 2014 Results

MARKHAM, ONTARIO -- (Marketwired) -- 08/18/14 -- 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 and six month periods ended June 30, 2014. Results are reported in Canadian dollars and are prepared in accordance with International Financial Reporting Standards ("IFRS").

"With the recent increase in business activity in the global market for large-scale integrated digital recording and management projects, our Q2 results continue the performance trend established in the first quarter, with year-over-year revenue growth in our computer products and services business unit," said David Outhwaite, Chief Executive Officer of VIQ Solutions. "With this momentum and our strengthening sales pipeline, we are well-positioned to deliver a strong second half of 2014."

Financial Highlights for the Quarter


--  Revenue was $3.1 million and $6.1 million for the three and six month
    periods ended June 30, 2014 as compared to $3.4 million and $7.3 million
    for the same periods in 2013, representing a decrease in revenue of 9%
    and 16% respectively 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 $0.5
    million and $1.2 million for the three and six month periods ended June
    30, 2014 as compared to $0.3 million and $0.8 million for the same
    periods in 2013, representing an increase of 31% and 41% respectively; 
    
--  Gross margin from computer products and services was 77% and 75% for the
    three and six month periods ended June 30, 2014 as compared to 58% and
    68% for the same periods in 2013. Gross margin from our transcription
    and reporting services business unit was 29% for the three and six month
    periods ended June 30, 2014 as compared to 37% for the same periods in
    2013; 
    
--  Selling and administrative expenses were $1.1 million and $2.3 million
    for the three and six month periods ended June 30, 2014 as compared to
    $1.4 million and $2.8 million from the same periods in 2013 due to the
    operational efficiencies that were implemented in 2013; 
    
--  Research and development expenses were $148,204 and $268,602 for the
    three and six month periods ended June 30, 2014 as compared to $173,273
    and $356,897 for the previous year representing a decrease of 15% and
    25% respectively due to offsetting research and development tax credits
    received in 2014; 
    
--  EBITDA loss for the three and six month periods ended June 30, 2014 was
    $109,561 and $125,489 as compared to $438,666 and $267,490 for the same
    periods in 2013. Adjusted EBITDA loss for the three and six month
    periods ended June 30, 2014 was $109,561 and $125,489 as compared to
    $217,466 and $46,290 for the same periods in 2013; 
    
--  Net loss for the three and six month periods ended June 30, 2014 was
    $179,778 and $260,859 as compared to $496,572 and $383,089 for the same
    periods in 2013; and 
    
--  During 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. 

Non-IFRS Measures

EBITDA and Adjusted EBITDA are non-IFRS earnings measures which do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to EBITDA or adjusted EBITDA presented by other companies. These measures are important to management since they are 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 these non-IFRS financial measures should not be construed as an alternative to other measures of financial performance calculated in accordance with IFRS. For a reconciliation of EBITDA and Adjusted EBITDA, please refer to Management's Discussion & Analysis of Results and Financial Condition for the three and six month periods ended June 30, 2014.

Additional Information

The unaudited second 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 and six month periods ended June 30, 2014 will be posted 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 second 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.


                                                                            
VIQ Solutions Inc.                                                          
Condensed Consolidated Interim Balance Sheets                               
(Expressed in Canadian dollars)                                             
(Unaudited)                                                                 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                    June 30,   December 31, 
                                                        2014           2013 
----------------------------------------------------------------------------
                                                                            
  Assets                                                                    
                                                                            
  Current assets                                                            
    Cash                                       $     836,380  $     789,197 
    Trade and other receivables                    1,372,603      1,166,612 
    Inventories                                        1,794          4,880 
    Prepaid expenses                                 100,727         73,913 
----------------------------------------------------------------------------
                                                   2,311,504      2,034,602 
  Non-current assets                                                        
    Restricted cash                                  115,722        146,753 
    Property and equipment                           644,067        668,832 
    Goodwill                                       1,591,420      1,543,695 
    Deferred tax assets                              299,981        282,993 
----------------------------------------------------------------------------
                                               $   4,962,694  $   4,676,875 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
  Liabilities                                                               
                                                                            
  Current liabilities                                                       
    Trade and other payables                   $     937,811  $     983,364 
    Short-term debt                                  700,000        197,994 
    Provisions                                       472,737        434,108 
    Unearned revenue                                 194,571        219,769 
    Deferred lease incentives                         19,201         18,685 
    Current portion of obligations under                                    
     finance lease                                   107,754         98,396 
    Current portion of long-term debt                 22,692         22,692 
----------------------------------------------------------------------------
                                                   2,454,766      1,975,008 
  Non-current liabilities                                                   
    Provisions                                        99,939        106,752 
    Deferred lease incentives                              -          8,485 
    Obligations under finance lease                  128,851        157,502 
    Long-term debt                                    14,024         25,370 
----------------------------------------------------------------------------
  Total liabilities                                2,697,580      2,273,117 
----------------------------------------------------------------------------
                                                                            
  Equity                                                                    
                                                                            
  Capital stock                                   11,578,213     11,578,213 
  Contributed surplus                              1,888,958      1,865,695 
  Accumulated other comprehensive income                                    
   (loss)                                             90,791         (8,161)
  Deficit                                        (11,292,848)   (11,031,989)
----------------------------------------------------------------------------
                                                   2,265,114      2,403,758 
----------------------------------------------------------------------------
  Total equity and liabilities                 $   4,962,694  $   4,676,875 
----------------------------------------------------------------------------
----------------------------------------------------------------------------


                                                                            
VIQ Solutions Inc.                                                          
Condensed Consolidated Interim Statements of Comprehensive Income and Loss  
(Expressed in Canadian dollars)                                             
(Unaudited)                                                                 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                       Three months ended June 30  Six months ended June 30 
                               2014          2013         2014         2013 
----------------------------------------------------------------------------
                                                                            
  Revenue               $ 3,097,875  $  3,410,418  $ 6,147,649  $ 7,317,080 
                                                                            
  Cost of sales           1,951,892     2,097,863    3,808,688    4,344,024 
----------------------------------------------------------------------------
  Gross profit            1,145,983     1,312,555    2,338,961    2,973,056 
----------------------------------------------------------------------------
                                                                            
  Expenses                                                                  
    Selling and                                                             
     administrative                                                         
     expenses             1,149,174     1,423,000    2,289,322    2,777,314 
    Restructuring                                                           
     expenses                     -       221,200            -      221,200 
    Research and                                                            
     development                                                            
     expenses               148,204       173,273      268,602      356,897 
----------------------------------------------------------------------------
                          1,297,378     1,817,473    2,557,924    3,355,411 
----------------------------------------------------------------------------
                                                                            
  Loss from operations     (151,395)     (504,918)    (218,963)    (382,355)
                                                                            
  Finance income (loss)                                                     
    Interest income           2,968         9,472        5,847       16,956 
    Interest expense        (22,527)       (6,247)     (37,986)     (13,946)
    Foreign exchange                                                        
     gain (loss)             (8,824)        5,121       (9,757)      (3,744)
----------------------------------------------------------------------------
  Net finance income                                                        
   (loss)                   (28,383)        8,346      (41,896)        (734)
----------------------------------------------------------------------------
                                                                            
  Net loss for the                                                          
   period               $  (179,778) $   (496,572) $  (260,859) $  (383,089)
                                                                            
  Item that may be                                                          
   reclassified to                                                          
   profit or loss:                                                          
                                                                            
  Exchange differences                                                      
   on translating                                                           
   foreign operations       (29,767)     (178,141)      98,952     (131,708)
----------------------------------------------------------------------------
  Comprehensive loss                                                        
   for the period       $  (209,545) $   (674,713) $  (161,907) $  (514,797)
----------------------------------------------------------------------------
                                                                            
  Net loss per share                                                        
    Basic and diluted   $     (0.00) $      (0.01) $     (0.00) $     (0.01)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
  Weighted average                                                          
   number of common                                                         
   shares outstanding -                                                     
   basic                 90,957,000    90,957,000   90,957,000   90,957,000 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
  Weighted average                                                          
   number of common                                                         
   shares outstanding -                                                     
   diluted               90,957,000    90,957,000   90,957,000   90,957,000 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
VIQ Solutions Inc.                                                          
Condensed Consolidated Interim Statements of Cash Flows                     
(Expressed in Canadian dollars)                                             
(Unaudited)                                                                 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                            Three months ended June   Six months ended June 
                                       30                       30          
                                   2014        2013        2014        2013 
----------------------------------------------------------------------------
  Cash provided by (used                                                    
   in):                                                                     
  Operating activities                                                      
  Net loss for the period   $  (179,778) $ (496,572) $ (260,859) $ (383,089)
  Items not affecting cash:                                                 
    Depreciation                 47,690      51,659      97,384     101,653 
    Stock-based compensation      5,712       7,093      23,263      28,748 
    Loss on disposal of                                                     
     property and equipment           -      65,580           -      65,580 
    Provisions                  (27,452)    (36,927)     (6,813)    (23,268)
    Interest accretion on                                                   
     bridge loan                  1,125           -       2,006           - 
    Amortization of deferred                                                
     lease incentive             (5,239)     (9,192)     (7,969)    (13,497)
    Unrealized foreign                                                      
     exchange loss (gain)         4,815       6,368     (20,779)      5,551 
    Changes in non-cash                                                     
     operating working                                                      
     capital                   (161,591)    374,239    (259,417)    628,328 
----------------------------------------------------------------------------
                                                                            
  Cash from (used in)                                                       
   operating activities        (314,718)    (37,752)   (433,184)    410,006 
----------------------------------------------------------------------------
                                                                            
  Investing activities                                                      
    Purchase of property and                                                
     equipment                   (3,413)    (11,991)    (17,575)    (28,248)
    Change in restricted                                                    
     cash                        (2,110)          -      42,190           - 
----------------------------------------------------------------------------
                                                                            
  Cash from (used in)                                                       
   investing activities          (5,523)    (11,991)     24,615     (28,248)
----------------------------------------------------------------------------
                                                                            
  Financing activities                                                      
    Repayment of short-term                                                 
     debt                      (200,000)          -    (200,000)          - 
    Advances of short-term                                                  
     debt                       700,000           -     700,000           - 
    Repayment of long-term                                                  
     debt                        (5,673)     (5,673)    (11,346)    (11,346)
    Finance lease payments      (27,254)    (14,182)    (58,775)    (30,140)
----------------------------------------------------------------------------
                                                                            
  Cash provided by (used in)                                                
   financing activities         467,073     (19,855)    429,879     (41,486)
----------------------------------------------------------------------------
                                                                            
  Net increase (decrease) in                                                
   cash during the period       146,832     (69,598)     21,310     340,272 
                                                                            
  Cash, beginning of period     696,670   1,552,655     789,197   1,129,107 
                                                                            
  Effect of exchange rate                                                   
   changes on cash               (7,122)    (68,482)     25,873     (54,804)
                                                                            
----------------------------------------------------------------------------
  Cash, end of period        $  836,380  $1,414,575  $  836,380  $1,414,575 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

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
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
SYS-CON Events announced today that Adobe has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of co...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.