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
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
Zerto exhibited at SYS-CON's 18th International Cloud Expo®, which took place at the Javits Center in New York City, NY, in June 2016. Zerto is committed to keeping enterprise and cloud IT running 24/7 by providing innovative, simple, reliable and scalable business continuity software solutions. Through the Zerto Cloud Continuity Platform™, organizations can seamlessly move and protect virtualized workloads between public, private and hybrid clouds. The company’s flagship product, Zerto Virtual...
Some people worry that OpenStack is more flash then substance; however, for many customers this could not be farther from the truth. No other technology equalizes the playing field between vendors while giving your internal teams better access than ever to infrastructure when they need it. In his session at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will talk through some real-world OpenStack deployments and look into the ways this can benefit customers of all sizes....
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Due of the rise of Hadoop, many enterprises are now deploying their first small clusters of 10 to 20 servers. At this small scale, the complexity of operating the cluster looks and feels like general data center servers. It is not until the clusters scale, as they inevitably do, when the pain caused by the exponential complexity becomes apparent. We've seen this problem occur time and time again. In his session at Big Data Expo, Greg Bruno, Vice President of Engineering and co-founder of StackIQ...
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...
FinTech is the sum of financial and technology, and it’s one of the fastest growing tech industries. Total global investments in FinTech almost reached $50 billion last year, but there is still a great deal of confusion over what it is and what it means – especially as it applies to retirement. Building financial startups is not simple, but with the right team, technology and an innovative approach it can be an extremely interesting domain to disrupt. FinTech heralds a financial revolution that...
"Plutora provides release and testing environment capabilities to the enterprise," explained Dalibor Siroky, Director and Co-founder of Plutora, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.