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

Contacts:
VIQ Solutions Inc.
David Outhwaite
Chief Executive Officer
(905) 948-8266 ext. 250
[email protected]

VIQ Solutions Inc.
Karen Hersh
Chief Financial Officer
(905) 948-8266 ext. 240
[email protected]

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
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, will discuss how from store operations...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, will discuss some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he’ll go over some of the best practices for structured team migrat...
SYS-CON Events announced today that Datera 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. Datera offers a radically new approach to data management, where innovative software makes data infrastructure invisible, elastic and able to perform at the highest level. It eliminates hardware lock-in and gives IT organizations the choice to source x86 server nodes, with business model option...
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, will discuss how they bu...
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
SYS-CON Events announced today that NetApp has been named “Bronze 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. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp emp...
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo Silicon Valley which will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is at the intersection of technology and business-optimizing tools, organizations and processes to bring measurable improvements in productivity and profitability," said Aruna Ravichandran, vice president, DevOps product and solutions marketing...
As people view cloud as a preferred option to build IT systems, the size of the cloud-based system is getting bigger and more complex. As the system gets bigger, more people need to collaborate from design to management. As more people collaborate to create a bigger system, the need for a systematic approach to automate the process is required. Just as in software, cloud now needs DevOps. In this session, the audience can see how people can solve this issue with a visual model. Visual models ha...
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
SYS-CON Events announced today that Avere Systems, a leading provider of hybrid cloud enablement solutions, 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. Avere Systems was created by file systems experts determined to reinvent storage by changing the way enterprises thought about and bought storage resources. With decades of experience behind the company’s founders, Avere got its ...