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
"Storpool does only block-level storage so we do one thing extremely well. The growth in data is what drives the move to software-defined technologies in general and software-defined storage," explained Boyan Ivanov, CEO and co-founder at StorPool, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Sometimes I write a blog just to formulate and organize a point of view, and I think it’s time that I pull together the bounty of excellent information about Machine Learning. This is a topic with which business leaders must become comfortable, especially tomorrow’s business leaders (tip for my next semester University of San Francisco business students!). Machine learning is a key capability that will help organizations drive optimization and monetization opportunities, and there have been some...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory? In her Day 2 Keynote at @DevOpsSummit at 21st Cloud Expo, Aruna Ravichandran, VP, DevOps Solutions Marketing, CA Technologies, was jo...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
Blockchain. A day doesn’t seem to go by without seeing articles and discussions about the technology. According to PwC executive Seamus Cushley, approximately $1.4B has been invested in blockchain just last year. In Gartner’s recent hype cycle for emerging technologies, blockchain is approaching the peak. It is considered by Gartner as one of the ‘Key platform-enabling technologies to track.’ While there is a lot of ‘hype vs reality’ discussions going on, there is no arguing that blockchain is b...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, discussed the b...
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.
Is advanced scheduling in Kubernetes achievable?Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, answered these questions and demonstrated techniques for implementing advanced scheduling. For example, using spot instances and co...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
The use of containers by developers -- and now increasingly IT operators -- has grown from infatuation to deep and abiding love. But as with any long-term affair, the honeymoon soon leads to needing to live well together ... and maybe even getting some relationship help along the way. And so it goes with container orchestration and automation solutions, which are rapidly emerging as the means to maintain the bliss between rapid container adoption and broad container use among multiple cloud host...
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.
The need for greater agility and scalability necessitated the digital transformation in the form of following equation: monolithic to microservices to serverless architecture (FaaS). To keep up with the cut-throat competition, the organisations need to update their technology stack to make software development their differentiating factor. Thus microservices architecture emerged as a potential method to provide development teams with greater flexibility and other advantages, such as the abili...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...