Click here to close now.


Microsoft Cloud Authors: Jayaram Krishnaswamy, Elizabeth White, Andreas Grabner, Jim Kaskade, Pat Romanski

News Feed Item

VIQ Solutions Reports Third Quarter 2012 Results

MARKHAM, ONTARIO -- (Marketwire) -- 11/21/12 -- 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 nine month periods ended September 30, 2012. Results are reported in Canadian dollars and are prepared in accordance with International Financial Reporting Standards ("IFRS").

"After two relatively slow quarters for the computer products and services industry, we have started to see a resurgence in business activity in the global market due to the increased market demand for digital recording in various market verticals including the medical, insurance, law enforcement, military and transportation industries," said David Outhwaite, President and Chief Executive Officer of VIQ Solutions. "Our pipeline of opportunities continues to grow on a global basis in the digital media capture and management industry and we are working to convert these market opportunities into significant contract wins."

Financial Highlights

--  Revenue was $4.0 million and $11.6 million for the three and nine month
    periods ended September 30, 2012 as compared to $3.7 million and $11.9
    million for the same periods in 2011; 
--  Revenue from our transcription and recording services business unit was
    $3.5 million and $10.0 million for the three and nine month periods
    ended September 30, 2012, as compared to $3.0 million and $8.9 million
    for the same periods in 2011 representing an increase of 17% and 13%
    respectively, due to an increase in business activity from both of our
    transcription businesses; 
--  Selling and administrative expenses were $1.4 million and $4.3 million
    for the three and nine month periods ended September 30, 2012 as
    compared to $1.4 million and $4.1 million for the same periods in 2011
    as the Corporation continues to focus its selling efforts on global
    enterprise software contracts; 
--  EBITDA(1) for the three and nine month periods ended September 30, 2012
    was $40,789 and $25,090 as compared to $1,839 and $911,982 for the same
    periods in 2011; 
--  Net loss for the three and nine month periods ended September 30, 2012
    was $24,282 and $156,793 as compared to $89,771 and a net income of
    $603,374 for the same periods in 2011; and 
--  Cash flow used in operating activities was $53,238 and $48,416 for the
    three and nine month periods ended September 30, 2012 as compared to
    $254,825 and an inflow of $545,016 for the three and nine month periods
    ended September 30, 2011. 


1. EBITDA is a non-IFRS earnings measure which does not have any standardized meaning prescribed by IFRS and therefore may not be comparable to EBITDA presented by other companies. EBITDA represents earnings before interest expense, income taxes, depreciation and amortization. This measure is important to management since it is used by potential investors to evaluate the Corporation's operating performance and ability to incur and service debt, and as a valuation metric. Investors are cautioned that this non-IFRS financial measure should not be construed as an alternative to other measures of financial performance calculated in accordance with IFRS.

Additional Information

The unaudited third quarter 2012 condensed consolidated interim financial statements and results of operations and Management's Discussion and Analysis of Results and Financial Condition for the three and nine month periods ended September 30, 2012 will be posted on VIQ Solutions' website (under Investor Relations) at and on SEDAR's website at The financial information included in this release is qualified in its entirety and should be read together with the unaudited third quarter 2012 consolidated interim financial statements and the audited consolidated financial statements for the year ended December 31, 2011, 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

This release contains forward-looking statements and other statements concerning the Corporation's objectives and strategies and management's beliefs, plans and intentions about our achievements, goals, performance and other future events. These statements involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this press release, the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "will," "would" and similar expressions are intended to identify forward-looking statements. Such statements reflect VIQ Solutions' current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made due to a number of factors including risks related to our ability to successfully execute our business plan which includes our revenue growth, our liquidity, our operating results, our technology and products. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. VIQ Solutions does not intend and does not assume any obligation to update these forward- looking statements.

VIQ Solutions Inc.                                                          
Condensed Consolidated Interim Balance Sheets                               
(Expressed in Canadian dollars)                                             
                                                September 30,  December 31, 
                                                         2012          2011 
Current assets                                                              
  Cash                                          $   1,538,219 $   1,646,138 
  Trade and other receivables                       1,700,381     1,330,474 
  Inventories                                           7,672         7,025 
  Prepaid expenses                                    143,831       123,228 
                                                    3,390,103     3,106,865 
Non-current assets                                                          
  Restricted cash                                     153,389       151,215 
  Property and equipment                              706,585       754,397 
  Goodwill                                          1,604,230     1,621,395 
  Deferred tax assets                                 254,888       260,001 
                                                $   6,109,195 $   5,893,873 
Current liabilities                                                         
  Trade and other payables                      $   1,149,992 $     951,687 
  Provisions                                          595,456       584,870 
  Short-term debt                                      75,000        75,000 
  Unearned revenue                                    230,700       187,179 
  Deferred lease incentives                            21,338        21,766 
  Current portion of obligations under finance                              
   lease                                               55,823        59,266 
  Current portion of long-term debt                    22,692        22,692 
                                                    2,151,001     1,902,460 
Non-current liabilities                                                     
  Provisions                                          184,504       165,974 
  Deferred lease incentives                            33,958        50,964 
  Obligations under finance lease                      66,392        45,528 
  Long-term debt                                       53,735        70,754 
Total liabilities                                   2,489,590     2,235,680 
Capital stock                                      11,578,213    11,438,947 
Contributed surplus                                 1,800,955     1,781,433 
Accumulated other comprehensive income                118,377       158,960 
Deficit                                            (9,877,940)   (9,721,147)
                                                    3,619,605     3,658,193 
Total equity and liabilities                    $   6,109,195 $   5,893,873 
VIQ Solutions Inc.                                                          
Condensed Consolidated Interim Statements of Comprehensive Income and Loss  
(Expressed in Canadian dollars)                                             
                            Three months ended        Nine months ended     
                                 Sept. 30                  Sept. 30         
                                2012         2011         2012         2011 
Revenue                  $ 3,963,228  $ 3,667,248  $11,630,438  $11,851,125 
Cost of sales              2,383,505    2,289,592    6,987,009    6,559,699 
Gross profit               1,579,723    1,377,656    4,643,429    5,291,426 
  Selling, general and                                                      
   expenses                1,420,900    1,402,707    4,262,123    4,136,454 
  Research and                                                              
   development expenses      176,132      131,070      537,647      521,305 
                           1,597,032    1,533,777    4,799,770    4,657,759 
Income (loss) from                                                          
 operations                  (17,309)    (156,121)    (156,341)     633,667 
  Interest income              9,631        5,595       24,998       15,414 
  Interest expense            (8,827)     (34,556)     (23,950)    (122,980)
  Foreign exchange gain                                                     
   (loss)                     (7,777)      95,311       (1,500)      77,273 
Net finance income                                                          
 (loss)                       (6,973)      66,350         (452)     (30,293)
Net income (loss) for                                                       
 the period              $   (24,282) $   (89,771) $  (156,793) $   603,374 
Exchange differences on                                                     
 translating foreign                                                        
 operations                  (38,356)     (69,639)     (40,583)     (24,687)
Comprehensive income                                                        
 (loss) for the period   $   (62,638) $  (159,410) $  (197,376) $   578,687 
Net income (loss) per                                                       
  Basic and diluted      $     (0.00) $     (0.00) $     (0.00) $      0.01 
Weighted average number                                                     
 of common shares                                                           
 outstanding - basic      90,957,000   90,155,533   90,851,234   88,628,064 
Weighted average number                                                     
 of common shares                                                           
 outstanding - diluted    90,957,000   90,155,533   90,851,234   90,814,242 
VIQ Solutions Inc.                                                          
Condensed Consolidated Interim Statements of Cash Flows                     
(Expressed in Canadian dollars)                                             
                         Three months ended          Nine months ended      
                               Sept. 30                   Sept. 30          
                              2012         2011         2012           2011 
Cash provided by (used                                                      
Operating activities                                                        
Net income (loss) for                                                       
 the period             $  (24,282)  $  (89,771)  $ (156,793)  $    603,374 
Items not affecting                                                         
  Depreciation              56,244       57,054      157,933        185,628 
   compensation             17,251       36,128       77,788        187,070 
  Provisions                (5,460)      12,917       18,530         16,765 
  Interest accretion                                                        
   on bridge loans               -        2,130            -          6,320 
  Amortization of                                                           
   deferred lease                                                           
   incentive                (5,161)      (7,089)     (16,003)       (16,369)
  Unrealized foreign                                                        
   exchange loss                                                            
   (gain)                   13,049      (28,198)       6,534         14,365 
  Gain on sale of                                                           
   property and                                                             
   equipment                 2,341          (30)       2,341         (4,803)
  Changes in non-cash                                                       
   operating working                                                        
   capital                (107,220)    (237,966)    (138,746)      (447,334)
Cash from operating                                                         
 activities                (53,238)    (254,825)     (48,416)       545,016 
Investing activities                                                        
  Purchase of property                                                      
   and equipment            (8,573)     (24,904)     (49,015)       (78,863)
  Decrease (increase)                                                       
   in restricted cash          102          106       (5,148)        (4,983)
Cash used in investing                                                      
 activities                 (8,471)     (24,798)     (54,162)       (83,846)
Financing activities                                                        
  Advances in short-                                                        
   term debt                     -            -            -        575,000 
  Repayment of short-                                                       
   term debt                     -     (575,000)           -     (1,690,000)
  Repayment of long-                                                        
   term debt                (5,673)    (205,673)     (17,019)      (217,019)
  Proceeds from stock                                                       
   options exercised                                                        
   for cash                      -      394,250       81,000        397,075 
  Proceeds from                                                             
   private placement,                                                       
   net of issuance                                                          
   costs                         -            -            -      1,989,200 
  Finance lease                                                             
   payments                (17,849)     (16,348)     (51,001)       (56,200)
Cash provided by (used                                                      
 in) financing                                                              
 activities                (23,522)    (402,771)      12,980        998,056 
Net increase                                                                
 (decrease) in cash                                                         
 during the period         (85,231)    (682,394)     (89,598)     1,459,226 
Cash, beginning of                                                          
 period                  1,645,290    2,530,849    1,646,138        381,544 
Effect of exchange                                                          
 rate changes on cash      (21,840)      (4,561)     (18,321)         3,124 
Cash, end of period     $1,538,219   $1,843,894   $1,538,219   $  1,843,894 

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.

@ThingsExpo Stories
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new data-driven world, marketplaces reign supreme while interoperability, APIs and applications deliver un...
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data shows "less than 10 percent of IoT developers are making enough to support a reasonably sized team....
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures traffic gets delivered faster, safer, and more reliably than ever.
There are so many tools and techniques for data analytics that even for a data scientist the choices, possible systems, and even the types of data can be daunting. In his session at @ThingsExpo, Chris Harrold, Global CTO for Big Data Solutions for EMC Corporation, will show how to perform a simple, but meaningful analysis of social sentiment data using freely available tools that take only minutes to download and install. Participants will get the download information, scripts, and complete end-to-end walkthrough of the analysis from start to finish. Participants will also be given the pract...
The IoT market is on track to hit $7.1 trillion in 2020. The reality is that only a handful of companies are ready for this massive demand. There are a lot of barriers, paint points, traps, and hidden roadblocks. How can we deal with these issues and challenges? The paradigm has changed. Old-style ad-hoc trial-and-error ways will certainly lead you to the dead end. What is mandatory is an overarching and adaptive approach to effectively handle the rapid changes and exponential growth.
Today’s connected world is moving from devices towards things, what this means is that by using increasingly low cost sensors embedded in devices we can create many new use cases. These span across use cases in cities, vehicles, home, offices, factories, retail environments, worksites, health, logistics, and health. These use cases rely on ubiquitous connectivity and generate massive amounts of data at scale. These technologies enable new business opportunities, ways to optimize and automate, along with new ways to engage with users.
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of, and Fred Yatzeck, principal architect leading product development at, discussed how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at the same time reduce Time to Market (TTM) by using plug and play capabilities offered by a robust IoT ...
Mobile messaging has been a popular communication channel for more than 20 years. Finnish engineer Matti Makkonen invented the idea for SMS (Short Message Service) in 1984, making his vision a reality on December 3, 1992 by sending the first message ("Happy Christmas") from a PC to a cell phone. Since then, the technology has evolved immensely, from both a technology standpoint, and in our everyday uses for it. Originally used for person-to-person (P2P) communication, i.e., Sally sends a text message to Betty – mobile messaging now offers tremendous value to businesses for customer and empl...
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of WebRTC adoption today, but the potential is limitless when powered by IoT.
You have your devices and your data, but what about the rest of your Internet of Things story? Two popular classes of technologies that nicely handle the Big Data analytics for Internet of Things are Apache Hadoop and NoSQL. Hadoop is designed for parallelizing analytical work across many servers and is ideal for the massive data volumes you create with IoT devices. NoSQL databases such as Apache HBase are ideal for storing and retrieving IoT data as “time series data.”
Clearly the way forward is to move to cloud be it bare metal, VMs or containers. One aspect of the current public clouds that is slowing this cloud migration is cloud lock-in. Every cloud vendor is trying to make it very difficult to move out once a customer has chosen their cloud. In his session at 17th Cloud Expo, Naveen Nimmu, CEO of Clouber, Inc., will advocate that making the inter-cloud migration as simple as changing airlines would help the entire industry to quickly adopt the cloud without worrying about any lock-in fears. In fact by having standard APIs for IaaS would help PaaS expl...
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Valley. The program, to be aired during the peak viewership season of the year, will have a major impac...
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool for visual control over the cloud and the best price/performance value available. ProfitBricks was named one of the coolest Clo...
Organizations already struggle with the simple collection of data resulting from the proliferation of IoT, lacking the right infrastructure to manage it. They can't only rely on the cloud to collect and utilize this data because many applications still require dedicated infrastructure for security, redundancy, performance, etc. In his session at 17th Cloud Expo, Emil Sayegh, CEO of Codero Hosting, will discuss how in order to resolve the inherent issues, companies need to combine dedicated and cloud solutions through hybrid hosting – a sustainable solution for the data required to manage I...
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Bradley Holt, Developer Advocate at IBM Cloud Data Services, will demonstrate techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user experience, both offline and online. The focus of this talk will be on IBM Cloudant, Apa...
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, will look at different existing uses of peer-to-peer data sharing and how it can become useful in a live session to...
As a company adopts a DevOps approach to software development, what are key things that both the Dev and Ops side of the business must keep in mind to ensure effective continuous delivery? In his session at DevOps Summit, Mark Hydar, Head of DevOps, Ericsson TV Platforms, will share best practices and provide helpful tips for Ops teams to adopt an open line of communication with the development side of the house to ensure success between the two sides.
SYS-CON Events announced today that IBM Cloud Data Services has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IBM Cloud Data Services offers a portfolio of integrated, best-of-breed cloud data services for developers focused on mobile computing and analytics use cases.
"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 interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.