Welcome!

.NET Authors: Srinivasan Sundara Rajan, Adine Deford, David Fletcher, Pat Romanski, Tad Anderson

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. 

Notes

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 www.viqsolutions.com and 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 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)                                             
(Unaudited)                                                                 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                September 30,  December 31, 
                                                         2012          2011 
----------------------------------------------------------------------------
                                                                  (Audited) 
                                                                            
Assets                                                                      
                                                                            
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 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Liabilities                                                                 
                                                                            
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 
----------------------------------------------------------------------------
                                                                            
Equity                                                                      
                                                                            
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)                                             
(Unaudited)                                                                 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                            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 
----------------------------------------------------------------------------
                                                                            
Expenses                                                                    
  Selling, general and                                                      
   administrative                                                           
   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                                                       
 share                                                                      
  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)                                             
(Unaudited)                                                                 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                         Three months ended          Nine months ended      
                               Sept. 30                   Sept. 30          
                              2012         2011         2012           2011 
----------------------------------------------------------------------------
                                                                            
Cash provided by (used                                                      
 in):                                                                       
Operating activities                                                        
Net income (loss) for                                                       
 the period             $  (24,282)  $  (89,771)  $ (156,793)  $    603,374 
Items not affecting                                                         
 cash:                                                                      
  Depreciation              56,244       57,054      157,933        185,628 
  Stock-based                                                               
   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
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Nigeria has the largest economy in Africa, at more than US$500 billion, and ranks 23rd in the world. A recent re-evaluation of Nigeria's true economic size doubled the previous estimate, and brought it well ahead of South Africa, which is a member (unlike Nigeria) of the G20 club for political as well as economic reasons. Nigeria's economy can be said to be quite diverse from one point of view, but heavily dependent on oil and gas at the same time. Oil and natural gas account for about 15% of Nigera's overall economy, but traditionally represent more than 90% of the country's exports and as...
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
"At our booth we are showing how to provide trust in the Internet of Things. Trust is where everything starts to become secure and trustworthy. Now with the scaling of the Internet of Things it becomes an interesting question – I've heard numbers from 200 billion devices next year up to a trillion in the next 10 to 15 years," explained Johannes Lintzen, Vice President of Sales at Utimaco, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"For over 25 years we have been working with a lot of enterprise customers and we have seen how companies create applications. And now that we have moved to cloud computing, mobile, social and the Internet of Things, we see that the market needs a new way of creating applications," stated Jesse Shiah, CEO, President and Co-Founder of AgilePoint Inc., in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Code Halos - aka "digital fingerprints" - are the key organizing principle to understand a) how dumb things become smart and b) how to monetize this dynamic. In his session at @ThingsExpo, Robert Brown, AVP, Center for the Future of Work at Cognizant Technology Solutions, outlined research, analysis and recommendations from his recently published book on this phenomena on the way leading edge organizations like GE and Disney are unlocking the Internet of Things opportunity and what steps your organization should be taking to position itself for the next platform of digital competition.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at @ThingsExpo, Andrew Bolwell, Director of Innovation for HP's Printing and Personal Systems Group, discussed how key attributes of mobile technology – touch input, sensors, social, and ...