Click here to close now.

Welcome!

Microsoft Cloud Authors: Aleksei Gavrilenko, Elizabeth White, Liz McMillan, Pat Romanski, Jaynesh Shah

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
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 robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, 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 ...
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
SYS-CON Events announced today that BMC 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. BMC delivers software solutions that help IT transform digital enterprises for the ultimate competitive business advantage. BMC has worked with thousands of leading companies to create and deliver powerful IT management services. From mainframe to cloud to mobile, BMC pairs high-speed digital innovation with robust IT industrialization – allowing customers to provide amazing user experiences with optimized IT per...
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will addresses this very serious issue of profound change in the industry.
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you'll have no problem fillin...
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
SYS-CON Events announced today that the "Second Containers & Microservices Conference" will take place November 3-5, 2015, at the Santa Clara Convention Center, Santa Clara, CA, and the “Third Containers & Microservices Conference” will take place June 7-9, 2016, at Javits Center in New York City. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
SYS-CON Events announced today that the "First Containers & Microservices Conference" will take place June 9-11, 2015, at the Javits Center in New York City. The “Second Containers & Microservices Conference” will take place November 3-5, 2015, at Santa Clara Convention Center, Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some form of XaaS – software, platform, and infrastructure as a service.
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discusses the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.