Microsoft Cloud Authors: Elizabeth White, Yeshim Deniz, Serafima Al, Janakiram MSV, John Katrick

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 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)                                             
                                                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 

VIQ Solutions Inc.
David Outhwaite
President & CEO
(905) 948-8266 ext. 250
[email protected]

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

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER give you detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPO also offers s...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive ov...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
The IoT Will Grow: In what might be the most obvious prediction of the decade, the IoT will continue to expand next year, with more and more devices coming online every single day. What isn’t so obvious about this prediction: where that growth will occur. The retail, healthcare, and industrial/supply chain industries will likely see the greatest growth. Forrester Research has predicted the IoT will become “the backbone” of customer value as it continues to grow. It is no surprise that retail is ...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...