MARKHAM, ONTARIO — (Marketwire) — 04/12/12 — 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 twelve month periods ended December 31, 2011. Results are reported in Canadian dollars and are prepared in accordance with International Financial Reporting Standards (“IFRS”)(1).
“In 2011, VIQ Solutions achieved profitability for the first time with the strongest financial performance in the company-s history,” said David Outhwaite, President and Chief Executive Office of VIQ Solutions. “Our accomplishments in 2011 will allow us to continue to aggressively pursue our growth strategy and maintain our positive momentum in 2012.”
Annual Results
Revenue was $15.3 million for the year ended December 31, 2011 as compared to $12.2 million for the previous year, representing an increase of 25%. Gross profit for 2011 was $6.5 million as compared to $3.9 million in 2010, representing an increase of 68%. Gross profit expressed as a percentage of revenues was 42% as compared to 32% in 2010, primarily due to the increased revenue and associated gross profit from our computer products and services business unit. Net income was $75,094 for the year or $0.00 per share as compared to a net loss of $2,580,729 or $0.03 per share for the previous year. EBITDA(2) was $487,309 for the year ended December 31, 2011 as compared to an EBITDA loss of $2,115,813 for the same period in 2010. Cash flow from operations was $614,033 for the year ended December 31, 2011 as compared to a cash use of $1,159,911 for the same period in 2010.
Fourth Quarter Results
Revenues increased from $3.3 million in the fourth quarter of 2010 to $3.4 million in the fourth quarter of 2011 primarily due to an increase in revenue from our computer products and services business. Gross margin for the quarter was relatively unchanged at 35% as compared to 34% for the fourth quarter of 2010. Selling and administrative expenses were $1.4 million in 2011, unchanged from the same period in 2010. Net loss was $528,281 for the three month period ended December 31, 2011 as compared to $1,290,846 for the three month period ended December 31, 2010, which included a goodwill impairment charge of $820,000. Cash flow from operations was $69,013 for the fourth quarter of 2011 as compared to a cash use of $369,609 for the same period in 2010.
2011 Financial Highlights
Notes
Additional Information
Detailed financial information and Management-s Discussion and Analysis of Results and Financial Condition for the year ended December 31, 2011 will be posted on VIQ Solution-s website (under Investor Relations) at and on SEDAR-s website at . The financial information included in this release is qualified in its entirety and should be read together with the 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.
Contacts:
VIQ Solutions Inc.
David Outhwaite
President & CEO
(905) 948-8266 ext. 250
VIQ Solutions Inc.
Karen Hersh
Chief Financial Officer
(905) 948-8266 ext. 240
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