MARKHAM, ONTARIO — (Marketwired) — 04/29/16 — VIQ Solutions Inc. (“VIQ Solutions” or the “Company”) (TSX VENTURE: VQS), a global expert in secure digital media technology and services, today reported financial results for the year ended December 31, 2015. Results are reported in Canadian dollars and are prepared in accordance with International Financial Reporting Standards (“IFRS”).
VIQ experienced a year of major transformation, with the positive effects now firmly entrenched. A strong financial year-end performance closed the fourth quarter with profitable adjusted operating income, taking into consideration certain stock based compensation costs detailed below. The quarter was driven by market diversification and strengthened revenue performance from software and services that resulted in increased margins.
The Company also greatly improved its year over year financial performance, including a 30% increase in high-margin software sales and higher recurring maintenance and support revenue. The software and related revenue segment of the Company posted a profit of $0.7M for the year versus a loss of $0.5M in 2014.
VIQ was profitable for both Q4 and the entire fiscal year if stock based compensation adjustments, certain one-time Dataworxs acquisition costs and company restructuring costs were eliminated.
“The much improved financial statements are showing investors that our transformation is already yielding positive results,” said Sebastien Pare, President and CEO of VIQ Solutions. “We are building sustainable growth based on quality earnings and the Company is nearly debt-free. We will move through a few more transitional quarters before reaching sustainable profitability later in 2016. We continue to make strategic investments in our cyber security IP, market penetration in medical and law enforcement, and global sale channels.”
The Company also finished the year in a strong cash position due to a significant increase in the number of recurring software support and maintenance agreements and from strategic financing from our committed shareholders.
“Our current growth phase, particularly in software and recurring maintenance revenue, positions VIQ in a favourable cash flow position that investors will find more evident in future income statements,” said Mr. Pare.
The Company–s 2015 financial performance was positively impacted by the Dataworxs acquisition, providing VIQ with an instant, indelible footprint and stellar reputation in law enforcement, medical, insurance, and legal markets in North America and Australia. Building on the Dataworxs customer base and complementary digital solutions, VIQ added many new customers in these markets in the fourth quarter. This trend is expected to continue in 2016. VIQ added new contracts or upsold existing contracts at a rate of approximately one every two or three weeks, notably many outside the Company–s traditional court market.
In 2015, 73% of VIQ–s software revenue came through the Company–s global partner network of local integrators, AV experts and authorized resellers, while 27% of revenue was direct.
“We will continue adding strategic partners in 2016, primarily those with experience and expertise in medical, cybersecurity and law enforcement,” said Mr. Pare.
2015 Business Highlights
Financial Results for 2015
Detailed financial information and Management–s Discussion and Analysis of Results and Financial Condition for the year ended December 31, 2015 will be posted on the SEDAR website at . The financial information included in this news release is qualified in its entirety and should be read together with the audited consolidated financial statements for the year ended December 31, 2015, including the notes thereto.
About VIQ Solutions Inc.
VIQ Solutions is the leading technology and service platform provider for digital evidence capture, retrieval and content management. Our secure modular software allows customers to easily integrate the VIQ platform at any stage of their organization–s digitization, from the capture of digital content from video and audio devices through to online collaboration, mobility, data analytics and integration with sensors, facial recognition, speech recognition and case management or patient record systems. VIQ–s technology leads the industry in security, meeting the highest international standards for digital/cyber security and privacy, including military and medical regulations.
Our solutions are in use in over 20 countries with tens of thousands of users in over 200 government and private agencies including law enforcement, immigration, medical, legal, insurance, courts, and transportation and transcription services. VIQ also provides end to end transcription services to several large government agencies through our Australia-based reporting and transcription partners. VIQ operates worldwide with a network of partners including security integrators, audio-video specialists, and hardware and data storage suppliers. Managing digital media evidence is what we do, and we do it better than anyone else. For more information about VIQ Solutions, please visit .
Forward-looking Statements
Certain statements included in this news release constitute forward looking statements or forward looking information under applicable securities legislation. Such forward looking statements or information are provided for the purpose of providing information about management–s current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Forward looking statements or information typically contain statements with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “propose”, “project” or similar words suggesting future outcomes or statements regarding an outlook. Forward looking statements or information in this news release include, but are not limited to, management–s targets for the Company–s growth in 2016.
Forward looking statements or information is based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although VIQ Solutions believes that the expectations reflected in such forward looking statements or information are reasonable, undue reliance should not be placed on forward looking statements because VIQ Solutions can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this news release, assumptions have been made regarding, among other things, the Company–s recent initiatives, and that sales and prospects may provide incremental value for shareholders. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used.
Forward looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by VIQ Solutions and described in the forward looking statements or information. These risks and uncertainties may cause actual results to differ materially from the forward looking statements or information. Readers are cautioned that the foregoing list is not exhaustive of all possible risks and uncertainties.
For more information about VIQ Solutions, please visit .
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
VIQ Solutions
Sebastien Pare
President and CEO
(905) 948-8266 ext. 221
You must be logged in to post a comment Login