MARKHAM, ON, April 12 /CNW/ VIQ Solutions Inc. ("VIQ Solutions" or the
"Corporation") (TSX Venture: VQS), a world leader in computer-based digital
audio capture and management, today reported its financial results for the
three and twelve month periods ended December 31, 2006. In 2006, VIQ Solutions
steadily increased gross margins quarter over quarter, culminating in greatly
improved financial performance and a profitable fourth quarter.
"We achieved our goal of reaching profitability and positive cash flow in
the fourth quarter of 2006, allowing us to solidify the framework for
continued financial growth and sustainability in our business," commented
David Outhwaite, President and Chief Executive Officer of VIQ Solutions. "We
are focused on continuing to deliver improved financial performance in 2007 as
we capitalize on our strong foundation and a vibrant market," concluded Mr.
Fourth Quarter Results
Revenue was $3.1 million for the three month period ended December 31,
2006, up from $2.5 million for the same period in 2005. Gross margins were 42%
for the period as compared to 34% for the fourth quarter of 2005. Cash flow
from operations was $33,659 for the quarter as compared to a cash outflow of
$604,266 for 2005. Net income for the fourth quarter of 2006 was $190,316 as
compared to a net loss of $556,072 for the fourth quarter of 2005. Net income
per common share was $0.00 for the three month period ended December 31, 2006
as compared to a net loss per common share of $0.01 for 2005.
Revenue was $11.3 million for the year ended December 31, 2006 as
compared to $10.9 million for the previous year. Net loss for the year was
$1.3 million or $0.02 per share as compared to a net loss of $3.6 million or
$0.06 per share for the previous year.
2006 Business Highlights:
- Improved financial performance significantly over the previous year,
resulting in a profitable fourth quarter for 2006;
- Expanded market opportunities with the release of new Encompass
digital audio and video capture solution offering synchronized
digital video capture and two new solutions from the RecordIAB family
being RecordIAB Workstation and RecordIAB Software Edition (SE),
appealing to an even broader market;
- Solidified market position in the North American transcription
services market with the successful integration of International
- Well-positioned in Australian market for 2007 based on Spark &
Cannon, the Corporation's Australian transcription and recording
services business, securing three significant contracts during the
end of 2006 and early 2007.
Detailed financial information and Management's Discussion and Analysis
of Results and Financial Condition for the year ended December 31, 2006 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 audited consolidated financial statements for the
year ended December 31, 2006, including the notes thereto.
About VIQ Solutions Inc.
VIQ Solutions is recognized as a global provider in the digital audio
industry with innovative product and service-based solutions for voice-driven
systems in the legal, medical, business, and government industries. VIQ
Solutions provides an integrated range of digital record workflow solutions,
including digital audio and video capture, workflow management software,
transcription services, interactive electronic scheduling, and case management
integration, all from one central, secure database.
This press release contains forward-looking statements that 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," and
"would" and similar expressions are intended to identify forward-looking
statements. Such statements reflect VIQ Solutions Inc.'s 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 including those factors detailed from time to time in filings
made by VIQ Solutions Inc. with Canadian securities regulatory authorities.
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 Inc. does not intend and does not
assume any obligation to update these forward-looking statements.
The TSX Venture Exchange has neither approved nor disapproved of the
contents of this press release.
For further information:
For further information: David Outhwaite, President & CEO, VIQ
Solutions, (905) 948-8266 ext. 250, email: email@example.com; or
Karen Hersh, Chief Financial Officer, VIQ Solutions, (905) 948-8266 ext. 240,