VIQ Solutions Inc.
TSX VENTURE : VQS

VIQ Solutions Inc.

November 25, 2009 08:01 ET

VIQ Solutions Reports Fiscal 2009 Third Quarter Results

MARKHAM, ONTARIO--(Marketwire - Nov. 25, 2009) - 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 nine month periods ended September 30, 2009.

Revenues were $2.8 million and $8.5 million for the three and nine month periods ended September 30, 2009 as compared to $2.8 million and $8.9 million for the three and nine month periods ended September 30, 2008. Gross margin was 38% and 41% for the three and nine month periods in 2009 as compared to 39% for the same periods in 2008. Net loss was $448,896 and $648,696 for the three and nine month periods ended September 30, 2009 as compared to $332,068 and $564,822 for the same periods in 2008. Net loss per common share on a basic and diluted basis was $0.00 and $0.01 for the three and nine month periods ended September 30, 2009 remaining unchanged from the same periods in 2008.

Cash flow from operations was $86,570 and $154,578 for the three and nine month periods ended September 30, 2009 as compared to a cash outflow of $413,197 and $735,041 for the same periods in 2008. EBITDA loss was $348,079 for the three month period ended September 30, 2009 as compared to $236,015 for the three month period ended September 30, 2008.

In the third quarter, we commenced the installation of our solution in a live environment as part of the first stage of our multi-year digital audio recording and storage project in the United Kingdom with Atos Origin and Logica. We anticipate that the revenue from computer products and services will continue to grow for the balance of 2009 and beyond with the continued rollout of the United Kingdom project.

"We continue to invest in our sales and marketing initiatives on a global basis," commented David Outhwaite, President and Chief Executive Officer of VIQ Solutions. "We believe we are well positioned to meet the growing need for digital audio and video capture in the court and legal markets which is being further fuelled by the trend of countries adopting the oral judgment as the official court record," concluded Mr. Outhwaite.

Additional Information

Detailed financial information and Management's Discussion and Analysis of Results and Financial Condition for the three and nine month periods ended September 30, 2009 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, 2008, 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.

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.

Non-GAAP Measures

EBITDA is a non-GAAP earnings measure, therefore, it does not have any standardized meaning prescribed by Canadian generally accepted accounting principles and may not be similar to measures 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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