VIQ Solutions Inc.
TSX VENTURE : VQS

VIQ Solutions Inc.

April 14, 2010 17:30 ET

VIQ Solutions Reports Fourth Quarter and 2009 Results

MARKHAM, ONTARIO--(Marketwire - April 14, 2010) - 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, 2009.

"We achieved key strategic accomplishments in 2009, including significant contract wins in both our technology and transcription business units, that will help us on our drive towards sustained profitability," commented David Outhwaite, President and Chief Executive Officer of VIQ Solutions. "We are focused on improving our financial performance in 2010 by capitalizing on an expanding marketplace and our growing global reputation as a provider of top-tier solutions."

Annual Results

Revenue was $11.3 million for the year ended December 31, 2009 as compared to $11.9 million for the previous year, representing a decline of 5%. Gross profit for 2009 was $4.6 million as compared to $5.1 million in 2008, representing a decrease of 10%. Gross profit expressed as a percentage of revenues was 40% (42% in 2008), attributed to a change in our revenue mix and the one-time start up costs associated with our new transcription contracts. Net loss for the year was $972,824 or $0.01 per share as compared to a net loss of $283,226 or $0.00 per share for the previous year.

Fourth Quarter Results

Revenue was $2.9 million for the three month period ended December 31, 2009, down from $3.1 million for the same period in 2008. Gross margin was 38% for the period as compared to 51% for the fourth quarter of 2008 primarily due to increased sales from our computer products and services business unit in the fourth quarter of 2008. Cash used in operations was $306,979 for the quarter as compared to a cash inflow of $246,716 for the same period in 2008. Net loss for the fourth quarter in 2009 was $324,126 as compared to net income of $281,596 for the fourth quarter in 2008.

UK Update

In 2009, VIQ Solutions was awarded a contract for digital recording software and services for a country- wide integrated justice project in England and Wales. The schedule for this project has been slower than expected due to the complex nature of the project and the involvement of multiple partners. The Corporation has successfully completed the initial early stage implementation roll-out of 118 installations and will continue with the national roll-out of the balance of the 595 installations in 2010.

Additional Information

Detailed financial information and Management's Discussion and Analysis of Results and Financial Condition for the year ended December 31, 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, 2009, 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.

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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