Vigil Health Solutions Inc.
TSX VENTURE : VGL

Vigil Health Solutions Inc.

November 13, 2007 14:22 ET

Vigil Health Solutions Reports Second Quarter Results

Books over $1 Million in Sales for the Quarter (up 84% over FY07)

VICTORIA, BRITISH COLUMBIA--(Marketwire - Nov. 13, 2007) - Vigil Health Solutions Inc. ("Vigil") (TSX VENTURE:VGL) announces the results of operations for the quarter ending September 30, 2007.

Business highlights

- Increased sales bookings by 84% from $582 thousand in the three-month period ended September 30, 2006 to $1.07 million in the current three-month period.

- Raised revenue 49% from $382 thousand in the period ended September 30, 2006 to $568 thousand in the current quarter.

- Expanded order backlog from $1.43 million at September 30, 2006 to $2.75 million at September 30, 2007.

- Secured 2 new corporate accounts, including the third largest Assisted Living Provider in the United States.

- Grew the number of projects signed or in progress from 16 in the prior fiscal period to 28 in the period ending September 30, 2007.

"Vigil has a greater number of projects signed or in progress than ever before and we are pleased to see our sales team continuing to grow sales bookings and our operations team successfully commissioning more installations each quarter," said Troy Griffiths, President & CEO, Vigil Health Solutions Inc.

Financial Results

Revenue for the three-months ended September 30, 2007 was $568 thousand compared to $382 thousand in the period ended September 30, 2006, an increase of 49%. Revenue for the six-months ended September 30, 2007 was $1.47 million compared to $683 thousand in the period ended September 30, 2006, an increase of 116%. Eighteen projects were completed in the period compared to seven in the six-month period ending September 30, 2006.

Bookings for the quarter were $1.07 million up 84% compared to $582 thousand in the three-month period ended September 30, 2006. Bookings for the six months ended were up 94% to $1.97 million compared to $1.01 million in the six-month period ended September 30, 2006.

At September 30, 2007 Vigil had a backlog of approximately $2.75 million (including $851 thousand in deposits and progress billings, recorded as deferred revenue on balance sheet) compared to $1.43 million at September 30, 2006. The gross margin percentage for the three-months ended September 30, 2007 was 46% compared to 48% for the three-months ended September 30, 2006.

The gross margin percentage for the six-months ended September 30, 2007 was 49% compared to 46% for the six-months ended September 30, 2006. Management believes that the successful penetration of key products with new and existing clients will allow for margins of between 42% and 47% in future quarters.

Operating expenses for the three months ended September 30, 2007 were $523 thousand, up 12% from $468 thousand in the same quarter of the prior year. Operating expenses for the six months ended September 30, 2007 were $1.05 million, up 9% from $960 thousand in the same quarter of the prior year. The increases relate mainly to higher research and development costs in the current fiscal and lower than usual professional fees in the fiscal period ending September 30, 2006.

Losses for the three-month period ended September 30, 2007 were $311 thousand, or $0.003 per share an increase of 9% compared to $286 thousand, or $0.003 per share for the previous year. The increase in losses can be attributed to a significant foreign exchange loss in the current quarter resulting from the rising Canadian dollar. Losses for the six-month period ended September 30, 2007 were $398 thousand, or $0.004 per share a decrease of 40% compared to $658 thousand, or $0.007 per share for the previous year.

Detailed financial statements along with Management Discussion and Analysis have been filed with SEDAR and may be viewed at (www.sedar.com) or on the Company web site (http://www.vigil.com/investors/financial-statements/).

Financial information will be mailed to entitled security holders on November 16, 2007. Or, upon notice to the Company, entitled security holders may request a copy of financials in advance.

Summary Financial Information



Three Months Ended
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30-Sep-07 30-Sep-06

Revenue $567,883 $382,255

Cost of Sales 308,900 200,199
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Gross Profit 258,983 182,056

Expenses 522,828 467,672
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Loss before the following items (263,845) (285,616)

Other income (expense) (47,620) (761)

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Loss for the period ($311,465) ($286,377)
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Vigil's board of directors, pursuant to Vigil's stock option plan, amended the terms of options to acquire 1,970,000 common shares to increase their exercise price from $0.06 per share to $0.10 per share. These options were originally granted on August 24, 2006. The amendment was required to satisfy the rules of the TSX Venture Exchange.

About Vigil Health Solutions Inc.

Vigil offers a proprietary technology platform combining software and hardware to provide comprehensive solutions to the expanding aged care market. Vigil has established a growing presence in North America and an international reputation for being on the leading edge of systems design and integration. The Vigil Integrated Care Management System™ (Vigil® System) includes the award-winning Vigil Dementia System, a nurse call system, bed monitoring, resident check in, and the latest development the Vigil Wireless call system. The first to supply dementia specific care technology, Vigil facilitates the highest standard of care for cognitive residents while helping dementia residents enjoy a higher quality of life and greater dignity.

Certain information contained in this news release may constitute forward-looking statements within the meaning of applicable securities laws. Forward looking statements may include estimates, plans, expectations, opinions, forecasts or other statements that are not statements of fact. Although the Company believes that the expectations are reasonable, actual events or results may differ from the Company's expectations.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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