Vigil Health Solutions Inc.

Vigil Health Solutions Inc.

June 23, 2008 10:03 ET

Vigil Health Solutions Reports 4th Quarter and Annual Results

Revenue $3.00 Million Up 105% Over FY07; Sales Bookings $4.38 Million Up 90% Over FY07

VICTORIA, BRITISH COLUMBIA--(Marketwire - June 23, 2008) - Vigil Health Solutions Inc. ("Vigil") (TSX VENTURE:VGL) announces the results of operations for the fiscal year (FY08) and the fourth quarter (Q4FY08), ending March 31, 2008.

"Fiscal 2008 was a very productive year for Vigil and a record year in terms of revenue and bookings; we are pleased with the Company's strategic progress and overall financial performance. Vigil will continue to focus on building sales and product innovation to meet the growing needs of our clients," stated Troy Griffiths, President & CEO, Vigil Health Solutions.

Business highlights

- Doubled revenue to $3.00 million from $1.47 million in FY07

- 98% increase in revenue for Q4FY08 compared to Q4FY07

- Completed 34 projects in FY08 compared to 16 in FY07, an increase of 113%

- Increased bookings for FY08 by 90% to $4.38 million compared to $2.31 million in FY07.

- Improved sales bookings for Q4FY08 by 52% ($1.12 million compared to $746 thousand in the year ended Q4FY07.)

- Grew order backlog to approximately $3.45 million from $2.30 million at March 31, 2007.

- Secured three new corporate accounts bringing the total number of corporate clients to 17. These accounts represented 51% of the contracts booked in fiscal 2008.

- Product Releases:

-- Next generation Wireless Check-In System allows facilities to monitor residents with minimal supervision and staffing.

-- New Multi Server firmware provides wireless coverage over larger areas enabling Vigil to sell to the very large campus style facilities that are increasingly popular in the United States and Canada.

-- Next generation core platform software Vigil 3.0, facilitates better user functionality, greater scalability and broader interoperability with complementary systems.

- Closed $550 thousand dollar private placement

Financial Results

Bookings for FY08 were up 90% to $4.38 million compared to $2.31 million in the FY07. Sales bookings for the quarter were up 52% to $1.12 million compared to $746 thousand in the Q4FY07. The Company has continued to implement its sales strategy resulting in increased total, and per representative, sales bookings.

At March 31, 2008 Vigil had a backlog of approximately $3.45 million (including $1.12 million in deposits and progress billings, recorded as deferred revenue on balance sheet) as compared to $2.30 million (including $832 thousand in deposits and progress payments, recorded as deferred revenue on balance sheet) at March 31, 2007.

Revenue for FY08 was $3.00 million compared to $1.47 million in FY07, an increase of 105%. This revenue resulted from the commissioning of 34 projects in fiscal 2008 (compared to 16 in fiscal 2007). The increase in revenue reflects the growth in sales bookings seen in prior periods. In addition one off sales, and service and maintenance revenue grew by 42% to $431 thousand. Revenue for Q4FY08 was $796 thousand compared to $402 thousand in Q4FY07. The 98% increase in revenue in the quarter was attributable to an increase in the average value of the installations, from $49 thousand to $66 thousand and the completion of 10 installations in Q4FY08 compared to 6 in Q4FY07.

The gross margin percentage for FY08 was 45% compared to 42% for FY07, these are in line with management's expectations of annual margins of between 42% and 47%. Gross margin for the quarter was 39%, lower than the normal range, management believes this to be a temporary drop and anticipate that margins will return to the expected range in fiscal 2009.

Operating expenses for FY08 were $2.22 million, up 10% from $2.02 million in the prior year. The increases relate primarily to larger research and development payroll and project costs as well as higher legal and consulting fees in fiscal 2008. Operating expenditures were $669 thousand in the fourth quarter, up 26% compared to $532 thousand in the prior year. The majority of this increase related to increased staffing in sales and marketing and research and development.

The net loss for FY08 was $973 thousand ($0.011 per share) compared to $1.43 million ($0.016 per share) for the previous year. The 32% decrease in net loss is primarily attributable to the large increase in revenue and careful control of Company operating expenses. The increase in revenue in Q4FY08 resulted in a 22% decrease in losses from $426 thousand in Q4FY07 to $331 thousand in Q4FY08.

The following is a summary of our financial performance for the year ended March 31, 2008. For further information relating to the financial results of the Company, please refer to the Company's financial statements and MD&A filed on SEDAR at or detailed financial statements are available on the Vigil web site ( Financial information will be mailed to entitled security holders on June 30, 2008. Or, upon notice to the Company, entitled security holders may request a copy of financials in advance.

Summary Financial Information

Three Months Ended Twelve Months Ended
---------------------- -------------------------

31-Mar-08 31-Mar-07 31-Mar-08 31-Mar-07

Revenue: $ 795,576 $ 401,532 $ 3,004,552 $ 1,465,767

Cost of sales $ 484,549 $ 278,929 $ 1,658,077 $ 848,958

Gross Profit $ 311,027 $ 122,603 $ 1,346,475 $ 616,809

Expenses $ 669,138 $ 531,698 $ 2,224,246 $ 2,016,943

Loss before the
following items $ (358,111) $ (409,095) $ (877,771) $ (1,400,134)

Other income (expense): $ 26,914 $ (16,527) $ (95,680) $ (25,860)

Loss for the period $ (331,197) $ (425,622) $ (973,451) $ (1,425,994)

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 statements contained in this news release, that are not based on historical facts, may constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). These forward-looking statements are not promises or guarantees of future performance but are only predictions that relate to future events, conditions or circumstances or our future results, performance, achievements or developments and are subject to substantial known and unknown risks, assumptions, uncertainties and other factors that could cause our actual results, performance, achievements or developments in our business or in our industry to differ materially from those expressed, anticipated or implied by such forward-looking statements.

Forward-looking statements include all financial guidance, disclosure regarding possible events, conditions, circumstances or results of operations that are based on assumptions about future economic conditions, courses of action and other future events. We caution you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. These forward-looking statements appear in a number of different places in this presentation and can be identified by words such as "may", "estimates", "projects", "expects", "intends", "believes", "plans", "anticipates", or their negatives or other comparable words. Forward-looking statements include statements regarding the outlook for our future operations, plans and timing for the introduction or enhancement of our services and products, statements concerning strategies or developments, statements about future market conditions, supply conditions, end customer demand conditions, channel inventory and sell through, revenue, gross margin, operating expenses, profits, forecasts of future costs and expenditures, the outcome of legal proceedings, and other expectations, intentions and plans that are not historical fact.

The risk factors and uncertainties that may affect our actual results, performance, achievements or developments are many and include, amongst others, our ability to develop our sales force and generate revenue, the length of the sales cycle, management of the Company's growth, ability to recruit and retain staff, fluctuations in demand for current and future products, our ability to develop, manufacture, supply and market existing and new products that meet the needs of customers, volatility in the exchange rate, ability to secure financing, ability to secure product liability insurance, the continuous commitment of our customers, increased competition, changes in regulation and reliance on third party suppliers. These risk factors and others are discussed in the Risks and Uncertainties section of our Management Discussion and Analysis. Many of these factors and uncertainties are beyond the control of the Company. Consequently, all forward-looking statements in this news release are qualified by this cautionary statement and there can be no assurance that actual results, performance, achievements or developments anticipated by the Company will be realized.

Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions and, except as required by law, the Company does not undertake any obligation to update forward-looking statements should the assumptions related to these plans, estimates, projections, beliefs and opinions change.

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

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