Vigil Health Solutions Inc.
TSX VENTURE : VGL

Vigil Health Solutions Inc.

November 15, 2006 10:20 ET

Vigil Health Solutions Reports Second Quarter Results

Sales Bookings up 36% over FY06

VICTORIA, BRITISH COLUMBIA--(CCNMatthews - Nov. 15, 2006) - Vigil Health Solutions Inc. (TSX VENTURE:VGL) ("Vigil") announces the results of operations for the quarter ending September 30, 2006.

Business highlights

- Bookings for the three-month period ended September 30, 2006 were $582 thousand; an increase of 36% compared to $428 thousand in the three-month period ended September 30, 2005.

- Decreased losses 12% from $324 thousand in the period ended September 30, 2005 to $286 thousand in the period ended September 30, 2006.

- The Company held an order backlog of approximately $1.43 million at September 30, 2006 compared to $1.12 million in the quarter ended September 30, 2005.

- Quarterly sales bookings included four new customers and four repeat corporate clients.

- Expanded direct sales force to 6 quota carrying sales executives.

Financial Results

Bookings for the three-month period ended September 30, 2006 were $582 thousand; an increase of 36% compared to $428 thousand in the three-month period ended September 30, 2005. Bookings for the six months ended were up 27% to $1.01 million compared to $797 thousand in the six-month period ended September 30, 2005.

Revenue for the three-months ended September 30, 2006 was $382 thousand compared to $407 thousand in the period ended September 30, 2005, a decrease of 6%. Revenue for the six-months ended September 30, 2006 was $683 thousand compared to $758 thousand in the period ended September 30, 2005, a decrease of 10%. The decrease related to a smaller number of projects completed in the first quarter of fiscal 2007 compared to fiscal 2006 (although a greater volume of projects were signed or in progress than in the same period of the previous year) and the completion of a large $265 thousand installation in the second quarter of fiscal 2006.

The gross margin percentage for the three-months ended September 30, 2006 was 48% up from 41% in the three-months ended September 30, 2005. The gross margin percentage for the six-months ended September 30, 2006 was 46% up from 42% in the six-months ended September 30, 2005. Annual margins to date are higher than management's expectations of between 40% and 45%.

Operating expenses for the three months ended September 30, 2006 were $468 thousand, compared to $469 thousand in the three months ended September 30, 2005. Operating expenses for the six months ended September 30, 2006 were $960 thousand, down 5% from $1.01 million in the same period of the prior year.

Losses for the three-month period ended September 30, 2006 were $286 thousand, or $0.003 per share a decrease of 12% compared to $324 thousand, or $0.005 per share for the previous year. Losses for the six-month period ended September 30, 2006 were $658 thousand, or $0.007 per share a decrease of 12% compared to $744 thousand, or $0.013 per share for the previous year. The decrease in losses can be attributed to higher margins and the decrease in expenses largely due to the drop in professional fees.

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 17, 2006. Or, upon notice to the Company, entitled security holders may request a copy of financials in advance.

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.

Contact Information

  • Vigil Health Solutions Inc.
    Troy Griffiths
    President
    (250) 383-6900
    (250) 383-6999 (FAX)
    Email: information@vigil.com
    or
    Vigil Health Solutions Inc.
    2102-4464 Markham Street
    Victoria, BC V8Z 7X8
    Website: www.vigil.com