Vigil Health Solutions Inc.
TSX VENTURE : VGL

Vigil Health Solutions Inc.

February 22, 2007 10:54 ET

Vigil Health Solutions Reports Third Quarter Results

Sales Bookings up 25% over FY06

VICTORIA, BRITISH COLUMBIA--(CCNMatthews - Feb. 22, 2007) - Vigil Health Solutions Inc. ("Vigil") (TSX VENTURE:VGL) announces the results of operations for the quarter ending December 31, 2006.

Business highlights

- Bookings for the three-month period ended December 31, 2006 were $547 thousand; an increase of 25% compared to $438 thousand in the three-month period ended December 31, 2005.

- Vigil received it's largest ever purchase order for $300 thousand from a leading North American provider of seniors housing. The client's project is the largest start-up Continuing Care Retirement Community (CCRC) non-profit financing in the history of the United States

- The Company held an order backlog of approximately $1.58 million at December 31, 2006 compared to $1.07 million in the quarter ended December 31, 2005.

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

Financial Results

Bookings for the three-month period ended December 31, 2006 were $547 thousand; an increase of 25% compared to $438 thousand in the three-month period ended December 31, 2005. Bookings for the nine months ended were up 26% to $1.56 million compared to $1.24 million in the nine-month period ended December 31, 2005.

Revenue for the three-months ended December 31, 2006 was $382 thousand compared to $548 thousand in the period ended December 31, 2005, a decrease of 30%. Revenue for the nine-months ended December 31, 2006 was $1.06 million thousand compared to $1.31 million in the period ended December 31, 2005, a decrease of 15%. The decrease related to a smaller number of projects completed in the first three quarters 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 December 31, 2006 was 46% up from 40% in the three-months ended December 31, 2005. The gross margin percentage for the nine-months ended December 31, 2006 was 46% up from 41% in the nine-months ended December 31, 2005. Annual margins to date are higher than management's expectations of between 40% and 45%.

Operating expenses for the three months ended December 31, 2006 were $525 thousand, compared to $424 thousand in the three months ended December 31, 2005. Operating expenses for the six months ended September 30, 2006 were $1.49 million, up 3% from $1.44 million in the same period of the prior year.

Losses for the three-month period ended December 31, 2006 were $343 thousand, or $0.004 per share an increase of 56% compared to $219 thousand, or $0.004 per share for the previous year. Losses for the six-month period ended September 30, 2006 were $1 million, or $0.011 per share an increase of 3% compared to $964 thousand, or $0.017 per share for the previous year. The increase in losses can be attributed to lower revenues and a rise in expenses largely due to increased sales and marketing costs.

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 February 26, 2007. 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.

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