MARKHAM, ONTARIO--(Marketwired - April 30, 2013) - VIQ Solutions Inc. ("VIQ" or "VIQ Solutions") (TSX VENTURE:VQS) announced today that it is taking steps to implement cost efficiencies respecting the business of its wholly owned subsidiary, Spark & Cannon Australasia Pty Limited ("Spark & Cannon"), which provides recording and transcription services to courts and tribunals throughout Australasia. These steps are designed to reduce Spark & Cannon's general and administrative expenses by approximately 33%, through a combination of staff count reductions and decreasing the amount of office space to be leased by Spark & Cannon going forward.
These cost reduction steps are being taken as a result of recent developments in Spark & Cannon's business, to both generally improve the cost efficiencies of Spark & Cannon's business operations and as a preparatory step in the event Spark & Cannon is not successful in having a particular transcription contract renewed. Although this transcription contract has not been terminated by the customer and remains in place until at least May 17, 2013, Spark & Cannon has been notified by the customer that it is not the preferred vendor in respect of the contract, such that there is material risk that the contract will not be renewed on expiry. VIQ Solutions and Spark & Cannon continue to pursue a number of sales initiatives that, if successful, are expected to supplement Spark & Cannon's revenue and result in improvements to Spark & Cannon's financial performance.
"By implementing these cost efficiencies, we will be in a position to continue to streamline our operations, improve profit margins, and bring the business to a place of financial strength," said David Outhwaite, President and Chief Executive Officer of VIQ Solutions. "While we will have reduced certain non-essential support infrastructure, we are preserving all of the strategic initiatives surrounding our core competencies as we believe they will drive continued growth."
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.
For more information about VIQ Solutions, please visit www.viqsolutions.com.
This press release contains forward looking statements. More particularly, this press release contains statements concerning the timing to implement, the nature of and expected results from certain cost reduction measures to be undertaken by Spark & Cannon, the possibility that a certain transcription customer contract will not be renewed in the future, as well as the result of sales initiatives being pursued by VIQ and Spark & Cannon. Although VIQ believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because VIQ can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.
The forward looking statements contained in this press release are made as of the date hereof and VIQ undertakes no obligation to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.