VIQ Solutions Inc.
TSX VENTURE : VQS

VIQ Solutions Inc.

May 27, 2015 08:00 ET

VIQ Solutions Announces Q1 Results, Quarterly Profit in Computer Products and Services

MARKHAM, ONTARIO--(Marketwired - May 27, 2015) - VIQ Solutions Inc. ("VIQ Solutions" or the "Corporation") (TSX VENTURE:VQS), a world leader in computer-based digital audio and video capture and management, today reported its financial results for the three month period ended March 31, 2015. Results are reported in Canadian dollars and, except as otherwise noted herein, are prepared in accordance with International Financial Reporting Standards ("IFRS").

"A big part of the big data trends that we see driving technology investments forward right now comes from digital audio and video," said Sebastien Paré, President and CEO of VIQ Solutions. "Simple digital audio and video collection without sophisticated features like indexing, redaction, synchronization, collaboration and analytics is no longer acceptable to customers and prospects in our markets. This translates into aggressive growth into VIQ's sale pipeline in recent months as we continue to diversify our customer, partner and prospect base which will yield results in the near future."

"Our Q1 results for our technology are a very positive step forward in repositioning VIQ for growth and profitability. I would like to caution our shareholders that I see a few more quarters of modest results before we truly break through into a new growth phase. We need time for our new sales, products and pilots to yield results and convert them into sales revenue."

"Since I took over as CEO in February, we have implemented rightsizing measures across VIQ and Spark & Cannon to reduce our expenses and overhead costs to allow us to execute on our transformation plan. We are successfully transitioning VIQ and S&C into streamlined, agile organizations that are capable of deftly responding to changing market trends with confidence and the best possible team in place. We have a large, built-in customer base that will sustain us while we make inroads into our targeted, high-growth new markets. We have multiple pilot projects with key partners in new, high-growth industries like industrial compliance, medicine and education starting soon. Our sophisticated software solutions continue to lead the industry with advanced features and broad market appeal. Our upcoming AGM is scheduled for June 17th in our office in Markham and I invite our shareholders to join me as I will be outlining more details of our transformation plan."

Business Highlights for the Quarter

  • Computer products and services segment posted a quarterly profit and increased overall segment revenue over 2014 Q1;
  • Selected by Gulf Business Machines to provide enterprise digital audio and video capture and management for the Abu Dhabi Judiciary Department in Abu Dhabi, United Arab Emirates;
  • Sold transcription subsidiary International Reporting. The sale was a major step toward VIQ becoming a pure play software developer and provider of leading-edge solutions for digital recording, workflow management and collaboration. International Reporting remains a key partner and reseller of VIQ, particularly our VIQ NetScribe web-based transcription workflow and online collaboration VIQ AccessPOINT;
  • After more than ten great years at the helm, David Outhwaite handed control of VIQ to Sebastien Paré, who took over as CEO effective February 1, 2015;
  • Hosted reseller conference with our partners at PESA to introduce key VIQ partners and resellers to new bundled PESA XSTREAM solutions and establish sales and marketing strategy;
  • Subsequent to the period, announced new lineup of collaborative and mobile solutions with brand new simplified touchscreen GUI for tablets and a smartphone AV capture app for iPhones; and
  • Subsequent to the period, amended terms of bridge loan to extend maturity date to May 2016 and increase principal by $150,000, applying net funds to operating capital.

Additional Information

The unaudited first quarter 2015 condensed consolidated interim financial statements and results of operations and Management's Discussion and Analysis of Results and Financial Condition for the three month period ended March 31, 2015 will be posted on VIQ Solutions' website (under Investor Relations) at www.viqsolutions.com and on SEDAR's website at www.sedar.com. The financial information included in this release is qualified in its entirety and should be read together with the unaudited first quarter 2015 condensed consolidated interim financial statements and the audited consolidated financial statements for the year ended December 31, 2014, including the notes thereto.

About VIQ Solutions Inc.

VIQ Solutions is the global expert in digital recording technology. With a better approach to the collection, management and collaborative sharing of digital audio and video files, we help increase efficiency, improve security and reduce costs for courts, law enforcement agencies, insurance companies, health providers, and legislatures around the world. We have the proven technology and depth of experience and expertise to efficiently manage either enterprise installations of hundreds of rooms, with hundreds of terabytes of data and smaller stand-alone solutions for customers in various industries. Managing digital media evidence is what we do, and we do it better than anyone else.

For more information on what's making the news at VIQ Solutions, please visit our website at: www.viqsolutions.com/news.

Forward-looking Statements

Certain statements included in this news release constitute forward looking statements or forward looking information under applicable securities legislation. Such forward looking statements or information are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Forward looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project" or similar words suggesting future outcomes or statements regarding an outlook. Forward looking statements or information in this news release include, but are not limited to, management's targets for the Corporation's growth in 2015.

Forward looking statements or information is based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although VIQ Solutions believes that the expectations reflected in such forward looking statements or information are reasonable, undue reliance should not be placed on forward looking statements because VIQ Solutions can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this news release, assumptions have been made regarding, among other things, the Corporation's recent initiatives, and that sales and prospects may provide incremental value for shareholders. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used.

Forward looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by VIQ Solutions and described in the forward looking statements or information. These risks and uncertainties may cause actual results to differ materially from the forward looking statements or information. Readers are cautioned that the foregoing list is not exhaustive of all possible risks and uncertainties.

For more information about VIQ Solutions, please visit www.viqsolutions.com.

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.

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