VIQ Solutions Inc.
TSX VENTURE : VQS

VIQ Solutions Inc.

November 26, 2015 07:18 ET

VIQ Solutions Announces Q3 Results

MARKHAM, ONTARIO--(Marketwired - Nov. 26, 2015) - VIQ Solutions Inc. ("VIQ Solutions", "VIQ" or the "Corporation") (TSX VENTURE:VQS), a world leader in digital media technology and transcription services, today reported its financial results for the three month and nine month periods ended September 30, 2015. Results are reported in Canadian dollars and, except as otherwise noted herein, are prepared in accordance with International Financial Reporting Standards ("IFRS").

"There are plenty of positives to take from Q3, the most important of which was the strategic acquisition of Dataworxs as part of our accelerated growth plan," said Sebastien Paré, President and CEO of VIQ Solutions. "Dataworxs adds an extensive, well-established customer base in the medical, law enforcement, legal, and insurance markets, as well as many transcription clients in United States, Canada and Australia, and provides an immediate, significant contribution to our bottom line via additional recurring revenue. As demonstrated by recent press releases on new contract wins with medical and police customers, Dataworxs has immediately established VIQ as an important player in markets outside our traditional courts. "

"There were many other positive trends to note in Q3, particularly in Australia," continued Mr. Paré. "Spark & Cannon had a positive quarter, returning a slight profit. With restructuring initiatives now complete and an increased focus on higher-margin software sales, as well as the addition of Dataworxs' sophisticated capture and transcription solutions to their repertoire, we expect this positive trend for Spark & Cannon to continue in coming quarters."

"Our third quarter performance and results are in line with the expectations set out early in the year and outlined in great details at the Annual General Meeting in June in order to set the stage for a strong finish to a very strategic transformative year," continued Mr. Paré. "Our Q3 results show an improvement over Q2, including a decreased net loss, demonstrating that the tide is turning in the right direction. The bulk of the expenses resulting from our Q1 and Q2 restructuring initiatives at both VIQ and Spark & Cannon expired early in the fourth quarter, giving us increased financial flexibility. We have also recently announced several new contracts in early Q4 that have provided us with not only an immediate source of revenue, but lots of opportunity for future expansion and growth in 2016."

"VIQ, Dataworxs and Spark & Cannon have come together to form a cohesive unit with a shared business plan and a definitive roadmap for a successful Q4 and 2016, and execution on the plan is well underway," concluded Mr. Paré. "I look forward to continue sharing VIQ's success stories with our shareholders and partners as we end 2015 on a positive note and move ahead into a successful 2016."

Business highlights for the quarter and early stage of fourth quarter

  • Announced and completed the acquisition of Dataworxs Systems Inc., a leading international technology provider of digital audio dictation, document management and speech-to-text software solutions. The acquisition was completely financed through a non-brokered private placement.

  • Awarded a new digital capture and management contract for a military organization in Europe via VIQ's UK partner. This military contract is the third win for VIQ Solutions in the military market, joining the Mexico Secretaría de la Defensa Nacional and the South African National Defense Force. Due to security and confidentiality protocols with our customer and UK partner, this contract has not been formally disclosed via a press release at this stage.

  • Awarded a new digital capture and management contract with a large law enforcement agency in the northeastern US for police interviews using VIQ's top-of-the-line security and chain of custody controls to ensure that recording and other digital media evidence stand up in court

  • Awarded a complete digital audio-video capture, management and transcription solution for the Mpumalanga Provincial Legislature in South Africa, integrating multi-channel, multi-language audio-video capture with an integrated, secure transcription workflow based on VIQ's sophisticated NetScribe technology

  • Completed key court modernization projects in Georgia and, subsequent to the period, Mississippi via reseller partner DECA, moving long-time multi-room standalone customers to latest networked solution with centralized repository, allowing customer to ensure the redundancy and security of crucial data

  • Subsequent to the period, announced contract with a US child advocacy center for the capture and management of forensic audio and video interviews with child victims of maltreatment in a safe and supportive environment. This contract marks the Corporation's first sale through the JB&A Distribution network via Heinz Pro AV.

  • Subsequent to the period, announced court modernization win with an existing Arkansas Federal Court customer via reseller Voice Products, adding networking functionality, video capture capability and VIQ AccessPOINT collaborative web portal

  • Subsequent to the period, announced that Spark & Cannon had been awarded three new recording and transcription contracts across Australia for various enquiries and commissions

  • Subsequent to the period, announced 80-room court modernization project for Judicial Services Commission in Zimbabwe, with the project expected to continue to grow in 2016 with additional rooms and functionality added. This contract brings the total number of African countries running VIQ's powerful software solutions to fourteen.

  • Subsequent to the period, announced the Corporation has been awarded a digital court recording modernization project with the Serbian judiciary, with the potential for much larger rollout at a later phase. The modernization project is being funded by a US-based government organization.

  • Subsequent to the period, announced VIQ Dataworxs was awarded a new digital telephony, management and transcription contract with Cardiac Surgery Associates, a leading Illinois cardiac surgery provider

Additional Information

The unaudited third 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 and nine month periods ended September 30, 2015 will be posted 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 third 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 trusted expert in digital recording technology. We are a global provider of the most secure digital audio, video and data capture, management and collaboration software technologies. We service a wide range of government and non-government customers in over twenty countries, both directly and via a comprehensive network of expert digital technology partners. Our primary markets are those that must provide unbreakable digital evidence to corroborate processes, procedures or compliance. Our customers move the data through our sophisticated, highly secure multi-tiered workflow solutions and collaborate via comprehensive portals and data analytics via several options including cloud-based and software as a service offering. 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 and beyond.

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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