VIQ Solutions Inc.
TSX VENTURE : VQS

VIQ Solutions Inc.

May 27, 2009 08:00 ET

VIQ Solutions Reports Fiscal 2009 First Quarter Results

MARKHAM, ONTARIO--(Marketwire - May 27, 2009) - VIQ Solutions Inc. ("VIQ Solutions" or the "Corporation") (TSX VENTURE:VQS), a world leader in computer-based digital audio capture and management, today reported its financial results for the three month period ended March 31, 2009.

Revenues were $2.5 million for the three month period ended March 31, 2009 as compared to $2.8 million for the three month period ended March 31, 2008. Gross margin was 39% for the period as compared to 37% for the same period in 2008. Net loss for the three month period ended March 31, 2009 was $236,479, as compared to a net loss of $253,233 for the three month period ended March 31, 2008. Cash flow from operations was $65,033 for the three month period ended March 31, 2009 as compared to a cash outflow of $227,873 for the same period in 2008. EBITDA loss was $147,820 for the three month period ended March 31, 2009 as compared to a loss of $119,799 for the three month period ended March 31, 2008. Net loss per common share was $0.00 for the three month period ended March 31, 2009 and $0.00 for the same period ended March 31, 2008.

"We are pleased with our recent high-profile contract win for the provision of a multi-year digital audio recording and storage project in the United Kingdom with Atos Origin and Logica," commented David Outhwaite, President and Chief Executive Officer of VIQ Solutions. "With a solid pipeline of exciting opportunities, innovative products and top-tier global partners, we are poised for significant revenue growth as we continue our drive toward sustained profitability," concluded Mr. Outhwaite.

Business Highlights for the Quarter:

- Announced the signing of a contract by the Corporation's Australian subsidiary, Spark & Cannon, with the Victoria State Police for the provision of transcription services, estimated to be worth AUS $2.25 million over a three year term based on the historical workflow supplied by the Victoria State Police;

- Announced the signing of a contract with Atos Origin, estimated to be worth (pound)3.3 million over an eight-year period, to provide digital audio recording and management software for approximately 594 fixed and portable installations across the United Kingdom; and

- Selected by Logica, a leading IT and business services company, to provide the integration of VIQ Solutions' Encompass product suite to an Enterprise Content Management ("ECM") data centre in the United Kingdom.

Additional Information

Detailed financial information and Management's Discussion and Analysis of Results and Financial Condition for the three month period ended March 31, 2009 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 audited consolidated financial statements for the year ended December 31, 2008, including the notes thereto.

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.

Forward-looking Statements

This release contains forward-looking statements and other statements concerning the Corporation's objectives and strategies and management's beliefs, plans and intentions about our achievements, goals, performance and other future events. These statements involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this press release, the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "will,", "would" and similar expressions are intended to identify forward-looking statements. Such statements reflect VIQ Solutions' current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made due to a number of factors including risks related to our ability to successfully execute our business plan which includes our revenue growth, our liquidity, our operating results, our technology and products. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. VIQ Solutions does not intend and does not assume any obligation to update these forward-looking statements.

Non-GAAP Measures

EBITDA is a non-GAAP earnings measure, therefore, it does not have any standardized meaning prescribed by Canadian generally accepted accounting principles and may not be similar to measures presented by other companies. EBITDA represents earnings before interest expense, income taxes, depreciation and amortization. This measure is important to management since it is used by potential investors to evaluate the Corporation's operating performance and ability to incur and service debt, and as a valuation metric.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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