VIQ Solutions Inc.
TSX VENTURE : VQS

VIQ Solutions Inc.

April 16, 2009 08:30 ET

VIQ Solutions Reports Fourth Quarter and 2008 Results

Profitable Fourth Quarter, Positive EBITDA for the Year

MARKHAM, ONTARIO--(Marketwire - April 16, 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 and twelve month periods ended December 31, 2008. In 2008, VIQ Solutions achieved its goal of positive EBITDA for the year and solidified its position as a market leader in both the transcription and digital audio and video collection and management industries.

"We are very pleased with our fourth quarter results, having achieved higher revenues and gross margin and allowing us to achieve our goal of positive EBITDA in 2008," commented David Outhwaite, President and Chief Executive Officer of VIQ Solutions. "We are focused on continuing to deliver improved financial performance in 2009 and dedicated to providing top tier products and services to our clients," concluded Mr. Outhwaite.

Fourth Quarter Results

Revenue was $3.1 million for the three month period ended December 31, 2008, up from $2.8 million for the same period in 2007, an increase of 8%, reflecting stronger revenue from our computer products and services business unit. Gross margin was 51% for the period as compared to 36% for the fourth quarter of 2007 primarily due to increased sales from our computer products and services business unit. Cash flow from operations was $246,715 for the quarter as compared to $36,403 for the same period in 2007. Net income for the fourth quarter of 2008 was $281,596 as compared to a net loss of $356,397 for the fourth quarter of 2007.

Annual Results

Revenue was $11.9 million for the year ended December 31, 2008 as compared to $12.3 million for the previous year, representing a decline of 3%. Gross profit for 2008 was $5.1 million as compared to $4.5 million in 2007, representing an increase of 12%. Gross profit expressed as a percentage of revenues, was 42% (37% in 2007) attributed to the change in our revenue mix and the focus of our transcription businesses on higher margin contracts. Net loss for the year was $283,226 or $0.00 per share as compared to a net loss of $975,212 or $0.01 per share for the previous year.

Additional Information

Detailed financial information and Management's Discussion and Analysis of Results and Financial Condition for the year ended December 31, 2008 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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