VIQ Solutions Inc.
TSX VENTURE : VQS

VIQ Solutions Inc.

August 19, 2009 17:30 ET

VIQ Solutions Reports Profitable Fiscal 2009 Second Quarter Results

MARKHAM, ONTARIO--(Marketwire - Aug. 19, 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 six month periods ended June 30, 2009.

Revenues were $3.1 million and $5.6 million for the three and six month periods ended June 30, 2009 as compared to $3.3 million and $6.1 million for the three and six month periods ended June 30, 2008. Gross margin was 44% and 42% for the three and six month periods in 2009 as compared to 42% and 40% for the same periods in 2008. Net income for the three month period ended June 30, 2009 was $36,679, as compared to $20,479 for the three month period ended June 30, 2008. Net loss for the six month period ended June 30, 2009 was $199,800 as compared to a net loss of $232,754 for the same period in 2008. Net income per common share on a basic and diluted basis was $0.00 for the three month period ended June 30, 2009 remaining unchanged from the same period in 2008. Net loss per share was $0.00 for the six month period ended June 30, 2009, remaining unchanged from the six month period ended June 30, 2008.

Cash flow from operations was $2,975 for the three month period ended June 30, 2009 as compared to a cash outflow of $93,969 for the same period in 2008. EBITDA was $132,204 for the three month period ended June 30, 2009 as compared to $132,481 for the three month period ended June 30, 2008.

"In the second quarter, we initiated delivery of our software solution for 116 installations in connection with the first stage of our 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. "We are pleased to be providing our software solution for this significant and innovative project, successfully demonstrating our ability to provide world-class, large-scale digital recording solutions," concluded Mr. Outhwaite.

Additional Information

Detailed financial information and Management's Discussion and Analysis of Results and Financial Condition for the three and six month periods ended June 30, 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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