MARKHAM, ONTARIO--(Marketwired - Aug. 22, 2016) - VIQ Solutions Inc. ("VIQ Solutions" or the "Company") (TSX VENTURE:VQS), a global expert providing a cybersecurity protected technology and service platform for digital evidence capture and content management, including multi-channel HD video, audio and associated digital media today reported its financial results for the three and six month period ended June 30, 2016. Results are reported in Canadian dollars and are prepared in accordance with International Financial Reporting Standards ("IFRS").
Second quarter revenue was generated by new gains in the medical, law enforcement and insurance sectors as VIQ expanded its global strategy for market diversification. The pipeline for new and expanded business opportunities increased materially in the quarter.
Total revenue was approximately $3.2M for the quarter, an increase of $1.0M or 44% over the previous year quarter. The increase in revenue was attributed to strengthening performances from both the technology and services divisions while recurring revenue and subscription-based revenue is strengthening with each quarter
VIQ's Australian services division posted revenues of $2.2M in Q2, a significant improvement over seasonally slow Q1 revenues of $1.8M. The services division revenue also increased over the previous year quarter, with revenues growing by 22% over the same period in 2015.
The Company's technology division had quarterly revenues of $1.0M, an increase of 142% over the same period in 2015, and marked another consecutive quarter of profitability. Revenue increased from new customers for dictation, speech recognition and transcription workflow solutions, increased penetration into diversified markets such as law enforcement and healthcare, and an increase in recurring support and maintenance revenue. Subscription-based revenue is strengthening with each quarter.
Revenue growth from an increasingly diversified customer base in the high margin technology division boosted VIQ's overall gross profit margin, which rose to 44% of revenue for the quarter as compared to 33% in 2015.
VIQ's innovative solutions are experiencing increased global interest, resulting in an expanding sales pipeline. In response, VIQ made investments in international sales initiatives in Q2 to address greater demand and generate sales and revenue.
Sales teams in Europe, Middle East and Africa (EMEA), Australia and the United States were increased to drive sales activity around the world and increase participation in pilot projects for significant opportunities. The result was new customer wins in Australia and substantial expansions in Scotland and Zimbabwe.
"VIQ's excellent revenue generation and higher sales allowed for an ample cash position. Continued growth, market diversification and sales team investments are expected to benefit the second half of this year and 2017 as key pilots are anticipated to reach fruition.
"Building on the transformation plan initiated in 2015, we have confidence that VIQ continues to trend in the right direction for a positive and successful year in 2016," said Mr. Pare.
Q2 2016 Business Highlights
- Grew total quarterly revenue by $1.0M over 2015 due to increase in new customer base through technology and market diversification
- Increased revenue in Australian services division by 22% over same period in 2015
- Posted consecutive quarterly profit in our technology division with a revenue increase of 142% over Q2 2015 due to the influx of new customers via the Dataworxs acquisition in late 2015, increased market diversification and an increase in recurring support revenue
- Repaid significant portion of debt early
- Initiated process to legally protect our intellectual property on key technology innovations
- Continued market diversification with new wins from medical, law enforcement and insurance customers around the world
- Announced two new wins with leading US transcription providers for complete digital statement capture, storage, and transcription workflows that emphasize client security and privacy
- Announced new win with an Ontario hospital for leading edge VoIP dictation and cloud based transcription workflow
- Announced expansion at country wide Scottish Court Services installation after an independent review called VIQ "the ideal blend of technology and expertise"
- Awarded an NAB Best of Show award with PESA for the PESA ACES CCM solution, an affordable, multi-channel capture and playback system for synchronized live event recording and playback
Financial Results for Q2 2016
The unaudited second quarter 2016 condensed consolidated interim financial statements and results of operations and Management's Discussion and Analysis of Results and Financial Condition for the three and six month period ended June 30, 2016 will be posted on the SEDAR website at www.sedar.com. The financial information included in this news release is qualified in its entirety and should be read together with the audited consolidated financial statements for the year ended December 31, 2015, including the notes thereto.
About VIQ Solutions Inc.
VIQ Solutions is the leading technology and service platform provider for digital evidence capture and content management. Our secure modular software allows customers to onboard the VIQ platform at any stage of their organization's digitization, from the capture of digital content from video and audio devices through to online collaboration, mobility, data analytics and integration with sensors, facial recognition, speech recognition and case management or patient record systems. VIQ's technology leads the industry in security, meeting the highest international standards for digital/cyber security and privacy, including military and medical regulations.
Our solutions are in use in over 20 countries with tens of thousands of users in over 200 government and private agencies including law enforcement, immigration, medical, legal, insurance, courts, transportation and transcription service providers. VIQ also provides end to end transcription services to several large government agencies through our Australia-based reporting and transcription partners. VIQ operates worldwide with partners like security integrators, audio-video specialists, and hardware and data storage suppliers. Managing digital media evidence is what we do, and we do it better than anyone else. For more information about VIQ Solutions, please visit www.viqsolutions.com.
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 Company's growth and financial performance in 2016.
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 Company'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.
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.