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Revenues of $3.2 million, a sequential increase of $0.7 million or 26%
MARKHAM, ON, Aug. 29 /CNW/ - VIQ Solutions Inc. ("VIQ Solutions" or the "Corporation") (TSX Venture: VQS) today reported its financial results for the three and six month periods ended June 30, 2005.
Net sales were $3,211,594 for the three-month period ended June 30, 2005, up 26% from the previous quarter. Net sales for the six-month period ended June 30, 2005 were $5,756,428. Net loss for the three and six-month periods were $577,422 and $2,193,337 respectively. Net loss per common share was $0.01 and $0.04 for the three and six month periods respectively.
"During the period, we have seen increased interest and activity in the marketplace for our solutions" said David Outhwaite, VIQ Solutions' Chief Executive Officer. "We believe that a continued increase in revenues, combined with the operating cost reductions that we have implemented, will accelerate our path to profitability," added Mr. Outhwaite.
VIQ Solutions also announced the appointments of John G. Haag, C.A. and George Kempff C.M.A. to the Corporation's Board of Directors and Audit Committee. Mr. Haag is a Charted Accountant with in-depth expertise in international tax planning for public and private corporations with a focus on global tax minimization. George Kempff is a Certified Management Accountant with an established record of implementing and upgrading financial systems in fast growth companies and business expansion in the international manufacturing sector.
VIQ Solutions also announced the resignations of Gary Perron and Lawrence E. Davis, C.A. from the Board of Directors due to other business and regulatory commitments.
"The Board of Directors has been well served by Mr. Perron and Mr. Davis" noted Mr. Norman Inkster, Chairman of the Board of Directors. "We shall miss their expertise and wish them well on their future endeavours. Meanwhile, we are pleased to welcome two new independent directors who, together, offer a valuable blend of financial and business experience that will serve us well as we pursue our business strategy. The composition of our Board continues to be one of independence, in keeping with regulatory requirements and our corporate philosophy of transparency in governance" added Mr. Inkster.
In conjunction with the appointment of the new directors to the Corporation's board of directors, and the subsequent cancellation of incentive stock options originally granted to the directors that have resigned, the Corporation is pleased to announce that it is granting 87,500 stock options at a price of $0.26 to each of the new directors.
VIQ Solutions also announced that effective August 25, 2005, certain provisions of the Corporation's secured convertible were amended for no additional consideration including:
- The maturity date of the secured convertible debenture was extended from January 14, 2006 to April 2, 2007;
- The expiry date of the warrants issued on conversion of the secured convertible debenture was extended from July 2006 to September 30, 2007; and
- The conversion price for the secured convertible debenture was increased from $0.18 to $0.20 per Unit for all periods from and after January 14, 2007.
Significant business developments in the second quarter:
- During the quarter, the Corporation announced a new VAR partnership with WUSF, a public broadcast organization in the state of Florida, received certification as a supplier to the state of Florida and finalized an integrated solutions contract for 15 hearing rooms in Florida;
- During the quarter, the Corporation announced a new VAR partnership with DECA-AMR Business Products Inc., a Georgia-based company focusing on business recording solutions for medical, legal and corporate customers;
- Subsequent to the quarter, VIQ Solutions completed the development, testing and deployment of its RecordIAB product, a new innovative enclosed recording console for the recording, playback and storing of digital audio, and secured a contract for 15 high courts in the Delta States in Nigeria;
- Subsequent to the quarter, VIQ Solutions announced that its wholly-owned subsidiary Spark & Cannon had secured a five-year, Aus$2.5 million contract with the South Australian Industrial Relations Commission; and
- Subsequent to the quarter, the Corporation announced that Netsound Pty. Limited has been appointed regional distributor of VIQ Solutions' products and services for the Asia-Pacific region.
Selected Restated Financial Information
Certain selected financial information included in this release is qualified in its entirety and should be read together with the unaudited consolidated financial statements for the three and six-month periods ended June 30, 2005, including the notes thereto.
About VIQ Solutions
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 press release contains forward-looking statements that 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," and
"would" and similar expressions are intended to identify forward-looking
statements. Such statements reflect VIQ Solutions Inc.'s 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 including those factors detailed from time to time in filings
made by VIQ Solutions Inc. with Canadian securities regulatory authorities.
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 Inc. does not intend and does not
assume any obligation to update these forward-looking statements.
The TSX Venture Exchange has neither approved nor disapproved of the
contents of this press release.
For further information: David Outhwaite, President & CEO, VIQ
Solutions, (905) 948-8266 ext. 250, email: douthwaite@viqsolutions.com, or
Karen Hersh, Chief Financial Officer, VIQ Solutions, (905) 948-8266 ext. 240,
email: khersh@viqsolutions.com
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