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MARKHAM, ON, Aug. 28 /CNW/ - 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, 2006.
Revenues were $2.9 million and $5.4 million for the three and six month
periods ended June 30, 2006 as compared to $3.2 million and $5.8 million for
the three and six month periods ended June 30, 2005. Net loss for the three
and six month periods ended June 30, 2006 was $0.56 million and $1.2 million
as compared to $0.58 million and $2.2 million for the three and six month
periods ended June 30, 2005. Net loss per common share was $0.01 and $0.02 for
the three and six month periods ended June 30, 2006 and $0.01 and $0.04 for
the same periods ended June 30, 2005.
Business Highlights for the Quarter:
- The Corporation solidified its global distribution model and entered
into a North American distribution agreement for VIQ Solutions
products and services with Smoltz Distributing, a digital and analog
audio distribution specialist with an established network of over
400 dealers across the United States;
- The Corporation completed a non-brokered private placement financing
of 3,090,000 common shares at $0.19 per share for aggregate gross
proceeds of $587,100; and
- Subsequent to the period, the Corporation obtained a two-year
$455,000 secured bridge loan. The bridge loan bears interest at a
rate of 12%, payable annually and includes the issuance to the
lenders of 2,275,000 common share purchase warrants, which have an
exercise price of $0.16 for the first year and $0.24 for the second
year.
Outlook
Management will maintain its focus on rationalizing and controlling
costs, capitalizing on the strong market opportunities for VIQ Solutions'
solutions and continuing to develop its network of global distribution and
system integration partners.
Management believes that the Corporation's digital audio recording
solutions will uniquely address the existing and rapidly growing need for
integrated digital recording solutions from a centralized database, inclusive
of case management capabilities, as currently being mandated by many courts.
The Corporation's solutions, which have been developed to address all
solutions from simple installations to large complex enterprise solutions, are
ideally suited to address the growing demand for customized system integration
including data and case management solutions.
Additional Information
Detailed financial information and Management's Discussion and Analysis
of Results and Financial Condition for the quarter ended June 30, 2006 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, 2005, 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 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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