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Markham, Ontario - May 28, 2008 - 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 month period ended March 31, 2008.
Revenues were $2.8 million for the three month period ended March 31, 2008 as compared to $3.3 million for the three month period ended March 31, 2008. Gross margin was 37% for the period as compared to 39% for the same period in 2007. Net loss for the three month period ended March 31, 2008 was $253,233, as compared to a net loss of $175,344 for the three month period ended March 31, 2007. Net loss per common share was $0.00 for the three month period ended March 31, 2008 and $0.00 for the same period ended March 31, 2007.
"We continue to see a strong and vibrant market for our products and services, with significant contract wins in both our technology and transcription business units. We are currently pursuing numerous large-scale, real market opportunities which we expect will come to fruition in 2008 and beyond, allowing us to achieve our goal of profitability and positive cash flow," commented David Outhwaite, President and Chief Executive Officer of VIQ Solutions. "We are focused on continuing to deliver improved financial performance in 2008 and dedicated to providing top tier products and services to our clients," concluded Mr. Outhwaite.
Business Highlights for the Quarter
- Selected by the government of Newfoundland and Labrador to provide digital recording solutions in all Supreme and Provincial courts in the province;
- Announced that the Corporation is in late-stage negotiations with a third party respecting a multi-year contract to provide digital audio recording and management software into multiple locations; and
- During and subsequent to the period, closed a non-brokered private placement financing of 4,929,332 units at a price of $0.30 per unit for aggregate gross proceeds of $1,478,800, further solidifying VIQ's financial position and allowing the Corporation to execute on its business plan.
Additional Information
Detailed financial information and Management's Discussion and Analysis of Results and Financial Condition for the three month period ended March 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, 2007, 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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