FOR: VIQ SOLUTIONS INC.
TSX VENTURE SYMBOL: VQS
Date issue: May 30, 2017
Time in: 8:30 AM e
MARKHAM, ONTARIO--(Marketwired - May 30, 2017) - VIQ Solutions Inc. ("VIQ" or the "Company") (TSX VENTURE:VQS), a global expert in secure digital media technology and services, today reported financial results for the three month period ended March 31, 2017.
Results are reported in U.S. dollars to reflect the evolving profile of the Company's revenue, sales pipeline and cash flows. Comparative figures are also converted into U.S. dollars. The statements are prepared in accordance with International Financial Reporting Standards ("IFRS").
"We are pleased to report a first quarter profit and strong growth in top line revenue. Our diversification, SaaS and innovation driven growth plan is now delivering on our plan for increasing financial results," said Sebastien Pare, President and CEO of VIQ. "We capitalized on last year's momentum by continuing to build our international footprint and expand markets. Our performance reflects the concerted dedication of the entire VIQ team.
"As large scale cybersecurity focused projects commenced in 2016 progress to fruition, we anticipate continued strong growth for 2017 and beyond."
Consolidated revenue for the quarter was USD $2.9M, an increase of USD $0.9M or 45% over the same period in 2016.
VIQ's adjusted net income (which excludes stock based compensation expense) was USD $0.3M for the three months ended March 31, 2017 as compared to an adjusted net loss of USD $0.2M for the same period in 2016. Adjusted net income is a non-GAAP earnings measure which does not have any standardized meaning prescribed by IFRS. Adjusted net income represents net income excluding stock based compensation.
Adjusted net income was driven by continued customer base diversification and an increase in recurring revenue. The software and services division increased revenue by $0.4M or 58% over the same period in 2016 with new wins in the public safety, intelligence and medical markets for the Company's secure digital capture and management platform.
VIQ CyberCrypt, the Company's recently released best in class SaaS cybersecurity platform for high value digital evidence and sensitive content, is anticipated to continue significant revenue contribution in 2017.
VIQ CyberCrypt is currently in the midst of an enterprise level rollout with an international agency, and in the advanced pilot phase with other cybersecurity focused customers of similar scale. While some revenue from these projects was recognized in Q1, the majority is anticipated later in 2017 as projects continue to progress into the rollout phase.
"VIQ CyberCrypt was designed to address specific demand from large scale customers for a proven solution that protects massive amounts of critical content in a secure cloud based platform," said Mr. Pare. "We believe that, after successfully passing rigorous security vetting, future procurement cycles will shorten. We continue to anticipate several enterprise level engagements potentially in 2017."
VIQ CyberCrypt constitutes a significant milestone in VIQ's SaaS and cloud based infrastructure over the last 12 months. More innovations are scheduled for release in 2017 and 2018.
Revenue from our services division increased by USD $0.5M or 39% over the same period in 2016 despite the typical summer holiday business slowdown. The revenue increase resulted from new customer wins in higher revenue blended reporting, technology and transcription contracts as Spark & Cannon continued diversifying its service offerings.
"The profitable 2017 first quarter represents a significant milestone for VIQ in our drive toward sustained, quarter after quarter profitability," said Mr. Pare. "Continued market diversification, expansion into SaaS and cybersecurity pilot project advancement will further revenue growth in 2017."
Business Highlights for the Quarter
-- Reported adjusted operating income (which excludes deferred and non cashstock based compensation expenses) of USD $0.3M as compared to a loss of USD $0.2M in 2016 -- Increased consolidated quarterly revenue by USD $0.9M or 45% over 2016 with new diversified wins and increase in recurring SaaS revenue -- Quarterly profit posted by technology division with revenue growth of USD $0.4M or 58% over Q1 2016 through new customer wins in intelligence, public safety and medical -- Grew revenue in Spark & Cannon services division by USD $0.5M or 39% over same period in 2016 due to increase in higher revenue blended reporting and transcription contracts -- Released VIQ EnConnect, the Company's first secure audio-video capture and collaboration smartphone app, on Apple iTunes and Google Play -- Significant expansion announced with US based transcription provider for secure smartphone dictation and transcription workflow -- Changed reporting currency to U.S. dollars to provide more accurate reflection of the Company's financial performance and revenue, which is increasingly generated in U.S. dollars
The unaudited first quarter 2017 interim consolidated financial statements and results of operations and Management's Discussion and Analysis of Results and Financial Condition for the three month period ended March 31, 2017 will be posted 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 unaudited first quarter 2017 interim consolidated financial statements and the audited consolidated financial statements for the year ended December 31, 2016, including the notes thereto.
VIQ 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 cybersecurity 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. For more information about VIQ, 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 in 2017, as well as the size, scope, and timing of the implementation of projects currently in the pilot phase.
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 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 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 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.
For more information about VIQ, please visit www.viqsolutions.com.
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.
- END RELEASE - 30/05/2017
For further information:
VIQ Solutions Inc.
(905) 948-8266 ext. 221
FOR: VIQ SOLUTIONS INC.
TSX VENTURE SYMBOL: VQS
INDUSTRY: Computers and Software - Software, Government - Security
(law enforcement, homeland etc)
RELEASE ID: 20170530CC0037
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