Mr. David Outhwaite reports
VIQ SOLUTIONS REPORTS THIRD QUARTER 2014 RESULTS
VIQ Solutions Inc. is releasing its financial results for the three- and nine-month periods ended Sept. 30, 2014. Results are reported in Canadian dollars and are prepared in accordance with international financial reporting standards (IFRS).
Financial highlights for the quarter:
-
Revenue was $3.1-million and $9.3-million for the three- and nine-month
periods ended Sept. 30, 2014, as compared with $2.9-million and $10.2-million for the same periods in 2013, representing an increase in
revenue of 8 per cent and a decrease in revenue of 9 per cent for the three and nine
month periods, respectively.
- Revenue from the computer products and services business unit was $500,000 and $1.6-million for the three- and nine-month periods ended
Sept. 30, 2014, as compared with $800,000 and $1.6-million for the
same periods in 2013, representing a decrease of 40 per cent for the three-month
period and a slight increase of 2 per cent for the nine-month period.
- Gross margin from computer products and services was 75 per cent for the three-
and nine-month periods ended Sept. 30, 2014, as compared with 70 per cent and
69 per cent for the same periods in 2013. Gross margin from the company's transcription
and recording services business unit was 28 per cent and 29 per cent for the three- and
nine-month periods ended Sept. 30, 2014, as compared with 27 per cent and 35 per cent
for the same periods in 2013.
- Selling and administrative expenses were $1.2-million and $3.5-million
for the three- and nine-month periods ended Sept. 30, 2014, as
compared with $1.2-million and $4.0-million from the same periods in 2013.
The decrease in selling and administrative expenses for the nine-month
period can be attributed to the operational efficiencies that were
implemented in 2013, by both business units.
-
Research and development expenses were $172,726 and $441,328 for the
three- and nine-month periods ended Sept. 30, 2014, as compared with
$168,645 and $525,542 for the previous year, representing a slight
increase of 2 per cent and a decrease of 16 per cent for the three- and nine-month
periods, respectively. The decrease in research and development expenses
can be attributed to the timing of offsetting research and development
tax credits received in 2014.
-
EBITDA (earnings before interest, taxes, depreciation and amortization) loss for the three- and nine-month periods ended Sept. 30,
2014, was $202,660 and $328,149, as compared with $201,203 and $468,693 for
the same periods in 2013. Adjusted EBITDA loss for the three- and nine-month periods ended Sept. 30, 2014, was $202,660 and $328,149, as
compared with $201,203 and $247,493 for the same periods in 2013.
- Net loss for the three- and nine-month periods ended Sept. 30, 2014,
was $280,811 and $541,671, as compared with $259,813 and $642,902 for the
same periods in 2013.
The unaudited third quarter 2014 condensed consolidated interim financial statements and results of operations, and management's discussion and analysis of results and financial condition for the three- and nine-month periods ended Sept. 30, 2014, will be posted on SEDAR. The financial information included in this release is qualified in its entirety and should be read together with the unaudited third quarter 2014 condensed consolidated interim financial statements and the audited consolidated financial statements for the year ended Dec. 31, 2013, including the notes thereto.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME AND (LOSS)
(expressed in Canadian dollars)
Three months ended Sept. 30, Nine months ended Sept. 30,
2014 2013 2014 2013
Revenue $ 3,131,829 $ 2,897,130 $ 9,279,478 $ 10,214,210
Cost of sales 2,032,077 1,781,996 5,840,766 6,126,019
------------- ------------- ------------- -------------
Gross profit 1,099,752 1,115,134 3,438,712 4,088,191
------------- ------------- ------------- -------------
Expenses
Selling and
administrative
expenses 1,186,104 1,195,183 3,475,426 3,972,497
Restructuring
expenses - - - 221,200
Research and
development
expenses 172,726 168,645 441,328 525,542
------------- ------------- ------------- -------------
1,358,830 1,363,828 3,916,754 4,719,239
------------- ------------- ------------- -------------
(Loss) from
operations (259,078) (248,694) (478,042) (631,048)
Finance income
(loss)
Interest income 3,464 5,667 9,311 22,623
Interest (expense) (32,230) (12,305) (70,216) (26,251)
Foreign exchange
gain (loss) 7,033 (4,481) (2,724) (8,226)
------------- ------------- ------------- -------------
Net finance income
(loss) (21,733) (11,119) (63,629) (11,854)
------------- ------------- ------------- -------------
Net (loss) for the
period $ (280,811) $ (259,813) $ (541,671) $ (642,902)
Item that may be
reclassified to
profit (loss)
Exchange
differences on
translating
foreign operations (46,991) (7,093) 51,961 (138,801)
------------- ------------- ------------- -------------
Comprehensive (loss)
for the period $ (327,802) $ (266,906) $ (489,710) $ (781,703)
============= ============= ============= =============
Net (loss)
per share,
basic and diluted $ (0.00) $ (0.00) $ (0.01) $ (0.01)
We seek Safe Harbor.
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