MARKHAM, ONTARIO–(Marketwired – April 28, 2017) – VIQ Solutions Inc. (“VIQ Solutions” or the “Company”) (TSX VENTURE:VQS), a global expert in secure digital media technology and services, today reported financial results for the year ended December 31, 2016. Results are reported in Canadian dollars and are prepared in accordance with International Financial Reporting Standards (“IFRS”).
Consolidated annual revenue was approximately $11.4M, an increase of $1.5M or 15% more than the previous year as the Company continued to diversify into new high growth markets. Revenue was generated by new customer wins in the public safety, medical, legal, insurance and judicial markets, as well as integrated technology and transcription contracts in Australia.
“Continued market diversification and platform expansion with existing customers generated significantly increased revenue,” said Sebastien Paré, President and CEO of VIQ Solutions. “We are executing on our transformation plan and strategic technology innovations enabling our trend toward profitability in 2017 and beyond.”
Recurring revenue expanded by 35% over the same period in 2015 as the Company’s cloud platform continued to gain traction. During the year, the Company made strategic investments to advance the key initiative of transitioning revenue from the historical license plus maintenance model to a modernized subscription fee and cloud based model.
“The highest growth opportunity for VIQ continues to be in recurring subscription revenue in the rapidly expanding ultra secure SaaS and cloud markets,” continued Mr. Paré. “The size, nature and visibility of our sales pipeline for 2017-2018, as well as diversified customer wins in Q4, reinforce the belief that our growth path lies in our industry leading cybersecurity and recurring SaaS revenue.”
Increased global focus on secure cloud computing and advanced digital content protection produced substantial interest in VIQ from security conscious customers including federal government agencies and medical organizations in 2016. The Company currently has a number of large scale pilot projects underway with sophisticated government agencies requiring extensive scrutiny on cybersecurity to secure digitized evidence collection, associated workflow and collaboration.
While some revenue from these projects was recognized in Q4, the majority of revenue is anticipated in 2017 as projects progress into the rollout phase in partnership with cybersecurity, digital content and cloud partners. The Company is in the midst of a recently announced enterprise level implementation with an international agency after having passed the highest levels of security testing.
“VIQ’s enhanced reputation as the leading provider of secure AV capture and management solutions enabled entry into pilot phases with sophisticated government agencies with extreme scrutiny on security and cybersecurity,” said Mr. Paré. “Following extensive and protracted review, we anticipate the potential of several enterprise level engagements in 2017.”
Following VIQ’s successful installation with the McMaster University Department of Surgery, the Company advanced a number of pilot projects with Canadian and US medical institutions that are anticipated to convert to complete rollouts in 2017.
VIQ finished 2016 with strong cash balances. As at December 31, 2016, the Company had approximately $2.6M in cash (2015 – $1.3M) and no long term debt (2015 – $800,305).
“We moved into 2017 in a solid financial position enabling us to continue executing on our strategic plan,” said Mr. Paré. “2016’s continued market diversification, expansion into SaaS and pilot project advancement demonstrate that VIQ is trending toward profitability in 2017 and beyond.”
2016 Business Highlights
- Became debt free through early repayment of two outstanding loans
- Began the transition to a SaaS based revenue model to increase recurring revenue and drive company growth
- Substantially diversified customer base to 40% law enforcement/intelligence, 40% judicial and a fast evolving 20% medical
- Completed non brokered, oversubscribed private placement of $2.1M to fund VIQ accelerated transition into secure cloud based SaaS solution provider, a key element of the growth plan
- Released new cloud based SaaS capture, management and collaboration platform, enabling customers to securely connect to the cloud instead of fixed servers
- Announced first customer on the new SaaS platform, the UK Nursing and Midwifery Council, on a monthly subscription basis for a three year term
- Awarded first patent protection for key high performance intellectual property related to an AV capture, management and collaborative web portal training and assessment workflow
- Partnered with the Department of Surgery at McMaster University using patent pending AV training workflow geared towards improving how new surgeons are trained
- Partnered with Nuance Communications for the integration of Nuance’s powerful Dragon speech recognition solution with the VIQ digital capture and management workflow
- Announced multiple capture and transcription workflow wins with law enforcement, medical and legal offices in partnership with Nuance
- Awarded a multiyear AUS $2.1M/year secure transcription contract with the New South Wales police
- Announced multiple new wins in law enforcement in North America, demonstrating the continuing trend among law enforcement agencies toward strengthening their cybersecurity and operational effectiveness by better utilizing digital assets
- Announced new wins with hospitals and medical agencies around the world, including leading edge VoIP dictation and secure cloud based transcription workflows
- Announced new wins with leading US transcription providers for complete digital statement capture, storage, and transcription workflows that emphasize client security and privacy
- Announced expansion at country wide Scottish Court Services installation after an independent review called VIQ “the ideal blend of technology and expertise”
- Awarded an NAB Best of Show award with PESA for the PESA ACES CCM solution, an affordable, multi channel capture and playback system for synchronized live event recording and playback
Financial Results for 2016
Detailed financial information and Management’s Discussion and Analysis of Results and Financial Condition for the year ended December 31, 2016 will be posted on the SEDAR website at www.sedar.com. The financial information included in this news release is qualified in its entirety and should be read together with the audited consolidated financial statements for the year ended December 31, 2016, including the notes thereto.
About VIQ Solutions Inc.
VIQ Solutions 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/cyber security 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 Solutions, please visit www.viqsolutions.com.
Forward-looking Statements
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 Solutions 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 Solutions 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 Solutions 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 Solutions, 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.
Tara Bednarz
(905) 948-8266 ext. 225
tbednarz@viqsolutions.com