TORONTO, Nov. 28, 2017 (GLOBE NEWSWIRE) -- VIQ Solutions Inc. (“VIQ” or the “Company”) (TSX Venture:VQS), a global expert providing a cybersecurity protected technology and service platform for digital evidence capture and content management, today reported financial results for the three and nine-month periods ended September 30, 2017. Results are reported in US dollars and prepared in accordance with International Financial Reporting Standards (“IFRS”).

“We are pleased to report a third consecutive profitable quarter along with continued strong growth in top line revenue,” said Sebastien Paré, President and CEO of VIQ. "Profit and revenue performance in Q3 are a direct result of our market diversification; CyberCrypt, the best in class SaaS cybersecurity for digital evidence and sensitive content; growth from existing customers in the EMEA, Australia and US; and from some customers upgrading to the latest platform to take advantage of new products and services including VIQ’s upcoming aiAssistTM..

“The Company anticipates continued strong growth through a blend of new and organic growth in recurring revenue for 2017 and beyond as pilots in our pipeline continue to increase steadily via a growing ecosystem of strategic partners worldwide,” said Mr. Paré.  “Two new breakthrough products are nearing commercial launch in 2018, paving the way for aiAssistTM demand in the second part of 2018.

“The positive financial and business results build on the momentum of the last three quarters and reflect VIQ’s international footprint and growing market demand for ultra-secure digital evidenced and next generation analytics,” Mr. Paré said.

VIQ’s adjusted net income (which excludes stock based compensation) was $77,018 for the three months ended September 30, 2017 as compared to a loss of $264,712 for the same period in 2016. For the nine months ended November 30, 2017 adjusted net income was $495,870 compared to a loss of $570,264 for the same period in 2016, representing a significant shift in growth trajectory.

Revenue for the quarter was $3.2M compared to $2.2M in 2016, an increase of 45% and recurring revenue increased 30% over the same period in 2016. Revenue for the nine month period increased 39% to $9.3M compared to $6.7M in 2016, while recurring revenue increased 22% which is attributable to the incremental addition of new SaaS-based customers in 2017.

VIQ CyberCrypt is currently in the midst of several enterprise level rollouts in the US and internationally, and in the advanced pilot phases with other cybersecurity focused customers of similar scale. While some revenue from these projects was recognized in Q2 and Q3, the majority is now anticipated into 2018 as projects continue to progress into the rollout phase.

Q3 2017 Highlights

  • Revenue grew 45% compared to the same period in 2016 with new diversified wins and a 30% increase in recurring revenue compared to the same period in 2016.

  • VIQ continues to attract highly sensitive and security conscience customers and partners who have requested non-disclosure of their Q3 contracts.

  • Adjusted net income (which excludes stock based compensation) of $77,018 as compared to a loss of $264,712 in 2016.

  • Announced next growth driver, aiAssistTM, The Artificial Intelligence Assistant blending VIQ’s existing platform with artificial intelligence.

  • Appointment of Mike Kessell, President of Cleveland Clinic Canada to the Board of Directors to help accelerate VIQ’s Medical growth in US and International markets via strategic medical partners.

  • Subsequent to the end of the quarter, announced contract with the University of Guelph, Ontario Veterinary College for the Satellite A/V capture, management and analytics solution.

  • Concurrent non-brokered and brokered private placement offering for gross proceeds of $4.9M to scale growth and deliver on next technology innovations and aiAssistTM was closed in Q4

Additional Information

The unaudited third quarter 2017 interim consolidated financial statements and results of operations and Management’s Discussion and Analysis of Results and Financial Condition for the three and nine-month period ended September 30, 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 third quarter 2017 interim consolidated financial statements and the audited consolidated financial statements for the year ended December 31, 2016, including the notes thereto.

About VIQ

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 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 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 further information: Peter Kostandenou, Chief Marketing Officer, VIQ Solutions, (905) 948-8266 ext. 213, email: peter@viqsolutions.com.

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.