MARKHAM, ONTARIO--(Marketwire - Nov. 21, 2012) - VIQ Solutions Inc. ("VIQ Solutions" or the "Corporation") (TSX VENTURE:VQS), a world leader in computer-based digital audio and video capture and management, today reported its financial results for the three and nine month periods ended September 30, 2012. Results are reported in Canadian dollars and are prepared in accordance with International Financial Reporting Standards ("IFRS").

"After two relatively slow quarters for the computer products and services industry, we have started to see a resurgence in business activity in the global market due to the increased market demand for digital recording in various market verticals including the medical, insurance, law enforcement, military and transportation industries," said David Outhwaite, President and Chief Executive Officer of VIQ Solutions. "Our pipeline of opportunities continues to grow on a global basis in the digital media capture and management industry and we are working to convert these market opportunities into significant contract wins."

Financial Highlights

• Revenue was $4.0 million and $11.6 million for the three and nine month periods ended September 30, 2012 as compared to $3.7 million and $11.9 million for the same periods in 2011;
  
  
• Revenue from our transcription and recording services business unit was $3.5 million and $10.0 million for the three and nine month periods ended September 30, 2012, as compared to $3.0 million and $8.9 million for the same periods in 2011 representing an increase of 17% and 13% respectively, due to an increase in business activity from both of our transcription businesses;
  
  
• Selling and administrative expenses were $1.4 million and $4.3 million for the three and nine month periods ended September 30, 2012 as compared to $1.4 million and $4.1 million for the same periods in 2011 as the Corporation continues to focus its selling efforts on global enterprise software contracts;
  
  
• EBITDA¹ for the three and nine month periods ended September 30, 2012 was $40,789 and $25,090 as compared to $1,839 and $911,982 for the same periods in 2011;
  
  
• Net loss for the three and nine month periods ended September 30, 2012 was $24,282 and $156,793 as compared to $89,771 and a net income of $603,374 for the same periods in 2011; and
  
  
• Cash flow used in operating activities was $53,238 and $48,416 for the three and nine month periods ended September 30, 2012 as compared to $254,825 and an inflow of $545,016 for the three and nine month periods ended September 30, 2011.
  
  

Notes

1. EBITDA is a non-IFRS earnings measure which does not have any standardized meaning prescribed by IFRS and therefore may not be comparable to EBITDA presented by other companies. EBITDA represents earnings before interest expense, income taxes, depreciation and amortization. This measure is important to management since it is used by potential investors to evaluate the Corporation's operating performance and ability to incur and service debt, and as a valuation metric. Investors are cautioned that this non-IFRS financial measure should not be construed as an alternative to other measures of financial performance calculated in accordance with IFRS.

Additional Information

The unaudited third quarter 2012 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 September 30, 2012 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 unaudited third quarter 2012 consolidated interim financial statements and the audited consolidated financial statements for the year ended December 31, 2011, including the notes thereto.

About VIQ Solutions Inc.

VIQ Solutions is a global leader in computer-based digital audio and video capture and management. We develop software solutions that capture, digitize, and compress audio and video data, which is securely stored in a multi-tiered server system where it is easily searchable and shareable. Our innovative media processor technology allows users to remotely control audio-video capture in multiple locations from a single satellite location, allowing large-scale and complex installations to be managed efficiently by fewer resources. VIQ Solutions' technologies are installed in courts, legislative assemblies, law enforcement and hearing rooms around the world.

Forward-looking Statements

This release contains forward-looking statements and other statements concerning the Corporation's objectives and strategies and management's beliefs, plans and intentions about our achievements, goals, performance and other future events. These statements 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," "would" and similar expressions are intended to identify forward-looking statements. Such statements reflect VIQ Solutions' 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 due to a number of factors including risks related to our ability to successfully execute our business plan which includes our revenue growth, our liquidity, our operating results, our technology and products. 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 does not intend and does not assume any obligation to update these forward- looking statements.

VIQ Solutions Inc.
Condensed Consolidated Interim Balance Sheets
(Expressed in Canadian dollars)
(Unaudited)
		September 30,			December 31,
		2012			2011
					(Audited)
Assets
Current assets
	Cash	$	1,538,219		$	1,646,138
	Trade and other receivables		1,700,381			1,330,474
	Inventories		7,672			7,025
	Prepaid expenses		143,831			123,228
			3,390,103			3,106,865
Non-current assets
	Restricted cash		153,389			151,215
	Property and equipment		706,585			754,397
	Goodwill		1,604,230			1,621,395
	Deferred tax assets		254,888			260,001
		$	6,109,195		$	5,893,873
Liabilities
Current liabilities
	Trade and other payables	$	1,149,992		$	951,687
	Provisions		595,456			584,870
	Short-term debt		75,000			75,000
	Unearned revenue		230,700			187,179
	Deferred lease incentives		21,338			21,766
	Current portion of obligations under finance lease		55,823			59,266
	Current portion of long-term debt		22,692			22,692
			2,151,001			1,902,460
Non-current liabilities
	Provisions		184,504			165,974
	Deferred lease incentives		33,958			50,964
	Obligations under finance lease		66,392			45,528
	Long-term debt		53,735			70,754
Total liabilities			2,489,590			2,235,680
Equity
Capital stock			11,578,213			11,438,947
Contributed surplus			1,800,955			1,781,433
Accumulated other comprehensive income			118,377			158,960
Deficit			(9,877,940	)		(9,721,147	)
			3,619,605			3,658,193
Total equity and liabilities		$	6,109,195		$	5,893,873

VIQ Solutions Inc.
Condensed Consolidated Interim Statements of Comprehensive Income and Loss
(Expressed in Canadian dollars)
(Unaudited)
			Three months ended Sept. 30								Nine months ended Sept. 30
			2012				2011				2012				2011
Revenue			$	3,963,228			$	3,667,248			$	11,630,438			$	11,851,125
Cost of sales				2,383,505				2,289,592				6,987,009				6,559,699
Gross profit				1,579,723				1,377,656				4,643,429				5,291,426
Expenses
	Selling, general and administrative expenses			1,420,900				1,402,707				4,262,123				4,136,454
	Research and development expenses			176,132				131,070				537,647				521,305
				1,597,032				1,533,777				4,799,770				4,657,759
Income (loss) from operations				(17,309	)			(156,121	)			(156,341	)			633,667
	Interest income			9,631				5,595				24,998				15,414
	Interest expense			(8,827	)			(34,556	)			(23,950	)			(122,980	)
	Foreign exchange gain (loss)			(7,777	)			95,311				(1,500	)			77,273
Net finance income (loss)				(6,973	)			66,350				(452	)			(30,293	)
Net income (loss) for the period			$	(24,282	)		$	(89,771	)		$	(156,793	)		$	603,374
Exchange differences on translating foreign operations				(38,356	)			(69,639	)			(40,583	)			(24,687	)
Comprehensive income (loss) for the period			$	(62,638	)		$	(159,410	)		$	(197,376	)		$	578,687
Net income (loss) per share
	Basic and diluted		$	(0.00	)		$	(0.00	)		$	(0.00	)		$	0.01
Weighted average number of common shares outstanding - basic				90,957,000				90,155,533				90,851,234				88,628,064
Weighted average number of common shares outstanding - diluted				90,957,000				90,155,533				90,851,234				90,814,242

VIQ Solutions Inc.
Condensed Consolidated Interim Statements of Cash Flows
(Expressed in Canadian dollars)
(Unaudited)
		Three months ended Sept. 30						Nine months ended Sept. 30
		2012			2011			2012			2011
Cash provided by (used in):
Operating activities
Net income (loss) for the period		$	(24,282	)	$	(89,771	)	$	(156,793	)	$	603,374
Items not affecting cash:
	Depreciation		56,244			57,054			157,933			185,628
	Stock-based compensation		17,251			36,128			77,788			187,070
	Provisions		(5,460	)		12,917			18,530			16,765
	Interest accretion on bridge loans		-			2,130			-			6,320
	Amortization of deferred lease incentive		(5,161	)		(7,089	)		(16,003	)		(16,369	)
	Unrealized foreign exchange loss (gain)		13,049			(28,198	)		6,534			14,365
	Gain on sale of property and equipment		2,341			(30	)		2,341			(4,803	)
	Changes in non-cash operating working capital		(107,220	)		(237,966	)		(138,746	)		(447,334	)
Cash from operating activities			(53,238	)		(254,825	)		(48,416	)		545,016
Investing activities
	Purchase of property and equipment		(8,573	)		(24,904	)		(49,015	)		(78,863	)
	Decrease (increase) in restricted cash		102			106			(5,148	)		(4,983	)
Cash used in investing activities			(8,471	)		(24,798	)		(54,162	)		(83,846	)
Financing activities
	Advances in short-term debt		-			-			-			575,000
	Repayment of short-term debt		-			(575,000	)		-			(1,690,000	)
	Repayment of long-term debt		(5,673	)		(205,673	)		(17,019	)		(217,019	)
	Proceeds from stock options exercised for cash		-			394,250			81,000			397,075
	Proceeds from private placement, net of issuance costs		-			-			-			1,989,200
	Finance lease payments		(17,849	)		(16,348	)		(51,001	)		(56,200	)
Cash provided by (used in) financing activities			(23,522	)		(402,771	)		12,980			998,056
Net increase (decrease) in cash during the period			(85,231	)		(682,394	)		(89,598	)		1,459,226
Cash, beginning of period			1,645,290			2,530,849			1,646,138			381,544
Effect of exchange rate changes on cash			(21,840	)		(4,561	)		(18,321	)		3,124
Cash, end of period		$	1,538,219		$	1,843,894		$	1,538,219		$	1,843,894