VIQ Solutions Reports First Quarter 2013 Results

MARKHAM, ONTARIO--(Marketwired - May 22, 2013) - VIQ Solutions Inc. (TSX VENTURE:VQS) ("VIQ Solutions" or the "Corporation"), a world leader in computer-based digital audio and video capture and management, today reported its financial results for the three month period ended March 31, 2013. Results are reported in Canadian dollars and are prepared in accordance with International Financial Reporting Standards ("IFRS").

"VIQ Solutions achieved solid financial results in the quarter resulting in positive net income, EBITDA¹ and cash flow," said David Outhwaite, President and Chief Executive Officer of VIQ Solutions. "With a full pipeline and growing reputation around the world, we look to continue to build on the momentum we established in 2012."

Financial Highlights for the Quarter

• Revenue was $3.9 million for the three month period ended March 31, 2013 as compared to $4.0 million for the same period in 2012, representing a decrease in revenue of 2%;

• Selling and administrative expenses were $1.4 million three month period ended March 31, 2013, unchanged from the same period in 2012;

• Research and development expenses were $183,624 for the three month period ended March 31, 2013 as compared to $182,528 for the previous year as we continue to invest in new and existing products and services;

• EBITDA for the three month period ended March 31, 2013 was $171,176 as compared to $173,518 for the same period in 2012;

• Net income for the three month period ended March 31, 2013 was $113,483 as compared to $113,902 for the same period in 2012; and

• Cash flows from operating activities were $447,757 for the three month period ended March 31, 2013 as compared to a cash use of $110,255 for the same period in 2012 primarily due to changes in investment in working capital.

Business Highlights for the Quarter

• Improved ranking on the 2013 Branham300 list of Top 250 Canadian Information and Communication Technology (ICT) companies, rising 16 spots in this years' edition to rank 149^th;

• Released our new product VIQ Infinit, an innovative digital media capture and management platform which offers seamless integration with advanced high-definition digital video systems, along with easily accessible industry and language profiles for expanded market coverage worldwide; and

• Announced plans to implement cost efficiencies to reduce Spark & Cannon's general and administrative expenses by approximately 33%, through a combination of staff count reductions and decreasing the amount of office space to be leased by Spark & Cannon while preserving all of the strategic initiatives surrounding our core competencies.

Note

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 first quarter 2013 condensed consolidated interim 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, 2013 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 first quarter 2013 condensed consolidated interim financial statements and the audited consolidated financial statements for the year ended December 31, 2012, 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.