Vigil Health Solutions Inc. ("Vigil") (TSX VENTURE: VGL) announces
the results of operations for the quarter ending December 31, 2009.
Business highlights
- Grew year to date revenue 9% to $3.25 million compared to the
same period ended December 31, 2008
- Reduced Adjusted Operating Loss by 24% to $262 thousand
(compared to $408 thousand for the nine months ended December 31,
2008)
- Recurring sales including service and maintenance billings and
replacement products including wireless devices and communication
equipment were up 30% to $213 thousand in Q3-FYE10 compared to $148
thousand over the three months ended December 31, 2008.
- Completed development of an advanced wireless testing device
to further facilitate large, accelerated wireless solution
deployments.
- Released additional integration capability with third party
wireless telephone solutions to facilitate greater interoperability
with current and future client's communication systems.
"While there have been some indications of improvements in the
economy, the lending for new construction in seniors housing has
remained stagnant" stated Troy Griffiths, President and CEO of
Vigil Health Solutions Inc. "Despite this, with Vigil's versatile
product line we have been successful in securing more retro-fit
projects, and have seen solid growth in our recurring
revenues."
Financial Results
Bookings for the quarter were $712 thousand, down 24% compared
to $932 thousand in the three-month period ended December 31, 2008.
The decrease in bookings relates to significant new construction
business in the United States being put on hold due to the
recession and credit crisis.
At December 31, 2009, Vigil had a backlog of approximately $3.16
million (including $1.4 million in deposits and progress billings,
recorded as deferred revenue on the balance sheet) a 28% decrease
compared to approximately $4.38 million (including $1.92 million in
deposits and progress billings, recorded as deferred revenue on the
balance sheet) at December 31, 2008. This is the result of more
revenue being recorded than sales booked fiscal year to date.
Further, with the current market conditions supporting retro-fit
business over new construction there is a shorter installation
cycle, which contributes to a lower backlog. Of the projects
completed during the quarter, 76% of total project revenues were
derived from retro-fit implementations.
Revenue for the three-months ended December 31, 2009 was $695
thousand compared to $1.25 million in the three-month period ended
December 31, 2008, a decrease of 44%. The decrease in revenue
reflects the impact to the senior living industry due to the
economic downturn. Project revenue made up 65% of total revenue;
the remaining revenue came from follow on sales to existing
customers. These sales include service and maintenance billings and
replacement products including wireless devices and communication
equipment and were up 30% over the three months ended December 31,
2008.
The gross margin percentage for the three months ended December
31, 2009 was 42% compared to 48% for the three months ended
December 31, 2008. The gross margin is in line with management's
expectations of annual margins of between 42% and 47%.
Operating expenses for Q3FYE10 were $536 thousand, down 7% from
$580 thousand in the same quarter of the prior year. The decrease
relates to a decrease in insurance costs, lower payroll costs as a
result of restructuring in certain departments and lower trade show
expenses.
Losses for the three month period ended December 31, 2009 were
$222 thousand, or $0.002 per share compared to income of $67
thousand, or $0.001 per share for the same period in the previous
year.
Detailed financial statements along with Management Discussion
and Analysis have been filed with SEDAR and may be viewed on the
Company web site
(http://www.vigil.com/investors/financial-statements/) or at
(www.sedar.com).
Financial information will be mailed to entitled security
holders on February 19, 2010. Or, upon notice to the Company,
entitled security holders may request a copy of financials in
advance.
Summary Financial Information
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Three months ended Nine months ended
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
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Revenue $ 695,179 1,246,738 3,253,897 2,980,056
Cost of sales 401,137 647,591 1,774,112 1,609,687
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294,042 599,147 1,479,785 1,370,369
Expenses: 536,220 580,048 1,741,930 1,779,190
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Loss before the
following items (242,178) 19,099 (262,145) (408,821)
Other income
(expense) 19,771 47,778 (33,705) 43,467
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Loss for the period $ (222,407) 66,877 (295,850) (365,354)
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Non-GAAP Measure
For the nine-months ended December 31, 2009, we are disclosing
Adjusted Operating Loss, a non-GAAP financial measure, as a
supplementary indicator of operating performance. We define
Adjusted Operating Income as net income before, interest, income
taxes, amortization, and currency gains or losses including
derivative foreign exchange differences. We are presenting the
non-GAAP financial measure in our filings because we use it
internally to make strategic decisions, forecast future results and
to evaluate our performance and because we believe that our current
and potential investors and analysts use the measure to assess
current and future operating results and to make investment
decisions. It is a non-GAAP measure, may not be comparable to other
companies and it is not intended as a substitute for GAAP
measures.
Adjusted Operating Loss reconciliation
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Nine months ended
December 31, 2009 December 31, 2008
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Loss for the period $ (295,850) (365,354)
Add / (deduct)
Foreign exchange gain (loss) 36,060 (81,571)
Derivative exchange gain (loss) (33,483) 2,056
Interest 619 (13,643)
Amortization 30,509 49,691
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33,705 (43,467)
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Adjusted Operating Loss $ (262,145) (408,821)
About Vigil Health Solutions Inc.
Vigil offers a proprietary technology platform combining
software and hardware to provide comprehensive solutions to the
expanding seniors' housing market. Vigil has established a growing
presence in North America and an international reputation for being
on the leading edge of systems design and integration. The Vigil
Integrated Care Management System™ (Vigil® System) includes the
award-winning Vigil Dementia System, a nurse call system, bed
monitoring, resident check in, and the latest development the Vigil
Wireless call system. The first to supply dementia specific care
technology, Vigil facilitates the highest standard of care for
cognitive residents while helping dementia residents enjoy a higher
quality of life and greater dignity.
Certain statements contained in this news release that are not
based on historical facts may constitute forward-looking statements
or forward-looking information within the meaning of applicable
securities laws ("forward-looking statements"). These
forward-looking statements are not promises or guarantees of future
performance but are only predictions that relate to future events,
conditions or circumstances or our future results, performance,
achievements or developments and are subject to substantial known
and unknown risks, assumptions, uncertainties and other factors
that could cause our actual results, performance, achievements or
developments in our business or in our industry to differ
materially from those expressed, anticipated or implied by such
forward-looking statements.
Forward-looking statements include all financial guidance,
disclosure regarding possible events, conditions, circumstances or
results of operations that are based on assumptions about future
economic conditions, courses of action and other future events. We
caution you not to place undue reliance upon any such
forward-looking statements, which speak only as of the date they
are made. These forward-looking statements appear in a number of
different places in this presentation and can be identified by
words such as "may", "estimates", "projects", "expects", "intends",
"believes", "plans", "anticipates", or their negatives or other
comparable words. Forward-looking statements include statements
regarding the outlook for our future operations, plans and timing
for the introduction or enhancement of our services and products,
statements concerning strategies or developments, statements about
future market conditions, supply conditions, end customer demand
conditions, channel inventory and sell through, revenue, gross
margin, operating expenses, profits, forecasts of future costs and
expenditures, the outcome of legal proceedings, and other
expectations, intentions and plans that are not historical
fact.
The risk factors and uncertainties that may affect our actual
results, performance, achievements or developments are many and
include, amongst others, our ability to develop our sales force and
generate revenue, the length of the sales cycle, management of the
Company's growth, ability to recruit and retain staff, fluctuations
in demand for current and future products, our ability to develop,
manufacture, supply and market existing and new products that meet
the needs of customers, volatility in the exchange rate, ability to
secure financing, ability to secure product liability insurance,
the continuous commitment of our customers, increased competition,
changes in regulation and reliance on third party suppliers. These
risk factors and others are discussed in the Risks and
Uncertainties section of our "Management Discussion and Analysis"
segment of our fiscal 2008 Annual Report. Many of these factors and
uncertainties are beyond the control of the Company. Consequently,
all forward-looking statements in this news release are qualified
by this cautionary statement and there can be no assurance that
actual results, performance, achievements or developments
anticipated by the Company will be realized.
Forward-looking statements are based on management's current
plans, estimates, projections, beliefs and opinions and, except as
required by law, the Company does not undertake any obligation to
update forward-looking statements should the assumptions related to
these plans, estimates, projections, beliefs and opinions
change.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Contacts: Vigil Health Solutions Inc. Troy Griffiths President
and CEO (250) 383-6900 (250) 383-6999 (FAX) information@vigil.com
Vigil Health Solutions Inc. 2102-4464 Markham Street Victoria, BC
V8Z 7X8 www.vigil.com
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