Vigil Health Solutions Inc. ("Vigil") (TSX VENTURE:VGN) announces the results of
operations for the fiscal year (FY10) and the fourth quarter, ending March 31,
2010.
Highlights
-- Revenue was $4.06 million compared to $4.51 million in the prior year, a
decrease of 10%.
-- Grew service and maintenance revenue and one-off sales by 33% in the
fiscal year to $823 thousand.
-- Increased gross margin percentage to 45% compared to 43% for the year
ended March 31, 2009.
-- Reduced operating expenditures by 5% to $2.34 million from $2.45 million
for the year ended March 31, 2009.
-- Signed $770 thousand contract with a leading North American provider the
largest system implementation in Vigil's history.
-- Product and Feature Releases:
-- Deployed the first installation of the Vigil Link which aggregates
communications from wireless devices in remote or difficult to
access locations of a seniors housing campus and communicates this
to the Vigil central platform via internet protocol.
-- Completed advanced wireless testing device to further facilitate
large, accelerated wireless solution deployments.
-- Released the Vigil Network Manager allowing implementation of widely
distributed or very large campuses in a scalable and flexible way.
"The last year has been a difficult one for the Company, the Senior Living
industry and the global economy as a whole. The greatest indicator in our
industry can be seen in the lack of financings closed in 2009 and the
corresponding dearth of new senior living projects. I believe that the
underlying fundamentals of the industry are strong. I am optimistic that as the
economy improves senior living should follow suit," stated Troy Griffiths,
President & CEO, Vigil Health Solutions.
Financial Results
Bookings for the year ended March 31, 2010 were $3.18 million compared to $4.45
million in the year ended March 31, 2009. Management believes the decrease in
bookings is the direct result of the significant downturn in the US (and global)
economy and the associated lack of funding for the development of new senior
housing projects.
At March 31, 2010 Vigil had a backlog of approximately $2.78 million (including
$1.28 million in deposits and progress billings, recorded as deferred revenue on
the balance sheet) as compared to $3.56 million (including $1.65 million in
deposits and progress payments, recorded as deferred revenue on the balance
sheet) at March 31, 2009.
Vigil records revenue under the completed contract method of revenue
recognition. The timing of the installation of the technology is often dependent
on facility construction schedules, which can result in a considerable lag
between receipt of contracts and revenue recognition. The Company's backlog
includes all contracts signed including those in progress but not completed.
Revenue for the year ended March 31, 2010 was $4.06 million compared to $4.51
million in the year ended March 31, 2009, a decrease of 10%. As mentioned above
there can be a considerable lag between receipt of contracts (bookings) and
revenue recognition. The decrease in revenue reflects the impact to the senior
living industry due to the economic downturn. Project revenue made up 78% 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 33%
over fiscal 2009.
The gross margin percentage for the year ended March 31, 2010 was 45% compared
to 43% for the year ended March 31, 2009. Gross margins are in line with
management's expectations of annual margins of between 42% and 47%.
Operating Expenses for FY10 were $2.34 million, down 5% from $2.45 million in
the prior year. The Company experienced minimal increases in sales and marketing
expenditures, research and development expenditures and professional fees but
saw a material decrease in general and administration expenditures. The decrease
in general and administration expenditures can be primarily attributed to a
decrease in insurance costs from the company securing a new liability insurance
provider and reduced payroll costs resulting from the restructuring of certain
departments.
Losses for the year ended March 31, 2010 were $532 thousand, or $0.005 per
share, compared to $389 thousand, or $0.004 per share, for the previous year.
The 37% increase in losses is primarily attributable to the decrease in revenue.
A summary of our financial performance for the year ended March 31, 2010 follows
below. For further information relating to the financial results of the Company,
please refer to the Company's financial statements and MD&A filed on SEDAR at
www.sedar.com or detailed financial statements available on the Vigil web site
(http://www.vigil.com/?Investors:Financial_Statements). Financial information
will be mailed to entitled security holders on June 24, 2010. Or, upon notice to
the Company, entitled security holders may request a copy of financials in
advance.
Summary Financial Information
Three Months Ended Twelve Months Ended
-------------------------- --------------------------
31-Mar-10 31-Mar-09 31-Mar-10 31-Mar-09
Revenue $ 803,275 $ 1,525,444 $ 4,057,172 $ 4,505,500
Cost of sales $ 476,092 $ 914,047 $ 2,250,204 $ 2,523,734
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Gross Profit $ 327,182 $ 611,397 $ 1,806,968 $ 1,981,766
Expenses $ 558,850 $ 605,117 $ 2,340,057 $ 2,452,100
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Income (Loss )
before the
following items $ (231,668) $ 6,280 $ (533,089) $ (470,334)
Other income
(expense) $ (4,115) $ (29,864) $ 1,458 $ 81,394
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Loss for the period $ (235,782) $ (23,584) $ (531,631) $ (388,940)
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Non-GAAP Measure
For the year ended March 31, 2009, we are disclosing Adjusted Operating Income,
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 and it is not intended as a substitute for GAAP measures.
Adjusted Operating Income reconciliation
Adjusted Operating Income
Three Months Ended Twelve Months Ended
-------------------------- --------------------------
31-Mar-10 31-Mar-09 31-Mar-10 31-Mar-09
Loss for period $ (235,782) $ (23,584) $ (531,631) $ (388,940)
Add / (deduct)
Foreign exchange
gain (loss) 6,937 22,030 (29,122) 103,601
Derivative
exchange loss - (31,427) 33,483 (33,483)
Interest (1,870) (2,366) (2,903) 11,276
Amortization (9,182) (18,101) (39,278) (67,793)
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$ (4,115) $ (29,864) $ (37,820) $ 13,601
Adjusted Operating
Income $ (231,667) $ 6,280 $ (493,811) $ (402,541)
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About Vigil Health Solutions Inc.
Vigil offers a proprietary technology platform combining software and hardware
to provide comprehensive solutions to the expanding aged care 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(TM) (Vigil(R) 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. 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.
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