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VIQ Solutions a Strong Growth Story, says Northland’s Garcea

Last Thursday, VIQ Solutions (TSXV:VQS) reported its Q1, 2012 results. The company’s revenue of $3.96-million was 9% off last year’s Q1 topline, and earnings were down too; to $113,902 from $930,829 last year.

Northland Capital Partners analyst Ralph Garcea says the quarter was generally in line with what he expected from VIQ, and still believes that in the longer term the company could become a leader in digital media capture and management technology, using its existing foothold in the justice system market. Garcea says that opportunity alone could exceed $100-million by 2015. In a research update to clients recently, Garcea maintained his Sector Outperform rating and $1 target on the stock.

Founded in 2004, Calgary’s VIQ Solutions provides digital audio and video capture that is used primarily in courtrooms around the world. Late in 2010, the company signed a software licensing agreement with Cisco for its Encompass RPC product suite, which will be marketed along with Cisco’s Connected Justice product portfolio. Cisco believes the space will grow because local courts around the world are facing reduced budgets and headcounts, and because the product is often a safer option than in person hearings.

Garcea says that with this quarter’s revenue up 15% over the company’s Q4, 2011 numbers, the company is building momentum he expects will continue to allow it to post double digit growth in both the top and bottom line for the foreseeable future. He believes VIQ will grow at a compound annual growth rate of 20% between 2011 and 2015. Earnings, he predicts, will grow even faster; at a rate of 63%, ultimately pulling the company’s margins over 40% by 2015.


Share of VIQ Solutions closed today even at $.235 cents.

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About The Author /

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.
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