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VICTORIA, BRITISH COLUMBIA -- (Marketwire) -- 02/07/13 -- Vigil Health Solutions Inc. ("Vigil") (TSX VENTURE: VGL) announces the results of operations for the quarter ending December 31, 2012.
Business Highlights
-- Net Income of $132 thousand compared to a loss of $68 thousand in the three-month period ended December 31, 2011 (profit of $103 thousand for the nine month period ending December 31, 2012).-- Grew bookings 7% to $1.09 million compared to $1.02 million in the three-month period ended December 31, 2011.-- Increased backlog to approximately $2.76 million compared to approximately $2.08 million in the three-month period ended December 31, 2011.-- Revenue up 39% to $1.10 million from $787 thousand in the three-months ended December 31, 2011.
"We are pleased to see the improving sales and our continued focus on controlling costs has resulted in both a profitable quarter and year to date," stated Troy Griffiths, President and CEO of Vigil Health Solutions Inc.
Financial Results
Revenue for the three-months ended December 31, 2012 was $1.10 million compared to $787 thousand in the three-month period ended December 31, 2011, an increase of 39%. Project revenue made up 66% 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.
Bookings for the quarter were $1.09 million up 7% compared to $1.02 million in the three-month period ended December 31, 2011.
At December 31, 2012 Vigil had a backlog of approximately $2.76 million (including $875 thousand in deposits and progress billings, recorded as deferred revenue on the balance sheet) a 33% increase compared to approximately $2.08 million (including $611 thousand in deposits and progress billings, recorded as deferred revenue on the balance sheet) at December 31, 2011. At December 31, 2012, Vigil's backlog included 37 projects at varying stages of installation and progress billing with an average project size of $75 thousand. This was an increase over the 23 projects with an average value of $91 thousand in the three months ended December 31, 2011. Projects can include individual buildings or floors of multiple phase campus construction.
The gross margin percentage for the three months ended December 31, 2012 was 50% compared to 47% for the three months ended December 31, 2011. Gross margin was slightly higher than management's usual expectations of margins of between 42% and 47%.
Expenditures for the three months ended December 31, 2012 were $424 thousand, down 6% from $452 thousand for the period ended December 31, 2011. Expenses while down quarter over quarter were up to more standard levels reflecting a gradual return to regular hours as business activity increases.
Net income for the three month period ended December 31, 2012 was $132 thousand, or $0.010 per share compared to a loss of $68 thousand, or $0.005 per share for the previous year. The profitable quarter relates largely to the 39% increase in revenue as well as improved margins and a reduction in operating costs. The Company expects to see staffing levels and operating costs increase going forward.
