February 12, 2008 (Victoria) – Vigil Health Solutions Inc. (“Vigil”) announces the results of operations for the quarter ending December 31, 2007.

 

Business highlights

 

·         Increased sales bookings by 132% from $547 thousand in the three-month period ended December 31, 2006 to $1.27 million in the current three-month period.

 

·         Grew revenue 93% from $382 thousand in the period ended December 31, 2006 to $737 thousand in the current quarter.  

 

·         Expanded order backlog from $1.58 million at December 31, 2006 to $3.06 million at December 31, 2007.

 

“Vigil closed over a million dollars in sales in the third quarter and recorded $737 thousand in revenue.  We are committed to continuing this growth and are focused on recruiting sales and operations personnel to achieve this end,” said Troy Griffiths, President & CEO, Vigil Health Solutions Inc.

 

Financial Results

 

Revenue for the three-months ended December 31, 2007 was $737 thousand compared to $382 thousand in the period ended December 31, 2006, an increase of 93%.  Revenue for the nine-months ended December 31, 2007 was $2.21 million compared to $1.06 million in the period ended December 31, 2006, an increase of 108%.  The number of projects completed in the quarter grew from 13 in the prior fiscal period to 25 in the period ending December 31, 2007.

 

Bookings for the quarter were $1.27 million up 132% compared to $547 thousand in the three-month period ended December 31, 2006.  Bookings for the nine-months ended December 31, 2007 were up 108% to $3.24 million compared to $1.56 million in the nine-month period ended December 31, 2006.

 

At December 31, 2007 Vigil had a sales backlog of approximately $3.06 million (including $1.04 million in deposits and progress billings, recorded as deferred revenue on the balance sheet) compared to $1.58 million (including $582 thousand in deferred revenue) at December 31, 2006. 

 

The gross margin percentage for the three-months ended December 31, 2007 was 42% compared to 46% for the three-months ended December 31, 2006.  The gross margin percentage for the nine-months ended December 31, 2007 was 47% compared to 46% for the nine-months ended December 31, 2006.

 

Operating expenses for the three months ended December 31, 2007 were $508 thousand, down 3% from $525 thousand in the same quarter of the prior year.  Operating expenses for the nine-months ended December 31, 2007 were $1.56 million, up 5% from $1.49 million in the nine-month period ended December 31, 2006. The rise in costs resulted primarily from increases in research and development expenditures and professional fees in the nine-month period ended December 31, 2007.

 

Losses for the three-month period ended December 31, 2007 were $245 thousand, or $0.003 per share, a decrease of 29% compared to $343 thousand, or $0.004 per share, for the previous year.  Losses for the nine-month period ended December 31, 2007 were $642 thousand, or $0.007 per share, a decrease of 36% compared to $1.0 million, or $0.011 per share, for the previous year.  The decrease in losses can be primarily attributed to the increase in revenue and gross profit.