Vigil Health Solutions Inc. (“Vigil”) announces the results of operations for the fiscal year and the fourth quarter, ending March 31, 2007.

“Fiscal 2007 saw further validation of our sales program and the continued evolution of our technology.  Specifically, we have enhanced our solution to focus on better serving the needs of corporate clients which we believe is reflected in the growth of our corporate accounts,” stated Troy Griffiths, President, Vigil Health Solutions.

Business highlights

·     Sales bookings for the fourth quarter ended March 31, 2007 were up 97% to $746 thousand compared to $378 thousand in the year ended March 31, 2006.

·     Bookings for the year ended March 31, 2007 were up 43% to $2.31 million compared to $1.61 million in the year ended March 31, 2006.

·     The Company held an order backlog of approximately $2 million over double the $948 thousand at March 31, 2006.

·     The Company is strategically targeting the addition and development of multi-property corporate customers to facilitate accelerated sales growth.  In fiscal 2007, Vigil secured four new corporate accounts (beating target of adding three new corporate accounts) bringing the total number of corporate clients to 14. These 14 clients represent 46% of the total installations since the company’s inception.

·     During the fiscal year, Vigil bolstered its Vigil Wireless Call System suite by adding Wireless Corridor Lights, Wireless Contact Transmitters and Wireless Passive Infrared Sensors to further enhance the offering to clients.

·     In January 2007, Vigil beta released the next generation (version 3.0) of its core software platform.  This new software facilitates better user functionality, greater scalability and broader interoperability with complementary systems.

Financial Results

Bookings for the twelve-month period ended March 31, 2007 were up 43% to $2.31 million compared to $1.61 million in the year ended March 31, 2006.  Sales bookings for the quarter were up 97% to $746 thousand compared to $378 thousand in the three-month period ending March 31, 2006.

At March 31, 2007 Vigil had a backlog of approximately $2 million (including $832 thousand in deposits and progress billings, recorded as deferred revenue on balance sheet) as compared to $948 thousand (including $457 thousand in deposits and progress payments, recorded as deferred revenue on balance sheet) at March 31, 2006.

Revenue for the year ended March 31, 2007 was $1.47 million compared to $1.79 million in the year ended March 31, 2006, a decrease of 18%. This decrease reflects construction delays in the completion of a number of installations in fiscal 2007 compared to the same period in fiscal 2006 (18 vs. 21).  While revenues are lower, the increase in sales bookings is reflected in the back-log. 

The gross margin percentage for the year ended March 31, 2007 was 42% compared to 41% for the year ended March 31, 2006.  Gross margins are in line with management’s expectations of annual margins of between 40% and 45%.  With 80% of revenues coming from the United States, the continued fall in the value of the US dollar has put pressure on maintaining and growing margins.

Operating expenses for the year ended March 31, 2007 were $2.01 million, up 9% from $1.84 million in the prior year.  This is the result of small increases in general and administration, sales and marketing and research and development expenses.  Operating expenditures were $532 thousand in the fourth quarter, up 31% compared to $406 thousand in the prior year. 

Losses for the year ended March 31, 2007 were $1.43 million ($0.016 per share) compared to $1.20 million ($0.020 per share) for the previous year.  The 19% increase in losses can be attributed to a reduction in revenue and the increase in sales and marketing costs.  A net loss of $426 thousand ($0.005) was incurred in the fourth quarter, up 81% from $235 thousand ($0.004 per share) in the prior year.