August 13, 2007 (Victoria) – Vigil Health Solutions Inc. (“Vigil”) announces the results of operations for the quarter ending June 30, 2007.

 

Business highlights

• Revenues for the three-month period ended June 30, 2007 were $904 thousand; an increase of 202% compared to $300 thousand in the three-month period ended June 30, 2006.

• Sales bookings for the three-month period ended June 30, 2007 were $902 thousand; an increase of 109% compared to $432 thousand in the three-month period ended June 30, 2006.

• The Company held an order backlog of approximately $1.92 million at June 30, 2007 compared to $1.24 million in the quarter ended June 30, 2006.

• The Company significantly reduced it’s operating losses to $57 thousand for the quarter versus $357 during the same period last year.

• The Company released its next generation core platform software, Vigil 3.0, into a second beta site trial in June following positive outcomes from the first beta site installation. The Vigil 3.0 software facilitates better user functionality, greater scalability and broader interoperability with complementary systems.

“I am very pleased with our first quarter results,” commented Troy Griffiths, President, “I believe this is testimony to the team’s execution of our business plan and validates our product development and path to market strategies.”

Financial Results

Revenue increased 202% over the same quarter of the previous year. The increase in revenue relates to a higher number of project installations completed in the quarter.

Bookings for the three-month period ended June 30, 2007 were $902 thousand; an increase of 109% compared to $432 thousand in the three-month period ended June 30, 2006.

At June 30, 2007 Vigil had a backlog of approximately $1.92 million (including $722 thousand in deposits and progress billings, recorded as deferred revenue on balance sheet) compared to $1.24 million at June 30, 2006.

The gross margin percentage for the three-months ended June 30, 2007 was 52% compared to 45% for the three-months ended June 30, 2006. Gross margins are above management’s expectations of annual margins of between 40% and 45%. Higher margins can be attributed to more favourable product mix for the projects commissioned in this quarter.

Losses for the three-month period ended June 30, 2007 were $86 thousand or $0.001 per share a decrease of 77% compared to $371 thousand, or $0.004 per share for the previous year. The decrease in losses can be attributed to the revenues particularly the increase in gross margins. Operating expenses for the three months ended June 30, 2007 were $524 thousand, up 7% from $493 thousand in the same quarter of the prior year.