Vigil Health Solutions Inc. (“Vigil”) announces the results of operations for the fiscal year (FY09) and the fourth quarter (Q4FY09), ending March 31, 2009.

“We are pleased to report positive Adjusted Operating Income in each of the last two quarters of the fiscal year.  We also happy to report strong revenue growth again this year especially given the weak state of the economy in Canada and the USA.  These results underscore the strength of our business model which serves the growing community of senior citizens which will continue to expand steadily over the long term.”  stated Troy Griffiths, President & CEO, Vigil Health Solutions.

Business highlights

·         Increased revenue 50% to $4.51 million from $3.00 million in FY08 and a 92% increase in revenue for Q4FY09 compared to Q4FY08

·         Secured two consecutive quarters of positive Adjusted Operating Income in Q3 and Q4

·         Achieved positive cash from operating activities for the current fiscal year. 

·         Completed 50 projects in FY09 compared to 34 in FY08, an increase of 47%

·         Product and Feature Releases:

o        New wireless products and processes to improve efficiency and quality of installations as well as subsequent service and support particularly in large multi-storey facilities.

o        Developed new products to meet state and regional requirements including hardwired multicoloured corridor lights previously only available for the wireless system and a duty station device with audible notification.

o        Improved Vigil Remote to include compatibility with Microsoft Terminal Server enabling integration with customer's existing information technology configurations.

o        Latest software release, Vigil Locate, displays the location of select devices in a graphical/map format developed to facilitate improved customer response times.

 

Financial Results

Bookings for FY09 were solid at $4.38 million compared to $4.38 million in FY08.  Sales bookings for the quarter were also solid at $1.14 million compared to $1.12 million in the Q4FY08.  Management believes the overall flat bookings are the result of the significant downturn in the US (and global) economy most notably during the last two quarters of the fiscal year.  This macro-economic situation has resulted in a lack of funding for the development of new senior housing projects.

At March 31, 2009 Vigil had a backlog of approximately $3.56 million (including $1.65 million in deposits and progress billings, recorded as deferred revenue on the balance sheet) as compared to $3.45 million (including $1.12 million in deposits and progress payments, recorded as deferred revenue on the balance sheet) at March 31, 2008.

Revenue for FY09 was $4.51 million compared to $3.00 million in FY08, an increase of 50%. This revenue resulted from the commissioning of 50 projects in fiscal 2009 (compared to 34 in fiscal 2008).  The increase in revenue reflects the growth in sales bookings seen in prior periods. In addition, one off sales, and service and maintenance revenue grew by 41% to $612 thousand. Revenue for Q4FY09 was $1.53 million compared to $796 thousand in Q4FY08.  The 93% increase in revenue in the quarter was primarily attributable to an increase in the average value of the installations, from $66 thousand to $96 thousand and the completion of 14 installations in Q4FY09 compared to 10 in Q4FY08. 

The gross margin percentage for FY09 was 43% compared to 45% for FY08, in line with management’s expectations of annual margins of between 42% and 47%.  Gross margin for the fourth quarter was below expectations at 40% compared to 39% in Q4FY08, due to a number of large installations completed for corporate clients where the product mix resulted in a lower margin.

Expenses for FY09 were $2.38 million, up 6% from $2.22 million in the prior year.  The increase can be primarily attributed to increased general and administration costs including insurance costs, payroll, and telephone costs, all in support of the Company’s growth.  Expenses were $605 thousand in the fourth quarter, down 10% compared to $669 thousand in the prior year.  This decline relates primarily to a decrease in sales and marketing expenses from $254 thousand in the last quarter of fiscal 2008 to $206 thousand in the last quarter of fiscal 2009.  This was mainly due to lower fiscal year end commission bonus payments to the sales department in fiscal 2009 compared to fiscal 2008, along with decreased advertising and marketing and market research expenses.

The net loss for FY09 was $389 thousand, or $0.004 per share, compared to $973 thousand, or $0.011 per share, for the previous year.  The 60% decrease in losses is primarily attributable to the increase in revenue and maintaining stable operating expenses.  The increase in revenue and reduced expenses resulted in a 93% decrease in losses in the fourth quarter (from $331 thousand for Q4FY08 to $24 thousand in Q4FY09).

A summary of our financial performance for the year ended March 31, 2009 follows below. For further information relating to the financial results of the Company, please refer to the Company’s financial statements and MD&A filed on SEDAR at www.sedar.com or detailed financial statements available on the Vigil web site (http://www.vigil.com/?Investors:Financial_Statements).  Financial information will be mailed to entitled security holders on June 30, 2009. Or, upon notice to the Company, entitled security holders may request a copy of financials in advance.