In their analysis, Ubika Research found that court technology leader VIQ Solutions (TSXV: VQS) has significantly outperformed the TSX Venture Index during the last three months. During the last three months, the TSX Venture Index is down 17% and small cap stocks have taken a beating. However, VIQ Solutions Inc (TSXV: VQS) stock is up 24%. VIQ is a Ubika Research covered company, and we first initiated coverage on VIQ Solutions Inc with an initiation report dated September 15, 2009. At the time of our initiation report VIQ Solutions stock was trading at $0.26 cents.
The report is available for free download here. Over the last 20 months VIQ Solutions stock has gained 100% as the stock closed at $0.52 cents on June 5, 2011.
To access Ubika Research reports and to view the CEO Interview on VIQ Solutions Inc (TSX VENTURE: VQS) (CVE: VQS) please visit their Investor Hub here
Since our initiation report we have witnessed the rapid transformation of VIQ. VIQ is one of the very few smallcap companies which have built a real competitive advantage by building an industry leading product to enable the automation of court rooms, police interview rooms and other agencies within justice and law enforcement organizations.
VIQ’s products and solutions address the unique problem of justice and law enforcement agencies worldwide of having to continuously accumulate huge quantities of information with limited capability to share, store, search and retrieve information efficiently. VIQ’s solutions enable the justice system to be more productive, which in turn improves their ability to handle the ever increasing caseload with budgets that are either static or not increasing at the same pace as the caseloads. VIQ is currently implementing a major 600 court room installation in United Kingdom (UK), which is considered a gold standard in court room technology implementation. VIQ is well positioned to ride the wave of e-transformation happening in law-enforcement and courts worldwide. All of the major IT companies, such as Cisco Systems (NASDAQ: CSCO), are looking to make it one of their major market focal points.
The global licensing and service agreement with Cisco Systems Inc (announced in October 2010) has resulted in VIQ’s software now being integrated with Cisco’s hardware products. This Cisco relationship is a potential game changer for VIQ as this represents a quantum leap for VIQ in its ability to market its products to the global law and justice market place. It also confirms our long held view that VIQ is the best in class global provider in the growing niche of court and justice verticals automation.
There is no need to introduce Cisco. However, it needs to be mentioned that Cisco has well over 20,000 sales personnel. This deal lets VIQ leverage Cisco’s powerful global sales force to market its products. Cisco has an unparalleled success in selling to government and justice departments worldwide. We believe VIQ has acquired access to one of the best, most qualified and skilled global sales forces with this partnership. VIQ’s software is the vital glue which gives the intelligence to Cisco’s hardware products in an enterprise installation within the Justice and Law Enforcement vertical.
VIQ has built a strong pipeline of global opportunities and Cisco relationship would accelerate its sales pipeline. Consequently, in the 2010 MD&A (Management Discussion and Analysis of 2010 results), VIQ stated publicly that it is “pursuing an unprecedented pipeline of opportunities”.
VIQ has now built a global recognition for its leadership in offering fully integrated court solutions which addresses reduced budgets, resources and manpower while increasing productivity. It is not a huge leap to assume that with this agreement, VIQ may become a potential acquisition target in the sights of Cisco Systems (NASDAQ: CSCO) or other major IT companies if VIQ can continue to win major enterprise deals. However, software revenues in enterprise sales will be lumpy and investors in VIQ Solutions Inc (TSX VENTURE: VQS) (CVE: VQS) need to be patient with a longer term view to be rewarded as the company continues to execute its strategy.
About Ubika Research
Ubika Research has received compensation from VIQ Solutions for analyst coverage. Ubika Research is an investment research and capital market services firm based in Toronto and Vancouver. It provides comprehensive research, communication and capital market exposure program to highlight the investment potential in micro and small cap companies. For more information visit www.ubikaresearch.com
Disclosure
Except for the historical information presented herein, matters discussed in this document contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements.
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