Vislink (“the “Company”) (Nasdaq: VISL), a global technology leader
in the collection, delivery and management of high quality, live
video and associated data, announced its results for the year ended
December 31, 2020. Company management will host a live webcast on
Thursday, April 1, 2021 at approximately 10:00 a.m. ET to review
the Company’s financial and operating results and provide a general
business update (see webcast details below).
2020 Business Update:
- Received a $1.3 million contract from a European partner to
supply equipment and services for border protection.
- Received orders valued at over
$400,000 for satellite communications equipment from Airbus Defence
and Space Limited. The orders cover ground terminals to be used in
support of the Airbus contract with the UK Government, providing
satellite communications services to UK Government agencies and the
Ministry of Defence through the Skynet 5 program.
- Received a $400,000 contract to supply an airborne surveillance
video downlink solution to a government agency located in the
Middle East and North Africa region.
- Chosen by Italian Integrator NVP SpA to provide high definition
live onboard video systems for the prestigious European Ferrari
Challenge Race Series.
- Announced that RaceTech, a
horseracing dedicated technical facilities provider in England,
Wales and Scotland, is using Vislink’s wireless video
communications systems to provide live coverage to racing fans in
the United Kingdom.
- Expanded the lineup of
Refcam—ultra-small wireless wearable cameras for use in live sports
production—in partnership with specialty camera systems provider
Movicom.
Financial Update:
- For the year ended December 31, 2020, revenue was $22.9
million, compared to $28.9 million for the year ended December 31,
2019.
- Gross margins were 39.4% of revenue for the year ended December
31, 2020, compared to 45.6% of revenue for the year ended December
31, 2019.
- For the year ended December 31,
2020, net loss attributable to common shareholders was $17.6
million, or $(1.19) per share, compared to net loss of $18 million,
or $(12.08) per share for the year ended December 31, 2019.
- EBITDA (earnings before interest,
taxes depreciation and amortization) for December 31, 2020 was
negative $16 million compared to negative $13.8 million for the
year ended December 31, 2019. $5.8 million of the negative EBITDA
of $16 million was attributable to a one-time write-off of expenses
related to reductions in headcount, facilities and product
lines.
- Subsequent to the end of the fiscal year, completed a $50
million capital raise.
- Ended the fourth quarter 2020 with $5.2 million in cash,
compared to $1.7 million at the end of the fourth quarter of
2019.
“Although we were negatively impacted by the
global business downturn due to COVID-19, we started to see
positive signs in the business by the end of the year,” said
Carleton Miller, CEO of Vislink. “Our fourth quarter revenues were
over 40% higher than the third quarter, rebounding to almost $7
million, which represented the strongest quarter of the year. Our
SATCOM business sector showed particular strength in the fourth
quarter, with revenue increasing over 13% and bookings up over 52%
from the same period in 2019. We also maintained targeted
investments in key product lines, which will allow us to hold and
expand our leadership in providing innovative video solutions
across diverse industries.”
Mr. Miller continued, “For the second phase of
our financial restructuring, we took concrete steps to increase
liquidity and strengthen our financial position throughout the
year. This included a strategic initiative undertaken in early 2020
to mitigate the potential impact of the COVID-19 pandemic, and
further targeted reductions in operating expenditures that were
made in November 2020. The implementation of proactive spending
cuts across the business allowed us to realize savings of
approximately $5 million in fiscal 2020. A significant portion of
the loss we reported for the year was the result of necessary
rightsizing actions that were taken. For the year, $5.8 million of
the negative EBITDA of $16 million was attributable to a one-time
write-off of expenses related to reductions in headcount,
facilities and product lines. These aggressive actions allowed us
to underpin the Company with financial and operational stability.
We entered 2021 with an improved balance sheet, access to capital
and cash available for targeted investments in engineering and
R&D, new product development, channel expansion and strategic
acquisitions. With Phase 2 of our financial turnaround largely
complete, we are now entering the next chapter in our story—Phase
3—in which we will focus on pursuing profitable growth through both
an increase in organic business development as well as accretive
strategic alternatives. The $50 million capital raise we closed on
last month will greatly facilitate these efforts.”
Mr. Miller concluded, “We are beginning to see
renewed quoting activity as live in-person sports and entertainment
events start to come back online. As a result, we remain cautiously
optimistic that, as worldwide business starts returning to
pre-pandemic levels in 2021, we will be well-positioned to
capitalize on growing opportunities across our Live Event
Production, Military/Government, SATCOM and Services solution areas
through 2021 and beyond.”
Financial Results Webcast
Details
On Thursday, April 1, 2021, Vislink’s CEO,
Carleton Miller, and CFO, Michael Bond, will host a webcast at
approximately 10:00 a.m. ET to review the Company’s
financial and operating results and provide a general business
update. This webcast will be live
at https://services.choruscall.com/links/visl210401.html
Investors will be able to submit questions during the webcast.
Non-GAAP Financial Measure:
EBITDA
To supplement our financial results presented in
accordance with Generally Accepted Accounting Principles (GAAP), we
are presenting EBITDA in this earning release and the related
earning conference call. EBITDA is a non-GAAP financial measure
that is not based on any standardized methodology prescribed by
GAAP and is not necessarily comparable to similarly titled measures
presented by other companies. We define EBITDA as our net income
(loss), excluding the impact of depreciation and amortization
expense and interest income/expense. We have presented EBITDA
because it is a key measure used by our management and board of
directors to understand and evaluate our operating performance, to
establish budgets and to develop operational goals for managing our
business. In particular, we believe that excluding the impact of
these expenses in calculating EBITDA can provide a useful measure
for period-to-period comparisons of our core operating
performance.
About Vislink Technologies, Inc.
Vislink is a global technology business
specializing in the collection, delivery, and management of high
quality, live video and associated data from the scene of the
action to the viewing screen. For the broadcast markets, Vislink
provides solutions for the collection of live news, sports, and
entertainment events. Vislink also furnishes the surveillance and
defense markets with real-time video intelligence solutions using a
variety of tailored transmission products. The Vislink team also
provides professional and technical services utilizing a staff of
technology experts with decades of applied knowledge and real-world
experience to the areas of a terrestrial microwave, satellite,
fiber optic, surveillance, and wireless communications systems, to
deliver a broad spectrum of customer solutions. Vislink’s shares of
Common Stock are publicly traded on the Nasdaq Capital Market under
the ticker symbol “VISL.” For more information, visit
www.vislink.com.
Note on Forward-looking Statements
Certain statements in this press release are
forward-looking statements that involve substantial risks and
uncertainties for purposes of the safe harbor provided by the
Private Securities Litigation Reform Act of 1995. This press
release contains forward-looking statements that involve
substantial risks and uncertainties for purposes of the safe harbor
provided by the Private Securities Litigation Reform Act of 1995.
Any statements, other than statements of historical fact included
in this press release, including those regarding the Company’s
strategy, future operations, future financial position, projected
expenses, prospects, plans, objectives of management and financial
reporting abilities, maintenance of new product pipeline and
technical innovation, the Company’s expected focus on financial
discipline and cost reduction plans, anticipated cost savings,
planned adjustments to its workforce, expected market opportunities
across the Company’s operating segments, the Company’s expectations
as to its operational turnaround, including operational
efficiencies and future capital allocation, the effects of the
COVID-19 pandemic, the sufficiency of the Company’s capital
resources to fund the Company’s operations and any statements
regarding future results are forward-looking statements. Vislink
may not actually achieve the plans, carry out the intentions or
meet the expectations or projections disclosed in any
forward-looking statements such as the foregoing and you should not
place undue reliance on such forward-looking statements. Such
statements are based on management’s current expectations and
involve risks and uncertainties, including those discussed in
Vislink’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2019, filed with the SEC on April 1, 2020 and in
subsequent filings with, or submissions to, the SEC.
The statements made in this press release speak
only as of the date stated herein, and subsequent events and
developments may cause the Company’s expectations and beliefs to
change. While the Company may elect to update these forward-looking
statements publicly at some point in the future, the Company
specifically disclaims any obligation to do so, whether as a result
of new information, future events or otherwise, except as required
by law. These forward-looking statements should not be relied upon
as representing the Company’s views as of any date after the date
stated herein.
Contacts Investor Relations:
Phil Carlson KCSA Strategic Communications vislink@kcsa.com
Media Relations: Anthony Feldman / Jenny Robles
KCSA Strategic Communications vislink@kcsa.com
VISLINK TECHNOLOGIES, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS(IN THOUSANDS EXCEPT NET
LOSS PER SHARE DATA)
|
|
For the Years Ended |
|
|
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
Revenue, net |
|
$ |
22,882 |
|
|
$ |
28,942 |
|
Cost of Revenue and
operating expenses |
|
|
|
|
|
|
|
|
Cost of components and personnel |
|
|
13,867 |
|
|
|
15,741 |
|
Inventory valuation adjustments |
|
|
415 |
|
|
|
4,705 |
|
General and administrative expenses |
|
|
17,024 |
|
|
|
20,099 |
|
Gain on lease termination |
|
|
(21 |
) |
|
|
— |
|
Research and development |
|
|
2,698 |
|
|
|
3,232 |
|
Loss on abandonment of property and equipment |
|
|
680 |
|
|
|
— |
|
Impairment of inventory |
|
|
3,801 |
|
|
|
— |
|
Impairment of right-of-use assets |
|
|
895 |
|
|
|
— |
|
Amortization and depreciation |
|
|
1,411 |
|
|
|
2,365 |
|
Total cost of revenue and operating expenses |
|
|
40,770 |
|
|
|
46,142 |
|
Loss from operations |
|
|
(17,888 |
) |
|
|
(17,200 |
) |
Other income
(expenses) |
|
|
|
|
|
|
|
|
Changes in fair value of derivative liabilities |
|
|
8 |
|
|
|
1,064 |
|
Loss on conversion of debentures |
|
|
— |
|
|
|
(33 |
) |
Gain on settlement of related party obligations |
|
|
331 |
|
|
|
— |
|
Gain on settlement of debt |
|
|
90 |
|
|
|
— |
|
Other income |
|
|
5 |
|
|
|
— |
|
Interest expense, net |
|
|
(121 |
) |
|
|
(1,878 |
) |
Total other income (expenses) |
|
|
313 |
|
|
|
(847 |
) |
Net loss |
|
$ |
(17,575 |
) |
|
$ |
(18,047 |
) |
|
|
|
|
|
|
|
|
|
Basic and diluted loss per
share |
|
$ |
(1.19 |
) |
|
$ |
(12.08 |
) |
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding: |
|
|
|
|
|
|
|
|
Basic and Diluted |
|
|
14,811 |
|
|
|
1,494 |
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(17,575 |
) |
|
$ |
(18,047 |
) |
Unrealized loss on currency translation adjustment |
|
|
(59 |
) |
|
|
(68 |
) |
Comprehensive loss |
|
$ |
(17,634 |
) |
|
$ |
(18,115 |
) |
VISLINK TECHNOLOGIES, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(IN THOUSANDS EXCEPT SHARE AND PER SHARE
DATA)
|
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
ASSETS |
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
|
|
Cash |
|
$ |
5,190 |
|
|
$ |
1,737 |
|
Accounts receivable, net |
|
|
4,525 |
|
|
|
6,714 |
|
Inventories, net |
|
|
5,986 |
|
|
|
7,674 |
|
Prepaid expenses and other current assets |
|
|
814 |
|
|
|
660 |
|
Total current assets |
|
|
16,515 |
|
|
|
16,785 |
|
Right of use assets, operating leases |
|
|
1,077 |
|
|
|
1,925 |
|
Property and equipment, net |
|
|
1,138 |
|
|
|
1,972 |
|
Intangible assets, net |
|
|
1,921 |
|
|
|
2,922 |
|
Total assets |
|
$ |
20,651 |
|
|
$ |
23,604 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
4,104 |
|
|
$ |
6,784 |
|
Accrued expenses |
|
|
2,340 |
|
|
|
1,912 |
|
Notes payable |
|
|
25 |
|
|
|
339 |
|
Current portion of PPP loan |
|
|
905 |
|
|
|
— |
|
Operating lease obligations, current |
|
|
475 |
|
|
|
821 |
|
Due to related parties |
|
|
— |
|
|
|
505 |
|
Customer deposits and deferred revenue |
|
|
975 |
|
|
|
2,821 |
|
Derivative liabilities |
|
|
22 |
|
|
|
30 |
|
Total current liabilities |
|
|
8,846 |
|
|
|
13,212 |
|
Long-term portion of PPP loan |
|
|
263 |
|
|
|
— |
|
Operating lease obligations, net of current portion |
|
|
1,545 |
|
|
|
1,163 |
|
Total liabilities |
|
|
10,654 |
|
|
|
14,375 |
|
Commitments and contingencies
(See Note 15) |
|
|
|
|
|
|
|
|
Stockholders’
equity |
|
|
|
|
|
|
|
|
Preferred stock – $0.00001 par
value per share: 10,000,000 shares authorized at December 31, 2020
and 2019; -0- shares issued and outstanding as of December 31, 2020
and 2019 |
|
|
— |
|
|
|
— |
|
Common stock, – $0.00001 par
value per share, 100,000,000 shares authorized, 21,382,290 and
3,594,548 shares issued and 21,379,631 and 3,591,889 outstanding at
December 31, 2020 and 2019, respectively |
|
|
— |
|
|
|
— |
|
Additional paid in capital |
|
|
280,273 |
|
|
|
261,871 |
|
Accumulated other comprehensive income |
|
|
148 |
|
|
|
207 |
|
Treasury stock, at cost – 2,659 shares as of December 31, 2020 and
2019, respectively |
|
|
(277 |
) |
|
|
(277 |
) |
Accumulated deficit |
|
|
(270,147 |
) |
|
|
(252,572 |
) |
Total stockholders’ equity |
|
|
9,997 |
|
|
|
9,229 |
|
Total liabilities and
stockholders’ equity |
|
$ |
20,651 |
|
|
$ |
23,604 |
|
Reconciliation of GAAP to Non-GAAP Results
VISLINK TECHNOLOGIES,
INC. RECONCILIATION OF GAAP to
NON-GAAP RESULTS YEAR ENDING DECEMBER 31, 2020
(IN THOUSANDS)
Reconciliation of net
income to EBITDA |
|
Net loss |
$ |
(17,575 |
) |
interest expense |
|
(121 |
) |
Amortization and depreciation |
|
1,411 |
|
EBITDA |
$ |
(16,043 |
) |
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