Vislink Technologies, Inc. (“Vislink” or the “Company”) (Nasdaq: VISL), whose brands are recognized as the global leaders in live video communications, announced its results for the first quarter ended March 31, 2020.

First Quarter Highlights:

  • Named Carleton Miller as chief executive officer and Michael Bond as chief financial officer.
  • Completed a capital raise of $6 million.
  • Fulfilled delivery of the remaining equipment on the $2.8 million U.S. Army contract the Company received in 2019.
  • 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 (“Airbus”).
  • Received a $400,000 contract to supply an airborne surveillance video downlink solution to a government agency located in the MENA (Middle East and North Africa) region.
  • Was selected to to provide High Definition ‘Live’ On-Board Video Systems for the prestigious European Ferrari Challenge Race Series.

“In the first quarter, we took actions to put the organization’s finances on a stable footing and provide a pathway to future business success,” said Carleton Miller, CEO of Vislink Technologies. “We implemented an OPEX cost reduction plan with the goal of aligning costs with revenue, and have already achieved appreciable savings, particularly in general and administrative expenses through headcount and other cost reductions. We expect to record additional cost savings in subsequent quarters. We also optimized our supply chain, which has improved our ability to capture and fulfill business. We continue to have access to the capital we require to adequately fund our operations, as shown by the $6 million public offering we completed.”

Mr. Miller continued, “We also further reorganized into the following four solution areas: Live Event Production, Military/Government, Satellite Communications and Managed Service. To that end, we made key new hires to lead these areas of the business with an emphasis on targeted product differentiation and customer-focused decision-making. Finally, we have taken important steps to weather the economic slowdown caused by the effects of COVID-19, including securing funding under the Paycheck Protection Program and maintaining essential business operations. We are confident this will allow us to seize new opportunities as business activity begins to return and help us achieve our goal of reaching sustainable and profitable growth.”

Review of Results

  • First quarter 2020 revenues were $5.4 million compared to $8.2 million in the first quarter of 2019.
  • Gross margins were 47% of revenue in the first quarter of 2020, compared to 50% of revenue in the first quarter of 2019.
  • In the first quarter of 2020, net loss attributable to common shareholders was $4.4 million, or $(0.09) per share, compared to net loss of $3.1 million, or $(1.62) per share in the first quarter of 2019.
  • EBITDA (earnings before interest, taxes depreciation and amortization) was a negative $3.9 million for the three months ended March 31, 2020, compared to a negative $2.1 million for the three months ended March 31, 2019.
  • Ended the first quarter 2020 with $2.5 million in cash compared to $1.7 million at December 31, 2019.

About Vislink Technologies, Inc.

Vislink Technologies is a global leader in the development and distribution of advanced communication solutions. Driven by technical excellence that has led the industry for over 50 years, our innovative products and turnkey solutions provide reliable connectivity in the toughest environments across the global live production, military and government sectors. Our solutions include high-definition communication links that reliably capture, transmit and manage live event footage, as well as secure video systems that support mission-critical applications. Vislink Technologies shares 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

This press release may contain projections or other forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These statements involve risks and uncertainties, and actual events or results may differ materially. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are the risk that our reduction in operating expenses may impact our ability to meet our business objectives and achieve our revenue targets and may not result in the expected improvement in our profitability, the fact that our future growth depends in part on further penetrating our addressable market and also growing internationally, and we may not be successful in doing so; our dependence on sales of certain products to generate a significant portion of our revenue; the effect of a decrease in the sales or change in sales mix of these products would harm our business; the risks that an economic downturn or economic uncertainty in our key U.S. and international markets may adversely affect demand for our products; difficulty in accurately predicting our future customer demand; the importance of maintaining the value and reputation of our brand; and other factors detailed in the Risk Factors section of our Registration Statement on Form S-1, as amended (No. 333-225975), which is on file with the Securities and Exchange Commission. Additional information will also be set forth in our Annual Report on Form 10-K for the year ended December 31, 2019. These forward-looking statements speak only as of the date hereof or as of the date otherwise stated herein. The Company disclaims any obligation to update these forward-looking statements.

FOR MORE INFORMATION: investors@vislink.com

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (IN THOUSANDS EXCEPT NET (LOSS) INCOME PER SHARE DATA)

  For the Three Months Ended 
  March 31, 
  2020  2019 
Revenue, net $5,352  $8,206 
Cost of revenue and operating expenses        
Cost of components and personnel  2,821   4,127 
Inventory valuation adjustments  25   47 
General and administrative expenses  6,200   5,183 
Gain on lease termination  (21)   
Research and development expenses  656   926 
Amortization and depreciation  423   589 
Total cost of revenue and operating expenses  10,104   10,872 
Loss from operations  (4,752)  (2,666)
Other (expense) income        
Changes in fair value of derivative liabilities  17   (74)
Gain on settlement of related party obligation  331    
Interest expense  (26)  (350)
Total other (expense) income  322   (424)
         
Net (loss) income $(4,430) $(3,090)
         
Basic and diluted loss per share $(0.09) $(1.62)
         
Weighted average number of shares outstanding:        
Basic and diluted  48,696   1,906 
         
Comprehensive loss:        
Net loss $(4,430) $(3,090)
Unrealized gain (loss) on currency translation adjustment  277   (33)
Comprehensive loss $(4,153) $(3,123)

The accompanying notes are an integral part of these condensed consolidated financial statements.

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)

  March 31,  December 31, 
  2020  2019 
  (unaudited)    
ASSETS        
Current assets        
Cash $2,459  $1,737 
Accounts receivable, net  3,988   6,714 
Inventories, net  8,374   7,674 
Prepaid expenses and other current assets  662   660 
Total current assets  15,483   16,785 
Right of use assets, operating leases  1,782   1,925 
Property and equipment, net  1,888   1,972 
Intangible assets, net  2,621   2,922 
Total assets $21,774  $23,604 
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Current liabilities        
Accounts payable $4,390  $6,784 
Accrued expenses  2,449   1,912 
Notes payable  293   339 
Operating lease obligations, current  383   821 
Due to related parties     505 
Customer deposits and deferred revenue  2,137   2,821 
Derivative liabilities  13   30 
Total current liabilities  9,665   13,212 
Operating lease obligations, net of current portion  1,332   1,163 
Total liabilities  10,997   14,375 
Commitments and contingencies (See Note 9)        
Stockholders’ equity        
Preferred stock – $0.00001 par value per share: 10,000,000 shares authorized as of March 31, 2020, and December 31, 2019; 0 shares issued and outstanding as of March 31, 2020, and December 31, 2019      
Common stock – $0.00001 par value per share, 100,000,000 shares authorized, 81,100,685 and 21,567,287 shares issued and 81,084,731 and 21,551,333 outstanding as of March 31, 2020 and December 31, 2019, respectively      
Additional paid in capital  267,572   261,871 
Accumulated other comprehensive income  484   207 
Treasury stock, at cost – 15,954 shares at March 31, 2020, and December 31, 2019, respectively  (277)  (277)
Accumulated deficit  (257,002)  (252,572)
Total stockholders’ equity  10,777   9,229 
Total liabilities and stockholders’ equity $21,774  $23,604 

The accompanying notes are an integral part of these condensed consolidated financial statements.

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