Vislink Technologies, Inc. (“Vislink” or
the “Company”) (Nasdaq: VISL), a global technology leader
in the capture, delivery and management of high quality, live video
and associated data in the media and entertainment, law
enforcement, and defense markets, today reported results for the
first quarter ended March 31, 2023.
First Quarter and Recent Operational
Highlights
-
Delivered the first six AeroLink
transmitters to customers. The latest component
launch adds further value to Vislink’s airborne video downlink
system (“AVDS”) and provides law enforcement agencies with
top-quality live video in air-to-ground applications.
- Launched
upgraded Quantum receiver featuring UHD 4K and
ultra-efficient video decoding that works seamlessly with Vislink’s
LinkMatrix cloud control platform to offer streamlined broadcast
workflows.
-
Debuted Cliq OFDM Mobile
Transmitter in North America, offering a compact and
robust orthogonal frequency-division multiple access (OFDM)
wireless video solution that supports a range of applications for
law enforcement and military agencies as well as Tier One live
event broadcasts.
- Won
National Association of Broadcasters (NAB) Product of the Year
Award for its new 5G-Link system, which enables elevated
efficiency and collaboration among remote production teams via
seamless, bi-directional data communication between free-roaming
wireless cameras and production centers.
- Appointed Paul Norridge as
Chief Financial Officer, adding over three decades of
financial experience to the leadership team to support streamlined
operations going forward.
Management Commentary“We are
beginning to see the benefits of the strategic actions we have
taken over the last several quarters to transform our business and
expand our growth opportunities,” said Mickey Miller, CEO of
Vislink. “In the first quarter, we delivered strong profitability
improvements driven by continued cost management along with 50%
growth in our MilGov segment. Our refined go-to-market motions are
gaining traction, validated by our robust sales funnel that
includes the most $1 million plus opportunities in several years.
We are confident in our ability to capitalize on these deals in the
coming quarters.
“From a new product standpoint, Q1 was
highlighted by the delivery of our first six AeroLink units to the
field. Looking ahead, we anticipate doubling AeroLink delivery
volume in the second quarter. Momentum in the public safety market
is a cornerstone of our strategy. It is a growth market being
fueled by increased government funding, and our recent product
rollouts, including our award-winning Cliq OFDM mobile transmitter,
are helping us take advantage of this opportunity. As we continue
to pursue new sales in this area, we are making progress on our
initiatives to increase recurring revenue and create additional
revenue streams while also tracking toward a 90/10 hardware vs.
software and services split.”
First Quarter 2023 Financial
Results
- Revenue
increased 5% to $7.2 million from $6.9 million in the prior year
period.
- Gross margins
improved to 54% from 50% in the prior year period.
- Net loss
attributable to common shareholders was $(1.8) million, or $(0.80)
per share, a $1.0 million improvement compared to $(2.8) million,
or $(1.20) per share, in the prior year period.
- EBITDA
(earnings before interest, taxes, depreciation, and amortization)
improved $0.7 million, or 26%, to $(1.7) million from $(2.4)
million in the prior year period.
- Maintained a strong balance sheet
with $14.0 million in cash, cash equivalents and investments, as
the Company invested $10.8 million in federal bonds intended to be
held to maturity.
Conference CallMay 15, 2023, at
8:30 a.m. Eastern Time (5:30 a.m. Pacific Time) to discuss its
financial results for the first quarter ended March 31, 2023.
Financial results will be issued in a press release prior to the
call.
Vislink management will host the presentation, followed by a
question-and-answer period.
Toll-Free
Number: 1-833-953-2432International
Number: 1-412-317-5761Webcast: Click
here to register
Please register online at least 10 minutes prior
to the start time. If you have any difficulty with registration or
connecting to the conference call, please contact Gateway Group at
949-574-3860.
The conference call will be broadcast
live here and available for replay via the Investor
Relations section of Vislink’s website.
A replay of the conference call will be
available after 8:30 p.m. Eastern Time on the same day through
Monday, May 29, 2023.
Toll-Free Replay
Number: 1-877-344-7529International Replay
Number: 1-412-317-0088Replay
ID: 1613222
Non-GAAP Financial Measure:
EBITDATo 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 and tax). 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.
Note on Forward-looking
StatementsCertain 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 revenues, growth, profitability
results and financial position, risks of supply chain constraints
and inflationary pressures, projected expenses, prospects, plans
including footprint and technology asset consolidations, objectives
of management, new capabilities, product and solutions launches
including AI-assisted and 5G streaming technologies, expected
contract values, projected pipeline sales opportunities,
acquisitions integration, and expected market opportunities across
the Company’s operating segments including the live event
production market, 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, 2022, filed
with the Securities and Exchange Commission (“SEC”) on March 31,
2023 and in subsequent filings with, or submissions to, the SEC
from time to time.
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.
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. Through its Mobile
Viewpoint product lines, Vislink also provides live streaming
solutions using bonded cellular, 5G, and AI-driven technologies for
automated news and sports productions.
The Vislink team also provides professional and
technical services utilizing a staff of technology experts with
decades of applied knowledge and real-world experience in the areas
of 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.
Media Contact:Nicole RosenPagan
Communicationsnicoler@dpagan.com
Investor Relations Contact:Matt Glover and Tom
ColtonGateway Group, Inc.VISL@gatewayir.com
-Financial Tables to Follow-
VISLINK TECHNOLOGIES, INC. AND
SUBSIDIARIESUNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
ANDCOMPREHENSIVE LOSS(IN
THOUSANDS EXCEPT NET LOSS PER SHARE DATA)
|
|
For the Three Months Ended |
|
|
|
March 31, |
|
|
|
2023 |
|
|
2022 |
|
Revenue,
net |
|
$ |
7,188 |
|
|
$ |
6,860 |
|
Cost of revenue and
operating expenses |
|
|
|
|
|
|
|
|
Cost of components and personnel |
|
|
3,314 |
|
|
|
3,423 |
|
Inventory valuation adjustments |
|
|
129 |
|
|
|
96 |
|
General and administrative expenses |
|
|
5,028 |
|
|
|
4,910 |
|
Research and development expenses |
|
|
767 |
|
|
|
1,118 |
|
Amortization and depreciation |
|
|
298 |
|
|
|
457 |
|
Total cost of revenue and operating expenses |
|
|
9,536 |
|
|
|
10,004 |
|
Loss from operations |
|
|
(2,348 |
) |
|
|
(3,144 |
) |
Other income
(expense) |
|
|
|
|
|
|
|
|
Unrealized loss on investments in debt securities |
|
|
(28 |
) |
|
|
— |
|
Other income |
|
|
341 |
|
|
|
326 |
|
Dividend income |
|
|
91 |
|
|
|
— |
|
Interest income, net |
|
|
133 |
|
|
|
— |
|
Total other income (expense) |
|
|
537 |
|
|
|
326 |
|
Net loss before income
taxes |
|
|
(1,811 |
) |
|
|
(2,818 |
) |
Income
taxes |
|
|
|
|
|
|
|
|
Deferred tax benefits |
|
|
55 |
|
|
|
51 |
|
Net loss |
|
$ |
(1,756 |
) |
|
$ |
(2,767 |
) |
Basic and diluted loss
per share |
|
$ |
(0.80 |
) |
|
$ |
(1.20 |
) |
Weighted average
number of shares outstanding: |
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
2,375 |
|
|
|
2,291 |
|
Comprehensive
loss: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(1,756 |
) |
|
$ |
(2,767 |
) |
Unrealized gain (loss) on currency translation adjustment |
|
|
155 |
|
|
|
(268 |
) |
Comprehensive loss |
|
$ |
(1,601 |
) |
|
$ |
(3,035 |
) |
VISLINK TECHNOLOGIES, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(IN THOUSANDS EXCEPT SHARE AND PER SHARE
DATA)
|
|
2023 |
|
|
2022 |
|
|
|
(unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
14,044 |
|
|
$ |
25,627 |
|
Accounts receivable, net |
|
|
6,385 |
|
|
|
6,007 |
|
Inventories, net |
|
|
11,987 |
|
|
|
12,021 |
|
Investments held to maturity |
|
|
10,789 |
|
|
|
— |
|
Prepaid expenses and other current assets |
|
|
1,029 |
|
|
|
1,232 |
|
Total current assets |
|
|
44,234 |
|
|
|
44,887 |
|
Right of use assets, operating leases |
|
|
1,008 |
|
|
|
1,075 |
|
Property and equipment, net |
|
|
1,561 |
|
|
|
1,434 |
|
Intangible assets, net |
|
|
4,156 |
|
|
|
4,400 |
|
Total assets |
|
$ |
50,959 |
|
|
$ |
51,796 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
2,674 |
|
|
$ |
2,626 |
|
Accrued expenses |
|
|
1,659 |
|
|
|
1,568 |
|
Notes payable |
|
|
— |
|
|
|
84 |
|
Operating lease obligations, current |
|
|
433 |
|
|
|
455 |
|
Customer deposits and deferred revenue |
|
|
1,291 |
|
|
|
1,540 |
|
Total current liabilities |
|
|
6,057 |
|
|
|
6,273 |
|
Operating lease obligations, net of current portion |
|
|
1,022 |
|
|
|
1,107 |
|
Deferred tax liabilities |
|
|
708 |
|
|
|
764 |
|
Total liabilities |
|
|
7,787 |
|
|
|
8,144 |
|
Commitments and contingencies
(See Note 9) |
|
|
|
|
|
|
|
|
Series A Preferred stock, $0.00001 par value per share: 47,500
shares authorized on March 31, 2023, and December 31, 2022,
respectively; -0- and 47,419 shares issued and outstanding on March
31, 2023, and December 31, 2022, respectively. |
|
|
— |
|
|
|
— |
|
Stockholders’
equity |
|
|
|
|
|
|
|
|
Preferred stock, $0.00001 par value per share: 10,000,000 shares
authorized on March 31, 2023, and December 31, 2022,
respectively |
|
|
— |
|
|
|
— |
|
Common stock, $0.00001 par value per share, 100,000,000 shares
authorized on March 31, 2023, and December 31, 2022, respectively:
Common stock, 2,380,966 and 2,370,966 were issued, and 2,380,833
and 2,370,833 were outstanding on March 31, 2023, and December 31,
2022, respectively. |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
346,486 |
|
|
|
345,365 |
|
Accumulated other comprehensive loss |
|
|
(1,182 |
) |
|
|
(1,337 |
) |
Treasury stock, at cost – 133 shares as of March 31, 2023, and
December 31, 2022, respectively |
|
|
(277 |
) |
|
|
(277 |
) |
Accumulated deficit |
|
|
(301,855 |
) |
|
|
(300,099 |
) |
Total stockholders’ equity |
|
|
43,172 |
|
|
|
43,652 |
|
Total liabilities and
stockholders’ equity |
|
$ |
50,959 |
|
|
$ |
51,796 |
|
Reconciliation of GAAP to Non-GAAP
ResultsVISLINK TECHNOLOGIES,
INC.RECONCILIATION OF GAAP to NON-GAAP
RESULTSQUARTER ENDING MARCH 31,
2023(IN THOUSANDS)
|
|
March 31, |
|
|
2023 |
|
2022 |
|
Reconciliation of net
income to EBITDA |
|
|
|
|
|
Net loss |
|
|
($ |
1,756 |
) |
|
($ |
2,767 |
) |
Amortization and depreciation |
|
|
|
298 |
|
|
|
457 |
|
Dividend income |
|
|
|
(91 |
) |
|
|
- |
|
Interest income, net |
|
|
|
(133 |
) |
|
|
- |
|
Tax |
|
|
|
(55 |
) |
|
|
(51 |
) |
EBITDA |
|
|
($ |
1,737 |
) |
|
($ |
2,361 |
) |
Stock based compensation |
|
|
|
921 |
|
|
|
746 |
|
Severance |
|
|
|
349 |
|
|
|
0 |
|
Inventory step up |
|
|
|
0 |
|
|
|
352 |
|
EBITDA Non-GAAP Adjusted |
|
|
($ |
467 |
) |
|
($ |
1,263 |
) |
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