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
second quarter and first six months ended June 30, 2023.
Second Quarter
2023 and Recent Operational
Highlights
-
Installed
AeroLink™ systems with
public safety agencies in the Mid-Atlantic region,
providing advanced Airborne Video Downlink System (“AVDS”)
technology for improved air-to-ground and top-quality live video in
law enforcement applications.
-
Delivered seven
AeroLink™ transmitters to
law enforcement customers in Q2, bringing total deliveries
of the latest AVDS component to 12. This component equips law
enforcement agencies with high-quality live video, extended
coverage, and enhanced operational efficiency, crucial for
effective decision-making in critical situations.
-
Provided five
Cliq OFDM Mini Camera
Transmitters for demo purposes, which
received strong positive responses from Live Broadcast customers
and demonstrated the product’s resonance in a market that
prioritizes compact design without compromising reliable video
transmission.
- Unveiled
Aero5™ 5G Downlink
Transmitter, enhancing airborne video downlink
applications with the most technologically advanced 5G/LTE bonded
cellular solution and empowering public safety agencies and live
production broadcast crews to transform air-to-ground video
transmission operations.
-
Expanded
LinkMatrix™ capability to
Amazon Web Services (AWS), delivering
essential insights for enhancing remote production workflows. The
integration facilitates improved responsiveness and seamless
collaboration, essential for live broadcasts and efficient field
operations with the public safety market.
-
Appointed seasoned public safety sales executive Steven
Teese as VP of Sales for the Americas, leveraging his
extensive leadership background from Watchguard Video, Motorola
Solutions, and Honeywell to strengthen Vislink’s market presence
and drive growth in key segments.
Management Commentary
“Building on our strategic shift towards the
fast-growing public safety market, we achieved significant
operational progress with a notable 91% year-over-year increase in
our MilGov segment, totaling $1.2 million in Q2,” said Vislink CEO
Mickey Miller. “Navigating the inherent uncertainties and unique
industry dynamics, such as elongated sales cycles associated with
this new market, our resolve to capitalize on this growth area
remains firm. Our strategic approach, backed by our revitalized
leadership team, aims to convert our robust sales pipeline, replete
with multiple potential opportunities ranging from $500,000 to over
$1 million.
“Vislink's commitment to technological
innovation is reflected in our successful production ramp of
AeroLink™ and the positive market response to Cliq. Concurrently,
we are intensifying our efforts to enhance operational
efficiencies, which, when completed, will produce more than $1
million in cost savings annually. We have also implemented a 5%
price increase on all new orders. These focused measures, coupled
with our drive to secure more predictable, recurring revenue from
software and services, underscore our confidence in our ability to
drive sustainable growth in the future.”
First Six Month 2023 Financial
Results
- Revenue was
$12.2 million compared to $13.6 million in the prior year
period.
- Gross margin
increased to 54%, up from 52% in the prior year period.
- Net loss
attributable to common shareholders was $(4.8) million, or $(2.02)
per share, an improvement compared to $(5.3) million, or $(2.30)
per share, in the prior year period.
- EBITDA (earnings before interest,
taxes, depreciation, and amortization) was $(4.9) million, compared
to $(4.5) million in the prior year period.
Second Quarter 2023 Financial
Results
- Revenue was
$5.0 million compared to $6.8 million in the prior year
period.
- Gross margin of
53% remained consistent with the prior year period.
- Net loss
attributable to common shareholders was $(3.0) million, or $(1.27)
per share, as compared to $(2.5) million, or $(1.10) per share, in
the prior year period.
- EBITDA
(earnings before interest, taxes, depreciation, and amortization)
was $(3.1) million, compared to $(2.1) million in the prior year
period.
- Maintained a strong balance sheet
with $11.0 million in cash and cash equivalents, while
strategically allocating $10.8 million to federal bonds intended to
be held to maturity.
Conference Call
Management will host a conference call today,
August 11, 2023, at 8:30 a.m. Eastern Time (5:30 a.m. Pacific Time)
to discuss its financial results for the second quarter ended June
30, 2023.
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
before the start time (although you may register, dial in, or
access the webcast anytime during the call). If you have difficulty
registering 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 for a limited time after 11:30 a.m. Eastern Time on the
same day through Friday, August 25, 2023.
Toll-Free Replay Number:
1-877-344-7529International Replay Number:
1-412-317-0088Replay ID: 6349942
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 earnings release and the related
earnings 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,
establish budgets, and 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.
A reconciliation of non-GAAP EBITDA to GAAP to GAAP net loss
appears in the financial tables accompanying this press release as
set forth below.
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 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 and
transactions in our sales pipeline, acquisitions integration, cost
savings, 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 Technologies is 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. With a renowned heritage in video
communications encompassing over 50 years, Vislink has
revolutionized live video communications by delivering the
highest-quality video from the scene, even in the most challenging
transmission conditions. 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. Vislink’s innovative solutions enable
broadcasters and public safety agencies to capture and share live
video seamlessly and securely, ensuring they can stay connected
with their audiences, teams, and operations. 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:Charlotte van HertumVislink
Technologies, Inc.charlotte.vanhertum@vislink.com
Investor Relations Contact:Matt Glover and Alec
WilsonGateway Group, Inc.VISL@gateway-grp.com
-Financial Tables to Follow-
VISLINK TECHNOLOGIES, INC. AND
SUBSIDIARIESCONDENSED
CONSOLIDATED BALANCE SHEETS(IN THOUSANDS
EXCEPT SHARE AND PER SHARE DATA)
|
|
2023 |
|
|
2022 |
|
|
|
|
(unaudited) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
10,973 |
|
|
$ |
25,627 |
|
Accounts receivable, net |
|
|
5,747 |
|
|
|
6,007 |
|
Inventories, net |
|
|
13,177 |
|
|
|
12,021 |
|
Investments held to maturity |
|
|
10,837 |
|
|
|
— |
|
Prepaid expenses and other current assets |
|
|
2,376 |
|
|
|
1,232 |
|
Total current assets |
|
|
43,110 |
|
|
|
44,887 |
|
Right of use assets, operating leases |
|
|
940 |
|
|
|
1,075 |
|
Property and equipment, net |
|
|
1,744 |
|
|
|
1,434 |
|
Intangible assets, net |
|
|
3,910 |
|
|
|
4,400 |
|
Total assets |
|
$ |
49,704 |
|
|
$ |
51,796 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
3,333 |
|
|
$ |
2,626 |
|
Accrued expenses |
|
|
1,436 |
|
|
|
1,568 |
|
Notes payable |
|
|
394 |
|
|
|
84 |
|
Operating lease obligations, current |
|
|
406 |
|
|
|
455 |
|
Customer deposits and deferred revenue |
|
|
1,921 |
|
|
|
1,540 |
|
Total current liabilities |
|
|
7,490 |
|
|
|
6,273 |
|
Operating lease obligations, net of current portion |
|
|
934 |
|
|
|
1,107 |
|
Deferred tax liabilities |
|
|
655 |
|
|
|
764 |
|
Total liabilities |
|
|
9,079 |
|
|
|
8,144 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
(See Note 12) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series A Preferred stock, $0.00001 par value per share: -0- shares
authorized on June 30, 2023, and December 31, 2022, respectively;
-0- and 47,419 shares issued and outstanding on June 30, 2023, and
December 31, 2022, respectively. |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
Stockholders’
equity |
|
|
|
|
|
|
|
|
Preferred stock, $0.00001 par value per share: 10,000,000 shares
authorized on June 30, 2023, and December 31, 2022,
respectively |
|
|
— |
|
|
|
— |
|
Common stock, $0.00001 par value per share, 100,000,000 shares
authorized on June 30, 2023, and December 31, 2022,
respectively: |
|
|
|
|
|
|
|
|
Common stock, 2,377,362 and 2,370,966 were issued, and 2,377,229
and 2,370,833 were outstanding on June 30, 2023, and December 31,
2022, respectively. |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
346,822 |
|
|
|
345,365 |
|
Accumulated other comprehensive loss |
|
|
(1,037 |
) |
|
|
(1,337 |
) |
Treasury stock, at cost – 133 shares as of June 30, 2023, and
December 31, 2022, respectively |
|
|
(277 |
) |
|
|
(277 |
) |
Accumulated deficit |
|
|
(304,883 |
) |
|
|
(300,099 |
) |
Total stockholders’ equity |
|
|
40,625 |
|
|
|
43,652 |
|
Total liabilities and
stockholders’ equity |
|
$ |
49,704 |
|
|
$ |
51,796 |
|
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 |
|
|
For the Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue, net |
|
$ |
5,043 |
|
|
$ |
6,766 |
|
|
$ |
12,231 |
|
|
$ |
13,626 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue and operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of components and personnel |
|
|
2,361 |
|
|
|
3,186 |
|
|
|
5,675 |
|
|
|
6,609 |
|
Inventory valuation adjustments |
|
|
175 |
|
|
|
101 |
|
|
|
304 |
|
|
|
197 |
|
General and administrative expenses |
|
|
4,679 |
|
|
|
4,439 |
|
|
|
9,707 |
|
|
|
9,349 |
|
Research and development expenses |
|
|
908 |
|
|
|
1,151 |
|
|
|
1,675 |
|
|
|
2,269 |
|
Amortization and depreciation |
|
|
304 |
|
|
|
465 |
|
|
|
602 |
|
|
|
922 |
|
Total cost of revenue and operating expenses |
|
|
8,427 |
|
|
|
9,342 |
|
|
|
17,963 |
|
|
|
19,346 |
|
Loss from operations |
|
|
(3,384 |
) |
|
|
(2,576 |
) |
|
|
(5,732 |
) |
|
|
(5,720 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss on investments held to maturity |
|
|
(35 |
) |
|
|
— |
|
|
|
(63 |
) |
|
|
— |
|
Gain on settlement of debt |
|
|
— |
|
|
|
9 |
|
|
|
— |
|
|
|
9 |
|
Other income |
|
|
(11 |
) |
|
|
(10 |
) |
|
|
330 |
|
|
|
316 |
|
Dividend income |
|
|
128 |
|
|
|
— |
|
|
|
219 |
|
|
|
— |
|
Interest income, net |
|
|
220 |
|
|
|
(5 |
) |
|
|
353 |
|
|
|
(5 |
) |
Total other income (expense) |
|
|
302 |
|
|
|
(6 |
) |
|
|
839 |
|
|
|
320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss before income taxes |
|
|
(3,082 |
) |
|
|
(2,582 |
) |
|
|
(4,893 |
) |
|
|
(5,400 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax benefits |
|
|
54 |
|
|
|
56 |
|
|
|
109 |
|
|
|
107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(3,028 |
) |
|
|
(2,526 |
) |
|
|
(4,784 |
) |
|
|
(5,293 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss per share |
|
$ |
(1.27 |
) |
|
$ |
(1.10 |
) |
|
$ |
(2.02 |
) |
|
$ |
(2.30 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
2,377 |
|
|
|
2,305 |
|
|
|
2,374 |
|
|
|
2,298 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(3,028 |
) |
|
$ |
(2,526 |
) |
|
$ |
(4,784 |
) |
|
$ |
(5,293 |
) |
Unrealized gain (loss) on
currency translation adjustment |
|
|
145 |
|
|
|
(1,407 |
) |
|
|
300 |
|
|
|
(1,139 |
) |
Comprehensive loss |
|
$ |
(2,883 |
) |
|
$ |
(3,933 |
) |
|
$ |
(4,484 |
) |
|
$ |
(6,432 |
) |
Reconciliation of GAAP to Non-GAAP
ResultsVISLINK TECHNOLOGIES,
INC.RECONCILIATION OF GAAP to NON-GAAP
RESULTSQUARTER ENDING June 30,
2023(IN THOUSANDS)
|
|
For the Three Months Ended |
|
|
For the Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Reconciliation of net income to EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
|
(3,028 |
) |
|
|
$ |
|
(2,526 |
) |
|
|
$ |
|
(4,784 |
) |
|
|
$ |
|
(5,293 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization and depreciation |
|
|
|
304 |
|
|
|
|
|
465 |
|
|
|
|
|
602 |
|
|
|
|
|
922 |
|
|
Dividend income |
|
|
|
(128 |
) |
|
|
|
|
- |
|
|
|
|
|
(219 |
) |
|
|
|
|
- |
|
|
Interest income, net |
|
|
|
(220 |
) |
|
|
|
|
5 |
|
|
|
|
|
(353 |
) |
|
|
|
|
5 |
|
|
Tax |
|
|
|
(54 |
) |
|
|
|
|
(56 |
) |
|
|
|
|
(109 |
) |
|
|
|
|
(107 |
) |
|
EBITDA |
|
|
$ |
(3,126 |
) |
|
|
|
$ |
(2,112 |
) |
|
|
|
$ |
(4,863 |
) |
|
|
|
$ |
(4,473 |
) |
|
Stock based compensation |
|
|
|
336 |
|
|
|
|
|
407 |
|
|
|
|
|
1,257 |
|
|
|
|
|
1,154 |
|
|
Severance |
|
|
|
9 |
|
|
|
|
|
- |
|
|
|
|
|
359 |
|
|
|
|
|
25 |
|
|
Inventory step up |
|
|
|
- |
|
|
|
|
|
163 |
|
|
|
|
|
- |
|
|
|
|
|
516 |
|
|
EBITDA Non-GAAP Adjusted |
|
|
$ |
(2,781 |
) |
|
|
|
$ |
(1,542 |
) |
|
|
|
$ |
(3,247 |
) |
|
|
|
$ |
(2,778 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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