Vislink (Nasdaq: VISL), a global technology leader in the capture,
delivery and management of high quality, live video and associated
data in the media & entertainment, law enforcement and defense
markets, announced its results for the quarter ended March 31,
2022. Company management will host a live video conference call to
discuss the first quarter 2022 results on Tuesday, May 17, 2022, at
10:00 a.m. Eastern (9:00 a.m. Central) which will be followed by a
Q&A session. The conference call will be accessible at the
following link:
https://marketscale.com/live/vislink-q1-2022-financial-results-video-conference-call/.
An archived replay will be available after the call ends.
Financial Update:
- Revenues for the three months ended
March 31, 2022 were $7.2 million, compared to $4.1 million for the
three months ended March 31, 2021.
- Gross margins were 52% of revenue
in the first quarter of 2022 compared to 46% of revenue for the
first quarter of 2021.
- In the first quarter of 2022, net
loss attributable to common shareholders was $2.8 million, or
$(0.06) per share, compared to net loss of $2.7 million, or $(0.07)
per share for the first quarter of 2021.
- EBITDA (earnings before interest,
taxes depreciation and amortization) for the three months ended
March 31, 2022 was negative $1.3 million compared to negative $2.4
million for the three months ended March 31, 2021.
- Ended the first quarter of 2022 with
$31 million in cash, compared to $36.2 million at December 31,
2021.
“We are pleased to report that revenues in the
first quarter of 2022 were 75% higher than in the previous year,”
said Carleton Miller, CEO of Vislink. “We successfully launched new
products and solutions that are already generating opportunities
for us to close new business. This included AeroLink—the first
commercially available COFDM/5G/Mesh aerial downlink solution—that
was designed for both law enforcement video surveillance and live
news and sports applications. We also released Stellar Cam, part of
our award-winning AI-automated solution that allows organizations
to profitably cover more live events, create and stream more
content and expand viewing audiences. We also made significant
enhancements and tighter integrations to our existing live
production offerings, allowing us to release a scene-to-screen
unified-workflow solution for capturing and managing live content.
These new launches drove strong increase in quoting activity and
led to a 40% gain in bookings in our live production markets.”
He continued, “As a result of the above, we are
excited that we can now offer a wider set of video communications
solutions than we ever have previously, and can solve almost any
business challenge faced by organizations in the sectors we operate
in. We are confident that the above will lead to expanding
opportunities for us capture wider swaths of business in the coming
quarters, allowing us to reach and maintain profitable growth.”
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, future
revenues including from bookings activity, projected expenses,
prospects, plans, objectives of management, new capabilities,
product and solutions launches, expected contract values,
acquisitions integration, and expected market opportunities across
the Company’s operating segments, 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, 2021, filed
with the SEC on March 31, 2022 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.
ContactsInvestor
Relations:investors@vislink.com
Media Relations:Charlotte van
HertumCharlotte.vanhertum@vislink.com
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, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
Revenue,
net |
|
$ |
7,154 |
|
|
|
$ |
4,090 |
|
|
Cost of revenue and
operating expenses |
|
|
|
|
|
|
|
|
Cost of components and personnel |
|
|
3,423 |
|
|
|
|
2,207 |
|
|
Inventory valuation adjustments |
|
|
96 |
|
|
|
|
152 |
|
|
General and administrative expenses |
|
|
4,910 |
|
|
|
|
3,647 |
|
|
Research and development expenses |
|
|
1,118 |
|
|
|
|
602 |
|
|
Amortization and depreciation |
|
|
457 |
|
|
|
|
261 |
|
|
Total cost of revenue and operating expenses |
|
|
10,004 |
|
|
|
|
6,869 |
|
|
Loss from operations |
|
|
(2,850 |
) |
|
|
|
(2,779 |
) |
|
Other income
(expense) |
|
|
|
|
|
|
|
|
Changes in fair value of derivative liabilities |
|
|
— |
|
|
|
|
(78 |
) |
|
Gain on settlement of debt |
|
|
— |
|
|
|
|
194 |
|
|
Other income |
|
|
32 |
|
|
|
|
1 |
|
|
Interest expense, net |
|
|
— |
|
|
|
|
(5 |
) |
|
Total other income (expense) |
|
|
32 |
|
|
|
|
112 |
|
|
|
|
|
|
|
|
|
|
|
Net loss before income
taxes |
|
|
(2,818 |
) |
|
|
|
(2,667 |
) |
|
|
|
|
|
|
|
|
|
|
Income
taxes |
|
|
|
|
|
|
|
|
Deferred tax benefits |
|
|
51 |
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(2,767 |
) |
|
|
$ |
(2,667 |
) |
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss
per share |
|
$ |
(0.06 |
) |
|
|
$ |
(0.07 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding: |
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
45,822 |
|
|
|
|
36,591 |
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(2,767 |
) |
|
|
$ |
(2,667 |
) |
|
Unrealized loss on currency translation adjustment |
|
|
(268 |
) |
|
|
|
(43 |
) |
|
Comprehensive loss |
|
$ |
(3,035 |
) |
|
|
$ |
(2,710 |
) |
|
The accompanying notes are an integral part of
these consolidated financial statements.
VISLINK TECHNOLOGIES, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(IN THOUSANDS EXCEPT SHARE AND PER SHARE
DATA)
|
|
March 31, |
|
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
|
|
Cash |
|
$ |
31,023 |
|
|
$ |
36,231 |
|
Accounts receivable, net |
|
|
9,436 |
|
|
|
9,069 |
|
Inventories, net |
|
|
13,764 |
|
|
|
11,894 |
|
Prepaid expenses and other current assets |
|
|
2,060 |
|
|
|
2,470 |
|
Total current assets |
|
|
56,283 |
|
|
|
59,664 |
|
Right of use assets, operating leases |
|
|
1,312 |
|
|
|
1,362 |
|
Property and equipment, net |
|
|
1,336 |
|
|
|
1,173 |
|
Intangible assets, net |
|
|
5,514 |
|
|
|
5,921 |
|
Total assets |
|
$ |
64,445 |
|
|
$ |
68,120 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
2,835 |
|
|
$ |
3,075 |
|
Accrued expenses |
|
|
2,791 |
|
|
|
3,155 |
|
Notes payable |
|
|
— |
|
|
|
99 |
|
Operating lease obligations, current |
|
|
446 |
|
|
|
560 |
|
Customer deposits and deferred revenue |
|
|
1,608 |
|
|
|
2,113 |
|
Total current liabilities |
|
|
7,680 |
|
|
|
9,002 |
|
Operating lease obligations, net of current portion |
|
|
1,494 |
|
|
|
1,507 |
|
Deferred tax liabilities |
|
|
926 |
|
|
|
978 |
|
Total liabilities |
|
|
10,100 |
|
|
|
11,487 |
|
Commitments and contingencies
(See Note 10) |
|
|
|
|
|
|
|
|
Stockholders’
equity |
|
|
|
|
|
|
|
|
Preferred stock – $0.00001 par value per share: 10,000,000 shares
authorized on March 31, 2022, and December 31, 2021; -0- shares
issued and outstanding as of March 31, 2022, and December 31, 2021,
respectively |
|
|
— |
|
|
|
— |
|
Common stock, – $0.00001 par value per share, 100,000,000 shares
authorized, 45,825,089 shares issued and outstanding at March 31,
2022, and December 31, 2021, respectively |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
344,493 |
|
|
|
343,746 |
|
Accumulated other comprehensive loss |
|
|
(565 |
) |
|
|
(297 |
) |
Treasury stock, at cost – 2,659 shares as of March 31, 2022, and
December 31, 2021, respectively |
|
|
(277 |
) |
|
|
(277 |
) |
Accumulated deficit |
|
|
(289,306 |
) |
|
|
(286,539 |
) |
Total stockholders’ equity |
|
|
54,345 |
|
|
|
56,633 |
|
Total liabilities and
stockholders’ equity |
|
$ |
64,445 |
|
|
$ |
68,120 |
|
The accompanying notes are an integral part of
these consolidated financial statements.
Reconciliation of GAAP to Non-GAAP Results
VISLINK TECHNOLOGIES,
INC. RECONCILIATION OF GAAP to
NON-GAAP RESULTS QUARTER ENDING
MARCH 31, 2022(IN THOUSANDS)
Reconciliation of net income to
EBITDA
Net loss |
$ |
(2,767 |
) |
Interest expense |
|
– |
|
Amortization and depreciation |
|
457 |
|
Tax |
|
(51 |
) |
One-time inventory value step-up |
|
353 |
|
Non-budgeted RSU stock options |
|
747 |
|
EBITDA |
$ |
(1,261 |
) |
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