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
third quarter ended September 30, 2023.
Third Quarter 2023 and Recent
Operational Highlights
- Acquired
the assets of Broadcast Microwave Services (BMS),
expanding Vislink’s market-leading position in the AVDS market.
This strategic move opened valuable opportunities to introduce and
promote the Company’s best-in-class AVDS products to BMS’ extensive
customer network of end customers and OEMs.
- Secured
a $1.8 million agreement with ASPIRE for the A2RL Autonomous Race
Series. Vislink, in partnership with FocalPoint VR,
ensures reliable, low-latency video for real-time cockpit views at
the track and at home. Vislink facilitates crucial data
communication between the race cars and their control systems and
generates recurring revenue from an annual service-level
agreement.
- Unveiled
revolutionary bonded cellular transmitter, WMT LiveLink.
Recipient of the IBC TVB Europe - Best of Show award, WMT LiveLink
is the most compact and power-efficient unit on the market and is
driving demand across Vislink’s MilGov and Live production end
markets.
- Expanded
distribution footprint through strategic partnership with JB&A,
the leading distributor of audiovisual solutions in the
U.S. JB&A will offer Vislink’s solutions to
broadcasters and content creators nationwide, amplifying Vislink’s
presence in the U.S. broadcast and video markets.
- Expanded
LinkMatrix™ capability to Amazon
Web Services (AWS), delivering essential
insights for enhancing remote production workflows. The integration
facilitates improved responsiveness and seamless collaboration,
necessary for live broadcasts and efficient field operations within
the public safety market.
Management Commentary
“During Q3, we continued our expansion into the
growing global public safety market, highlighted by our recent
acquisition of BMS assets,” said Vislink CEO Mickey Miller. “The
strategic move not only broadened Vislink’s reach across OEMs and
end customers, including key players in drone communications and
control networks – an emerging growth market – but also positioned
us to accelerate our topline in the near term. BMS further
reinforces Vislink’s position as a leader in the AVDS market,
bolstering our confidence in expanding our MilGov customer
base.
“Our robust, vetted sales funnel is aligned well
with our strategically constructed product portfolio. Building on
our best-in-class AVDS products, LiveLink represents a pivotal step
in expanding our presence across the Live Production and MilGov
segments. The solution seamlessly transforms remote video
transmission for broadcast crews and public safety agencies.
Combined with our LinkMatrix solution, it forms a comprehensive,
all-encompassing workflow management platform, enhancing
operational efficiency and unlocking valuable recurring revenue
streams.
“Financially, in the third quarter, we
experienced a sequential rebound in revenue, and our ongoing
cost-management measures drove year-over-year profitability
improvements. Looking ahead, we see a transformed business with a
lowered breakeven point, poised to continue innovating and meeting
the demands of our expanded global customer base. Our ongoing
exploration of strategic acquisition opportunities within the
public safety market reflects our commitment to accelerating our
growth trajectory and organizational scale.”
Third Quarter 2023 Financial
Results
- Revenue was
$7.2 million compared to $7.1 million in the prior year
period.
- Gross margin
increased to 54%, up from 49% in the prior year period.
- Net loss
attributable to common shareholders totaled $(2.0) million, or
$(0.83) per share, an improvement compared to $(2.7) million, or
$(1.16) per share, in the prior year period.
- EBITDA (earnings before interest,
taxes, depreciation, and amortization) totaled $(1.4) million, an
improvement compared to $(4.7) million in the prior year
period.
- Cash and cash equivalents were $7.2
million at September 30, 2023. The Company had $10.9 million
allocated to treasury bonds intended to be held to maturity. Cash
burn in the third quarter was primarily influenced by the low
revenue volume experienced in the second quarter. Additionally,
around $5 million of shipments in the third quarter were delivered
during the final two weeks of Q3, resulting in cash collection
being deferred to the fourth quarter. The Company is focused on
improving cash performance in the fourth quarter and in 2024.
Conference CallManagement will
host a conference call today, November 8, 2023, at 4:30 p.m.
Eastern Time (1:30 p.m. Pacific Time) to discuss its financial
results for the third quarter ended September 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 after 7:30 p.m. Eastern Time on the same day through
Wednesday, November 22, 2023.
Toll-Free Replay Number:
1-877-344-7529International Replay Number:
1-412-317-0088Replay ID: 7404536
Non-GAAP Financial Measure:
EBITDATo 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 net loss appears in the
financial tables accompanying this press release as set forth
below.
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 and
transactions in our sales pipeline, Q4 cash collection and revenue
from late Q3 orders, acquisitions integration including the
recently acquired BMS assets, 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
capturing, delivering and managing high-quality live video and
associated data. 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—enabling broadcasters and public safety agencies to
capture and share live video seamlessly and securely. 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
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 RosenD. Pagan
Communicationsnicoler@dpagan.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)
|
|
September 30, |
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
|
(unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
7,240 |
|
|
$ |
25,627 |
|
Accounts receivable, net |
|
|
7,407 |
|
|
|
6,007 |
|
Inventories, net |
|
|
13,537 |
|
|
|
12,021 |
|
Investments held to maturity |
|
|
10,920 |
|
|
|
— |
|
Prepaid expenses and other current assets |
|
|
2,033 |
|
|
|
1,232 |
|
Total current assets |
|
|
41,137 |
|
|
|
44,887 |
|
Right of use assets, operating leases |
|
|
716 |
|
|
|
1,075 |
|
Property and equipment, net |
|
|
1,762 |
|
|
|
1,434 |
|
Intangible assets, net |
|
|
4,156 |
|
|
|
4,400 |
|
Total assets |
|
$ |
47,771 |
|
|
$ |
51,796 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
3,131 |
|
|
$ |
2,626 |
|
Accrued expenses |
|
|
1,807 |
|
|
|
1,568 |
|
Notes payable |
|
|
199 |
|
|
|
84 |
|
Operating lease obligations, current |
|
|
372 |
|
|
|
455 |
|
Customer deposits and deferred revenue |
|
|
2,205 |
|
|
|
1,540 |
|
Total current liabilities |
|
|
7,714 |
|
|
|
6,273 |
|
Operating lease obligations, net of current portion |
|
|
823 |
|
|
|
1,107 |
|
Deferred tax liabilities |
|
|
600 |
|
|
|
764 |
|
Total liabilities |
|
|
9,137 |
|
|
|
8,144 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
(See Note 13) |
|
|
- |
|
|
|
- |
|
Series A Preferred stock, $0.00001 par value per share: -0- shares
authorized on September 30, 2023, and December 31, 2022,
respectively; -0- and 47,419 shares issued and outstanding on
September 30, 2023, and December 31, 2022, respectively. |
|
|
— |
|
|
|
— |
|
Stockholders’
equity |
|
|
|
|
|
|
|
|
Preferred stock, $0.00001 par value per share: 10,000,000 shares
authorized on September 30, 2023, and December 31, 2022,
respectively |
|
|
— |
|
|
|
— |
|
Common stock, $0.00001 par value per share, 100,000,000 shares
authorized on September 30, 2023, and December 31, 2022,
respectively: Common stock, 2,387,596 and 2,367,362 were issued,
and 2,387,463 and 2,367,229 were outstanding on September 30, 2023,
and December 31, 2022, respectively. |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
347,165 |
|
|
|
345,365 |
|
Accumulated other comprehensive loss |
|
|
(1,401 |
) |
|
|
(1,337 |
) |
Treasury stock, at cost – 133 shares as of September 30, 2023, and
December 31, 2022, respectively |
|
|
(277 |
) |
|
|
(277 |
) |
Accumulated deficit |
|
|
(306,853 |
) |
|
|
(300,099 |
) |
Total stockholders’ equity |
|
|
38,634 |
|
|
|
43,652 |
|
Total liabilities and
stockholders’ equity |
|
$ |
47,771 |
|
|
$ |
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 Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue, net |
|
$ |
7,179 |
|
|
$ |
7,123 |
|
|
$ |
19,410 |
|
|
$ |
20,749 |
|
Cost of revenue and operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of components and personnel |
|
|
3,302 |
|
|
|
3,616 |
|
|
|
8,977 |
|
|
|
10,225 |
|
Inventory valuation adjustments |
|
|
176 |
|
|
|
207 |
|
|
|
480 |
|
|
|
404 |
|
General and administrative expenses |
|
|
4,793 |
|
|
|
4,624 |
|
|
|
14,500 |
|
|
|
13,973 |
|
Research and development expenses |
|
|
805 |
|
|
|
885 |
|
|
|
2,480 |
|
|
|
3,154 |
|
Impairment on right-of-use assets |
|
|
83 |
|
|
|
88 |
|
|
|
83 |
|
|
|
88 |
|
Amortization and depreciation |
|
|
311 |
|
|
|
502 |
|
|
|
913 |
|
|
|
1,424 |
|
Total cost of revenue and operating expenses |
|
|
9,470 |
|
|
|
9,922 |
|
|
|
27,433 |
|
|
|
29,268 |
|
Loss from operations |
|
|
(2,291 |
) |
|
|
(2,799 |
) |
|
|
(8,023 |
) |
|
|
(8,519 |
) |
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss on investments held to maturity |
|
|
(4 |
) |
|
|
— |
|
|
|
(67 |
) |
|
|
— |
|
Gain on settlement of debt |
|
|
— |
|
|
|
17 |
|
|
|
— |
|
|
|
26 |
|
Other income |
|
|
(36 |
) |
|
|
(9 |
) |
|
|
294 |
|
|
|
307 |
|
Dividend income |
|
|
104 |
|
|
|
— |
|
|
|
323 |
|
|
|
— |
|
Interest income, net |
|
|
202 |
|
|
|
(3 |
) |
|
|
555 |
|
|
|
(8 |
) |
Total other income (expense) |
|
|
266 |
|
|
|
5 |
|
|
|
1,105 |
|
|
|
325 |
|
Net loss before income taxes |
|
|
(2,025 |
) |
|
|
(2,794 |
) |
|
|
(6,918 |
) |
|
|
(8,194 |
) |
Income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax benefits |
|
|
55 |
|
|
|
54 |
|
|
|
164 |
|
|
|
161 |
|
Net loss |
|
$ |
(1,970 |
) |
|
$ |
(2,740 |
) |
|
$ |
(6,754 |
) |
|
$ |
(8,033 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss per share |
|
$ |
(0.83 |
) |
|
$ |
(1.16 |
) |
|
$ |
(2.84 |
) |
|
$ |
(3.46 |
) |
Weighted average number of shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
2,382 |
|
|
|
2,370 |
|
|
|
2,377 |
|
|
|
2,322 |
|
Comprehensive loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(1,970 |
) |
|
$ |
(2,740 |
) |
|
$ |
(6,754 |
) |
|
$ |
(8,033 |
) |
Unrealized gain (loss) on
currency translation adjustment |
|
|
(364 |
) |
|
|
746 |
|
|
|
(64 |
) |
|
|
1,885 |
|
Comprehensive loss |
|
$ |
(2,334 |
) |
|
$ |
(1,994 |
) |
|
$ |
(6,818 |
) |
|
$ |
(6,148 |
) |
Reconciliation of GAAP to Non-GAAP
ResultsVISLINK TECHNOLOGIES,
INC.RECONCILIATION OF GAAP to NON-GAAP
RESULTSQUARTER ENDING September 30,
2023(IN THOUSANDS)
|
|
For the Three
Months Ended |
|
|
For the Nine
Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Reconciliation of net income to EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(1,970 |
) |
|
$ |
(2,740 |
) |
|
$ |
(6,754 |
) |
|
$ |
(8,033 |
) |
Amortization and depreciation |
|
|
311 |
|
|
|
502 |
|
|
|
913 |
|
|
|
1,424 |
|
Dividend income |
|
|
(104 |
) |
|
|
- |
|
|
|
(323 |
) |
|
|
- |
|
Interest income, net |
|
|
(202 |
) |
|
|
3 |
|
|
|
(555 |
) |
|
|
8 |
|
Tax |
|
|
(55 |
) |
|
|
(54 |
) |
|
|
(164 |
) |
|
|
(161 |
) |
EBITDA |
|
$ |
(2,020 |
) |
|
$ |
(2,289 |
) |
|
$ |
(6,883 |
) |
|
$ |
(6,762 |
) |
Stock based compensation |
|
|
343 |
|
|
|
315 |
|
|
|
1,600 |
|
|
|
1,470 |
|
Severance |
|
|
182 |
|
|
|
- |
|
|
|
541 |
|
|
|
25 |
|
Impairment |
|
|
83 |
|
|
|
88 |
|
|
|
83 |
|
|
|
88 |
|
Inventory step up |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
516 |
|
EBITDA Non-GAAP Adjusted |
|
$ |
(1,412 |
) |
|
$ |
(1,886 |
) |
|
$ |
(4,659 |
) |
|
$ |
(4,663 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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