Vislink Technologies Reports Q1 2020 Financial Results
May 27 2020 - 5:45PM
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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