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 June 30, 2022.
Company management will host a live video conference call to
discuss the second quarter 2022 results on Tuesday, Aug. 16, 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-q2-2022-financial-results-video-conference-call/.
An archived replay will be made available after the call ends.
Financial Update:
- Revenues for the three months ended
June 30, 2022 were $6.8 million, compared to $7.6 million for the
three months ended June 30, 2021. Revenues for the first half of
2022 were $13.9 million, compared to $11.6 million for the first
half of 2021.
- Gross margins were 53% of revenue
in the second quarter of 2022 compared to 52% of revenue for the
second quarter of 2021.
- In the second quarter of 2022, net
loss attributable to common shareholders was $2.6 million or
$(0.05) per share, compared to $834,000, or $(0.02) per share for
the second quarter of 2021 and $2.8 million, or $(0.06) per share
for the first quarter of 2022.
- EBITDA (earnings before interest,
taxes depreciation and amortization) for the three months ended
June 30, 2022 was negative $2.1 million compared to negative
$578,000 for the three months ended June 30, 2021.
“While our results in the second quarter fell
short of our expectations, we are encouraged to see that business
conditions in our key market sectors have markedly improved,” said
Carleton Miller, CEO of Vislink. “The return of live events being
held and positive traction for our new products has increased
opportunities and led to robust quoting activity, despite delays in
projects, particularly in government markets. This has allowed us
to build a very strong pipeline of business for both the near and
longer-term that we anticipate closing.”
He continued, “In the live event production
market, our end-to-end solutions now incorporate the AI-assisted
and 5G streaming technologies we added when we acquired Mobile
Viewpoint last year. This expanded technology suite allows us to
leverage our traditional strength in supporting large global live
events to also supply smaller events, venues and leagues. We
believe these capabilities provide us a lower cost of entry to
capturing business from the rapidly growing lower tier market for
live event production, and now gives us a presence in addressing
all levels of competition, from local grassroots to
professional.”
“Similarly, our quoting activity for government
business has rebounded after delays due to long sales cycles and
government funding slowdowns. In this market, we continue to be a
leading provider of solutions that deliver the tactical insights
demanded by law enforcement, public safety and first responder
organizations, especially with the release of new solutions
including the AeroLink aerial video downlink system. As a result,
we are hopeful to close on a number of additional opportunities
over the coming months.”
He continued, “Our revenue was also affected by
impacts we experienced to our supply chain. While we had taken
steps previously to mitigate such impacts, including purchasing
critical components and producing more finished goods to service
our customers, we are still experiencing intermittent shortages of
critical components.”
“In response to the above challenges, we have
undertaken a comprehensive transformation of virtually every aspect
of our operations, with the goal of optimizing our business
processes and reducing our cost structure by:
- consolidating
our worldwide footprint, which will result in reduced headcount and
significantly lower operating expenses;
- reconfiguring
our go-to-market approach to deliver enhanced customer service and
engagement;
- streamlining and
simplifying our solution offerings and expecting to derive a
greater portion of future revenue from new targeted product
releases;
- making
significant investments in our engineering capabilities while
consolidating our Vislink and Mobile Viewpoint technology
assets.”
He concluded, “In summary, we believe that the
above actions will help us deliver better customer responsiveness,
a fully streamlined product development methodology, and a
substantially lower cost of operations. We are optimistic that the
improved sales climate, coupled with our more efficient operating
base, will put us in a position to finish strongly in the remainder
of fiscal 2022.”
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, 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, 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)
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For the Three Months Ended |
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For the Six Months Ended |
|
|
|
June 30, |
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June 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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Revenue,
net |
|
$ |
6,756 |
|
|
$ |
7,550 |
|
|
$ |
13,910 |
|
|
$ |
11,640 |
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|
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|
|
|
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Cost of revenue and
operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of components and personnel |
|
|
3,186 |
|
|
|
3,563 |
|
|
|
6,609 |
|
|
|
5,770 |
|
Inventory valuation adjustments |
|
|
101 |
|
|
|
159 |
|
|
|
197 |
|
|
|
311 |
|
General and administrative expenses |
|
|
4,439 |
|
|
|
3,751 |
|
|
|
9,349 |
|
|
|
7,398 |
|
Research and development expenses |
|
|
1,151 |
|
|
|
718 |
|
|
|
2,269 |
|
|
|
1,320 |
|
Amortization and depreciation |
|
|
465 |
|
|
|
256 |
|
|
|
922 |
|
|
|
517 |
|
Total cost of revenue and operating expenses |
|
|
9,342 |
|
|
|
8,447 |
|
|
|
19,346 |
|
|
|
15,316 |
|
Loss from operations |
|
|
(2,586 |
) |
|
|
(897 |
) |
|
|
(5,436 |
) |
|
|
(3,676 |
) |
Other income
(expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in fair value of derivative liabilities |
|
|
— |
|
|
|
61 |
|
|
|
— |
|
|
|
(17 |
) |
Gain on settlement of debt |
|
|
9 |
|
|
|
— |
|
|
|
9 |
|
|
|
194 |
|
Other income |
|
|
— |
|
|
|
2 |
|
|
|
32 |
|
|
|
2 |
|
Interest expense |
|
|
(5 |
) |
|
|
— |
|
|
|
(5 |
) |
|
|
(4 |
) |
Total other income (expense) |
|
|
4 |
|
|
|
63 |
|
|
|
36 |
|
|
|
175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss before income
taxes |
|
|
(2,582 |
) |
|
|
(834 |
) |
|
|
(5,400 |
) |
|
|
(3,501 |
) |
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Income
taxes |
|
|
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Deferred tax benefits |
|
|
56 |
|
|
|
— |
|
|
|
107 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(2,526 |
) |
|
|
(834 |
) |
|
|
(5,293 |
) |
|
|
(3,501 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Basic and diluted loss
per share |
|
$ |
(0.05 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.09 |
) |
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Weighted average
number of shares outstanding: |
|
|
|
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|
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|
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|
|
|
|
|
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Basic and diluted |
|
|
46,097 |
|
|
|
46,650 |
|
|
|
45,960 |
|
|
|
41,145 |
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net loss |
|
$ |
(2,526 |
) |
|
$ |
(834 |
) |
|
$ |
(5,293 |
) |
|
$ |
(3,501 |
) |
Unrealized gain (loss) on
currency translation adjustment |
|
|
871 |
|
|
|
29 |
|
|
|
1,139 |
|
|
|
(14 |
) |
Comprehensive loss |
|
$ |
(1,655 |
) |
|
$ |
(805 |
) |
|
$ |
(4,154 |
) |
|
$ |
(3,515 |
) |
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)
|
|
|
|
|
|
June 30, |
|
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
(unaudited) |
|
|
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|
|
ASSETS |
|
|
|
|
|
|
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|
Current
assets |
|
|
|
|
|
|
|
|
Cash |
|
$ |
26,879 |
|
|
$ |
36,231 |
|
Accounts receivable, net |
|
|
8,673 |
|
|
|
9,069 |
|
Inventories, net |
|
|
14,728 |
|
|
|
11,894 |
|
Prepaid expenses and other current assets |
|
|
2,202 |
|
|
|
2,470 |
|
Total current assets |
|
|
52,482 |
|
|
|
59,664 |
|
Right of use assets, operating leases |
|
|
1,260 |
|
|
|
1,362 |
|
Property and equipment, net |
|
|
1,365 |
|
|
|
1,173 |
|
Intangible assets, net |
|
|
5,101 |
|
|
|
5,921 |
|
Total assets |
|
$ |
60,208 |
|
|
$ |
68,120 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
2,738 |
|
|
$ |
3,075 |
|
Accrued expenses |
|
|
1,600 |
|
|
|
3,155 |
|
Notes payable |
|
|
584 |
|
|
|
99 |
|
Operating lease obligations, current |
|
|
464 |
|
|
|
560 |
|
Customer deposits and deferred revenue |
|
|
1,446 |
|
|
|
2,113 |
|
Total current liabilities |
|
|
6,832 |
|
|
|
9,002 |
|
Operating lease obligations, net of current portion |
|
|
1,317 |
|
|
|
1,507 |
|
Deferred tax liabilities |
|
|
872 |
|
|
|
978 |
|
Total liabilities |
|
|
9,021 |
|
|
|
11,487 |
|
Commitments and contingencies
(See Note 9) |
|
|
|
|
|
|
|
|
Stockholders’
equity |
|
|
|
|
|
|
|
|
Preferred stock – $0.00001 par value per share: 10,000,000 shares
authorized on June 30, 2022, and December 31, 2021; -0- shares
issued and outstanding as of June 30, 2022, and December 31, 2021,
respectively |
|
|
— |
|
|
|
— |
|
Common stock, – $0.00001 par value per share, 100,000,000 shares
authorized, 47,380,614 and 45,825,089 shares issued and 47,377,955
and 45,822,430 outstanding at June 30, 2022, and December 31, 2021,
respectively |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
344,732 |
|
|
|
343,746 |
|
Accumulated other comprehensive income |
|
|
(1,436 |
) |
|
|
(297 |
) |
Treasury stock, at cost – 2,659 shares as of June 30, 2022, and
December 31, 2021, respectively |
|
|
(277 |
) |
|
|
(277 |
) |
Accumulated deficit |
|
|
(291,832 |
) |
|
|
(286,539 |
) |
Total stockholders’ equity |
|
|
51,187 |
|
|
|
56,633 |
|
Total liabilities and
stockholders’ equity |
|
$ |
60,208 |
|
|
$ |
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 JUNE
30,
2022(IN THOUSANDS)
Reconciliation of net income to
EBITDA
Net loss |
$ |
(2,526 |
) |
Interest expense |
|
(5 |
) |
Amortization and depreciation |
|
465 |
|
Tax |
|
(56 |
) |
EBITDA |
$ |
(2,122 |
) |
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