08/15/2024 | Press release | Archived content
Q2 Revenue Jumps 73% Year-Over-Year to $8.7 Million, First Six Months Revenue Reaches $17.3 Million; Vislink Lands Government Orders and Expands Market Reach with Assignment of NATO Stock Numbers and OEM Supplier Approvals
Mt. Olive, NJ - August 14, 2024 -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, public safety, and defense markets, today reported results for the second quarter ended June 30, 2024.
Second Quarter 2024 Financial Results
Second Quarter 2024 and Recent Operational Highlights
Management Commentary
"Vislink's second quarter results show our continuing progress, highlighting the effectiveness of our strategic initiatives and the continued execution of our growth plans," stated Mickey Miller, CEO of Vislink. "We achieved a 73% increase in revenue, reaching $8.7 million, driven by continued advancement in both the MilGov and Live Broadcast markets. Our weighted sales pipeline grew to $51 million, reflecting strong customer optimism for our refreshed product portfolio. Recent shipments to U.S. Customs and Border Protection and other MilGov End Users and OEMs demonstrate our ability to seamlessly integrate existing AVDS products with assets acquired from BMS to expand our customer base and capabilities.
"As we progress through the second half of the year, we are driving innovation by increasing our investment in R&D in multiple areas. Our developments in AVDS and unmanned and manned drone systems demonstrate how we are strengthening our position in aerial and terrestrial solutions. These efforts are expected to improve our market position and ability to capitalize on the growing demand for Unmanned Control, Command, and Payload solutions. Recent significant orders and market penetration underscore our momentum and expanding impact in this exciting, high-growth market.
"With the upcoming launch of our upgraded and unified ERP system this fall, we anticipate further improvements in supply chain efficiency and operational performance. These improvements will support our ongoing efforts to enhance gross margins and reduce operating costs. While we continue to target cash flow neutrality by the end of 2024, timing may vary as we strategically prioritize incremental R&D investments that meet customer needs in high-growth markets. Our goal is to develop differentiated IP that can be leveraged for a high return on investment. We expect to offset the additional R&D investment through operational improvements that will allow us to achieve positive cash flow in 2025."
Conference Call
Management will host a conference call today, August 14, 2024, at 8:30 a.m. Eastern Time to discuss its financial results for the second quarter ended June 30, 2024.
Vislink management will host the presentation, followed by a question-and-answer period.
Toll-Free Number: 1-833-953-2432
International Number: 1-412-317-5761
Webcast: 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 11:30 a.m. Eastern Time on the same day through Wednesday, August 28, 2024.
Toll-Free Replay Number: 1-877-344-7529
International Replay Number: 1-412-317-0088
Replay ID: 8830402
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 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, implementation of the ERP, R&D investments including AVDS and drone-related projects, expected contract values, projected pipeline sales opportunities and transactions in our sales pipeline, backlog realization, and order 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, AVDS and MilGov markets, 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, 2023, filed with the Securities and Exchange Commission ("SEC") on April 3, 2024, 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:
Adrian Lambert
[email protected]
Investor Relations Contact:
Alec Wilson and Matt Glover
Gateway Group, Inc.
[email protected]
-Financial Tables to Follow-
VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
June 30, 2024 | December 31, 2023 | ||||
(unaudited) | |||||
ASSETS | |||||
Current assets | |||||
Cash and cash equivalents | $ | 5,649 | $ | 8,482 | |
Accounts receivable, net | 9,517 | 8,680 | |||
Inventories, net | 14,883 | 14,029 | |||
Investments held to maturity | 5,886 | 5,731 | |||
Prepaid expenses and other current assets | 2,295 | 1,560 | |||
Total current assets | 38,230 | 38,482 | |||
Right of use assets, operating leases | 995 | 742 | |||
Property and equipment, net | 2,053 | 1,902 | |||
Intangible assets, net | 3,292 | 3,866 | |||
Total assets | $ | 44,570 | $ | 44,992 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities | |||||
Accounts payable | $ | 4,172 | $ | 3,183 | |
Accrued expenses | 1,669 | 1,578 | |||
Notes payable | 398 | - | |||
Operating lease obligations, current | 744 | 463 | |||
Customer deposits and deferred revenue | 2,261 | 1,490 | |||
Total current liabilities | 9,244 | 6,714 | |||
Operating lease obligations, net of current portion | 655 | 755 | |||
Deferred tax liabilities | 436 | 546 | |||
Total liabilities | 10,335 | 8,015 | |||
Commitments and contingencies (See Note 11) | - | - | |||
Stockholders' equity | |||||
Series A Preferred stock, $0.00001 par value per share: -0- shares authorized on June 30, 2024, and December 31, 2023, respectively; -0- shares issued and outstanding on June 30, 2024, and December 31, 2023, respectively. | - | - | |||
Common stock, $0.00001 par value per share, 100,000,000 shares authorized on June 30, 2024, and December 31, 2023, respectively: Common stock, 2,452,482 and 2,439,923 were issued, and 2,452,349 and 2,439,790 were outstanding on June 30, 2024, and December 31, 2023, respectively. | - | - | |||
Additional paid-in capital | 348,349 | 347,507 | |||
Accumulated other comprehensive loss | (1,393 | ) | (1,027 | ) | |
Treasury stock, at cost - 133 shares as of June 30, 2024, and December 31, 2023, respectively | (277 | ) | (277 | ) | |
Accumulated deficit | (312,444 | ) | (309,226 | ) | |
Total stockholders' equity | 34,235 | 36,977 | |||
Total liabilities and stockholders' equity | $ | 44,570 | $ | 44,992 |
VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
OTHER COMPREHENSIVE LOSS
(IN THOUSANDS EXCEPT NET LOSS PER SHARE DATA)
2024 | 2023 | 2024 | 2023 | |||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
Revenue, net | $ | 8,702 | $ | 5,043 | $ | 17,300 | $ | 12,231 | ||||
Cost of revenue and operating expenses | ||||||||||||
Cost of components and personnel | 3,806 | 2,361 | 7,361 | 5,675 | ||||||||
Inventory valuation adjustments | 233 | 175 | 434 | 304 | ||||||||
General and administrative expenses | 5,918 | 4,679 | 11,212 | 9,707 | ||||||||
Research and development expenses | 966 | 908 | 1,765 | 1,675 | ||||||||
Depreciation and amortization | 343 | 304 | 690 | 602 | ||||||||
Total cost of revenue and operating expenses | 11,266 | 8,427 | 21,462 | 17,963 | ||||||||
Loss from operations | (2,564 | ) | (3,384 | ) | (4,162 | ) | (5,732 | ) | ||||
Other income (expense) | ||||||||||||
Unrealized gain (loss) on investments held to maturity | 82 | (35 | ) | 145 | (63 | ) | ||||||
Other income (loss) | (1 | ) | (11 | ) | 374 | 330 | ||||||
Dividend income | 72 | 128 | 138 | 219 | ||||||||
Interest income, net | 87 | 220 | 178 | 353 | ||||||||
Total other income | 240 | 302 | 835 | 839 | ||||||||
Net loss before income taxes | (2,324 | ) | (3,082 | ) | (3,327 | ) | (4,893 | ) | ||||
Income taxes | ||||||||||||
Deferred tax benefits | 54 | 54 | 109 | 109 | ||||||||
Net loss | $ | (2,270 | ) | $ | (3,028 | ) | $ | (3,218 | ) | $ | (4,784 | ) |
Basic and diluted loss per share | $ | (0.93 | ) | $ | (1.27 | ) | $ | (1.31 | ) | $ | (2.02 | ) |
Weighted average number of shares outstanding: | ||||||||||||
Basic and diluted | 2,452 | 2,377 | 2,448 | 2,374 | ||||||||
Comprehensive loss: | ||||||||||||
Net loss | $ | (2,270 | ) | $ | (3,028 | ) | $ | (3,218 | ) | $ | (4,784 | ) |
Unrealized gain (loss) on currency translation adjustment | (156 | ) | 145 | (366 | ) | 300 | ||||||
Comprehensive loss | $ | (2,426 | ) | $ | (2,883 | ) | $ | (3,584 | ) | $ | (4,484 | ) |
Reconciliation of GAAP to Non-GAAP Results
VISLINK TECHNOLOGIES, INC.
RECONCILIATION OF GAAP to NON-GAAP RESULTS
QUARTER ENDING June 30, 2024
(IN THOUSANDS)
2024 | 2023 | 2024 | 2023 | |||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
Reconciliation of net income to EBITDA | ||||||||||||
Net loss | (2,270 | ) | (3,028 | ) | $(3,218) | (4,784 | ) | |||||
Amortization and depreciation | 343 | 304 | 690 | 602 | ||||||||
Dividend income | (72 | ) | (128 | ) | (138 | ) | (219 | ) | ||||
Interest income, net | (87 | ) | (220 | ) | (178 | ) | (353 | ) | ||||
Tax | (54 | ) | (54 | ) | (109 | ) | (109 | ) | ||||
EBITDA | $ | (2,140 | ) | $ | (3,196 | ) | $ | (2,953 | ) | $ | (4,863 | ) |
Stock-based compensation | 218 | 336 | 682 | 1,257 | ||||||||
Severance | - | 9 | - | 359 | ||||||||
EBITDA Non-GAAP Adjusted | $ | (1,922 | ) | $ | (2,781 | ) | $ | (2,271 | ) | $ | (3,247 | ) |