Vislink Reports First Quarter 2023 Financial Results
05/15/2023 - 07:30 AM
50% Year-Over-Year Growth in Core MilGov Segment Contributes to 5% Increase in Total Revenue
Effective Cost Management Drives 26% Year-Over-Year Increase in EBITDA
Mt. Olive, NJ, May 15, 2023 (GLOBE NEWSWIRE) -- 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 first quarter ended March 31, 2023.
First Quarter and Recent Operational Highlights
Delivered the first six AeroLink transmitters to customers. Launched upgraded Quantum receiver Debuted Cliq OFDM Mobile Transmitter in North America Won National Association of Broadcasters (NAB) Product of the Year Award Appointed Paul Norridge as Chief Financial Officer Management Commentary 50% growth in our MilGov segment. Our refined go-to-market motions are gaining traction, validated by our robust sales funnel that includes the most $1 million plus opportunities in several years. We are confident in our ability to capitalize on these deals in the coming quarters.
“From a new product standpoint, Q1 was highlighted by the delivery of our first six AeroLink units to the field. Looking ahead, we anticipate doubling AeroLink delivery volume in the second quarter. Momentum in the public safety market is a cornerstone of our strategy. It is a growth market being fueled by increased government funding, and our recent product rollouts, including our award-winning Cliq OFDM mobile transmitter, are helping us take advantage of this opportunity. As we continue to pursue new sales in this area, we are making progress on our initiatives to increase recurring revenue and create additional revenue streams while also tracking toward a 90/10 hardware vs. software and services split.”
First Quarter 2023 Financial Results
Revenue increased 5% to $7.2 million from $6.9 million in the prior year period. Gross margins improved to 54% from 50% in the prior year period. Net loss attributable to common shareholders was $(1.8) million , or $(0.80) per share, a $1.0 million improvement compared to $(2.8) million , or $(1.20) per share, in the prior year period. EBITDA (earnings before interest, taxes, depreciation, and amortization) improved $0.7 million , or 26% , to $(1.7) million from $(2.4) million in the prior year period. Maintained a strong balance sheet with $14.0 million in cash, cash equivalents and investments, as the Company invested $10.8 million in federal bonds intended to be held to maturity. Conference Call
Vislink management will host the presentation, followed by a question-and-answer period.
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Toll-Free Replay Number: 1-877-344-7529International Replay Number: 1-412-317-0088Replay ID: 1613222
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 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, 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.
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, 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, 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.
The Vislink team also provides professional and technical services utilizing a staff of technology experts with decades of applied knowledge and real-world experience in the areas of 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
Media Contact: nicoler@dpagan.com
Investor Relations Contact: VISL@gatewayir.com
-Financial Tables to Follow-
VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (IN THOUSANDS EXCEPT NET LOSS PER SHARE DATA)
For the Three Months Ended March 31, 2023 2022 Revenue, net $ 7,188 $ 6,860 Cost of revenue and operating expenses Cost of components and personnel 3,314 3,423 Inventory valuation adjustments 129 96 General and administrative expenses 5,028 4,910 Research and development expenses 767 1,118 Amortization and depreciation 298 457 Total cost of revenue and operating expenses 9,536 10,004 Loss from operations (2,348 ) (3,144 ) Other income (expense) Unrealized loss on investments in debt securities (28 ) — Other income 341 326 Dividend income 91 — Interest income, net 133 — Total other income (expense) 537 326 Net loss before income taxes (1,811 ) (2,818 ) Income taxes Deferred tax benefits 55 51 Net loss $ (1,756 ) $ (2,767 ) Basic and diluted loss per share $ (0.80 ) $ (1.20 ) Weighted average number of shares outstanding: Basic and diluted 2,375 2,291 Comprehensive loss: Net loss $ (1,756 ) $ (2,767 ) Unrealized gain (loss) on currency translation adjustment 155 (268 ) Comprehensive loss $ (1,601 ) $ (3,035 )
VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
2023 2022 (unaudited) ASSETS Current assets Cash and cash equivalents $ 14,044 $ 25,627 Accounts receivable, net 6,385 6,007 Inventories, net 11,987 12,021 Investments held to maturity 10,789 — Prepaid expenses and other current assets 1,029 1,232 Total current assets 44,234 44,887 Right of use assets, operating leases 1,008 1,075 Property and equipment, net 1,561 1,434 Intangible assets, net 4,156 4,400 Total assets $ 50,959 $ 51,796 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable $ 2,674 $ 2,626 Accrued expenses 1,659 1,568 Notes payable — 84 Operating lease obligations, current 433 455 Customer deposits and deferred revenue 1,291 1,540 Total current liabilities 6,057 6,273 Operating lease obligations, net of current portion 1,022 1,107 Deferred tax liabilities 708 764 Total liabilities 7,787 8,144 Commitments and contingencies (See Note 9) Series A Preferred stock, $0.00 001 par value per share: 47,500 shares authorized on March 31, 2023, and December 31, 2022, respectively; -0- and 47,419 shares issued and outstanding on March 31, 2023, and December 31, 2022, respectively. — — Stockholders’ equity Preferred stock, $0.00 001 par value per share: 10,000,000 shares authorized on March 31, 2023, and December 31, 2022, respectively — — Common stock, $0.00 001 par value per share, 100,000,000 shares authorized on March 31, 2023, and December 31, 2022, respectively: Common stock, 2,380,966 and 2,370,966 were issued, and 2,380,833 and 2,370,833 were outstanding on March 31, 2023, and December 31, 2022, respectively. — — Additional paid-in capital 346,486 345,365 Accumulated other comprehensive loss (1,182 ) (1,337 ) Treasury stock, at cost – 133 shares as of March 31, 2023, and December 31, 2022, respectively (277 ) (277 ) Accumulated deficit (301,855 ) (300,099 ) Total stockholders’ equity 43,172 43,652 Total liabilities and stockholders’ equity $ 50,959 $ 51,796
Reconciliation of GAAP to Non-GAAP Results VISLINK TECHNOLOGIES, INC. RECONCILIATION OF GAAP to NON-GAAP RESULTS QUARTER ENDING MARCH 31, 2023 (IN THOUSANDS)
March 31, 2023 2022 Reconciliation of net income to EBITDA Net loss ($ 1,756 ) ($ 2,767 ) Amortization and depreciation 298 457 Dividend income (91 ) - Interest income, net (133 ) - Tax (55 ) (51 ) EBITDA ($ 1,737 ) ($ 2,361 ) Stock based compensation 921 746 Severance 349 0 Inventory step up 0 352 EBITDA Non-GAAP Adjusted ($ 467 ) ($ 1 , 263 )
