Vislink Reports First Quarter 2024 Financial and Operational Results
Vislink Technologies reported a 20% increase in total revenue to $8.6 million for Q1 2024, driven by a surge in sales to military and government customers. Gross margin improved from 54% to 59%, and net loss narrowed to $0.9 million from $1.8 million, or $0.39 per share from $0.80 per share. The company held $13.8 million in cash and short-term investments and $31.2 million in working capital as of March 31, 2024.
Operational highlights include increased sales to MilGov customers, launch of products like Air-to-Anywhere™ and DragonFly V, and growth in service/software revenue. The company also expanded its presence in the drone command and control market and received
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Insights
The reported 20% increase in total revenue is a significant positive indicator, driven primarily by strong sales to military and government (MilGov) customers. This suggests a solid demand in a typically high-budget sector. Importantly, the gross margin improvement to 59% from 54% indicates enhanced operational efficiency and a higher mix of software and service revenue, which often have higher profit margins compared to hardware sales. Investors should view this as a positive trend towards increased profitability and a strategic shift toward more recurring revenue streams.
However, the company still reported a net loss of $0.9 million, although it has halved from the previous year's $1.8 million net loss. This shows progress but also highlights that the company has yet to achieve profitability. The company's working capital of $31.2 million and a slight decrease in cash and short-term investments to $13.8 million suggest a stable but cautious cash position. The projection of achieving cash flow neutrality by the end of 2024 and becoming cash flow positive in 2025 indicates a clear path to financial health, contingent on continued execution of their strategic plan.
The largest weighted sales pipeline since the pandemic, valued at $48 million, is another promising sign, highlighting potential future revenue streams. However, investors should remain aware of execution risks and the need for sustained demand in target markets.
The introduction of new products such as the DragonFly V and the Air-to-Anywhere™ platform shows Vislink's commitment to innovation in video capture and distribution technology. The DragonFly V, being the world’s smallest HEVC HDR COFDM/5G transmitter, represents a significant leap in technology, catering to niche markets like body-worn and covert applications. This could open new market segments and revenue streams for Vislink, especially in security and defense sectors where such technologies are crucial.
The Air-to-Anywhere™ platform, focusing on real-time video distribution with ultra-low latency and the company's roadmap to integrate AI for enhanced analytics, indicates a forward-looking approach. This could enhance the value proposition of their products by providing deeper data insights and potentially creating new recurring revenue streams through service offerings.
Overall, the technological advancements and new product introductions are likely to drive market interest and customer adoption, reinforcing the company’s position as a technology leader in its field.
The substantial increase in sales to MilGov customers highlights Vislink's growing penetration in the defense and public safety markets, sectors known for their consistent and often large-scale procurement needs. This bodes well for the company's revenue stability and growth potential. The approved supplier status from three global aerospace OEMs further strengthens their market position, opening doors for long-term contracts and strategic partnerships with major industry players.
The shift towards increasing software and service revenue, which grew to 16% of total revenue, aligns well with industry trends favoring recurring revenue models. This transition could enhance revenue predictability and stability, making the company less vulnerable to the cyclical nature of hardware sales. The company's focus on the expanding drone command and control market also positions it to capitalize on a growing sector with numerous applications in defense, public safety and beyond.
However, market acceptance and competitive dynamics will be key factors. The company's ability to differentiate its offerings in a tech-driven market and maintain its competitive edge through continuous innovation will be critical to sustaining its growth trajectory.
Total Revenue Increased
New Product Sales and Enhanced Operating Efficiency Fuel Significant Profitability Improvements
Mt. Olive, NJ, May 15, 2024 (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, public safety, and defense markets, today reported results for the first quarter ended March 31, 2024.
First Quarter 2024 Financial Results
- Revenue increased
20% to$8.6 million , up from$7.2 million in the prior year period. The increase in revenue resulted from a jump in sales to military and government customers. - Gross margin increased to
59% , up from54% in the prior year period. The year-over-year improvement in gross margin reflects greater operating efficiency and a higher mix of software and service revenue. - Net loss improved to
$(0.9) million , or$(0.39) per share, from$(1.8) million , or$(0.80) per share, in the prior year period. - Cash and short-term investments were
$13.8 million at March 31, 2024, compared to$14.2 million at December 31, 2023. Working capital was$31.2 million at the end of the first quarter. The Company expects to continue enhancing working capital performance by optimizing inventory management and accelerating customer acceptance of new products.
First Quarter 2024 and Recent Operational Highlights
- Sales to MilGov customers experienced a substantial increase in the first quarter of 2024. Market acceptance of the leading AeroLink platform is driving upgrades from existing customers and new customer orders.
- Service/software revenue increased to
16% of total revenue, with our continued focus on leveraging the infrastructure platform to drive recurring revenues through the LinkMatrix platform. - Launched Air-to-Anywhere™ within the Company’s AVDS platform, enabling high-resolution, ultralow-latency real-time video distribution and management to any device, anywhere. This advancement will include the Company’s roadmap initiatives to leverage AI for enhanced analytics and is expected to pave new avenues to develop recurring revenue via in-depth data insights.
- Unveiled DragonFly V, the world’s smallest HEVC HDR COFDM/5G transmitter designed to enhance live video capture from dynamic perspectives, including body-worn and covert applications. This product launch marks a significant advancement in video capture technology, offering high-definition, ultra-low latency, real-time video transmission capabilities.
- Positioned to grow with global Aerospace OEMs – successfully demonstrated design, manufacturing, and operations processes and capabilities and received “Approved Supplier” status from three global aerospace Original Equipment Manufacturers (OEMs).
- Enhanced presence in the expanding drone command and control market, boosting revenue and customer relationships and leveraging the Company’s resilient radio, channel bonding, and antenna technologies roadmap to offer unique capabilities to address real-world tactical applications.
Management Commentary
“The first quarter of 2024 demonstrated substantial financial and operational gains, directly resulting from the continued execution of our strategic plan we implemented two years ago to increase operating leverage,” stated Mickey Miller, CEO of Vislink. “Our revenue climbed by
“We are carrying this momentum into the second quarter as we continue to roll out newer products such as Cliq, LiveLink, and DragonFly V. These products fulfill needs across our target markets and facilitate opportunities to increase our software and services revenue, which grew to
“We are on track to achieve cash flow neutrality by the end of 2024 and aim to be cash flow positive in 2025. Our operations are continually evolving as we actively identify areas for further operational enhancements and cost-saving measures. These ongoing improvements are crucial as we work to drive further revenue growth and enhance profitability.”
Conference Call
Management will host a conference call today, May 15, 2024, at 8:30 a.m. Eastern Time to discuss its financial results for the first quarter ended March 31, 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, May 28, 2024.
Toll-Free Replay Number: 1-877-344-7529
International Replay Number: 1-412-317-0088
Replay ID: 4822215
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, 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
Adrian.lambert@vislink.com
Investor Relations Contact:
Alec Wilson and Matt Glover
Gateway Group, Inc.
VISL@gateway-grp.com
-Financial Tables to Follow-
VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
| March 31, 2024 | December 31, 2023 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ | 7,959 | $ | 8,482 | ||||
| Accounts receivable, net | 9,015 | 8,680 | ||||||
| Inventories, net | 14,866 | 14,029 | ||||||
| Investments held to maturity | 5,799 | 5,731 | ||||||
| Prepaid expenses and other current assets | 1,726 | 1,560 | ||||||
| Total current assets | 39,365 | 38,482 | ||||||
| Right of use assets, operating leases | 1,134 | 742 | ||||||
| Property and equipment, net | 1,912 | 1,902 | ||||||
| Intangible assets, net | 3,579 | 3,866 | ||||||
| Total assets | $ | 45,990 | $ | 44,992 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 3,533 | $ | 3,183 | ||||
| Accrued expenses | 1,403 | 1,578 | ||||||
| Operating lease obligations, current | 728 | 463 | ||||||
| Customer deposits and deferred revenue | 2,546 | 1,490 | ||||||
| Total current liabilities | 8,210 | 6,714 | ||||||
| Operating lease obligations, net of current portion | 847 | 755 | ||||||
| Deferred tax liabilities | 490 | 546 | ||||||
| Total liabilities | 9,547 | 8,015 | ||||||
| Commitments and contingencies (See Note 11) | ||||||||
| Stockholders’ equity | ||||||||
| Series A Preferred stock, | — | — | ||||||
| Common stock, | — | — | ||||||
| Additional paid-in capital | 348,131 | 347,507 | ||||||
| Accumulated other comprehensive loss | (1,237 | ) | (1,027 | ) | ||||
| Treasury stock, at cost – 133 shares as of March 31, 2024, and December 31, 2023, respectively | (277 | ) | (277 | ) | ||||
| Accumulated deficit | (310,174 | ) | (309,226 | ) | ||||
| Total stockholders’ equity | 36,443 | 36,977 | ||||||
| Total liabilities and stockholders’ equity | $ | 45,990 | $ | 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)
| For the Three Months Ended | ||||||||
| March 31, | ||||||||
| 2024 | 2023 | |||||||
| Revenue, net | $ | 8,598 | $ | 7,188 | ||||
| Cost of revenue and operating expenses | ||||||||
| Cost of components and personnel | 3,555 | 3,314 | ||||||
| Inventory valuation adjustments | 201 | 129 | ||||||
| General and administrative expenses | 5,294 | 5,028 | ||||||
| Research and development expenses | 799 | 767 | ||||||
| Amortization and depreciation | 347 | 298 | ||||||
| Total cost of revenue and operating expenses | 10,196 | 9,536 | ||||||
| Loss from operations | (1,598 | ) | (2,348 | ) | ||||
| Other income (expense) | ||||||||
| Unrealized gain (loss) on investments in debt securities | 63 | (28 | ) | |||||
| Other income | 375 | 341 | ||||||
| Dividend income | 66 | 91 | ||||||
| Interest income, net | 91 | 133 | ||||||
| Total other income (expense) | 595 | 537 | ||||||
| Net loss before income taxes | (1,003 | ) | (1,811 | ) | ||||
| Income taxes | ||||||||
| Deferred tax benefits | 55 | 55 | ||||||
| Net loss | $ | (948 | ) | $ | (1,756 | ) | ||
| Basic and diluted loss per share | $ | (0.39 | ) | $ | (0.74 | ) | ||
| Weighted average number of shares outstanding: | ||||||||
| Basic and diluted | 2,444 | 2,375 | ||||||
| Comprehensive loss: | ||||||||
| Net loss | $ | (948 | ) | $ | (1,756 | ) | ||
| Unrealized gain (loss) on currency translation adjustment | (210 | ) | 155 | |||||
| Comprehensive loss | $ | (1,158 | ) | $ | (1,601 | ) | ||
Reconciliation of GAAP to Non-GAAP Results
VISLINK TECHNOLOGIES, INC.
RECONCILIATION OF GAAP to NON-GAAP RESULTS
QUARTER ENDING March 31, 2024
(IN THOUSANDS)
| March 31, | ||||||||
| 2024 | 2023 | |||||||
| Reconciliation of net income to EBITDA | ||||||||
| Net loss | $ | (948 | ) | $ | (1,756 | ) | ||
| Amortization and depreciation | 347 | 298 | ||||||
| Dividend income | (66 | ) | (91 | ) | ||||
| Interest income, net | (91 | ) | (133 | ) | ||||
| Tax | (55 | ) | (55 | ) | ||||
| EBITDA | $ | (813 | ) | $ | (1,737 | ) | ||
| Stock-based compensation | 464 | 921 | ||||||
| Severance | — | 349 | ||||||
| EBITDA Non-GAAP Adjusted | $ | (349 | ) | $ | (467 | ) | ||
