Vislink Reports Fourth Quarter and Full Year 2023 Financial and Operational Results
- 75% year-over-year revenue growth in MilGov markets for 2023.
- Forecast of improved cash flow and significant revenue expansion in 2024.
- Acquisition of Broadcast Microwave Services and integration into the company's offerings.
- Launch of Air-to-Anywhere™ for real-time video distribution and management.
- Expansion in the drone command and control market.
- Increase in Software and Services revenue to over 10% of sales in 2023.
- Appointment of Bill Sweeney as the new Managing Director of MilGov business.
- Partnership with Zoom Communications for ultralow-latency 4K wireless camera systems.
- Revenue growth to $8.1 million in Q4 2023 with a gross margin of 46%.
- Full year 2023 revenue of $27.5 million with a gross margin of 51%.
- Net loss improvement to $(9.1) million in 2023.
- EBITDA of $(9.0) million and cash and short-term investments of $14.2 million at the end of 2023.
- None.
Insights
The announcement by Vislink Technologies regarding their 75% year-over-year revenue growth in MilGov markets presents a positive outlook for the company's financial health and market position. This growth indicates an expanding customer base and successful penetration into high-value sectors such as military and government services. The strategic acquisition of Broadcast Microwave Services (BMS) assets is particularly noteworthy as it suggests an accretive approach to growth, capitalizing on BMS's established relationships with key federal agencies and large governments in EMEA.
The introduction of Air-to-Anywhere™ within the AVDS platform, coupled with the integration of AI for analytics, is a forward-thinking move that aligns with industry trends towards enhanced data-driven decision-making and could lead to new recurring revenue streams. The emphasis on software and services, which now account for over 10% of sales, reflects a strategic shift towards higher-margin offerings. This diversification of revenue sources, beyond hardware sales, is a common growth strategy in the tech sector that can lead to more stable and predictable cash flows.
From an operational standpoint, Vislink's efforts to streamline operations and improve efficiency appear to be paying dividends, as evidenced by the reported increase in gross margin to 51% and a reduced net loss. However, the company's net loss and the use of cash in Q4 2023 raise some concerns about the current cash burn rate, which investors should monitor closely. The management's forecast for improved cash flow and revenue expansion in 2024, along with the expectation to be cash flow positive in 2025, will be critical metrics for evaluating the company's trajectory.
Vislink Technologies' financial results reveal a mixed picture. While the revenue growth in the MilGov markets is impressive, the overall revenue saw a slight decline year-over-year, which might be attributed to the company's strategic decision to streamline product lines and discontinue lower-margin offerings. The increase in gross margin and the reduction in net loss year-over-year are positive indicators of the company's improving operational efficiency.
The company's balance sheet shows a decrease in cash and short-term investments from the end of the third quarter to the end of the year, which could be a point of concern for liquidity. However, the management's plan to improve working capital performance by optimizing inventory management and accelerating customer acceptance of new products could help mitigate these concerns. The $48 million weighted sales pipeline and the highest post-pandemic backlog are promising signs for future revenue, provided that the company can convert these opportunities into actual sales.
Investors should also consider the impact of the company's strategic initiatives, such as the integration of BMS assets and the launch of Air-to-Anywhere™, on the long-term value creation. While these moves are expected to contribute to growth, the company must manage the associated costs and ensure that these initiatives lead to sustainable profitability. The EBITDA improvement is a step in the right direction, but the path to positive EBITDA and cash flow will be key to assessing the company's financial stability.
Vislink Technologies' focus on the MilGov sector and the integration of AI in their AVDS solutions reflect a broader industry trend towards advanced, data-centric technologies. The defense market is particularly receptive to innovations in secure, real-time communications and Vislink's growth in this area demonstrates their ability to meet these specialized needs. The launch of Air-to-Anywhere™, which promises ultralow-latency video distribution, is a significant technological advancement that positions the company at the forefront of the drone command and control market—a sector with substantial growth potential.
The company's strategic partnerships, such as the one with Zoom Communications in India, showcase their ability to enter new markets and adapt their technology for different regional requirements. This global reach is essential for technology companies looking to scale their operations and tap into emerging markets. However, the technology industry is highly competitive and Vislink must continue to innovate and differentiate their offerings to maintain their market position and justify their investment in new technologies.
Overall, Vislink's strategic moves appear to align with industry trends and customer demands. However, the company's success will depend on their ability to execute on these strategies and translate technological advancements into profitable, scalable solutions.
Company Achieves
Management Forecasts Improved Cash Flow and Significant Revenue Expansion in 2024
Mt. Olive, NJ, April 01, 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 fourth quarter and full year ended December 31, 2023. The Company will file the Form 10-K with the Securities and Exchange Commission by April 16, 2024.
Fourth Quarter 2023 and Recent Operational Highlights
- Acquired and integrated assets of Broadcast Microwave Services (BMS). The accretive, strategic move has begun to bear fruit. It provides additional valuable opportunities to introduce and promote the Company’s best-in-class AVDS (Aerial Video Downlink Systems) solutions into BMS’s extensive customer network, which includes U.S. Federal agencies, global OEMs, and large governments in EMEA.
- Launched Air-to-Anywhere™ within its 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.
- Solidified its presence in the expanding drone command and control market, a high-growth area with the opportunity to leverage the Company’s proprietary hardware infrastructure and Air-to-Anywhere software solution platform. Revenue from this nascent market is expected to grow
75% in 2024. - Increased Software and Services revenue to more than
10% of sales in 2023. - Achieved over
$2 million in AVDS orders from North America’s public safety sector. - Secured a
$1 million AVDS order with a leading air force in the EMEA region. - Achieved highest post-pandemic backlog.
- Appointed Bill Sweeney as the new Managing Director of its Military and Government (“MilGov”) business, adding valuable MilGov industry experience to the Company’s leadership team. Mr. Sweeney’s expertise in fostering strong domestic and international client relationships will enhance Vislink’s integration of existing services with BMS’s capabilities.
- Partnered with Zoom Communications, India’s premier outside broadcast (OB) service provider, for ultralow-latency 4K wireless camera systems, highlighting the first ultralow-latency systems to be deployed in India.
Management Commentary
“2023 marked a pivotal year for Vislink, as we laid the groundwork for accelerated revenue growth and cash flow neutrality in 2024,” said Vislink CEO Mickey Miller. “During the year, we significantly advanced our presence in the expanding AVDS market, as evidenced by a
“In parallel, Vislink has undergone a significant transformation over the past two years, streamlining our operations to enhance efficiency and profitability. We’ve consolidated and outsourced manufacturing, simplified our product lineup, and improved the coordination between our sales and manufacturing teams. These steps have not only improved our operating efficiency and flexibility, leading to profitability improvements in 2023, but they also set us on a path to positive cash flow. Our accelerated MilGov sales, combined with increasing software and services sales and operating leverage, are expected to drive robust growth, aiming to be cash flow positive in 2025.
“Vislink entered 2024 in a strong position, with a
Fourth Quarter 2023 Financial Results
- Revenue increased to
$8.1 million , compared to$7.4 million in the prior year period. - Gross margin increased to
46% , up from33% in the prior year period. The improvement in gross margin was due to the greater contribution of MilGov revenue and software and services to total revenue, partially offset by one-time manufacturing charges related to new products. - Net loss attributable to common shareholders totaled
$(2.4) million , or$(0.99) per share, an improvement compared to$(5.5) million , or$(2.36) per share, in the prior year period.
Full Year 2023 Financial Results
- Revenue was
$27.5 million , compared to$28.1 million in 2022. The change in revenue was a result of product line streamlining efforts, which started in 2022, and the discontinuation of lower-margin, sub-scale product lines. - Gross margin increased to
51% , up from46% in 2022. The increase was due to the greater contribution of software and services to total revenue. - Net loss attributable to common shareholders totaled
$(9.1) million , or$(3.83) per share, an improvement compared to$(13.5) million , or$(5.81) per share, in 2022. - EBITDA (earnings before interest, taxes, depreciation, and amortization) totaled
$(9.0) million , an improvement compared to$(12.0) million in 2022.
- Cash and short-term investments were
$14.2 million at December 31, 2023, compared to$18.2 million at the end of the third quarter. The increased use of cash observed in the fourth quarter of 2023 can be primarily attributed to higher receivables and inventory levels, reflecting the longer customer acceptance cycles for new products and strategic positioning for future growth. In 2024, the Company expects to improve working capital performance by optimizing inventory management and accelerating customer acceptance of new products.
Conference Call
Management will host a conference call today, April 1, 2024, at 8:30 a.m. Eastern Time to discuss its financial results for the fourth quarter and full year ended December 31, 2023.
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, April 14, 2024.
Toll-Free Replay Number: 1-877-344-7529
International Replay Number: 1-412-317-0088
Replay ID: 1068552
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 1, 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)
| December 31, | |||||||||||||
| 2023 | 2022 | ||||||||||||
| ASSETS | |||||||||||||
| Current assets | |||||||||||||
| Cash | $ | 8,482 | $ | 25,627 | |||||||||
| Accounts receivable, net | 8,680 | 6,007 | |||||||||||
| Inventories, net | 14,029 | 12,021 | |||||||||||
| Investments held to maturity | 5,731 | — | |||||||||||
| Prepaid expenses and other current assets | 1,560 | 1,232 | |||||||||||
| Total current assets | 38,482 | 44,887 | |||||||||||
| Right of use assets, operating leases | 742 | 1,075 | |||||||||||
| Property and equipment, net | 1,902 | 1,434 | |||||||||||
| Intangible assets, net | 3,866 | 4,400 | |||||||||||
| Total assets | $ | 44,992 | $ | 51,796 | |||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||
| Current liabilities | |||||||||||||
| Accounts payable | $ | 3,183 | $ | 2,626 | |||||||||
| Accrued expenses | 1,578 | 1,568 | |||||||||||
| Notes payable | — | 84 | |||||||||||
| Operating lease obligations, current | 463 | 455 | |||||||||||
| Customer deposits and deferred revenue | 1,490 | 1,540 | |||||||||||
| Total current liabilities | 6,714 | 6,273 | |||||||||||
| Operating lease obligations, net of current portion | 755 | 1,107 | |||||||||||
| Deferred tax liabilities | 546 | 764 | |||||||||||
| Total liabilities | 8,015 | 8,144 | |||||||||||
| Commitments and contingencies (See Note 17) | |||||||||||||
| Series A Preferred stock, | — | — | |||||||||||
| Stockholders’ equity | |||||||||||||
| Preferred stock, | — | — | |||||||||||
| Common stock, | |||||||||||||
| Common stock 2,439,923 and 2,367,362 were issued, and 2,439,790 and 2,367,229 were outstanding on December 31, 2023, and 2022, respectively. | — | — | |||||||||||
| Additional paid-in capital | 347,507 | 345,365 | |||||||||||
| Accumulated other comprehensive loss | (1,027 | ) | (1,337 | ) | |||||||||
| Treasury stock, at cost – 133 shares as of December 31, 2023, and 2022, respectively | (277 | ) | (277 | ) | |||||||||
| Accumulated deficit | (309,226 | ) | (300,099 | ) | |||||||||
| Total stockholders’ equity | 36,977 | 43,652 | |||||||||||
| Total liabilities and stockholders’ equity | $ | 44,992 | $t | 51,796 | |||||||||
VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(IN THOUSANDS EXCEPT NET LOSS PER SHARE DATA)
| For the Years Ended | ||||||||
| December 31, | ||||||||
| 2023 | 2022 | |||||||
| Revenue, net | $ | 27,482 | $ | 28,131 | ||||
| Cost of revenue and operating expenses | ||||||||
| Cost of components and personnel | 13,380 | 15,204 | ||||||
| Inventory valuation adjustments | 487 | 2,930 | ||||||
| General and administrative expenses | 19,376 | 18,195 | ||||||
| Research and development | 3,493 | 4,058 | ||||||
| Impairment of right-of-use assets | 83 | 88 | ||||||
| Depreciation and amortization | 1,261 | 1,722 | ||||||
| Total cost of revenue and operating expenses | 38,080 | 42,197 | ||||||
| Loss from operations | (10,598 | ) | (14,066 | ) | ||||
| Other income (expenses) | ||||||||
| Unrealized gain on investments in debt securities held to maturity | 68 | — | ||||||
| Realized loss on investments in debt securities | (82 | ) | — | |||||
| Gain on settlement of debt | — | 46 | ||||||
| Other income | 332 | 303 | ||||||
| Dividend income | 375 | — | ||||||
| Interest income (expense), net | 560 | (38 | ) | |||||
| Total other income | 1,253 | 311 | ||||||
| Net loss before income taxes | (9,345 | ) | (13,755 | ) | ||||
| Income taxes | ||||||||
| Deferred tax benefits | 218 | 215 | ||||||
| Net loss | (9,127 | ) | (13,540 | ) | ||||
| Dividends | — | (20 | ) | |||||
| Net loss attributable to common shareholders | $ | (9,127 | ) | $ | (13,560 | ) | ||
| Net loss per share attributable to Common Shareholders: | ||||||||
| Basic and diluted loss per share | $ | (3.83 | ) | $ | (5.81 | ) | ||
| Weighted average number of shares outstanding: | ||||||||
| Basic and diluted | 2,381 | 2,335 | ||||||
| Comprehensive loss: | ||||||||
| Net loss | $ | (9,127 | ) | $ | (13,540 | ) | ||
| Unrealized gain on currency translation adjustment | 310 | 1,040 | ||||||
| Comprehensive loss | $ | (8,817 | ) | $ | (12,500 | ) | ||
Reconciliation of GAAP to Non-GAAP Results
VISLINK TECHNOLOGIES, INC.
RECONCILIATION OF GAAP to NON-GAAP RESULTS
QUARTER ENDING December 31, 2023
(IN THOUSANDS)
| For the Twelve Months Ended | ||||||||
| December 31, | ||||||||
| 2023 | 2022 | |||||||
| Reconciliation of net income to EBITDA | ||||||||
| Net loss | $ | (9,127 | ) | $ | (13,540 | ) | ||
| Amortization and depreciation | 1,261 | 1,722 | ||||||
| Dividend income | (375 | ) | - | |||||
| Interest income, net | (560 | ) | 38 | |||||
| Tax | (218 | ) | (215 | ) | ||||
| EBITDA | $ | (9,019 | ) | $ | (11,995 | ) | ||
| Stock based compensation | 1,942 | 1,565 | ||||||
| Severance | 585 | 49 | ||||||
| Impairment | - | 88 | ||||||
| Inventory step up | - | 497 | ||||||
| EBITDA Non-GAAP Adjusted | $ | (6,409 | ) | $ | (9,796 | ) | ||
FAQ
What was Vislink Technologies' year-over-year revenue growth in MilGov markets for 2023?
What was the revenue in the fourth quarter of 2023?
Who was appointed as the new Managing Director of Vislink's MilGov business?
What was the full year 2023 revenue for Vislink Technologies?
What was the EBITDA for Vislink Technologies in 2023?
