Vislink Reports Third Quarter 2024 Financial and Operational Results
Vislink Technologies reported Q3 2024 financial results with revenue of $7.1 million, slightly down from $7.2 million in Q3 2023. However, year-to-date revenue increased 26% to $24.4 million. The company reported a net loss of $(3.0) million or $(1.22) per share, compared to $(2.0) million in the prior year period. Gross margin decreased to 51% from 54%. Cash position stood at $9.2 million.
The company implemented a restructuring plan expected to achieve over $6 million in annualized cost savings starting Q4 2024. Notable developments include increased adoption of AeroLink transceiver, initial deployment of Q-Link airborne system, and a $340,000 order from the U.S. Department of Homeland Security.
Vislink Technologies ha riportato i risultati finanziari del terzo trimestre 2024 con un fatturato di 7,1 milioni di dollari, leggermente inferiore ai 7,2 milioni di dollari del terzo trimestre 2023. Tuttavia, il fatturato fino ad oggi è aumentato del 26% arrivando a 24,4 milioni di dollari. L'azienda ha riportato una perdita netta di 3,0 milioni di dollari, pari a 1,22 dollari per azione, rispetto ai 2,0 milioni di dollari dello stesso periodo dell'anno precedente. Il margine lordo è diminuito dal 54% al 51%. La posizione di cassa si attesta a 9,2 milioni di dollari.
L'azienda ha attuato un piano di ristrutturazione che si prevede porterà a risparmi annualizzati di oltre 6 milioni di dollari a partire dal quarto trimestre 2024. Sviluppi notevoli includono un aumento nell'adozione del trasmettitore AeroLink, l'iniziale distribuzione del sistema aereo Q-Link e un ordine di 340.000 dollari dal Dipartimento della Sicurezza Interna degli Stati Uniti.
Vislink Technologies reportó los resultados financieros del tercer trimestre de 2024 con ingresos de 7,1 millones de dólares, ligeramente inferiores a los 7,2 millones de dólares del tercer trimestre de 2023. Sin embargo, los ingresos acumulados hasta la fecha aumentaron un 26% a 24,4 millones de dólares. La compañía reportó una pérdida neta de 3,0 millones de dólares o 1,22 dólares por acción, en comparación con 2,0 millones de dólares en el período del año anterior. El margen bruto disminuyó del 54% al 51%. La posición de efectivo se mantuvo en 9,2 millones de dólares.
La compañía implementó un plan de reestructuración que se espera genere más de 6 millones de dólares en ahorros anuales a partir del cuarto trimestre de 2024. Los desarrollos notables incluyen el aumento en la adopción del transceptor AeroLink, el despliegue inicial del sistema aéreo Q-Link y un pedido de 340.000 dólares del Departamento de Seguridad Nacional de EE. UU.
Vislink Technologies는 2024년 3분기 재무 결과를 보고하며 710만 달러의 수익을 기록했으며, 이는 2023년 3분기의 720만 달러에서 약간 감소한 수치입니다. 그러나 금년 누적 수익은 26% 증가하여 2440만 달러에 달했습니다. 회사는 300만 달러의 순손실을 보고했고, 이는 주당 1.22달러에 해당하며, 작년 같은 기간의 200만 달러 손실과 비교됩니다. 총 마진은 54%에서 51%로 감소했습니다. 현금 보유액은 920만 달러였습니다.
회사는 2024년 4분기부터 연간 600만 달러 이상의 비용 절감을 달성할 것으로 예상되는 구조 조정 계획을 시행했습니다. 주목할 만한 발전 사항으로는 AeroLink 진링기 채택 증가, Q-Link 공중 시스템의 초기 배치, 미국 국토안보부로부터의 34만 달러 주문이 포함됩니다.
Vislink Technologies a rapporté les résultats financiers du troisième trimestre 2024 avec un chiffre d'affaires de 7,1 millions de dollars, légèrement en baisse par rapport aux 7,2 millions de dollars du troisième trimestre 2023. Cependant, le chiffre d'affaires cumulé depuis le début de l'année a augmenté de 26 % pour atteindre 24,4 millions de dollars. L'entreprise a annoncé une perte nette de 3,0 millions de dollars, soit 1,22 dollar par action, par rapport à une perte de 2,0 millions de dollars au cours de la même période l'année précédente. La marge brute a diminué de 54 % à 51 %. La position de trésorerie s'élevait à 9,2 millions de dollars.
L'entreprise a mis en œuvre un plan de restructuration qui devrait générer plus de 6 millions de dollars d'économies annuelles à partir du quatrième trimestre 2024. Les développements notables comprennent l'adoption accrue du transcepteur AeroLink, le déploiement initial du système aérien Q-Link et une commande de 340 000 dollars du département de la Sécurité intérieure des États-Unis.
Vislink Technologies hat die Finanzzahlen für das 3. Quartal 2024 veröffentlicht und dabei einen Umsatz von 7,1 Millionen Dollar erzielt, was leicht unter den 7,2 Millionen Dollar im 3. Quartal 2023 liegt. Der Umsatz für das laufende Jahr stieg jedoch um 26 % auf 24,4 Millionen Dollar. Das Unternehmen berichtete von einem Nettoverlust von 3,0 Millionen Dollar oder 1,22 Dollar pro Aktie, verglichen mit 2,0 Millionen Dollar im Vorjahreszeitraum. Die Bruttomarge sank von 54 % auf 51 %. Die Liquiditätsreserve belief sich auf 9,2 Millionen Dollar.
Das Unternehmen implementierte einen Restrukturierungsplan, der Einsparungen von über 6 Millionen Dollar pro Jahr ab dem 4. Quartal 2024 erreichen soll. Zu den bemerkenswerten Entwicklungen gehören die verstärkte Nutzung des AeroLink-Transceivers, die erste Einführung des Q-Link-Luftsystems sowie eine Bestellung über 340.000 Dollar vom US-Heimatschutzministerium.
- Year-to-date revenue increased 26% to $24.4 million
- 26% growth in MilGov market segment
- Restructuring plan expected to achieve $6 million in annual cost savings
- Secured $340,000 order from U.S. Department of Homeland Security
- Q3 revenue declined to $7.1 million from $7.2 million year-over-year
- Net loss increased to $3.0 million from $2.0 million year-over-year
- Gross margin decreased to 51% from 54%
- Cash position decreased to $9.2 million from $11.5 million in previous quarter
Insights
The Q3 results present a mixed picture with concerning trends. While year-to-date revenue grew
The announced
The strategic pivot toward military and government (MilGov) markets shows promise, with
However, extended sales cycles in the Middle East are concerning. The appointment of Joseph Lipowski as CTO could accelerate next-generation platform development for aerial command systems, strengthening the company's competitive position in the defense sector. The restructuring initiative should help optimize operations for the MilGov focus.
Year-to-Date Revenue Increased
New ERP Implementation Insights lead to Restructuring Initiative Expected to Achieve Over
Mt. Olive, NJ, Nov. 14, 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 third quarter ended September 30, 2024.
Third Quarter 2024 Financial Results
- Revenue for the nine months ended September 30, 2024, was
$24.4 million , an increase of26% over the prior year period. Revenue in the third quarter was$7.1 million compared to$7.2 million in the third quarter of 2023. - Gross margin was
51% in the third quarter, down from54% in the prior year period. - Net loss was
$(3.0) million , or$(1.22) per share in the third quarter, compared to$(2.0) million , or$(0.83) per share, in the prior year period. - Cash and short-term investments were
$9.2 million at September 30, 2024, compared to$11.5 million at June 30, 2024. Working capital was$27.1 million at the end of the third quarter compared to$31.8 million at June 30, 2024. The Company expects to realize improvements in working capital performance due to insights from the implementation of an ERP system that came online in the third quarter.
Third Quarter 2024 and Recent Operational Highlights
- Increased adoption of Vislink’s aircraft-based AeroLink transceiver by federal, regional, and municipal public safety organizations. AeroLink is the central component of the Company’s downlink systems and enables the delivery of exceptional video quality, secure and uninterrupted connectivity, and broad operating ranges.
- Initial deployment of Vislink’s new Q-Link airborne control system with a U.S. public safety organization, laying the foundation for Vislink’s Air-to-Anywhere™ platform. This system enables secure, real-time, air-to-ground live video streaming, enhancing situational awareness.
- Received an initial
$340,000 order with the U.S. Department of Homeland Security. - Deployed a new ERP system to streamline and integrate core business processes, improving overall efficiency. The system enables improved decision-making through real-time data access, reduced operational costs, and increased agility in responding to market changes.
- Subsequent to the end of the third quarter, Vislink implemented a restructuring plan to streamline operations and reduce costs. The actions will include the closure and relocation of certain manufacturing activities to consolidate manufacturing capacity and optimize staffing levels to align with the Company’s long-term objectives.
- Appointed Joseph Lipowski as Chief Technology Officer. Joe brings extensive industry experience with high-growth companies in RF systems, software development, and communications hardware. He will lead the product development team and spearhead the Company’s next-generation platform for radio-agnostic crewed and uncrewed aerial command, control, and video systems – a critical part of Vislink’s long-term strategy.
- Introduced the 5G DragonFly V, the Company’s miniaturized HEVC 5G transmitter. DragonFly V is designed to deliver real-time, high-quality video from Point-of-View (PoV) cameras, drones, and body-worn devices, delivering unprecedented first-person perspectives from live events and public safety.
- Launched a new corporate brand identity and website to drive global growth and strengthen market leadership. The enhanced digital presence with improved SEO is designed to create additional sales opportunities by offering Vislink customers an intuitive, user-friendly platform for discovering and evaluating the Company's solutions.
Management Commentary
"We are pleased to report that our year-to-date revenue has increased over
“The Live Production market continues to present growth opportunities for our solutions. There has been considerable interest in our miniature DragonFly V transmitter. DragonFly V is designed to deliver real-time, high-quality video from Point-of-View (PoV) cameras, drones, and body-worn devices. The increasing demand for high performance combined with compact form factors in video transmission is driving interest in our broad range of solutions that address quality, immediacy, and flexibility, which are key requirements of broadcast media organizations. We expect to maintain targeted R&D investments in our product lines, with both incremental and major upgrades, to extend our competitive edge in the market.”
“In the third quarter, we launched a new ERP system to unify and optimize our core operations, driving efficiency across the organization. The system has enabled us to identify significant costs that we believe can be removed from the business. Although we are pleased with our year-to-date revenue growth, we are responding proactively to near-term softness by consolidating operations while strategically positioning ourselves for continued growth in the MilGov sector. As part of this effort, we initiated a restructuring project that consolidates our manufacturing facilities into one location and streamlines our organization to better support our target markets. We expect the restructuring initiative to achieve over
“Looking forward, we remain firmly committed to our three-year plan; however, the timeline for achieving our growth and profitability expectations may be extended due to current market dynamics. We have addressed our cost base to accommodate that extended period. We are confident that ongoing strong demand for our proven solutions, the transition toward MilGov markets and high-margin service revenue, and our unwavering focus on cost management position us well for executing our plans and attaining future sustainable and profitable growth.”
Conference Call
Management will host a conference call today, November 14, 2024, at 8:30 a.m. Eastern Time to discuss its financial results for the third quarter ended September 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 approximately 15 minutes before the start time (although you may register, dial in, or access the webcast anytime during the call).
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 November 28, 2024.
Toll-Free Replay Number: 1-877-344-7529
International Replay Number: 1-412-317-0088
Replay ID: 4856930
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 and cost-savings, prospects, plans including restructuring, and 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, defense, and public safety agencies to capture and share live video seamlessly and securely. Vislink provides live streaming solutions using RF, bonded cellular, 5G, and AI-driven technologies. 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:
investors@vislink.com
-Financial Tables to Follow-
VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
| September 30, 2024 | December 31, 2023 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 3,213 | $ | 8,482 | ||||
| Accounts receivable, net | 8,252 | 8,680 | ||||||
| Inventories, net | 15,265 | 14,029 | ||||||
| Investments held to maturity | 5,975 | 5,731 | ||||||
| Prepaid expenses and other current assets | 1,992 | 1,560 | ||||||
| Total current assets | 34,697 | 38,482 | ||||||
| Right of use assets, operating leases | 504 | 742 | ||||||
| Property and equipment, net | 2,155 | 1,902 | ||||||
| Intangible assets, net | 3,052 | 3,866 | ||||||
| Total assets | $ | 40,408 | $ | 44,992 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 3,211 | $ | 3,183 | ||||
| Accrued expenses | 1,675 | 1,578 | ||||||
| Notes payable | 230 | — | ||||||
| Operating lease obligations, current | 513 | 463 | ||||||
| Customer deposits and deferred revenue | 1,983 | 1,490 | ||||||
| Total current liabilities | 7,612 | 6,714 | ||||||
| Operating lease obligations, net of current portion | 376 | 755 | ||||||
| Deferred tax liabilities | 430 | 546 | ||||||
| Total liabilities | 8,418 | 8,015 | ||||||
| Commitments and contingencies (See Note 11) | ||||||||
| Stockholders’ equity | ||||||||
| Series A Preferred stock, | — | — | ||||||
| Common stock, | — | — | ||||||
| Additional paid-in capital | 348,548 | 347,507 | ||||||
| Accumulated other comprehensive loss | (827 | ) | (1,027 | ) | ||||
| Treasury stock, at cost – 133 shares as of September 30, 2024, and December 31, 2023, respectively | (277 | ) | (277 | ) | ||||
| Accumulated deficit | (315,454 | ) | (309,226 | ) | ||||
| Total stockholders’ equity | 31,990 | 36,977 | ||||||
| Total liabilities and stockholders’ equity | $ | 40,408 | $ | 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 | For the Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue, net | $ | 7,066 | $ | 7,179 | $ | 24,366 | $ | 19,410 | ||||||||
| Cost of revenue and operating expenses | ||||||||||||||||
| Cost of components and personnel | 3,485 | 3,302 | 10,846 | 8,977 | ||||||||||||
| Inventory valuation adjustments | 310 | 176 | 744 | 480 | ||||||||||||
| General and administrative expenses | 5,050 | 4,793 | 16,262 | 14,500 | ||||||||||||
| Research and development expenses | 1,160 | 805 | 2,925 | 2,480 | ||||||||||||
| Impairment on right-of-use assets | — | 83 | — | 83 | ||||||||||||
| Depreciation and amortization | 321 | 311 | 1,011 | 913 | ||||||||||||
| Total cost of revenue and operating expenses | 10,326 | 9,470 | 31,788 | 27,433 | ||||||||||||
| Loss from operations | (3,260 | ) | (2,291 | ) | (7,422 | ) | (8,023 | ) | ||||||||
| Other income (expense) | ||||||||||||||||
| Unrealized gain (loss) on investments held to maturity | 84 | (4 | ) | 229 | (67 | ) | ||||||||||
| Other income (loss) | 26 | (36 | ) | 400 | 294 | |||||||||||
| Dividend income | 47 | 104 | 185 | 323 | ||||||||||||
| Interest income, net | 86 | 202 | 264 | 555 | ||||||||||||
| Total other income | 243 | 266 | 1,078 | 1,105 | ||||||||||||
| Net loss before income taxes | (3,017 | ) | (2,025 | ) | (6,344 | ) | (6,918 | ) | ||||||||
| Income taxes | ||||||||||||||||
| Deferred tax benefits | 7 | 55 | 116 | 164 | ||||||||||||
| Net loss | $ | (3,010 | ) | $ | (1,970 | ) | $ | (6,228 | ) | $ | (6,754 | ) | ||||
| Basic and diluted loss per share | $ | (1.22 | ) | $ | (0.83 | ) | $ | (2.54 | ) | $ | (2.84 | ) | ||||
| Weighted average number of shares outstanding: | ||||||||||||||||
| Basic and diluted | 2,464 | 2,382 | 2,454 | 2,377 | ||||||||||||
| Comprehensive loss: | ||||||||||||||||
| Net loss | $ | (3,010 | ) | $ | (1,970 | ) | $ | (6,228 | ) | $ | (6,754 | ) | ||||
| Unrealized gain (loss) on currency translation adjustment | 566 | (364 | ) | 200 | (64 | ) | ||||||||||
| Comprehensive loss | $ | (2,444 | ) | $ | (2,334 | ) | $ | (6,028 | ) | $ | (6,818 | ) | ||||
Reconciliation of GAAP to Non-GAAP Results
VISLINK TECHNOLOGIES, INC.
RECONCILIATION OF GAAP to NON-GAAP RESULTS
QUARTER ENDING September 30, 2024
(IN THOUSANDS)
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Reconciliation of net income to EBITDA | ||||||||||||||||
| Net loss | $ | (3,010 | ) | $ | (1,970 | ) | $ | (6,228 | $ | (6,754 | ) | |||||
| Amortization and depreciation | 321 | 311 | 1,011 | 913 | ||||||||||||
| Dividend income | (47 | ) | (104 | ) | (185 | ) | (323 | ) | ||||||||
| Interest income, net | (86 | ) | (202 | ) | (264 | ) | (555 | ) | ||||||||
| Tax | (7 | ) | (55 | ) | (116 | ) | (164 | ) | ||||||||
| EBITDA | $ | (2,829 | ) | $ | (2,020 | ) | $ | (5,782 | ) | $ | (6,883 | ) | ||||
| Stock-based compensation | 199 | 343 | 881 | 1,600 | ||||||||||||
| Impairment | — | 83 | — | 83 | ||||||||||||
| Severance | 191 | 182 | 191 | 541 | ||||||||||||
| EBITDA Non-GAAP Adjusted | $ | (2,439 | ) | $ | (2,781 | ) | $ | (4,710 | ) | $ | (4,659 | ) | ||||
FAQ
What was Vislink's (VISL) revenue growth in Q3 2024?
How much cost savings does Vislink (VISL) expect from its restructuring plan?
What was Vislink's (VISL) net loss in Q3 2024?
