Vislink Reports Second Quarter and First Half 2023 Financial Results


First Half Net Loss Narrows by 10% Year-Over-Year

Core MilGov Segment Achieves 91% Year-Over-Year Revenue Growth to $1.2 Million in Q2

Mt. Olive, NJ, Aug. 11, 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 second quarter and first six months ended June 30, 2023.

Second Quarter 2023 and Recent Operational Highlights

  • Installed AeroLink systems with public safety agencies in the Mid-Atlantic region, providing advanced Airborne Video Downlink System (“AVDS”) technology for improved air-to-ground and top-quality live video in law enforcement applications.
  • Delivered seven AeroLink transmitters to law enforcement customers in Q2, bringing total deliveries of the latest AVDS component to 12. This component equips law enforcement agencies with high-quality live video, extended coverage, and enhanced operational efficiency, crucial for effective decision-making in critical situations.
  • Provided five Cliq OFDM Mini Camera Transmitters for demo purposes, which received strong positive responses from Live Broadcast customers and demonstrated the product’s resonance in a market that prioritizes compact design without compromising reliable video transmission.
  • Unveiled Aero5 5G Downlink Transmitter, enhancing airborne video downlink applications with the most technologically advanced 5G/LTE bonded cellular solution and empowering public safety agencies and live production broadcast crews to transform air-to-ground video transmission operations.
  • Expanded LinkMatrix capability to Amazon Web Services (AWS), delivering essential insights for enhancing remote production workflows. The integration facilitates improved responsiveness and seamless collaboration, essential for live broadcasts and efficient field operations with the public safety market.
  • Appointed seasoned public safety sales executive Steven Teese as VP of Sales for the Americas, leveraging his extensive leadership background from Watchguard Video, Motorola Solutions, and Honeywell to strengthen Vislink’s market presence and drive growth in key segments.

Management Commentary

“Building on our strategic shift towards the fast-growing public safety market, we achieved significant operational progress with a notable 91% year-over-year increase in our MilGov segment, totaling $1.2 million in Q2,” said Vislink CEO Mickey Miller. “Navigating the inherent uncertainties and unique industry dynamics, such as elongated sales cycles associated with this new market, our resolve to capitalize on this growth area remains firm. Our strategic approach, backed by our revitalized leadership team, aims to convert our robust sales pipeline, replete with multiple potential opportunities ranging from $500,000 to over $1 million.

“Vislink's commitment to technological innovation is reflected in our successful production ramp of AeroLink and the positive market response to Cliq. Concurrently, we are intensifying our efforts to enhance operational efficiencies, which, when completed, will produce more than $1 million in cost savings annually. We have also implemented a 5% price increase on all new orders. These focused measures, coupled with our drive to secure more predictable, recurring revenue from software and services, underscore our confidence in our ability to drive sustainable growth in the future.”

First Six Month 2023 Financial Results

  • Revenue was $12.2 million compared to $13.6 million in the prior year period.
  • Gross margin increased to 54%, up from 52% in the prior year period.
  • Net loss attributable to common shareholders was $(4.8) million, or $(2.02) per share, an improvement compared to $(5.3) million, or $(2.30) per share, in the prior year period.
  • EBITDA (earnings before interest, taxes, depreciation, and amortization) was $(4.9) million, compared to $(4.5) million in the prior year period.

Second Quarter 2023 Financial Results

  • Revenue was $5.0 million compared to $6.8 million in the prior year period.
  • Gross margin of 53% remained consistent with the prior year period.
  • Net loss attributable to common shareholders was $(3.0) million, or $(1.27) per share, as compared to $(2.5) million, or $(1.10) per share, in the prior year period.
  • EBITDA (earnings before interest, taxes, depreciation, and amortization) was $(3.1) million, compared to $(2.1) million in the prior year period.
  • Maintained a strong balance sheet with $11.0 million in cash and cash equivalents, while strategically allocating $10.8 million to federal bonds intended to be held to maturity.

Conference Call

Management will host a conference call today, August 11, 2023, at 8:30 a.m. Eastern Time (5:30 a.m. Pacific Time) to discuss its financial results for the second quarter ended June 30, 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 for a limited time after 11:30 a.m. Eastern Time on the same day through Friday, August 25, 2023.

Toll-Free Replay Number: 1-877-344-7529
International Replay Number: 1-412-317-0088
Replay ID: 6349942

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 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, acquisitions integration, cost savings, 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.

Vislink Technologies is 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. 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. 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 innovative solutions enable broadcasters and public safety agencies to capture and share live video seamlessly and securely, ensuring they can stay connected with their audiences, teams, and operations. 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:
Charlotte van Hertum
Vislink Technologies, Inc.
charlotte.vanhertum@vislink.com

Investor Relations Contact:
Matt Glover and Alec Wilson
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)

  2023  2022 
   (unaudited)     
ASSETS        
Current assets        
Cash and cash equivalents $10,973  $25,627 
Accounts receivable, net  5,747   6,007 
Inventories, net  13,177   12,021 
Investments held to maturity  10,837    
Prepaid expenses and other current assets  2,376   1,232 
Total current assets  43,110   44,887 
Right of use assets, operating leases  940   1,075 
Property and equipment, net  1,744   1,434 
Intangible assets, net  3,910   4,400 
Total assets $49,704  $51,796 
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Current liabilities        
Accounts payable $3,333  $2,626 
Accrued expenses  1,436   1,568 
Notes payable  394   84 
Operating lease obligations, current  406   455 
Customer deposits and deferred revenue  1,921   1,540 
Total current liabilities  7,490   6,273 
Operating lease obligations, net of current portion  934   1,107 
Deferred tax liabilities  655   764 
Total liabilities  9,079   8,144 
         
Commitments and contingencies (See Note 12)        
         
Series A Preferred stock, $0.00001 par value per share: -0- shares authorized on June 30, 2023, and December 31, 2022, respectively; -0- and 47,419 shares issued and outstanding on June 30, 2023, and December 31, 2022, respectively.      
         
Stockholders’ equity        
Preferred stock, $0.00001 par value per share: 10,000,000 shares authorized on June 30, 2023, and December 31, 2022, respectively      
Common stock, $0.00001 par value per share, 100,000,000 shares authorized on June 30, 2023, and December 31, 2022, respectively:        
Common stock, 2,377,362 and 2,370,966 were issued, and 2,377,229 and 2,370,833 were outstanding on June 30, 2023, and December 31, 2022, respectively.      
Additional paid-in capital  346,822   345,365 
Accumulated other comprehensive loss  (1,037)  (1,337)
Treasury stock, at cost – 133 shares as of June 30, 2023, and December 31, 2022, respectively  (277)  (277)
Accumulated deficit  (304,883)  (300,099)
Total stockholders’ equity  40,625   43,652 
Total liabilities and stockholders’ equity $49,704  $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 Three Months Ended  For the Six Months Ended 
  June 30,  June 30, 
  2023  2022  2023  2022 
             
Revenue, net $5,043  $6,766  $12,231  $13,626 
                 
Cost of revenue and operating expenses                
Cost of components and personnel  2,361   3,186   5,675   6,609 
Inventory valuation adjustments  175   101   304   197 
General and administrative expenses  4,679   4,439   9,707   9,349 
Research and development expenses  908   1,151   1,675   2,269 
Amortization and depreciation  304   465   602   922 
Total cost of revenue and operating expenses  8,427   9,342   17,963   19,346 
Loss from operations  (3,384)  (2,576)  (5,732)  (5,720)
                 
Other income (expense)                
Unrealized loss on investments held to maturity  (35)     (63   
Gain on settlement of debt     9      9 
Other income  (11)  (10)  330   316 
Dividend income  128      219    
Interest income, net  220   (5)  353   (5)
Total other income (expense)  302   (6)  839   320 
                 
Net loss before income taxes  (3,082)  (2,582)  (4,893)  (5,400)
                 
Income taxes                
Deferred tax benefits  54   56   109   107 
                 
Net loss  (3,028)  (2,526)  (4,784)  (5,293)
                 
Basic and diluted loss per share $(1.27) $(1.10) $(2.02) $(2.30)
                 
Weighted average number of shares outstanding:                
Basic and diluted  2,377   2,305   2,374   2,298 
                 
Comprehensive loss:                
Net loss $(3,028) $(2,526) $(4,784) $(5,293)
Unrealized gain (loss) on currency translation adjustment  145   (1,407)  300   (1,139)
Comprehensive loss $(2,883) $(3,933) $(4,484) $(6,432)


Reconciliation of GAAP to Non-GAAP Results
VISLINK TECHNOLOGIES, INC.
RECONCILIATION OF GAAP to NON-GAAP RESULTS
QUARTER ENDING June 30, 2023
(IN THOUSANDS)

  For the Three Months Ended  For the Six Months Ended 
  June 30,  June 30, 
  2023   2022   2023   2022  
Reconciliation of net income to EBITDA            
Net loss $ (3,028  $ (2,526  $ (4,784  $ (5,293 
                 
Amortization and depreciation   304      465      602      922   
Dividend income   (128)    -     (219)    -  
Interest income, net   (220)    5     (353)    5  
Tax   (54)    (56)    (109)    (107) 
EBITDA  $(3,126)   $(2,112)   $(4,863)   $(4,473) 
Stock based compensation   336     407     1,257     1,154  
Severance   9     -     359     25  
Inventory step up   -     163     -     516  
EBITDA Non-GAAP Adjusted  $(2,781)   $(1,542)   $(3,247)   $(2,778)