HACKETTSTOWN, NJ, May 15, 2019 (GLOBE NEWSWIRE) -- Vislink Technologies, Inc. (“Vislink” or the “Company”) (Nasdaq: VISL), whose brands are recognized as the global leaders in live video communications, announced its results for the first quarter ended March 31, 2019. Management will hold a conference call to discuss the results on Wednesday, May 15, 2019 at 5:00 p.m. Eastern Time (details below).
Recent Highlights:
- Received a $1.5 million order for HCAM 4K UHD (Ultra High Definition) systems for deployment in Asia.
- Received a $900,000 contract to supply Airborne Video Downlink/Transmit/Receive Systems for use by the U.S. Air Force.
- Successfully completed the renaming of the corporate identity and global repositioning of its brands under the single, cohesive Vislink Technologies brand entity.
- Entered into a strategic agreement with Aeroshot Productions to provide wireless connectivity technology in its specialized camera systems.
- The HCAM 4K wireless camera system was recognized with a product award as the only proven sub-single frame latency 4K UHD system available in the wireless camera industry today.
- Vislink satellite communications equipment were used to provide images of the historic papal United Arab Emirates visit to a worldwide audience.
- Vislink wireless technology was implemented as in a referee-helmet mounted system to capture footage during the Champions Hockey League tournament in Sweden.
“After successfully rightsizing our operations in 2018, we completed the realignment of the Company in the first quarter by bringing our corporate and operating brands together under the single entity of Vislink Technologies,” said Roger Branton, CEO of Vislink Technologies. “Reorganizing our offerings under the solution areas Live Production, Military and Government and Satellite allows us to better communicate the value of our solutions to our core markets. The reaction to these changes has already been positive in our key sectors, as we are building a strong backlog of business across the three main solution lines. This was particularly evident from our presence at the recent NAB (National Association of Broadcasters) Show. At this event, pre-order bookings were strong, in part driven by our HCAM 4K systems receiving a product award for innovation.”
Mr. Branton continued, “While the first quarter reflected the seasonality of our industry, we are pleased with the momentum we are seeing as a result of the financial and operational milestones we have achieved. We are focused on maintaining the long-term health of the business, which we believe remains positive. A key action item for us in 2019 is regaining compliance with NASDAQ, both in independent board compliance and minimum stock listing. We are confident that these actions, combined with the achievements we have realized, will allow us to capitalize on our industry leadership position and generate sustainable and profitable growth.”
GAAP RESULTS
- First quarter 2019 revenues were $8.2 million compared to $9.7 million in the first quarter of 2018.
- Gross margins were 50% of revenue in the first quarter of 2019, compared to 51% of revenue in the first quarter of 2018.
- In the first quarter of 2019, net loss attributable to common shareholders was $3.1 million, or $(1.62) per share, compared to net loss of $3.8 million, or $(2.52) per share in the first quarter of 2018.
- EBITDA (earnings before interest, taxes depreciation and amortization) was a negative $2.1 million for the three months ended March 31, 2019, compared to a negative $2.8 million for the three months ended March 31, 2018.
- Ended the first quarter 2019 with $324,000 in cash compared to $2 million at December 31, 2018.
NON-GAAP RESULTS¹
- For the quarter ended March 31, 2019, adjusted net loss net loss attributable to common shareholders was $1.9 million.
- For the quarter ended March 31, 2019, adjusted EBITDA loss was $989,000.
Financial Results Conference Call
Management will hold a conference call to discuss financial results for the year ended March 31, 2019 and provide a corporate update on Wednesday, May 15, 2019 at 5:00 p.m. Eastern Time. To participate in the conference call, please call 1-866-987-9124 (toll free) or 1-409-217-8842 (international call-in) and ask to join the Vislink Technologies Q1 2019 call. The call will also be simultaneously webcast. Listeners can access the webcast live through the Company's website at https://vislinktechnologies.com/investor-information/. For those who cannot participate in the call, an audio replay will be made available on the Vislink Technologies website.
¹NON-GAAP FINANCIAL MEASURES
We disclose non-GAAP financial measures as we believe they provide useful information on actual operating
performance. Readers are cautioned that non-GAAP financial measures do not have any standardized meaning prescribed by U.S. GAAP and therefore may not be comparable to similar measures presented by other companies.
Non-GAAP gross margin excludes the impact of purchase price amortization on the step up of assets as a result of the bargain purchase gain and the impact of foreign exchange gains or losses.
Non-GAAP income (loss) from operations excludes the impact of purchase price amortization related to the Vislink acquisition, acquisition-related expenses and restructuring expenses.
We use the above-noted non-GAAP financial measures for planning purposes and to allow us to assess the performance of our business before including the impacts of the items noted above as they affect the comparability of our financial results. These non-GAAP measures are reviewed regularly by management and the Board of Directors as part of the ongoing internal assessment of our operating performance. Adjusted EBITDA is defined as net income (loss) plus purchase price amortization, acquisition-related expense, restructuring expense, depreciation and amortization, foreign exchange gains or losses and interest expense.
Adjusted EBITDA is a metric used by investors and analysts for valuation purposes and we believe that it is an important indicator of our operating performance.
About Vislink Technologies, Inc.
Vislink Technologies is a global leader in the development and distribution of advanced communication solutions. Driven by technical excellence that has led the industry for over 50 years, our innovative products and turnkey solutions provide reliable connectivity in the toughest environments across the global live production, military and government sectors. Our solutions include high-definition communication links that reliably capture, transmit and manage live event footage, as well as secure video systems that support mission-critical applications. Headquartered in Hackettstown, New Jersey, Vislink Technologies has over 70 patents and pending patent applications. More information can be found at www.vislinktechnologies.com.
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Note on Forward-looking Statements
This press release may contain projections or other forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These statements involve risks and uncertainties, and actual events or results may differ materially. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are the risk that our reduction in operating expenses may impact our ability to meet our business objectives and achieve our revenue targets and may not result in the expected improvement in our profitability, the fact that our future growth depends in part on further penetrating our addressable market and also growing internationally, and we may not be successful in doing so; our dependence on sales of certain products to generate a significant portion of our revenue; the effect of a decrease in the sales or change in sales mix of these products would harm our business; the risks that an economic downturn or economic uncertainty in our key U.S. and international markets may adversely affect demand for our products; difficulty in accurately predicting our future customer demand; the importance of maintaining the value and reputation of our brand; and other factors detailed in the Risk Factors section of our Registration Statement on Form S-1, as amended (No. 333-225975), which is on file with the Securities and Exchange Commission. Additional information will also be set forth in our Annual Report on Form 10-K for the year ended December 31, 2018. These forward-looking statements speak only as of the date hereof or as of the date otherwise stated herein. The Company disclaims any obligation to update these forward-looking statements.
FOR MORE INFORMATION:
Daniel Carpini
941-953-9035
daniel.carpini@vislink.com
Investor Relations:
John Marco/CORE IR
516-222-2560
johnm@coreir.com
VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(IN THOUSANDS EXCEPT NET (LOSS) INCOME PER SHARE DATA)
| For the Three Months Ended | ||||||||
| March 31, | ||||||||
| 2019 | 2018 | |||||||
| Revenue, net | $ | 8,206 | $ | 9,733 | ||||
| Cost of revenue and operating expenses | ||||||||
| Cost of components and personnel | 4,127 | 4,790 | ||||||
| Inventory valuation adjustments | 47 | 113 | ||||||
| General and administrative expenses | 5,183 | 5,832 | ||||||
| Research and development expenses | 926 | 2,442 | ||||||
| Amortization and depreciation | 589 | 887 | ||||||
| Total cost of revenue and operating expenses | 10,872 | 14,064 | ||||||
| Loss from operations | (2,666 | ) | (4,331 | ) | ||||
| Other (expense) income | ||||||||
| Changes in fair value of derivative liabilities | (74 | ) | 609 | |||||
| Interest expense | (350 | ) | (47 | ) | ||||
| Total other (expense) income | (424 | ) | 562 | |||||
| Net loss | $ | (3,090 | ) | $ | (3,769 | ) | ||
| Basic and diluted loss per share | $ | (1.62 | ) | $ | (2.52 | ) | ||
| Weighted average number of shares outstanding: | ||||||||
| Basic and diluted | 1,906 | 1,495 | ||||||
| Comprehensive loss: | ||||||||
| Net loss | $ | (3,090 | ) | $ | (3,769 | ) | ||
| Unrealized (loss) gain on currency translation adjustment | (33 | ) | 437 | |||||
| Comprehensive loss | $ | (3,123 | ) | $ | (3,332 | ) | ||
The accompanying notes are an integral part of these condensed consolidated financial statements.
VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
| March 31, | December 31, | |||||||
| 2019 | 2018 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ | 324 | $ | 2,005 | ||||
| Accounts receivable, net | 5,531 | 6,191 | ||||||
| Inventories, net | 12,716 | 13,050 | ||||||
| Prepaid expenses and other current assets | 875 | 780 | ||||||
| Total current assets | 19,446 | 22,026 | ||||||
| Right of use assets, operating leases | 2,665 | — | ||||||
| Property and equipment, net | 1,957 | 2,096 | ||||||
| Intangible assets, net | 4,255 | 4,691 | ||||||
| Total assets | $ | 28,323 | $ | 28,813 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 5,985 | $ | 7,072 | ||||
| Accrued expenses | 2,442 | 2,112 | ||||||
| Convertible promissory notes, net of discount of $10 and $16, respectively | 321 | 400 | ||||||
| Operating lease obligations, current | 1,029 | — | ||||||
| Due to related parties | 276 | 361 | ||||||
| Customer deposits and deferred revenue | 1,521 | 1,574 | ||||||
| Derivative liabilities | 1,192 | 1,118 | ||||||
| Total current liabilities | 12,766 | 12,637 | ||||||
| Convertible promissory notes, net of discount of $31 and $47, respectively | 5,902 | 5,886 | ||||||
| Operating lease obligations, net of current portion | 1,712 | — | ||||||
| Total liabilities | 20,380 | 18,523 | ||||||
| Commitments and contingencies (See Note 8) | ||||||||
| Stockholders’ equity | ||||||||
| Preferred stock – $0.00001 par value per share: 10,000,000 shares authorized as of March 31, 2019 and December 31, 2018; 0 shares issued and outstanding as of March 31, 2019 and December 31, 2018 | — | — | ||||||
| Common stock – $0.00001 par value per share, 100,000,000 shares authorized, 1,923,472 and 1,877,698 shares issued and 1,923,471 and 1,877,698 outstanding as of March 31, 2019 and December 31, 2018, respectively | — | — | ||||||
| Additional paid in capital | 245,338 | 244,562 | ||||||
| Accumulated other comprehensive income | 242 | 275 | ||||||
| Treasury stock, at cost – .2 shares at March 31, 2019 and December 31, 2018, respectively | (22 | ) | (22 | ) | ||||
| Accumulated deficit | (237,615 | ) | (234,525 | ) | ||||
| Total stockholders’ equity | 7,943 | 10,290 | ||||||
| Total liabilities and stockholders’ equity | $ | 28,323 | $ | 28,213 | ||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
Reconciliation of GAAP to Non-GAAP Results
Our financial statements are prepared in accordance with US GAAP on a basis consistent for all periods presented. In addition to results reported in accordance with US GAAP, we use non-GAAP financial measures as supplemental indicators of our operating performance. We disclose non-GAAP measures as we believe that these measures provide better information on actual operating results.
Readers are cautioned that non-GAAP financial measures do not have any standardized meaning prescribed by US GAAP and therefore may not be comparable to similar measures presented by other companies.
VISLINK TECHNOLOGIES, INC.
RECONCILIATION OF GAAP to NON-GAAP RESULTS
QUARTER ENDING MARCH 31, 2019
| Stock | Non | ||||||||||||||
| GAAP | Option | One-Time | Discontinued | GAAP | |||||||||||
| In thousands of US$ | Q1 | Expense | Expenses | Operations | Q1 | ||||||||||
| Revenue | $ | 8,206 | $ | 8,206 | |||||||||||
| Gross margin | 49.7 | % | 49.7 | % | |||||||||||
| Cost of revenue and operating expenses | |||||||||||||||
| Cost of components and personnel | 4,127 | 4,127 | |||||||||||||
| Inventory valuation adjustments | 47 | 47 | |||||||||||||
| General and administrative expenses | 5,183 | (675 | ) | (129 | ) | (281 | ) | 4,098 | |||||||
| Research and development expenses | 926 | - | (3 | ) | - | 923 | |||||||||
| Impairment charge | - | - | - | - | - | ||||||||||
| Amortization and depreciation | 589 | - | - | - | 589 | ||||||||||
| Total cost of revenue and operating expenses | 10,872 | (675 | ) | (132 | ) | (281 | ) | 9,784 | |||||||
| Income (loss) from operations | (2,666 | ) | 675 | 132 | 281 | (1,578 | ) | ||||||||
| Other income (expense) | |||||||||||||||
| Changes in fair value of derivative liabilities | (74 | ) | 74 | - | |||||||||||
| Interest expense | (350 | ) | - | - | - | (350 | ) | ||||||||
| Total other income (expense) | (424 | ) | - | 74 | - | (350 | ) | ||||||||
| Net income (loss) | $ | (3,090 | ) | $ | 675 | $ | 206 | $ | 281 | $ | (1,928 | ) | |||
| EBITDA | $ | (2,151 | ) | $ | 675 | $ | 206 | $ | 281 | $ | (989 | ) | |||