Loading, Please Wait...

CST: 17/07/2019 09:55:12   

Vislink Technologies Reports Q1 2019 Financial Results

62 Days ago

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.

# # #

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 )

Is your business listed correctly on America’s largest city directory network of 1,000 portals?