Vislink Technologies(VISL) - 2024 Q1 - Quarterly Results

Vislink Q1 2024 Financial and Operational Results First Quarter 2024 Financial and Operational Highlights Vislink reported strong Q1 2024 results with 20% revenue growth, improved profitability, and key product launches Financial Highlights | Financial Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $8.6 million | $7.2 million | +20% | | Gross Margin | 59% | 54% | +5 p.p. | | Net Loss | $(0.9) million | $(1.8) million | Improved | | Net Loss Per Share | $(0.39) | $(0.80) | Improved | | Cash & Short-term Investments | $13.8 million | - | - | - The increase in revenue was primarily due to a substantial jump in sales to military and government (MilGov) customers, driven by market acceptance of the AeroLink platform[4] - Service and software revenue grew to 16% of total revenue, reflecting a strategic focus on driving recurring revenues through the LinkMatrix platform[4] - Key operational achievements include: - Launch of Air-to-Anywhere™ within the AVDS platform, with a roadmap to leverage AI for enhanced analytics[4] - Unveiling of DragonFly V, the world's smallest HEVC HDR transmitter for live video[4] - Gaining "Approved Supplier" status from three global aerospace OEMs[4] Management Commentary Management attributes strong Q1 results to MilGov focus, with an expanding sales pipeline and reaffirmed cash flow goals - The 20% revenue growth was fueled by an expanding presence in MilGov markets, bolstered by the BMS asset acquisition and increased governmental investment[5] - The company's weighted sales pipeline is valued at $48 million entering the second quarter, the largest since the pandemic[6] - Vislink is on track to achieve cash flow neutrality by the end of 2024 and aims to be cash flow positive in 2025[7] - New products like Cliq, LiveLink, and DragonFly V are expected to increase the mix of software and services revenue, which grew to 16% of total revenue in Q1[6] Financial Tables Detailed financial tables present Vislink's balance sheet, operations, and non-GAAP reconciliation for Q1 2024 Condensed Consolidated Balance Sheets Vislink's balance sheet as of March 31, 2024, details assets, liabilities, and equity Condensed Consolidated Balance Sheets | Balance Sheet Items | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--- | :--- | :--- | | Total current assets | $39,365 | $38,482 | | Cash | $7,959 | $8,482 | | Inventories, net | $14,866 | $14,029 | | Total assets | $45,990 | $44,992 | | Total current liabilities | $8,210 | $6,714 | | Total liabilities | $9,547 | $8,015 | | Total stockholders' equity | $36,443 | $36,977 | Unaudited Condensed Consolidated Statements of Operations Vislink's unaudited Q1 2024 statements of operations show $8.6 million revenue and reduced net loss Unaudited Condensed Consolidated Statements of Operations | Statement of Operations | For the Three Months Ended March 31, 2024 (in thousands) | For the Three Months Ended March 31, 2023 (in thousands) | | :--- | :--- | :--- | | Revenue, net | $8,598 | $7,188 | | Total cost of revenue and operating expenses | $10,196 | $9,536 | | Loss from operations | $(1,598) | $(2,348) | | Net loss | $(948) | $(1,756) | | Basic and diluted loss per share | $(0.39) | $(0.74) | Reconciliation of GAAP to Non-GAAP Results Reconciliation of GAAP net loss to non-GAAP EBITDA and Adjusted EBITDA shows improved adjusted profitability Reconciliation of GAAP to Non-GAAP Results | Reconciliation to EBITDA | March 31, 2024 (in thousands) | March 31, 2023 (in thousands) | | :--- | :--- | :--- | | Net loss (GAAP) | $(948) | $(1,756) | | Amortization and depreciation | $347 | $298 | | Interest income, net | $(91) | $(133) | | Tax | $(55) | $(55) | | EBITDA | $(813) | $(1,737) | | Stock-based compensation | $464 | $921 | | Severance | $— | $349 | | EBITDA Non-GAAP Adjusted | $(349) | $(467) | Conference Call Information Details for the Q1 2024 earnings conference call and replay information are provided for stakeholder access - A conference call to discuss Q1 2024 results was scheduled for May 15, 2024, at 8:30 a.m. Eastern Time[7] - A replay of the conference call is available through Wednesday, May 28, 2024, using Replay ID: 4822215[10][11]