Vislink Technologies(VISL) - 2025 Q1 - Quarterly Results

Executive Summary & Company Highlights Vislink achieved significant operational and strategic advancements in Q4 2024 and recently, including major orders, new product launches, cost savings, and a shift to a service-driven model Fourth Quarter 2024 and Recent Company Highlights Vislink achieved multiple operational and strategic advancements in Q4 2024 and recently, including major orders, new product launches, cost savings, and a shift to a service-driven business model - Received multi-million dollar orders for high-reliability Airborne Video Downlink System (AVDS) equipment from public safety and military organizations across the US, Canada, and Europe[3] - Initiated multi-million dollar product shipments for emerging drone applications[3] - Secured over $900,000 in recurring revenue through strategic Service Level Agreements (SLAs), accelerating the transition to a sustainable, service-driven business model[3] - Achieved operational cost savings, projected to reach approximately $10 million, resulting from restructuring plans following the new ERP system deployment[3] - Established a new partnership with Radio Televisyen Malaysia (RTM) to deploy advanced Vislink systems, with a contract value exceeding $1 million[3] - Awarded "Best Innovation Project" at the 2024 Broadcast Tech Innovation Awards for its collaboration in delivering an immersive Virtual Reality (VR) experience at the Abu Dhabi Autonomous Racing League (A2RL)[3] - Launched a series of new and updated products, including the Aero5 5G HEVC 4K UHD Airborne Downlink System, DragonFly V 5G, INCAM GV wireless system, Cliq compact mobile transmitter, LinkMatrix platform, Quantum IP-native wireless camera receiver, and LiveLink 4G/5G solutions[3][6] - Introduced a new website and brand identity to drive global growth and strengthen market leadership[6] - Post-Q4, the company announced its voluntary delisting from the Nasdaq Capital Market to reduce expenses and enhance focus on execution[6] Financial Performance Vislink's financial performance in 2024 showed mixed results with modest revenue growth but significantly expanded net and EBITDA losses due to restructuring and impairments Full Year 2024 Financial Results Vislink achieved modest revenue growth in FY2024, but net loss and EBITDA loss significantly expanded due to restructuring, asset impairment, and a one-time inventory write-off Full Year Financial Results (Million USD) | Metric | 2024 (Million USD) | 2023 (Million USD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 27.7 | 27.5 | 0.7% | | Gross Margin | 25% | 51% | -26.0% | | Gross Margin (Excl. One-Time Write-offs) | 49.7% | 51% | -1.3% | | Net Loss Attributable to Common Stockholders | (20.5) | (9.1) | 125.3% | | Net Loss Per Share | (8.35) | (3.83) | 117.9% | | EBITDA | (19.8) | (9.0) | 120.0% | | Cash and Short-Term Investments (End of Period) | 6.5 | 9.2 (Q3) | -29.4% | - The reported loss was primarily due to significant restructuring, including workforce reductions, lease terminations, and asset write-offs[6] Fourth Quarter 2024 Financial Results Vislink's Q4 2024 revenue significantly declined quarter-over-quarter, gross margin turned negative, and net loss expanded, primarily due to live production business downturn and project delays Fourth Quarter Financial Results (Million USD) | Metric | Q4 2024 (Million USD) | Q3 2024 (Million USD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3.4 | 7.1 | -52.1% | | Gross Margin | -1% | 51% | -52.0% | | Gross Margin (Excl. One-Time Write-offs) | 8.8% | 51% | -42.2% | | Net Loss Attributable to Common Stockholders | (14.3) | (3.0) | 376.7% | | Net Loss Per Share | (5.82) | (1.22) | 377.0% | - Revenue decline was primarily due to a downturn in the live production business and delays in executing large projects[6] - The significant decrease in gross margin was attributed to unabsorbed manufacturing overhead, despite strong material margins[6] Management Insights Management commentary highlights strategic progress in 2024, operational improvements, cost savings, strong MilGov business momentum, and a successful shift towards a service-centric model Management Commentary CEO Mickey Miller emphasized strategic progress in 2024 despite Q4 revenue challenges, highlighting significant operational improvements and cost savings from ERP implementation and restructuring - Full-year 2024 revenue showed modest growth, with significant operational foundation improvements and approximately $10 million in annual savings achieved through ERP system implementation and comprehensive restructuring[7] - Strong momentum in the MilGov business, securing multi-million dollar Airborne Video Downlink System orders and product shipments, including for emerging drone applications[7] - Progress in transitioning to a service-centric organization, generating over $900,000 in recurring revenue through new Service Level Agreements[7] - Healthy demand for innovative solutions in the live production market, with the company serving as a key technology provider for top global events and launching new products like DragonFly V 5G[7] - Management expresses confidence in achieving sustainable profitable growth and creating shareholder value through an innovative product roadmap, enhanced presence in high-growth areas, and more focused operations[7] Additional Information This section provides details on the conference call, explains non-GAAP financial measures, includes a forward-looking statements disclaimer, and offers company and investor contact information Conference Call Vislink management held a conference call on May 2, 2025, to discuss Q4 and full-year 2024 financial results, with details provided for participation and replay - The conference call was held on May 2, 2025, at 8:30 AM ET[8] - Toll-free number 1-833-953-2432 and international number 1-412-317-5761 were provided[8] - A webcast registration and replay are available on the company's investor relations section of its website[8][9] - The conference call replay service will be available until May 16, 2025[10] Non-GAAP Financial Measure: EBITDA This section defines EBITDA as a non-GAAP financial measure, explaining its role in evaluating operational performance, budgeting, and managing business objectives, noting its non-GAAP basis - EBITDA is a non-GAAP financial measure defined as net income (loss) adjusted for the impact of depreciation and amortization expense, interest income, and taxes[11] - EBITDA is a key metric used by management and the Board of Directors to understand and evaluate operational performance, develop budgets, and manage operating goals[11] - Excluding these expenses facilitates period-to-period comparisons of core operating performance[11] Note on Forward-looking Statements This section contains a legal disclaimer regarding forward-looking statements, noting they involve significant risks and uncertainties, are based on current management expectations, and the company assumes no obligation to update them - Certain statements in the press release are forward-looking statements involving significant risks and uncertainties, protected by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995[12] - These statements are based on management's current expectations and involve risks and uncertainties discussed in Vislink's Annual Report on Form 10-K[12] - The company undertakes no obligation to publicly update these forward-looking statements due to new information, future events, or otherwise, unless required by law[13] About Vislink Technologies, Inc. Vislink Technologies is a global leader in capturing, transmitting, and managing high-quality real-time video and related data, with over 50 years of industry experience and solutions based on RF, cellular, 5G, and AI - Vislink Technologies is a global technology leader in capturing, transmitting, and managing high-quality live video and associated data[14] - The company has over 50 years of history in video communications, offering real-time streaming solutions using RF, bonded cellular, 5G, and AI-driven technologies[14] - Vislink's common stock trades on the OTCQB Capital Market under the ticker symbol "VISL"[14] Investor Relations Contact This section provides contact information for investor relations - Investor Relations contact email is investors@vislink.com[15] Financial Statements This section presents Vislink's condensed consolidated financial statements, including balance sheets, statements of operations, and GAAP to non-GAAP reconciliation tables for 2024 and 2023 CONDENSED CONSOLIDATED BALANCE SHEETS As of December 31, 2024, Vislink's total assets and stockholders' equity decreased compared to 2023, while total liabilities slightly increased, reflecting changes in the company's financial position Condensed Consolidated Balance Sheets (As of December 31, Thousand USD) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Assets | | | | Cash | 5,501 | 8,482 | | Accounts receivable, net | 5,958 | 8,680 | | Inventories, net | 7,563 | 14,029 | | Held-to-maturity investments | 995 | 5,731 | | Total current assets | 21,319 | 38,482 | | Total assets | 26,178 | 44,992 | | Liabilities and Stockholders' Equity | | | | Accounts payable | 2,422 | 3,183 | | Accrued expenses | 2,153 | 1,578 | | Accrued restructuring costs | 421 | — | | Customer deposits and deferred revenue | 2,768 | 1,490 | | Total current liabilities | 8,279 | 6,714 | | Total liabilities | 8,971 | 8,015 | | Total stockholders' equity | 17,207 | 36,977 | UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS Vislink's net revenue slightly increased in FY2024, but operating loss and net loss significantly expanded year-over-year due to substantial increases in cost of sales and operating expenses, particularly inventory impairment and restructuring costs Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss (As of December 31, Thousand USD, except per share data) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net revenue | 27,729 | 27,482 | | Cost of sales: | | | | Component and personnel costs | 13,955 | 13,380 | | Inventory impairment and valuation write-downs | 6,828 | 487 | | Total cost of sales | 20,783 | 13,867 | | Operating expenses: | | | | General and administrative expenses | 21,596 | 19,376 | | Research and development expenses | 4,561 | 3,493 | | Restructuring costs | 489 | — | | Operating loss | (21,508) | (10,598) | | Net loss attributable to common stockholders | (20,501) | (9,127) | | Basic and diluted loss per share | (8.35) | (3.83) | | Comprehensive loss | (20,926) | (8,817) | RECONCILIATION OF GAAP TO NON-GAAP RESULTS This section provides Vislink's reconciliation from GAAP net loss to non-GAAP EBITDA and Adjusted EBITDA for 2024 and 2023, illustrating the extent of losses under non-GAAP metrics GAAP to Non-GAAP Results Reconciliation (As of December 31, Thousand USD) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net loss | (20,501) | (9,127) | | Amortization and depreciation | 1,310 | 1,261 | | Dividend income | (211) | (375) | | Net interest income | (300) | (560) | | Taxes | (145) | (218) | | EBITDA | (19,847) | (9,019) | | Stock-based compensation | 996 | 1,942 | | Impairment | 6,507 | 83 | | Severance | 239 | 585 | | Other restructuring costs | 250 | — | | EBITDA Non-GAAP Adjusted | (11,855) | (6,409) |