Authorization

Vislink Technologies Reports Q2 2019 Financial Results

HACKETTSTOWN, NJ, Aug. 14, 2019 (GLOBE NEWSWIRE) -- Vislink Technologies, Inc. (a??Vislinka?? or the a??Companya??) (Nasdaq: VISL), whose brands are recognized as the global leaders in live video communications, announced its results for the first quarter ended June 30, 2019. As previously announced, and in lieu of holding a conference call, the Company has issued a Corporate Update that includes a review of the financial results and an update on corporate developments (more information below).
Recent Highlights:

Introduced the INCAM-HS, an integrated 4K UHD wireless camera transmitter unit designed for SONYa??s HDC-5500 multi-format live camera system.



Partnered with Grass Valley on an all-in-one broadcast solution that includes the Vislink INCAM-HG 4K UHD transmitter and Grass Valleya??s LDX 86N Series camera.



Introduced the HCAM+ULRX wireless camera solution, which provides end-to-end, ultra-low latency when working with 4K content for broadcast sports and major entertainment event coverage applications.



Received $650,000 in airborne video downlink orders from California and Minnesota law enforcement agencies.



Deployed its wireless camera equipment to cover events at the OGN Super Arena, the largest esports studio arena on the U.S. West Coast, and the first esports venue in North America designed specifically for popular a??battle royalea?? esports games.



Was awarded a $2.8 million U.S. Army contract for handheld intelligence, surveillance and reconnaissance (ISR) receiver devices.



Subsequent to the end of the second quarter, the Company also closed on a $12 million public offering that allowed it to pay off convertible debt incurred during 2018 in full and ahead of schedule.

a??We successfully completed a company-wide restructuring over the last year and expected to have a revised capital structure in place in early 2019,a?? said Roger Branton, CEO of Vislink Technologies. The delay in finalizing that impacted our Q2 results and was reflected in the revenue and profit figures we announced. The Company succeeded in finalizing a new capital arrangement in July 2019 which allowed us to strengthen our balance sheet and become debt-free. We are optimistic that the difficult steps taken over the last year are behind us and we are in a much better position to reach our objective of sustainable and profitable growth.a??GAAP RESULTS

Revenues for the three and six months ended June 30, 2019 were $7.4 million and $15.6 million compared to $9.4 million and $19.2 million in the corresponding periods in 2018.



Gross margins remained steady at 52.1% of revenue in the second quarter 2019, compared to 52.3% of revenue in the second quarter of 2018.



Net loss attributable to common shareholders was $3.6 million, or $(1.79) per share in the second quarter of 2019 compared to a net loss of $6.4 million, or $(3.95) per share in the second quarter of 2018. Net loss attributable to common shareholders was $6.7 million, or $(3.41) per share for the six months ended June 30, 2019 compared to net income of $9.7 million, or $(6.24) per share for the six months ended June 30, 2018.



EBITDA (earnings before interest, taxes depreciation and amortization) was a negative $1.9 million for the three months ended June 30, 2019, compared to a negative $2.8 million for the three months ended June 30, 2018.



Ended the second quarter 2019 with $416,000 in cash, compared to $324,000 at the end of the first quarter of 2019.

NON-GAAP RESULTSA?

For the quarter ended June 30, 2019, adjusted net loss attributable to common shareholders was $2.5 million and $4.4 million for the six months ending June 30, 2019.



For the quarter ended June 30, 2019, adjusted EBITDA loss was $.8 million and $1.8 million for the six months ending June 30, 2019.

Corporate Update Vislink Technologies has issued a Corporate Update for its shareholders and other stakeholders that includes a review of the second quarter 2019 financial results and an update on corporate developments. The Corporate Update document can be viewed in the Latest Investor News section of the Vislink Technologies website, at https://www.vislink.com/investors/investor-news/. A?NON-GAAP FINANCIAL MEASURESWe 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 net income (loss) consists of net income (loss) excluding (i) share-based compensation and (ii) one-time expenses including severance and restructuring charges and discontinued operations.Non-GAAP EBITDA income (loss) consists of net income (loss) excluding (i) share-based compensation, (ii) depreciation and amortization, (iii) interest expense and (iv) one-time expenses including severance and restructuring charges and discontinued operations.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.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.
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 60 patents and pending patent applications. More information can be found at www.vislinktechnologies.com.# # #Note on Forward-looking StatementsThis 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.comInvestor Relations:
John Marco/CORE IR
516-222-2560
johnm@coreir.comVISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(IN THOUSANDS EXCEPT NET (LOSS) INCOME PER SHARE DATA)

A



A



For the Three Months Ended



A



A



For the Six Months Ended



A



A



A



June 30,



A



A



June 30,



A



A



A



2019



A



A



2018



A



A



2019



A



A



2018



A



Revenue



A



$



7,352



A



A



$



9,424



A



A



$



15,558



A



A



$



19,157



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



Cost of revenue and operating expenses



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



Cost of components and personnel



A



A



3,516



A



A



A



4,487



A



A



A



7,643



A



A



A



9,277



A



Inventory valuation adjustments



A



A



42



A



A



A



121



A



A



A



89



A



A



A



234



A



General and administrative expenses



A



A



5,550



A



A



A



6,028



A



A



A



10,733



A



A



A



11,860



A



Research and development expenses



A



A



866



A



A



A



2,925



A



A



A



1,792



A



A



A



5,367



A



Impairment charge



A



A



a??



A



A



A



168



A



A



A



a??



A



A



A



168



A



Amortization and depreciation



A



A



588



A



A



A



818



A



A



A



1,177



A



A



A



1,705



A



Total cost of revenue and operating expenses



A



A



10,562



A



A



A



14,547



A



A



A



21,434



A



A



A



28,611



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



Loss from operations



A



A



(3,210



)



A



A



(5,123



)



A



A



(5,876



)



A



A



(9,454



)



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



Other income (expense)



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



Changes in fair value of derivative liabilities



A



A



747



A



A



A



605



A



A



A



673



A



A



A



1,654



A



Loss on conversion of debentures



A



A



(48



)



A



A



a??



A



A



A



(48



)



A



A



a??



A



Other income expense



A



A



a??



A



A



A



38



A



A



A



a??



A



A



A



38



A



Interest expense, net



A



A



(1,064



)



A



A



(1,903



)



A



A



(1,414



)



A



A



(1,950



)



Total other income (expense)



A



A



(365



)



A



A



(1,260



)



A



A



(789



)



A



A



(258



)



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



Net loss



A



$



(3,575



)



A



$



(6,383



)



A



$



(6,665



)



A



$



(9,712



)



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



Basic and diluted loss per share



A



$



(1.79



)



A



$



(3.95



)



A



$



(3.41



)



A



$



(6.24



)



Weighted average number of shares outstanding:



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



Basic and diluted



A



A



2,002



A



A



A



1,615



A



A



A



1,954



A



A



A



1,556



A



Comprehensive loss:



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



Net loss



A



$



(3,575



)



A



$



(6,383



)



A



$



(6,665



)



A



$



(9,712



)



Unrealized gain (loss) on currency translation adjustment



A



A



34



A



A



A



(109



)



A



A



1



A



A



A



328



A



Comprehensive loss



A



$



(3,541



)



A



$



(6,492



)



A



$



(6,664



)



A



$



(9,384



)

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)

A



A



June 30, 2019



A



A



December 31, 2018



A



A



A



(unaudited)



A



A



A



A



ASSETS



A



A



A



A



A



A



A



A



Current assets



A



A



A



A



A



A



A



A



Cash



A



$



416



A



A



$



2,005



A



Accounts receivable, net



A



A



5,637



A



A



A



6,191



A



Inventories, net



A



A



12,737



A



A



A



13,050



A



Prepaid expenses and other current assets



A



A



916



A



A



A



780



A



Total current assets



A



A



19,706



A



A



A



22,026



A



Right of use assets, operating leases



A



A



2,427



A



A



A



a??



A



Property and equipment, net



A



A



2,051



A



A



A



2,096



A



Intangible assets, net



A



A



3,813



A



A



A



4,691



A



Total assets



A



$



27,997



A



A



$



28,813



A



LIABILITIES AND STOCKHOLDERSa?? EQUITY



A



A



A



A



A



A



A



A



Current liabilities



A



A



A



A



A



A



A



A



Accounts payable



A



$



7,491



A



A



$



7,072



A



Accrued expenses



A



A



3,650



A



A



A



2,112



A



Convertible promissory notes, net of discount of $-0- and $16, respectively



A



A



10



A



A



A



400



A



Operating lease obligations, current



A



A



1,444



A



A



A



a??



A



Due to related parties



A



A



364



A



A



A



361



A



Customer deposits and deferred revenue



A



A



2,198



A



A



A



1,574



A



Derivative liabilities



A



A



445



A



A



A



1,118



A



Total current liabilities



A



A



15,602



A



A



A



12,637



A



Convertible promissory notes, net of discount of $7 and $47, respectively



A



A



5,803



A



A



A



5,886



A



Operating lease obligations, net of current portion



A



A



1,038



A



A



A



a??



A



Total liabilities



A



A



22,443



A



A



A



18,523



A



Commitments and contingencies (See Note 9)



A



A



A



A



A



A



A



A



Stockholdersa?? equity



A



A



A



A



A



A



A



A



Preferred stock a?? $0.00001 par value per share: 10,000,000 shares authorized as of June 30, 2019 and December 31, 2018; -0- shares issued and outstanding as of June 30, 2019 and December 31, 2018



A



A



a??



A



A



A



a??



A



Common stock a?? $0.00001 par value per share, 100,000,000 shares authorized, 2,255,728 and 1,877,698 shares issued and 2,255,727 and 1,877,697 shares outstanding as of June 30, 2019 and December 31, 2018, respectively



A



A



a??



A



A



A



a??



A



Additional paid in capital



A



A



246,490



A



A



A



244,562



A



Accumulated other comprehensive income



A



A



276



A



A



A



275



A



Treasury stock, at cost a?? 1 share at June 30, 2019 and December 31, 2018, respectively



A



A



(22



)



A



A



(22



)



Accumulated deficit



A



A



(241,190



)



A



A



(234,525



)



Total stockholdersa?? equity



A



A



5,554



A



A



A



10,290



A



Total liabilities and stockholdersa?? equity



A



$



27,997



A



A



$



28,213



A

The accompanying notes are an integral part of these condensed consolidated financial statements.Reconciliation of GAAP to Non-GAAP ResultsOur 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 JUNE 30, 2019

A



A



A



A



Stock



A



A



A



A



A



Non



A



A



GAAP



A



Option



A



One-Time



A



Discontinued



A



GAAP



In thousands of US$



A



Q2



A



Expense



A



Expenses



A



Operations



A



Q2



Revenue



A



$



7,352



A



A



A



A



A



A



A



130



A



A



A



A



A



A



$



7,482



A



Gross margin



A



A



52.2



%



A



A



A



A



A



A



A



A



A



A



A



A



A



A



53.0



%



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



Cost of revenue and operating expenses



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



Cost of components and personnel



A



A



3,516



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



3,516



A



Inventory valuation adjustments



A



A



42



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



42



A



General and administrative expenses



A



A



5,550



A



A



A



(601



)



A



A



(146



)



A



A



(187



)



A



A



4,616



A



Research and development expenses



A



A



866



A



A



A



A



A



A



A



(20



)



A



A



A



A



A



A



846



A



Amortization and depreciation



A



A



588



A



A



A



a??A



A



A



A



a??A



A



A



A



a??A



A



A



A



588



A



Total cost of revenue and operating expenses



A



A



10,562



A



A



A



(601



)



A



A



(166



)



A



A



(187



)



A



A



9,608



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



Income (loss) from operations



A



A



(3,210



)



A



A



601



A



A



A



296



A



A



A



187



A



A



A



(2,126



)



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



Other income (expense)



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



Changes in fair value of derivative liabilities



A



A



747



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



747



A



Loss on conversion of debentures



A



A



(48



)



A



A



A



A



A



A



A



A



A



A



A



A



A



A



(48



)



Interest expense



A



A



(1,064



)



A



A



a??A



A



A



A



a??A



A



A



A



a??A



A



A



A



(1,064



)



Total other income (expense)



A



A



(365



)



A



A



a??A



A



A



A



a??A



A



A



A



a??A



A



A



A



(365



)



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



Net income (loss)



A



$



(3,575



)



A



$



601



A



A



$



296



A



A



$



187



A



A



$



(2,491



)



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



EBITDA



A



$



(1,923



)



A



$



601



A



A



$



296



A



A



$



187



A



A



$



(839



)

VISLINK TECHNOLOGIES, INC.
RECONCILIATION OF GAAP to NON-GAAP RESULTS
SIX MONTHS ENDING JUNE 30, 2019

A



A



A



A



Stock



A



A



A



A



A



Non



A



A



GAAP



A



Option



A



One-Time



A



Discontinued



A



GAAP



In thousands of US$



A



H1



A



Expense



A



Expenses



A



Operations



A



H1



Revenue



A



$



15,558



A



A



A



A



A



A



A



221



A



A



A



A



A



A



$



15,779



A



Gross margin



A



A



50.9



%



A



A



A



A



A



A



A



A



A



A



A



A



A



A



51.6



%



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



Cost of revenue and operating expenses



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



Cost of components and personnel



A



A



7,643



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



7,643



A



Inventory valuation adjustments



A



A



89



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



89



A



General and administrative expenses



A



A



10,733



A



A



A



(1,276



)



A



A



(275



)



A



A



(468



)



A



A



8,714



A



Research and development expenses



A



A



1,792



A



A



A



A



A



A



A



(23



)



A



A



A



A



A



A



1,769



A



Amortization and depreciation



A



A



1,177



A



A



A



a??A



A



A



A



a??A



A



A



A



a??A



A



A



A



1,177



A



Total cost of revenue and operating expenses



A



A



21,434



A



A



A



(1,276



)



A



A



(298



)



A



A



(468



)



A



A



19,392



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



Income (loss) from operations



A



A



(5,876



)



A



A



1,276



A



A



A



519



A



A



A



468



A



A



A



(3,613



)



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



Other income (expense)



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



Changes in fair value of derivative liabilities



A



A



673



A



A



A



A



A



A



A



a??A



A



A



A



A



A



A



A



673



A



Loss on conversion of debentures



A



A



(48



)



A



A



A



A



A



A



A



A



A



A



A



A



A



A



(48



)



Interest expense



A



A



(1,415



)



A



A



a??A



A



A



A



a??A



A



A



A



a??A



A



A



A



(1,415



)



Total other income (expense)



A



A



(790



)



A



A



a??A



A



A



A



a??A



A



A



A



a??A



A



A



A



(790



)



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



Net income (loss)



A



$



(6,666



)



A



$



1,276



A



A



$



519



A



A



$



468



A



A



$



(4,403



)



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



EBITDA



A



$



(4,074



)



A



$



1,276



A



A



$



519



A



A



$



468



A



A



$



(1,811



)
See also:
Leave a comment
News
  • Latest
  • Read
  • Commented
Calendar Content
«     2019    »
 1234
567891011
12131415161718
19202122232425
262728293031