Vislink Technologies Reports Q3 2020 Financial Results

Sarasota, Florida, UNITED STATES

HACKETTSTOWN, NJ , Nov. 12, 2020 (GLOBE NEWSWIRE) -- Vislink Technologies, Inc. (“Vislink” or the “Company”) (Nasdaq: VISL) announced its results for the third quarter ended September 30, 2020. Company management will host a live webcast on Friday, November 13, 2020 at approximately 10:00 a.m. ET to review the Company’s financial and operating results and provide a general business update (see webcast details below).

Financial Highlights

  • Revenues for the three months ended September 30, 2020 were $4.8 million, compared to $5 million for the three months ended September 30, 2019.
  • EBITDA (earnings before interest, taxes depreciation and amortization) was a negative $2.4 million for the three months ended September 30, 2020, compared to a negative $4.7 million for the three months ended September 30, 2019.
  • Ended the third quarter 2020 with $3.1 million in cash.
  • Gross margins were 31.8% of revenue in the third quarter of 2020, compared to 40.7% in the third quarter of 2019.
  • Net loss attributable to common shareholders was $2.8 million, or $(0.17) per share in the third quarter 2020 compared to a net loss of $5 million, or $(2.41) per share in the third quarter of 2019.
  • Net loss attributable to common shareholders was $8 million, or $(0.61) per share for the nine months ended September 30, 2020 compared to a net loss of $11.7 million, or $(12.77) per share for the nine months ended September 30, 2019.

“In the third quarter, we continued to feel the effects of a challenging macro business environment,” said Carleton Miller, CEO of Vislink Technologies. “The ongoing COVID-19 pandemic limited our growth and softened demand in our key Live Production and MilGov markets, as customers delayed deliveries for new and upgraded equipment. The pandemic also impacted our supply chain, which led to an interruption in receiving components from our suppliers. This further constricted our ability to fulfill orders in the quarter, although we do expect these interruptions to be resolved over the course of Q4.”

“In response to this, we redoubled our efforts to successfully streamline all aspects of our business. We built on the disciplined, cost-focus approach we instituted earlier this year and realized additional operational efficiencies during the quarter. We will continue this approach with additional cost reduction measures that are expected to achieve $5 million in savings. Our diligence in adhering to this next phase of our operational turnaround helped us mitigate the effects of the business downturn, conserve cash and stabilize our finances. These actions have put us in a better position to pursue and capture growth opportunities as they arise for the remainder of 2020 and into next year.”

Mr. Miller continued, “During the third quarter, we experienced positive results from our product-focused innovation. We were pleased to introduce two significant product lines: the DVE/IRD satcom encoder/decoder, and the IP Link 3.0 digital microwave system. These will be followed by the introduction of the new Quantum Receiver in the first half of 2021. While the cancelling and scaling back of major live sporting and entertainment events has pushed back infrastructure investments over the past two quarters, we are slowly witnessing such events coming back on line. This will allow us to again leverage our experience in covering events like the Olympic Games, World Cup and other tier-one competitions that we traditionally participate in. Because of this, we remain cautiously optimistic for a return to normalcy in the industries we serve.”

Financial Results Webcast Details

On Friday, November 13, 2020, Vislink’s CEO, Carleton Miller, and CFO, Michael Bond, will host a webcast at approximately 10:00 a.m. ET to review the Company’s financial and operating results and provide a general business update. This webcast will be live at Investors will be able to submit questions during the webcast.

Non-GAAP Financial Measure: EBITDA

To supplement our financial results presented in accordance with Generally Accepted Accounting Principles (GAAP), we are presenting EBITDA in this earning release and the related earning conference call. EBITDA is a non-GAAP financial measure that is not based on any standardized methodology prescribed by GAAP and is not necessarily comparable to similarly titled measures presented by other companies. We define EBITDA as our net income (loss), excluding the impact of depreciation and amortization expense and interest income/expense. We have presented EBITDA because it is a key measure used by our management and board of directors to understand and evaluate our operating performance, to establish budgets and to develop operational goals for managing our business. In particular, we believe that excluding the impact of these expenses in calculating EBITDA can provide a useful measure for period-to-period comparisons of our core operating performance.

About Vislink Technologies, Inc.

Vislink is a global technology business specializing in the collection, delivery, and management of high quality, live video and associated data from the scene of the action to the viewing screen. For the broadcast markets, Vislink provides solutions for the collection of live news, sports, and entertainment events. Vislink also furnishes the surveillance and defense markets with real-time video intelligence solutions using a variety of tailored transmission products. The Vislink team also provides professional and technical services utilizing a staff of technology experts with decades of applied knowledge and real-world experience to the areas of a terrestrial microwave, satellite, fiber optic, surveillance, and wireless communications systems, to deliver a broad spectrum of customer solutions. Vislink’s shares of Common Stock are publicly traded on the Nasdaq Capital Market under the ticker symbol “VISL.” For more information, visit

Note on Forward-looking Statements

Certain statements in this press release are forward-looking statements that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. This press release contains forward-looking statements that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. Any statements, other than statements of historical fact included in this press release, including those regarding the Company’s strategy, future operations, future financial position, projected expenses, prospects, plans, objectives of management and financial reporting abilities, maintenance of new product pipeline and technical innovation, the Company’s expected focus on financial discipline and cost reduction plans, anticipated cost savings, planned adjustments to its workforce, expected market opportunities across the Company’s operating segments, the Company’s expectations as to its operational turnaround, including operational efficiencies and future capital allocation, the effects of the COVID-19 pandemic, the sufficiency of the Company’s capital resources to fund the Company’s operations and any statements regarding future results are forward-looking statements. Vislink may not actually achieve the plans, carry out the intentions or meet the expectations or projections disclosed in any forward-looking statements such as the foregoing and you should not place undue reliance on such forward-looking statements. Such statements are based on management’s current expectations and involve risks and uncertainties, including those discussed in Vislink’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, filed with the SEC on April 1, 2020 and in subsequent filings with, or submissions to, the SEC.

The statements made in this press release speak only as of the date stated herein, and subsequent events and developments may cause the Company’s expectations and beliefs to change. While the Company may elect to update these forward-looking statements publicly at some point in the future, the Company specifically disclaims any obligation to do so, whether as a result of new information, future events or otherwise, except as required by law. These forward-looking statements should not be relied upon as representing the Company’s views as of any date after the date stated herein.

For more information:


  For the Three Months Ended  For the Nine Months Ended 
  September 30,  September 30, 
  2020  2019  2020  2019 
Revenue $4,778  $5,007  $16,138  $20,565 
Cost of revenue and operating expenses                
Cost of components and personnel  3,257   2,968   8,505   10,611 
Inventory valuation adjustments  195   223   244   312 
General and administrative expenses  3,200   5,329   12,721   16,062 
Research and development expenses  616   799   1,831   2,591 
Gain on lease termination        (21)   
Amortization and depreciation  337   586   1,094   1,763 
Total cost of revenue and operating expenses  7,605   9,905   24,374   31,339 
Loss from operations  (2,827)  (4,898)  (8,236)  (10,774)
Other income (expense)                
Changes in fair value of derivative liabilities  82   281   1   954 
Gain (loss) on conversion of debentures     15      (33)
Gain on settlement of related party obligations        331    
Other income (expense)  5      5    
Interest expense, net  (53)  (393)  (102)  (1,807)
Total other income (expense)  34   (97)  235   (886)
Net loss $(2,793) $(4,995) $(8,001) $(11,660)
Basic and diluted loss per share $(0.17) $(2.41) $(0.61) $(12.77)
Weighted average number of shares outstanding:                
Basic and diluted  16,296   2,070   13,084   913 
Comprehensive loss:                
Net loss $(2,793) $(4,995) $(8,001) $(11,660)
Unrealized gain (loss) on currency translation adjustment  (192)  81   57   82 
Comprehensive loss $(2,985) $(4,914) $(7,944) $(11,578)

The accompanying notes are an integral part of these condensed consolidated financial statements.


  September 30,  December 31, 
  2020  2019 
Current assets        
Cash $3,123  $1,737 
Accounts receivable, net  4,063   6,714 
Inventories, net  9,532   7,674 
Prepaid expenses and other current assets  964   660 
Total current assets  17,682   16,785 
Right of use assets, operating leases  1,616   1,925 
Property and equipment, net  1,849   1,972 
Intangible assets, net  2,155   2,922 
Total assets $23,302  $23,604 
Current liabilities        
Accounts payable $3,339  $6,784 
Accrued expenses  1,873   1,912 
Notes payable  96   339 
Current portion of PPP loan  424    
Operating lease obligations, current  324   821 
Due to related parties     505 
Customer deposits and deferred revenue  1,593   2,821 
Derivative liabilities  29   30 
Total current liabilities  7,678   13,212 
Long-term portion of PPP loan  744    
Operating lease obligations, net of current portion  1,279   1,163 
Total liabilities  9,701   14,375 
Commitments and contingencies (See Note 10)        
Stockholders’ equity        
Preferred stock – $0.00001 par value per share: 10,000,000 shares authorized as of September 30, 2020, and December 31, 2019; -0- shares issued and outstanding as of September 30, 2020, and December 31, 2019      
Common stock – $0.00001 par value per share, 100,000,000 shares authorized, 17,160,808 and 3,594,548 shares issued and 17,158,149 and 3,591,889 outstanding as of September 30, 2020 and December 31, 2019, respectively      
Additional paid-in capital  274,187   261,871 
Accumulated other comprehensive income  264   207 
Treasury stock, at cost – 2,659 shares at September 30, 2020, and December 31, 2019, respectively  (277)  (277)
Accumulated deficit  (260,573)  (252,572)
Total stockholders’ equity  13,601   9,229 
Total liabilities and stockholders’ equity $23,302  $23,604 

The accompanying notes are an integral part of these condensed consolidated financial statements.

Reconciliation of GAAP to Non-GAAP Results


Reconciliation of net income to EBITDA  
 Net loss$(2,793)
 interest expense (53)
 Amortization and depreciation 337