VISL - Earnings call transcript Q2 2020 | Vislink Technologies, Inc.

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Belinda Marino

Good morning and welcome to the Vislink Technologies Quarter Two 2020 Earnings Webcast. I'd like to remind everybody of the Safe Harbor statements referenced in the SEC filings, with Private Securities Litigation Reform Act of 1995 provides a Safe Harbor for certain forward-looking statements including statements made during the course of today's call. Statements contained here-in that are not based on current or historical facts are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. Such forward-looking statements reflect the company's expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. When used here-in the words anticipate, belief, estimate, upcoming, plan, targets, intend and expect, and similar expressions as they relate to the different technologies, or its subsidiaries, or its management are intended to identify such forward-looking statements. cause based subject currently risks, to to other that are company to uncertainties differ statements results, these factors are actual forward-looking expressed and a could implied materially forward-looking from on and in available information the and performance, those These prospects company's or opportunities by the number of statements.

with of company's the risks and company's of the business, For refer ongoing various and a some Securities the filings more Exchange Commission. some of detailed the please discussion to uncertainties

Mickey Miller

the made you submit second the update CEO progress take be to with our webcast Vislink be want as latest opportunity provide this of you Belinda. Mickey Participants take Thank I'll the Hello as everyone. on during to this the of and to and questions we Mike able to is we'll the webcast report on many This Bond to can end. QX XXXX, will Miller, webcast. in we've on at prospects. I XXXX from page future and main our earnings Vislink CFO. developments try to the to Technologies. joined you like an welcome quarter webcast We'd

services. the excluding are the team exception transition than our with months Conway, all less a of Directors, the Board our focus align markets. know our to and the revamped of targeted Swenson, the and which the the the from products We of global to side We Sue many markets XX members Board Satcom and We As senior of within. new and sales military you accomplished our large led four of product are January research our opportunities me government, re-constituted growth product a live operational All General leadership, are company bring development and team. new turnaround key market tenure. significant the leaders company of right areas, efforts our and business sales eight training the HR We Chairman of meet to all to of re-energize either business with James happy report and We turnaround with We We production, enablement the reprioritize Head promoted leadership members, that phase completed requirements first for of product These to the pipeline. managed in following. the or modifications were new year. exception this who our Belinda, product services. all our with represent and new independent. release shipments. for to in growth of we have roadmap The satellite have board innovation

and several terms. move the effects subjected to is to due conditions supply our partners improved work pay which the to trade chain aware COVID-XX pandemic. months chain debt, of extensive been was liquidity. Everyone our businesses the to down Finally, closely supply difficult increase worldwide last efficiency we over market have and We with this of very based our earlier to year that

immune by a a to increase we fact more despite operations global been making this you production in able profitability. The to of these operations challenges able in ongoing improvements that chain company when that were And who the and cash pleased we liquidity. I walk These continue over they achieve the more million achieved our our the effort balances and COVID-XX. Mike all our efficient in challenges. will have allowed conditions, Results the the increase turn face to quarters to us impressed to that over to a were Bond putting quarter hard is debt. during the and our business margins consider a Vislink that the hasn't Vislink it impressive be displayed team testament of reported our at I'm company to I the make sacrifice to While prior the improve no will of now us $X on commitment work employees. over to supply revenue long-term report managing of course successful effort, through end we efforts substantially financials. our

Mike Bond

the ended an per comparison, a interest, $XXX,XXX XX, XX compared earnings million loss three months to June a in of second to XXXX. million, an the months XXXX. were a negative months three XX% EBITDA, negative three ended common which $X.X to for taxes, million $X.XX the first of a XX.X% quarter million the to XXXX. quarter June everyone. quarter $X.XX XX, for XX.X% and first ended the quarter's of Thank share you, the few was XXXX of $X.X million, million margins loss of months XXXX good revenue XXXX. in XX% is shareholders share shareholders increase XXXX Revenues was net and quarter over months XXXX. represented and XXXX six Net compares for to revenue. $X.X net Gross XXXX. the six to XX a net months second over This the second $XX.XX $X.X ended in negative three attributable three the compared second quarter Mickey, $X highlights million financial was per for a or June Net June substantially morning in ended XXXX or for or of quarter. attributable compared $X.XX $X.X with June narrowed ended for share XX ended $X.X of EBITDA which like I depreciation per to in loss million, XX $X.X $X.X the XXXX. was loss of in By of give the per first of amortization of or $XXX,XXX, improvement for $X.X June or share million, XX, the million share before months and This per QX March you the loss common $XX.XX for were

which As the Mickey XXXX at mentioned, up ended in of first $X.X quarter quarter million of is cash, from $X.X second end million we XXXX. the of the with

like just highlights the I'd you to business Now, some of business of could. and if a give I outlook sample

a business II in in our given forward we are that we positive turnaround, The to we a financial momentum. have solid As the QX significant of very Phase taken reflected us optimistic look we difficult results This steps was have despite adverse pleased climate. of recorded the recognize the results there our remains with we We reach first of objectives profitability growth than company has in position large the turnaround. ever for a phase improvements. is now in But are the our better to been. opportunity and it actions

fiscal turnaround, second of discipline the to During our costs with phase mantra a managing conserving be on focus cash. one will of and continue our

that of we a are place now on II These our make plans contribution putting the believe As following. embark success. an Phase in number include exciting we future to important turnaround, we will of have we operational our

to We of lower cash costs reduce streamline continue our to responsiveness our supply and will the improve interval. and efforts to our chain quote

will we companywide we our Most out reached efficiency improve our are focused initiative, integrated team, With to and introduce implemented problems. planning we to innovative customer recently, cash over customers campaign, and off process business our strong to the and We generated market approaches solve in product satisfaction. we which trade-in where our sales will of trade-up X,XXX the kicked and sales over base, strong have customers product generation the or them previous products. ago, trade latest our two customer for the half inception Vislink weeks -- opportunities. to a generation of new million opportunity in X,XXX competitor X give Since program

and several months. in is research new group development up to geared Our introduce the products coming

solutions. edge with We create lead working cooperation our to in are close customers leading differentiated

business, rationalize our We our allow processes in human alone. resources. million which U.S. portfolio us grow make In product financial and our over opportunity going and optimal to streamline to use we see will and tremendous of support in also a deployed $XXX the product are the service our to

integrating our service can so be platform into that team. sold our platform, we'll sales service QX, to sales our all solutions be During

And live market relationships our our base, our and incentivize visibility projects. identity will of OEM, for customer VAR production part product elevate development them MilGov, roadmap. and the will our integrated We to engagement in our increase we future an play increase also to integral and with enhance

are for also observance their and responders they as identifying business first and our military opportunities remote increasing shift the We communications with priorities. from

traditional this will company business and currently is us complement cash. compliment growth continue of of underpin us allow in we explore use cash judicious gives with sorry, organic A strong in flexibility This which inorganic the needed We the to financial position will operational for in revealing. potential growth, we the expected to our of opportunities goals we that and To the to are complete part -- profitable key growth. will to this our sectors. stability sustainable are obtain

to Now, Mickey a market I'd like for back to hand it outlook.

Mickey Miller

Mike. Thanks,

the providers of significantly. Looking production events, the been at for live XXXX. by market the our expect camera market, headwinds, see to live has segment, The sporting and wireless continued far we broadcast spend event balance fewer with broadcasters live service reduced

COVID-XX. in the the activity to us racing OEMs seeing increased earlier orders increased We see microwave have We've increased our returned sport given of see broadcasters are are In March. to activity year. We team quote on large QX racing. starting to motors their successfully as this several our joined links. level product Also, related QX by focus are to to did market focus partners business offerings, led are market, many of as MilGov with with we Jim McGowan, however, increased investment sales from activity seeing need reach. we series the who broaden pleased we results quoting to and sales to focus from uncertainty in from Satcom upgrade The shift our

business opportunity services Our is we several small, is $XX in have aligned million and our success. our funnel of for comparatively And current with our here services see tremendous multiyear while then resources excess sales finally, deals. business

commissioning We while expect we continue our In to the significant business maintenance, area other COVID-XX, particular, in are through growth of industrialization. our market areas live of to production a we optimistic result preventive in see warranty, business. and and challenges in this extended of about as the work summary, growth

strategy. now of part turnaround our have We as focused

of So like submitted now the some been questions that the answer webcast. to during we'd have

Unidentified Analyst

pandemic Dyk]. has The quarter? the first you the affected recent think do asked, [Brent from Van one is how Brent

Mickey Miller

or back I but our Many in When were either in shutdown look Many and not it work April, industries. think customers June, state. many for home. people May for we many quarantine in from in industry us

we hunker down saw a mode. of So kind a

when and budgets say, lot shifted. out getting push was We forward. June well to happening at back. that QX. activity need in started of this their activity a halted see started we So look Others people to would either in or move Many

that backlog to that. had the win and secure to we and able we're So add

However, it many quarter was industries. certainly us for unique and for a

we quarter, As the see happening. did left June we interesting things some

a the production For business is of us, side challenging in live the situation.

is there is sports are live you happening and limited know, As sports live without activity spectators.

amount do the subset technologists traditionally. of So was it of that is to a needed what

to infrastructure both point microwave expect we point broadcast of links once our broadcaster's. our is and focused remain what the area, we connect But we the sports opportunities to point we in control microwave focus area, to our business. motor We the back can do pandemic only in on that link is as complete. What as come that can in well point the see

you And for industry, there's gathering opportunity. growing news news and imagine, there. is growth As the a can

product. some upgrade of And of the And their networks to so we our see year. for with balance that they've the able continuing been

arise. unrest MilGov the see expect lot services third as to we a as with And those occurring, of on quarter. customers some our in we we did of well of side did opportunity social see opportunities see support some in closure new Our the

the the business again picked other April we a with that good side, for see as us small see it continued arrow putting follow We next activity month and behind there, it's year the in We're opportunity. service pattern mentioned business do growth business going to Our I as in a on then but our around May. same as activity. for see us. June businesses Satcom And be well. slowness we And the into the the up tremendous wood

the in have customers. We deployed of million over equipment our $XXX of own our networks

equipment keep equipment. support have have lifetime XXXX budgets. at And so customers. can we they may and over they get equipment opportunity look to and as to decide their upgrade can them that We we serve that but And them equipment, they service an extended

able safety to for first of operating at I initial our employees. were us. our locations -- an was entire three the locations. our the in quarter So summary think, We maintain of part the of pandemic essential all difficult was of the priority business, operations Being our throughout three both

supply remained Our chain intact.

work did to outcome operations to of safe and proud people had keep that the our really our produce QX. and remain teams I'm we the So, in safe to they that

Unidentified Analyst

big We Anu]. [Boris from PR got one for What XQ?

Mickey Miller

lot car. I get three, of I focus the number this every business And not continue what's right And building with doing successful in employees day keep operate to to very Our one turnaround our Phase it's emails to PR? was past about, turn which a COVID. of about what's quarter a race PR safe. during our was so two,

focus first. to the engine want You on

race the cash a that our on wheels a But focus cash focused on building very we time returning and -- the engine, can paint car. business we're We'll Phase color where growth that's and the consistent there'll efficiency in III So now that consistently on produce we be produce and strong to building engine very the returns focus right investors. on basis.

and recognize we with to to get right purchase consistently your it clothes to but PR we again, less approvals And get Mike, focused business So, with one? as market requires now we and want customers. you get sales our the sales does deals, I our our press capital know very want investors out, to deploy commitments not PR. not right work can. focus efficiently new generating releases, to you we're to will our some as share, customers we let that, necessarily right teams to but and lot orders, and on team on of the for work the have some of our that, the grab will to want effectively that But a meets we chasing like do a

Mike Bond

think that out, company or think II, the to do about orders. growth, not And sort And the a canceling back have on, the we the of what is to We're I top to want to as there's with what the we've growth, Mickey. next? seeing profitability bring what's sure increasing products order, of Phase increasing really that been obviously I sheet Now lot development financial we discipline our customers select does And generic line the we're are game cash Sure. marshal in that investments to I what line sustainable what challenges think, get try efforts, But make bottom that product have, balance to shown on we questions company? the to customers make to Mickey touched pandemic. want. orders. long services our is grow, return that the the R&D, we're and our producing pushing

of As on, starting a that is market to Mickey within broadcast ways whole touched new at host has there's events. look the

to event people people at experience create for if home accessing starting there, So, aren't that a are they're that richer are remotely.

that as increases So, coverage and in as shares hope we We increasing of Vislink well. big events in a that those part of we events think play happens. those particular that coverage equipment the our

Unidentified Analyst

we [Charles question and Is been Wolinsky]. There spending example, benefit defense from have Hungary have to from countries. Vislink looks in a position Slovenia.? increased European announced, recently Yes, like for

Mickey Miller

you know of we're company. global Do is a Vislink

see out a we areas think has well opportunity both It's for It's as that's the the lot because of airplanes, between it's business to And channels from products a used think sales have Vislink people opportunities occur rip years. start RF we clearly growth on to product, globally do and do troops. to And are our the to excellent tremendous have that cetera and helicopters, in we in position that NATO role our of evolve defense see it us we'll look like major opportunity. to like. for on one a that. area salespeople put that downlink of legacy countries, NATO, But really a we from we in product. over countries, a see for focused drones, and And not aerial playing key invested opportunities see we and $XX et been new there that We downlink business. opportunity billion see we And we business from massive a communication we're as growth. Satcom

both MilGov and government business. state there are in business, on opportunity local our great and So government,

Mike Bond

Jean overlapping taking saw a now are I we related And Mickey, steps Vislink. question clarify concerning brands from that. to to

We are be Vislink to brand going trading going of under the forward.

a the so for And take company. some single will confusion that name hopefully market and of create the the brand of out

Unidentified Analyst

question another has over the top is, affected We also have our how business?

Mickey Miller

over challenging. tailwind With for COVID. top us And the it's without is COVID a

live of are many as know, you both events the prerecord as well reduced. As

But well time. need that There see Apple's, would COVID, those we in need related for broadcasters. at the as to the our Amazon's, events has in all as live live business to there's times. normal tailwind during expected that longer as point while content, growth headwinds we the limitation more great this certainly And see a in the the of players, So Netflix, term as for meantime traditional for have there's production. are is more more impacted

and through the are the to a here going trying Just consistent. consolidate lot list of questions

Unidentified Analyst

to What can growth? what to increase in and revenue marketing strategies client be place done increase base? And

Mickey Miller

I'm think new the we orders clients. existing all a of get from believer easier clients, to big it's First

had, focus over over good our we've the an job we haven't customer a that XXXX on intense So approaching. had years harvesting base we've of very done that

update to more do to we to on effectively. some beginning help business them their how update them programs we're on outreach So products offering, implement our can and efficiently

that responses. got We’ve we're opportunities with customers hadn't seeing engaged heard in us so And a while. from And we've far, there. excellent

out weeks. and program just That quotes. within And our up that that. to reached trading $X million over in seeing two said, every initial outreach quite trader we're had over lined we I new was have we're increase a few day. We beyond XXXX program, in As our customers

years. So we business opportunities been legacy these with has for XX see -- around

Vislink side, it's as they Satcom brands, know or brands, and know they or the these brands. brand, So look they from brand, brands for our direction whether they trust the a these

to beyond customers to we respect and customer from a reengage have brand, we with who with So a brand. there, great base. then our have opportunity current grow engaged our opportunities we And in haven't our while,

what we'll of II. I Phase the end to think see that's towards start

Mike Bond

think of generate think. the the I we balance price we think do But business, about Mickey, the take share I see company right on all to care grow we might questions take past, the in if much think intake worrying We've now cash financially. taking our people don't around much is good amounts places discipline to if some the we sheet. and sit and don't if the financial reduced on price. will healthier lot and order no, of the What of itself. to that we show that good in we continue grow discipline as made our proper Mickey and we extent regarding a we're rewards we've I significant places debt in paid share that very the our in of it And investing we people go and invested in the that right care of focused will of business appropriately. financial debt, think, the Where business our trade off the future? as the

Mickey Miller

stock a earnings a it's in Warren In Buffett potential. consistent capability machine, the provide voting short-term, working a is and weighing weight, says earnings term, working we're market good on earnings creating to we're the on the potential long Like, strong the point. Yes, machine.

that's is. our So where focus

Unidentified Analyst

have camp do body [William capitalize question plans on What Phillips]. popularity? More and from you growth to

Mickey Miller

cams, being sit. about to do, commodity on business. The in people for software create the a world drones, we people connectivity take a connecting of And ground business to body the is that be see you'll for actionable helicopter, the body is is planes, cam We all connected. of around operations. itself The where kind opportunity what and and connectivity as able everything directives we theater that's providing of that is troops the

to is focus of our part be where that. that's So,

of see to all around is software connecting So, we good it and elements, connectivity being just these in business place wrapping be. a the

Unidentified Analyst

time do time? you Well, Where last for one the question. in see years company

Mickey Miller

see both and variety to disciplined and this to mean, and inorganically I of large and a operational large we I both Mike a a want company, We build very small, very companies. We company. organically, been medium big company. this a sized came opportunity, into

capital. one we as number is where And can said, investors. We our shepherds role view for consistently we allocation your As deliver our priority. capital of our

this acutely when you. and will our get area the when allocate require it's signs our we We're products which and a returns capital, we in lot operations, all got work operational how we can to here reduce or going to Vislink the them through we've an We've here And be January. to process. revenue we excellence are we're mantra that driving we're identifying since EBITDA customers, be shareholders we good on turn our progress whether we innovative we through appreciate costs. excellence, are But be of see that reward early had do. So, through the sales to the run. an the early commitment do of will our customers that have for disruptive in that to as focused you and we that our support that seeing more long stages it can and work and grow developing And will do. We've company for process investor our invest increase investors. when lot a the And a returns. to been improve help around ways And of them of you're this that help

we And for thank that. your look support. everyone we So forward to

off you look update progress. to forward So on sign QX our everyone. we'll Thanks, with that, and

Mike Bond

everybody. you, Thank

Belinda Marino	Director of Human Resources
Mickey Miller	Chief Executive Officer
Mike Bond	Chief Financial Officer

Vislink (VISL) 14 Aug 202020 Q2 Earnings call transcript