VISL - Earnings call transcript Q4 2023 | Vislink Technologies, Inc.

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Operator

Good morning, everyone. Welcome to Vislink's Fourth Quarter and Full Year 2023 Earnings Conference Call. My name is Allison, and I will be your operator for today's call. [Operator Instructions]

Joining us for today's presentation are the company's CEO, Mickey Miller; and CFO, Mike Bond, who will report results for the fourth quarter and full year ending December 31, 2023. press available the website. the of copy release on is company's A

made Management this we like call of includes federal statement, statements we'd the that cautions securities this provide forward-looking Before within call, the harbor include to forward-looking begin the during make will not of statements laws, Private Securities Vislink's the of harbor provisions statements XXXX. safe regarding statements during the should to which call. Any of meaning which be are are made be pursuant to call contained facts historical forward-looking in Reform statements safe Act that the deemed Litigation statements.

assumptions. limitation forward-looking on that materially financial forward-looking based implied current differ results upon cause including, without operating various material by or these of company's actual you to these not expectations statements. statements and risks Accordingly, or These All could or involve uncertainties are from and trends events rely the anticipated should statements, and statements. those examination estimates

a the as the update or company's uncertainties information, the otherwise. any business, associated by Vislink intention any except to revise events list or projections required whether financial statements, because with or Securities of disclaims law, see filings with obligation, company's and or please of forward-looking future For Exchange and Commission. risks new

the This conference call this broadcast live of April accurate information morning, XXXX. that as contains time-sensitive only X, is

recorded. being Please note, is event today's

turn the please like over to Sir, proceed. Mr. I Now Miller. Vislink's would call to CEO, Mickey

Carleton Miller

the XXXX, highlighted and year everyone, accomplishments. us results will for our today. quarter joining This Thank full for we you, provide XX, business Allison, along thank morning, financial ended December with you, and fourth

I'll markets, developments highlighting performance, discuss then call, financial our the key back direction target a pass within results. our recent I'll our and today's Then strategies. I'll call product X-year our start for around strategic As financial Mike to go-to-market updates discuss our goals. our overview to XXXX by and detailing come outline updates brief to

are let are future about cash me pivotal that, we we growth and for how enhanced of in progress flow position encouraged year marked for the 'XX performance we our With Vislink. and revenue XXXX and accelerated a how begin excited by as Vislink, ourselves beyond. saying about

vision infrastructure recurring Our proprietary leverage and our gaining drive sales hardware new traction. to is software to service

will at to software and XXXX, of revenue of year. exceeding announcement XX% the services climbed accelerant XX-XX of recent platform last and revenue of service software targeted an north in sales. software Our the service The the be hardware ratio total beginning Air-to-Anywhere our we

significant made solutions. presence Systems, in We strides by our Airborne Downlink AVDS in safety advancing the primarily driven Video our public global markets, or

across XX% Our the XXXX. impressive made, To efforts to we've state and governments U.S. customer in local, revenue progress securing led large punctuate and increase year-over-year worldwide. new agencies an recorded we've MilGov federal wins in

growth to traditional were Vislink our BMS strategic broadens and beyond potential BMS efforts years on OEMs allows region. global in AVDS by particularly in our U.S. September, EMEA drive customer and federal, introduction bolstered which Assets market product our solidified It Our leadership in The ahead. returns significantly extensive customer Vislink's base in the the new acquisition us base. reach of

evidenced quickly million-plus by received acquisition in demonstrated recently we The EMEA. value, has its a $X order

video surveillance the by border for as $X million as into beyond AVDS, narrative a growth we in revenue Asia. XXXX, data headed transport extends noted market gained Our traction in project order

where a is of growing Connected cellular cameras plays key from vehicles venues and market a bonded technology all role. our types

area. control Through and market the X market targeting acquisition, or drone are OEM CX In command leader addition are to seeing transport drone secured we in the video we BMS others. sector, the and have data growth

year we $X to us, for market of million revenue. nature XX% in a this is just it under grow this While expect to

As product years. our past and we profile, over X-plus operations reshaped undergone revenue the streamlining has transformation Vislink significant a our

product third-party products it contract our to to new and While profitable groundwork including able X-year operations lineup, has manufacturers, eliminating By our and optimizing growth, we impacted consolidate for our were enhanced revenue laying our strategic plan manufacturing, moving non-core U.S. of efficiency growth. profitability, the the most U.K. for

With positivity are and flow, cash the to in believe into strategic we targeting XXXX. XXXX, positive track execution throughout we flow are cash 'XX and we on achieve

sales expected sales, growth. are Our to increasing significant accelerated and operating MilGov drive service software with combined and leverage,

As stands quarter we than enter XXXX, of Vislink second the stronger ever.

highest and the lie Our since weighted our the million, sales $XX the at is highlighting opportunities backlog is pandemic, at that growth pipeline robust ahead.

and ratio shows deliver operational enhanced success an to at enhancements book-to-ship higher products quality and effectiveness improved our our AVDS pace. out-of-box the rate Furthermore, accelerated significantly of

in our are behind start full progress the We year, making swing goals substantial to technology. leading our toward

improvements. share We market our and bottom financial further we believe positioned gain are drive this and in to line key meaningful top markets year

call any to our CFO, discuss the XXXX our full Before quarter like to to I'd Bond, I further, pass Mike? fourth year go and Mike results.

Michael Bond

you, and good morning, everyone. Thank Mickey,

fourth year. results Looking at full our the quarter for and financial

$X.X revenue $X.X in from total XXXX. fourth million an the quarter Our QX for million, of XXXX was increase

level This service adoption improved BMS of the primarily revenue in performance and MilGov markets, of of by growth increased Assets aided stemmed strategic agreements. solutions our from acquisition the

product of XXXX. revenue million The in the to due was was lines. and full subscale efforts our lower-margin $XX.X to total primarily million, product the $XX.X rationalization For year, change compared discontinuation

gross fourth a quarter in our quarter the for gross of $X.X million margin XXXX. was was quarter profit a the profit XXXX of the compared million for of margin profit XX%. with This to gross fourth at and profit XX% Gross $X.X

of introduction. improvement Gross charges revenue, total manufacturing to to offset some and by product contribution onetime was software the partially MilGov to the greater and related new due margin services

$XX.X compared the For prior the full million year, in gross profit was to year. million $XX.X

from period a million was Our profit strong expenses XXXX. $XX.X XX%, $XX.X decrease quarter XXXX the were XX% from XXXX. XX% Total fourth same gross in improvement a XXXX in for margin for the of million, in

decrease were XX% in an expenses million XXXX. our year, from million, $XX.X full $XX.X the For total

our in loss to the from fourth of an $X.X measures. year. an recorded quarter, the operating Turning $X.X million prior We million profitability loss improvement in

year full XXXX, software loss prior and strategic high-margin a loss was reflect compared in to $XX.X the cost improvements the $XX.X million effort period. management million revenue. increase For in These MilGov the services operating and our

Net compared loss the per attributable period. the in share, or a to common $X.XX improvement $X.X $X.X was in million, quarter $X.XX an million year share, of prior XXXX shareholders fourth per to

net loss per to or XX% share For per shareholders was $X.XX million negative $XX.X or the prior the a common year, million full compared in to share, $X.XX $X.X attributable improvement year.

$X.X a contained of compared the in compared Adjusted a earlier measures for XXXX $XX to non-GAAP to our year year million in to for million in metric is loss A earnings the loss EBITDA $X.X loss of GAAP of $X the million, loss full reconciliation XXXX. EBITDA a prior period. a was million a was today. release of year of EBITDA, issued

On balance Slide sheet. X, to moving the

end in end As capital compared at million We $XX.X for of December end with at XX, quarter Improving of $XX.X short-term $XX.X capital third the of XXXX, of the QX. compared we a quarter. the the $XX.X of and had million investments cash the base million to us priority strong top remains cash working to maintain fourth performance at in million working XXXX. a

the see quarters. coming We expect to turns in capital improvements in our working

seek channels our debt-free acquisitions strategic Our balance to safety flexibility sheet and public capabilities to within and the the us strong actively partnerships markets. and enhance especially gives defense

begun our channels In X-plus and have the product to rejuvenate summary, our in past marking our sales acquisitions restructure over base, key profitability. our our line, in fruit a XXXX, efforts to improvement X years redesign cost significant integrate bear

progress is Our largely attributed such and in sectors and operations high-margin contribution revenue. to strategic optimization increased cost from services MilGov an software, as XXXX management,

XXXX, further position solidify these a us towards to expected initiatives in are our growth. and greater progress we give trajectory As

to for That now concludes turn back it my prepared I'll remarks Mickey. XXXX.

Carleton Miller

operational more now on MilGov. Mike. our like achievements BMS position months. solid a with X only our in Thanks, little our Building I'd over bolstered updates, starting to has foundation, after provide

our our orders $X largely order to XX% a mentioned, AVDS and Force million achieved markets North MilGov year-over-year in solution. success secured We over million revenue EMEA. leading impressive Air an safety from from sector I $X public AVDS of in AVDS another witnessed growth, America's attributable the with As

The growth, current integration us an and continued up setting industry trends ongoing ambitious and such by annual and been public backdrop. strategic global has We're for fueled targeting XX% momentum. increased compounded with as fruitful, sustained seamless the safety of execution spending initiatives BMS of our defense geopolitical

brings Additionally, Sweeney relationships appointment recent valuable industry Managing of our Bill to our our team, our strong client business ability MilGov to enhancing expertise offering. services and leadership new the integrate foster Director as of

to a our provide platform. key the significant We of strategic launch map, with analytics incorporating road initiatives steps innovation have our Air-to-Anywhere This to taken of part is customers. with our AI-enhanced AVDS forward

and to significant live see we revenue production markets, the contribution our growth to stream. In continue steady

products coverage have major sporting a dynamic in pivotal cultural this events globally, market. Our provider as played reaffirming our of trusted position delivering in a role and

elevate from race targeting and hosting partnership in funded recent for with headsets Dhabi range users forging on groundbreaking solutions is of ASPIRE The ultimately the RF to autonomous allow events home. Abu to large the partnerships site the and experience is directly AXRL views and well AXRL over expansion, to cockpit, to is real-time racing of cars. Focal overall a VR innovative by international and providing at VR, experience. new the future set our Series redefine technology wireless Notably, VR race will

The [ Financially, $X.X there The venture is was beginning, of a for for promising. initiative rating significant engage just spectators years. represents to the in deal this are step is ] revolutionize and it aims plans enhances how the and forward. The the outlook we with sport upgrades in forthcoming experience and partnership million XXXX itself. initial

latency Communications, is Zoom be introduces latency a global in live This wireless the region. the service significant Additionally, setting we This camera growing new in partnered our particularly delivery standard for industry-leading outside ultra-low to XK first systems. broadcast footprint systems and collaboration of our underscores expands with premier ultra-low India, for broadcast technology. as deployed partnership India's provider it

has a In XXX%. XXXX, to to our years. last for our are XX% market sales X expected XXXX, to of we close Technology product updates. and in innovation will element from account Moving the to come products been key success. our they expect introduced customer In

live to solutions manage video ultra-latency at and forefront Our of empowering technology remain and AVDS data. customers our high-resolution, associated the capture with cutting-edge seamlessly innovation,

significant in and our We're advancements services the particularly the bedrock excited our our device offering. management platform in enhanced LinkMatrix about of software ecosystem,

which LinkMatrix, and With workflows improve capabilities is particularly operations, remote scenarios. integrated collaboration, live broadcast safety public to for in invaluable cloud field and we've efficient

control. have video on based activities We to air see control, and initiatives us crowd further strong we for such key in enabling or static potential identified and ahead, our drug processing, as trafficking abnormal leveraging border illegal to Looking elevate AI solutions. detect cameras,

create to efficiency our content for AI utilize cases, and capabilities use to decision-making reporting automatic summaries enhancing aim operational of we Additionally, video surveillance, for customers.

reliability Furthermore, services, we via distribution committed delivered AVDS our of cloud and customers. our storage to providing peace secure and mind ensuring to are of footage our

We e-SIM capabilities also seamless on elements management provisioning and e-services. are solutions, all focusing allowing for management the remote of delivering

all strategy and implemented other on years based higher to our cost, the commonality last are component the and in quality and to These advancements circuit design results X and that scalability. over architecture methodology product we simplicity same which lower our and base drive leverage

continue customers to to technology value the boundaries push industry of drive to forward. will and deliver We the exceptional our

our road to of across go-to-market X the the growth our focus strategic map, areas we potential to continue strong refine I'd strategy. that the form like highlight cornerstone As

and connectivity, Airborne existing live with applications. areas in beauty and and to allows and precision. Systems, product and drone control our market and data that on can drone CX. we of These us The in scale This repurpose capitalize needs these going video or Downlink focus meet growing a is areas line opportunities to leverage to approach areas these of achieve transport agility Video communications variety video are X

public to go-to-market evolve continues and strategy safety Our expand.

strong has with maintaining partnerships large acquisition units, with safety and position throughout OEMs public are BMS a military East. will While the our this. with we Middle cultivating and major actively aviation strong BMS accelerate relationships agencies the

into to a networks the in BMS' but incumbency possibilities with to audience our of and uniquely We're systems are one platform, their accordingly. AVDS about growing revenues upgrade Vislink's into quarter support support positions full only agencies we Combining video-centric IP as us wider BMS they regional very the integrating networks. serving low-latency encouraged latest

sector, our identifying promising enhance and control additional is communications are in actively presence expand providing active business. we drone BMS avenues this Furthermore, and underpenetrated networks. particularly with opportunities our us in MilGov to

into and to robust pipeline sales. tangible fortifying positioned well base are expand We we customer our as our prioritize converting a partnerships

and hardware XXXX drive in our and exploit operating increase As services our remainder the and proprietary the positive MilGov to leverage enable strategic beyond, look platforms, ahead priorities to of flow. we markets share over clear: software sales remain cash our to

plan outlines confident in which are financial targets X-year initiatives, Our we and expansion ambitious achieving.

sales With well the focus lie excellence, ahead. backlog prepared and pipeline, the navigate a on to post-pandemic a operational we strong that highest opportunities are

provide the appropriate please instructions. Allison,

Operator

[Operator Alliance Instructions] from come Brian Our first Kinstlinger question today Global will Partners. of

Brian Kinstlinger

Great.

drivers. Solid then BMS a can and you of and/or came high from, revenue contribution growth the of your results. How revenue At from level, business? talk maybe maybe focus say, the different about areas much growth rates the

Carleton Miller

growth, the numbers growth X A were that and tremendous at September. of nominal just is BMS acquisition. from And couple growth? as QX mentioned, when we we the as we completed with look AVDS we The BMS that tremendous see combined to points. BMS for in we're -- see Number expect where seeing we in

we control growing. the typically to bonded that cameras data been video We in transport, The cellular the range. where has see XX%-type back that growth bring over area surveillance

this new markets for In And we what imagine, as early. those the tremendous It's CX then traditional see that globally camera but with lastly, XX% happened still can XX% a us. see you growth area. market control going access the we the us, mentioned geopolitical year. the video, it's into market And We be as of range. in we to for events, expect a

Brian Kinstlinger

the in was percentage what quarter And MilGov? fourth

Carleton Miller

want one? Mike, do to you that take

Michael Bond

roughly was Brian, It about half. Yes. half split, and

Brian Kinstlinger

half MilGov, Half or... production Live

Michael Bond

half About Yes. production. half. Live and

Brian Kinstlinger

call. about Live throughout Okay. the Well, production much hear didn't we

there? happening increased where an been seeing years. there's few weakness area think over there? you And the is demand that are that's what Is last So I

maybe So discuss environment. that market

Carleton Miller

Yes. do. We still

and sports. think -- entertainment I a Live what there's seeing appetite Live we're tremendous for

example I think just billion. EUR Global one of for was over our this today, Liberty partners acquired great morning a MotoGP X by

appetite massive for a there's So that.

the AXRL, So as Zoom deal. we with mentioned, that ASPIRE, acquisition we're the seeing, with

that seeing we're area. So growth in

-- I acquisition, it is growing we've ourselves think we've it combination made we MilGov reason lot at well the rate. And about BMS a in higher this didn't why the with the talk a -- is positions those of infrastructure the the use And as Brian, same two, we we're use we beauty just repurpose markets. overlay to of hardware and effectively, we're product the into and there, same set mentioned the cases. software those leveraging different able very that

Brian Kinstlinger

other concentration break I assume top, its down relates is it ] mean, the break any pipeline, And in is production it. down by well? CBDS that? maybe MilGov Got to Live can as then the you but opportunities I that? geographic [ And maybe as versus at that contribution to there

Carleton Miller

Yes.

the is I percentage are Americas, a the world. than MilGov, of production XX% the rest with what we've of to but then think concentration strong. higher balanced seeing around we XX% geographic consistent seen, remains And line typically traditionally

about revenue happy QX, thing see to X our talk QX. what expect in We asked think I were higher QX? you us than report, will is we we be to

Brian Kinstlinger

year... year's than before, This $X.X last million? meaning Higher

Carleton Miller

we what announced than in QX, higher than just Higher QX.

Brian Kinstlinger

it was to progressed? you refresh struggling you to that reengage There a BMS, I then technology. bases opportunity Got was have as customer your those business, said to last it. think call their customers. And needed How conversations relates

Carleton Miller

post Fantastic. pandemic. We're they had thrilled the of difficulty, the long went The products, BMS as with the working and concerned a BMS. really customer they love there They went and base love through acquisition. we're the with through team tradition

struggled them. they had through mentioned positive. well-funded I that were As $XX acquired and million the very they to customers now The a business a really business were you, pre-pandemic, And that fact then pandemic.

positive. the to very has all customer So those conversations been

Brian Kinstlinger

expect to with quarter business? to And revenue you nominal contributor fantastic. -- revenue fourth a being do and improving then this When those conversations significant be your you to and you contribution a the was mentioned

Carleton Miller

In XXXX.

Brian Kinstlinger

half? half, First second

Carleton Miller

we'll improvements think each I see quarter.

Brian Kinstlinger

them. business you I do -- are -- years? you could actual what with margin provide started like? any where Okay. you you guess will wanted this maybe lastly, could X what Maybe in X-year goals the the to missed profile? Or business targets. call look this what saying that business provide like revenue I this of Maybe or look long-term Did

Michael Bond

not of guidance. MilGov, when BMS look with Obviously, Mike. Yes. Brian, providing years But is business growth next and the we over at the this in few the acquisition out we're the that in for an we outward this next target have percentage X years looking of double services higher we're the revenue, line. the trying to software the and top the for, business on

Carleton Miller

they Yes. on the on has we've our have BMS Brian, and BMS that's brought is strong to in what AeroLink question platform. opportunity What given has customer AVDS what to working your to a growth. base. thing this and been market product next-generation us. answer One was point that out didn't in we a line,

the needs transformation. historical standpoint with the will transitioning their And the customer receivers their from that. transmitters of we're their the value make software acquisition for the incumbent with technology operate work product the will the our a BMS brings customers line and upgrade solution their overall now platforms So now meet then market. sites process received base is in then that to and legacy the as with -- those And be that we'll are obvious in us

Operator

this Mickey remarks. to back will our at like for session. turn And conference time, I'd we over question-and-answer closing to Miller conclude the

Carleton Miller

Thanks, Allison.

-- for today, vision first us of Our joining everyone. thanks all,

believe I our much we with on shared to growing With while are and and services us. to safer investors returns. our are the business innovation have days execute mission humbled of this investors. and Vislink's and to collective we best the focused Thank of world investors. deliver ahead efforts vision that providing you. acutely the vision, of path our our our solid appreciate very support opportunity do that so We assure drive masses the make return to products to our our continues high-quality Our forward providing to entertain to clients as and We're

Operator

us and Vislink's Call. Conference XXXX for today joining Thank Fourth for Full you Quarter Year

may You disconnect. now

Vislink (VISL) 1 Apr 242023 Q4 Earnings call transcript