VISL - Earnings call transcript Q2 2024 | Vislink Technologies, Inc.

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Operator

Good morning, and welcome to the Vislink Second Quarter 2024 Earnings Conference Call. My name is Megan, and I will be your operator for today's call.

Joining us for today's presentation are the company's CEO, Mickey Miller; and CFO, Mike Bond, who will report results for the second quarter ended June 30, 2024. A copy of the press release is available on the company's website.

call, which like statements includes this the safe provide made begin call. statement, harbor cautions we I to would Vislink's during Before regarding forward-looking within call make which laws, of Private pursuant harbor include during Securities will safe made of the the of Management forward-looking federal statements are statements XXXX. provisions the to securities Litigation meaning the Act that the Reform statements, this historical be upon in and contained expectations call without forward-looking facts forward-looking be statements not financial of assumptions. that various of Any statements the examination to should deemed statements. All and estimations operating including implementation, are company's trends current based are statements. that to These statements those implied from uncertainties actual forward-looking results or could materially and differ or events involve anticipated risks these cause by these Accordingly, rely should not on statements. you

of and business, Securities and with the the the filings lists associated risks with company's company's uncertainties Exchange the see please For Commission.

forward-looking update new law any disclaims financial as required otherwise. Vislink by or whether obligation, except intention or revise any events or statements, to because or projections information, of

time-sensitive call being morning, this as only the of Please conference is accurate information broadcasting This XX, this event live XXXX. recorded. note, is August that contains

to Now go turn to would call CEO, the Please I Mickey Mr. Miller. ahead. over like Vislink's

Carleton Miller

financial with for XXXX for Thank the XX, our our accomplishments. This Form release the you, SEC press June joining XX-Q second business ended along and you, operator, results and morning, thank provided everyone, that with today. quarter us we filed key issued a

then target call Mike recent call, financial performance and developments highlighting I'll strategies. within our to As our goals. our X-year go-to-market toward product I'll results. by quarter pass our to updates return overview second our a start the brief key and discuss discuss Afterwards, for markets, I'll discussing to today's progress our financial

are we to and objectives. financial operational through our track we advance meet X-year XXXX, on As

by recurring and XXXX, include revenue XXXX. achieving Our positivity flow increasing in revenue streams, targets doubling cash

actively time the confident second of growth for the pursuing. excited Vislink due forward neutrality quarter our pursuit that line for in goals. I'm of to by cash another X-year are XXXX, we has the need flow aim share to we been step may to While promising end 'XX invest adjust in of opportunities the

resulted initiatives. have executing significant robust and progress efforts in financial our Our performance in strategic

we QX, XX% revenue, achieved reaching and MilGov million. our in Production driven a growth $X.X by In was increase year-over-year Live markets. This both

Border our Our successfully orders we products strategic months, MilGov particularly sector the paying key with have new on in converted MilGov and the is and Baltimore Protection, off. with successfully In State City Baltimore systems Sheriff the and Police. landed Metropolitan Customs were U.S. customers. In Ministry XXXX, opportunities focus BMS recent orders County DC with Defense and received Police, Police, of deployed initial Danish and New were Jersey

could years successful expanded have in NATO NATO and by Numbers to coming in positioned AVDS XX Vislink's market forces, enable within in our sector. technology door more portfolio access defense raises nations. NATO processes Stock codification we several Vislink for milestone and and critical the shipments contracts. credibility are reach NSNs significant Additionally, of the procurement standardizing the our This the Numbers, within Obtaining and partner to OEM included adoption the for streamlining system, efficient customers. market for obtaining Stock widespread product opening significantly NATO

significant CX. offerings Control for million, or such products our our record reflects potential weighted our as reliable relationships This also three paves expand made and strides in achieving our current expanding in the and Drone from demand sales revenue levels QX. Additionally, to pipeline, valued now $XX OEM reported markets solidifies up into Drone new We've status way approved with streams. supplier partners and in more the emerging at new for Command

applications. unmanned pursuing emerging Drone R&D increased to in highlights our CX Our manned in and proactive approach investment both opportunities

'XX, As cash achieve flow flow the goal in positivity neutrality transition and we XXXX. to to remainder our by navigate of year-end cash remains

talent costs due were expenses expected nonstandard acquisitions, QX governance than and R&D higher Our to investments.

trajectory We are measures actively pursuing operational cash growth strong to revenue alongside management. effective ensure cost and enhancements optimizing our

Donnie these VP improve of as instrumental we with management and efforts, which extensive working to in driving reduction the and will this efficiency structure, will fall, ERP enhance customer appointed have manufacturing implementation Donnie management effectiveness. in of operational line lead cost operations, our experience our In satisfaction, system customer improvements. lean capital deliveries. Gilliam will further and new supply our and cost chain His also Operations be inventory

global efforts extensive background VP leading Senior MilGov of new a Additionally, is Sales. sales Bill his as with our Sweeney

the for combined given with path will our investment factors, BMS Our by our MilGov the These growth. bolstered growth, opened the the focus on governmental landscape, our drive geopolitical network. current market opportunities increased revenue is by paving

We to our capabilities and channel enhanced our product by and expect efforts, supporting continue ramping up growing refining sales portfolio. ever-improving

our proceed pass to the of results detailed our overview the CFO, I Mike further I'll provide Mike? Bond, for second to quarter. Before with a call over financial updates,

Michael Bond

Thank you, Mickey, everyone. morning, good and

Looking at quarter. for second our financial the results

The greater partially mix was XX% higher XX% the well timing MilGov a from up million, increase by offset improvement $X.X in as year-over-year resulted the XX% The as from the prior growth in continuing from $X.X up the total million Live The large prior margin sales to margin efficiency. in Gross in profit was year increased period. operational million revenue opportunity. to year. in improvement million, and profit from of up year Live revenue prior customers. gross quarter revenue a gross to markets for installation $X.X in Production $X total MilGov both Our gross increased margin reflects from for from Production period. The

period. to million million in the Total year compared prior expenses $X.X were $XX.X

onetime fees with associated upcoming higher personnel costs the associated increase revenue, our the and Beyond an legal new including growth in the in evaluating QX preparation implementation. expenses reflect increased recruiting with fees, inorganic corporate opportunities ERP for costs,

our as will next over anticipate Drone platform. quarters which R&D CX investments, we the in saw an continue several also We invest strategically increase in we

to year attributable loss to Turning $X.X loss Operating improved to per negative improved a or per in negative enhance $X.XX improvement million, common $X.X measures. shareholders demonstrates down Net negative our from a now share. our from period. cost million $X.XX a negative efficiencies. negative to the a a is This working operational or $X.X million million in a that profitability period. management share will prior to strategic negative That's year the continue and prior $X

Moving now to balance sheet. the

talent and at These primarily expected XX, As XXXX. due short-term are costs. during not and items nonstandard improved governance at usage XX, QX, cash forward. compared we XXXX, higher-than-expected including experienced onetime recur, corporate of performance and $XX.X June $XX.X to stood to to cash million December million investments our cash We anticipate acquisition items moving

of working robust of second these the we quarter Despite a $XX the million compared to $XX.X challenges, XXXX. end XX, maintained at December million capital at

in system fall, management, working continued our to coming quarters. performance, in improvements cash we As chain expect ERP supply and our we this see launch inventory capital turns the

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

Carleton Miller

to and Thanks, technical this these serve communication orders BMS Vislink of demonstrate platform In clients. fueled involve markets, our meet our globally. customers. Mike. operational a CBP's the should into Protection. quarter, updates. to success to turn We significant validate we the U.S. We capability stringent solutions of loyal AeroLink as enhance strong Customs shipments These MilGov that requirements to strong air-to-ground milestones the providing largely we Orders achieved Border our situational orders reference pursue advanced delivery, and MilGov These like growth as systems translating by awareness. initial networks including growth, continue

and also paving We've status reliable approved three executed partners, on revenue way our the for more OEM our streams. new solidifying supplier relationships with further

Turning Live to markets. the Production

Our had displaying significant base performance Vislink's the prominence. the Olympics, to compared at strong year. contributions Notably, remains revenue with we installed consistent a prior

solutions QX, addition in this our to marquee Disney year, de installation COPA including completed at we new million America. $X program other Wimbledon New were Tour In a events the the In Company headquarters Olympics, Walt France, and in York. the deployed

indoor ABC York. The and with Our ESPN of including View, coverage News Tamron shows, and New and top-rated for seamless will technology Nightly Hall, LIVE outdoor Kelly Mark, allow

shipment system. completed uses wireless the $X National ensure to The the also League. system video Hockey monitor million and integrity scoring We their to visually our NHL of

grow have India's largest of the of state-owned had broadcasting largest broadcaster, its television, in through services Communications, Doordarshan and online wins and metropolitan the to Doordarshan, organizations satellite network. broadcasting Zoom provides forefront our presence expansive visibility brand continue with and internationally mobile landscape. public country's increases Recently, one India's significant We regional and provider. across we markets. us emerging India geographical Live the service as our at well partnership and positions This Production as

continued Asia. robust expansion rapidly growing market with in potential, wins for a strategic foundation lay South across our These India, a significant

our reinforce we our we innovative cutting-edge deliver key and footprint. provide regions, solutions technology global expand these in to As ability

a several areas. QX, Upgrading strategy. critical in part and our we remains expanding our growth of product progress made lineup significant In

the are Drone We about particularly in Command and Control excited technology. advancements our

terrestrial We is QX, technology study, has waveform-agnostic, Vislink's industry to systems. kicked capturing future unmanned and This feasibility will applications. and area. well are key the platform opportunities increase positioned to taking This multiples and short- This leaders our the that to market both in bidirectional expertise. decision manned a will we control of identify positive produce an in effort proactive unmanned command, expected leveraging confirming approach and new spending market aerial grow a a provided to our is unique investment overwhelmingly this and engaging long-range rapidly requirements, meet video demand. In to feedback, off support with

providing to with late generate We this and look in to this subsequent forward revenue in will expect work closely and area. quarters new in effort customers existing XXXX. We updates

launch our robust are generation market we visibility and is our our to The improve to new expected platform significantly fall a capabilities. website of lead enhance Additionally, this digital building online presence.

our Association And a Award are the convention, Broadcasters. preparing in Airborne of broadcasting trade such where are content activities, the we we Public for continue the also Innovation show Texas IBC Safety as Convention international finalist the Association for creation. We and

Technology Valley industry. situations. enhances in the that sports certification designed entertainment extends leading which various products we settings capture emergency the for ensures partnership the media from video and media work camera pleased are a including customer to transmitter Alliance, announce This high-quality and is to base potential program systems. offer, Valley Grass Grass Valley events seamlessly our our provider has products We the is wireless Vislink a joined for technology that Grass with can

leveraging hardware revenues. to and focused drive recurring We remain and infrastructure service software on our

to platform and quality advancements. processing An of analysis with Our of as such our and the trafficking crowd and to strategy and revenue future AI-enhanced be surveillance. align drug border enhance will Air-to-Anywhere visual These efforts video recurring solutions. streams improve the our control, detection increase functionality cornerstone activities the of

drive to margin Leveraging common and technology remain will and components efficiencies. to enhance key improvements scalability continuing quality development system product our strategy,

to As pursue strong we maintaining continue we cost the remain on a of management industry ensures that advancements. forefront operating will focus growth opportunities, at

focus results Our go-to-market strategies four connectivity, evolve, AVDS, transport, continue Command and promising data across to Control. video video areas: live and showing Drone our

particularly Our is progress Drone in encouraging. the CX

in conversations with Although meaningful us it's up to it coming key an have ramp this industry emerging we and in year to area. grow the led market, this our expect earlier years, investment rapidly leaders

in technology bonded Our play various reliable video data high-quality for role connectivity applications. live video and and cellular to providing transport, video continues transmission in a crucial

aligns discussions our key of the with meeting as our with position ensure markets. to map in our road needs are advancing reinforcing leader our requirements, OEM future a evolving technology We participants

positive will the and engagement interest our believe into in key we orders stakeholders which quarters. has with Additionally, feedback, strong convert coming industry firm shown

second trials, tangible into trial Our the reliability data interest of In considerable market transport converting solutions. demonstrations in robust on interest and ensuring our and demonstrating that technology innovations demand are we the In increasing especially flexible and focus growth. through lead with half, considerable gaining QX, saw capabilities that and traction, traction video our usage. remains in efforts our orders sectors to

Looking ahead, the positive catalysts the energized the promising we and start year horizon momentum. are on by to have to this maintain

our meeting strategic the year, new of ongoing initiatives should exploration targets solid us coming areas foundation first from half with the of our along Our exciting ambitious propel and years. in quarters and growth towards the

million our position our reflects $XX pipeline innovative solutions. robust sales market weighted the demand Our and for strong

we look instructions. reach, quarters. for As appropriate on for to updating you continued growth. Thank support our our well driving confidence stakeholders continue we provide value stay in your coming our We achieving goals positioned Vislink. to please the in you long-term and market focused strategic progress forward on and expand our and Operator, are the

Operator

[Operator Instructions] first Investors. question Sam with Now come our from Breakout McColgan will

Samuel McColgan

of you're about new Strong getting certifications. in, clients new Congratulations. so it was to of new quarter partnerships, yes, great kind hear much and, commentary kind

done on fronts well So all there.

attributed much I about specific positivity costs? much next you a growth? How bit super and will joining. neutrality anything looking be of talk operating is, can you obviously attributed revenue not wondered towards a that think year. do just think, you general journey flow little to if how here your but cash for sense. And towards I'm

Carleton Miller

say joining. I'll I'll let Mike more Sam, thanks few a color. and for words give some then

As we've fixed associated a about public, will public in a some auditors, fees, attorney fees. costs the being costs, small it talked small we are third-party with be there -- company whether past, company, being NASDAQ

operating And you you fixed -- cost drop effective see cost, once that to get contribute so bottom, that so things fixed we that contribution, -- to the then we leverage.

one So that's area.

talked that have drop today our through and get goal allow The to the our on grow flow. We're company. upgrade, the -- currently, with about positive to we cash will the going that as revenue and through the EBITDA different systems ERP us also, we second as operate area we growth and an again margins mentioned, will double which we've throughout is obviously we grow, four

So leverage. opportunity will which costs, reduce become more our drive large our operating more effective we and in costs a efficient again operating more to and operating see

want you to add to that? do Mike,

Michael Bond

Mickey forward, we're covered obviously we well, Sam. to look pretty it do sales. But as increase we going think

we great interest. a and do products online, so of a mix of have lot We coming new see

few And think up move so and hold in potentially we margin. we'll margin a points

good that's one contributor. So

point. heavy The exercise other a containment is on at we're cost this

We very associated do talent cost a and our some some point, Mickey ERP conversion going dollars costs As with to had kind implement that. effort huge acquisition. that us mentioned, with onetime have at this on does of we obviously G&A upsized

run as and a So then we're systems kind system into company. the there we costs of integrate of doubling up the on some fabric four new

a will looking this And we we we new expenses will give will that, a we and to us that company. as also Mickey rationalize reduce think us real that the our those lot some can. as go going going give efficiency And to think said, as forward operational as of extent. much ERP benefit our forward. that, reduce We're system forward throughout cost think So expenses certain we

Samuel McColgan

My question next about Right. hear. Very exciting to expenses. was the R&D

wondering me understand if maybe to And the directed a you portion can increase. to that. increase of that the kind work around expecting drones. about I that of I right, understood You're of towards is think was decent best if kind help how

your deals in and development you're At am customers thinking doing, products the of kind just It to sounds but goals research rather which right prepare that improvements wanted have in you marketplace? to or improvements, with general essentially I the than that's or these for with specific the mind making you. have just quite I specific more end check like specific improvements in improve general standing to

Carleton Miller

it Yes. see Sam. platform, We as a

multiple one IV can system. multiple need drones, our So II, manned aerial you unit currently you Class both to terrestrial with and know, and man's III, ranges. in it's today, But long systems, drones, typically, one as unmanned

capability. have be able So to that to

unique address but other pieces we to need to have that that, there's larger around market. a allow platform capability that us our of add elements to to We

to So open our then that's effort current much first capabilities up have in be after to in off will the leaders half the that investigation larger this And we to key of year, augment the market kicked working able that space. with us. of our some a the

Michael Bond

We said, in customer would some very to some products thing -- some we now charges R&D targeted But don't as quarter the one start don't making associated we'll new bringing I technology with expect the we groups. of with Sam, those our did associated incremental continue. Mickey investment that some think first add towards R&D in nonrecurring specific have is online.

Samuel McColgan

Understood. me. Last Yes. for Great. one

securing I open of you out Numbers think one products. was line see was does of the I something perhaps for made we could NATO of announcements just AVDS doors to what of -- elaborate the you kind on expect bit a that what perhaps wondering kind that. with you, more might little happen have significant time most do for Stock to your their if

Carleton Miller

question, Great Yes. Sam.

order to countries drive the to you So have have effectively sponsoring the X to of be you NSN-designed. have and an in member get able XX NSN, requirement to

And simplified as numbers, the we're other have so to the very going we time. engage qualified, And to the it's process getting which through, now some as NATO more opportunity that. takes obtaining the with process achieve able a we of countries, -- opposed we're processes extensive getting

accelerate as more develop with opportunities nations in should the So this NATO. XX we partner

Samuel McColgan

of seeing And rest strong to Congratulations forward year. commentary. look progress again, a Great the the things quarter. how for I

Carleton Miller

Sam. Thanks,

Operator

concludes joining for Quarter That XXXX our for you today session. Second [Operator Conference question-and-answer Instructions] Vislink's Call. Thank us

You may now disconnect.

Vislink (VISL) 14 Aug 242024 Q2 Earnings call transcript