VISL - Earnings call transcript Q3 2024 | Vislink Technologies, Inc.

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Operator

Good morning, and thank you for holding. Welcome to Vislink's Third Quarter 2024 Earnings Results Conference Call. My name is Chris, 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 September 30, 2024. A copy of the press release is available on the company's website.

call, which like statements includes this today's safe provide made begin call. statements, 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

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

the risks Commission. For please Vislink a Exchange update except these intention company's of disclaims and see as list associated any and law, or company's time-sensitive or with Securities to or by because the obligation, of business, events XX, November statements, filings revise forward-looking conference only otherwise. of is the that whether This broadcast required financial call with future information, any this morning, accurate new projections contains as information live or the XXXX. uncertainties

Miller. CEO, I time, proceed Mickey Vislink's this would At Please, to the like turn over sir. to call

Carleton Miller

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

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

which accelerating are objectives our MilGov growth our I'd the begin XXXX. while services reaffirming revenue with to achieve These our like strong recurring to in by Live maintaining cash to central and our goals flow position Production, business, in in the intent overall operational and sector strategy. X-year positivity financial include

on pleased to primarily recorded softness compared by year-to-date that in are unusually the We to our broadcasters by the on Live decline focusing Summer has projects alone Olympics, in revenue which temporary to the over report being led driven quarter believe Production primarily the year, reflected hold. third The prior high put year. revenues increased a this caused compared seasonal XXXX results the non-Olympics is in sector. XX% We prior to several

to regional We East the due by also experienced tensions. delays procurement in region programs alert activities caused Middle geopolitical status new some for in heightened

We in coming these to to months. expect activities the return their usual pace

national reflects tactical several edge. brought currently gain product maintaining local, and our Bookings enforcement commitment quarter agencies. growth international encouraging MilGov fueled developments, for to momentum, opportunities our have This by demand and solutions. signaling evaluations safety underway continued defense to within ahead. We field strategic and ensuring increased sector numerous law a public the This across strong

world. the emergency deployed solutions efficiency and Air-to-Anywhere Our response. reliability, in transceiver unparalleled having Airborne around the Downlink the the our Systems in AeroLink to the some demanding of and and in Downlink by high-profile pride Video We industry-leading set for take powered and continue environments benchmark performance most solution surveillance

our the deployment systems with Homeland the of initiated of U.S. Security. Department we Recently,

set enforcement also role Alberta, play XXXX to our in Canada. Police an from and We law key Metro supporting in GX secured order Department, the the is at D.C. Summit a technology

operations surveillance will which in a major police received cellular utilizing our technology. Brazil be bonded for our solution we Downlink used order and Additionally, for

momentum across Africa, significant and to markets, we on expanding are well With this coming revenue U.S., opportunities positioned growth East build including the Middle the drive and and MilGov Europe, months the years. global in

a our across quarter, the to core million a In delivering QX. unify ERP we greater new over to system of efficiency optimize restructuring to driving and reduce launched operations system organization. us in savings enables program annualized starting significant the costs, third initiate This $X

continued pleased by responded proactively growth, near-term consolidating with softness While operations we've ourselves we the are and sector. revenue positioning MilGov signs our for of revenue growth to in strategically year-to-date

this As into actions lines, and support long-term facilities eliminate target a These part resources We better additional our objectives are product cost with single the remain to committed and markets. designed are to opportunities staffing to manufacturing effort, our our reduction. of our underperforming company's organization identifying align consolidating for location we streamline optimize

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

Michael Bond

Thank morning, good you, Mickey, and everyone.

period. and per of That negative third for September XXXX, compared million $XX.X $X.X prior million to share quarter in loss prior to the period. margin a negative share. costs the was $X.X quarter XX%, in prior a Revenue ended the the the the the results was $X organization. Total from revenue result $X compares third higher to for XX, were $X.XX million the prior was quarter fixed was expenses a at of loss million $X.X in third $X.XX compared of across in This million $XX.X lower-than-expected year in a in million increase period. Gross per or year the quarter or period. million, an the over the financial Revenue Net XX% months Looking year X that's quarter. was XXXX. down XX% our for of

implementation, higher in associated investments. the ramped required as costs with personnel for well QX Our which an during reflected quarter ERP expenditures up R&D the strategic expenses increase for as

a negative of share $X common Turning to or $X in Operating negative a million per attributable our was negative year a compared $X.XX profitability or loss was a of a loss shareholders prior share to prior a million $X.X in negative million measures. Net compared per loss to the $X.X loss year million the period. period. to $X.XX

our to balance sheet. Moving

cash $X.X million XXXX, million and million third investments capital Mickey. inventory performance periods working in terms customer at in short-term driven ERP prepared in and the to million vendor turn I'll due end all the systems XX, the installation our concludes new As of shorter at to to management, implementations it XX coming for system XX, at quarter June to remarks. $XX.X compared my better to -- was now XX, consolidated and June periods, at $XX.X the stood improving capital see June primarily implemented through better compared company quarter. That acceptance of $XX.X Working by third XXXX. September purchasing, XXXX. The large back expects

Carleton Miller

to Returning Mike. Thanks, operational updates.

MilGov remain a growth trajectory. strong Our on markets

note which in not revenue. It for is in market in a a is decline grow in half our historically MilGov funnel, for significant are fruit. that year-over-year sales to continuing for to to our MilGov a of accounted our Our $X opportunities. bear with opportunities project to over shift Production than result XXXX, XX%. a of bookings important growth funnel would of This both are Currently, probability strategic initiatives market higher represents over represent XX% million this less Live or a of grow. continue this We that XX% markets

are MilGov critical has aircraft-based video Systems missions. of intelligence leaders market Our solution. success Downlink unit delivering by our become transmission for the in cornerstone in driven Airborne our AeroLink, is sector real-time Video our which the Downlink

in quality, and other fact, latency the upgrade defense In AeroX it them and popularity experience infrastructure other growing optimal our bonded of and believe of those communication positioning transmit cellular Once and organizations well the in of policy. for investment is cellular systems, drone and law leads advancing spending in lower to AeroLink drive position as to exciting and we've interested needs capitalize We to global safety systems, sector. investment this lead infrastructure. We opportunities secure secure in view helping public image Downlink our including emerging enhanced awareness the R&D solutions. industry stakeholders. Further, and the on companies for of positioned formalized driven to and and increased trend sales capabilities uncrewed Enhanced components all control receive technologies the system. defense in increased platform, is Air-to-Anywhere leveraging AeroLink, us innovation, will made solution drive addresses other growth, command ensuring public of in our defense enforcement customers ground often security of their migrating their autonomous components by release for streaming the situational drone the believe that an this in

the as a players visibility our leader to in of and enhance thought with key to engage uncrewed steps more market. in communications sector the taking are We

our services to capability. Turning

will customer diagnose, software covered we'll which support base. In global portfolio. and the software XX% but by communicate support, will to upgrades. revenue This upside We continue through enable service user-friendly vX, in not our of continue cellular we a only entire level service product manage base diagnose will customers. our SLA. provide to to our area, create focus is repair December, our more invest our and driving and see agreements updates depot capability interface product We secure a recurring than to this Less and to Vislink LinkMatrix tremendous on products, an for XX/X teams to remotely introduce to provide all

bids for This and broadcast the and our these area QX, we enhancements video, used noteworthy we cloud military our upgrades plan in major [ENG] In transmitter. Production deliver market Systems to high-quality news connectivity agencies will cases, Systems with and from be reliable Going Downlink aerial the leveraging several distribution safety AeroLink sports. to we missions advantage. Among continue all platforms. are and incremental highlights sustain introducing our across investments seamless supporting news R&D and for to how featuring forward, competitive targeted expertise provide complex Downlink in and in Airborne won to broadcast our public breaking installations Live coverage the

international exciting our the seeing also are growth in Live solutions. We Production for markets

for cellular to quarter, Supreme Mexico our the system transmission we of support bid telecast Court. secured bonded live During a

Georgia October. our end to deployed country Additionally, at the of solutions bonded the in cover the of elections cellular were

upgrade national news coverage. won project a also to sports We enhancing live Malaysia's broadcaster, and

global remains Overall, expect to international contributions our strong, markets. revenues from we non-North and continued quoting robust American activity

and encouraging Drone Our go-to-market transport; CX been across evolving, yielding in our notable. continually Progress video live especially X data outcomes CX. has is Drone strategy focuses: video AVDS; connectivity; primary

related on a to While a security, still coming particularly border defense and years, the focus expansion an American-made platforms. sector, anticipate we emerging in rapid

Our to video high-quality providing a wide data cornerstone bonded connectivity and a applications. technology of reliable, for transmission range be for live transport, video continues video cellular

new unlock needs, in with and live drive virtual artificial are augmented emerging to applications forward technology technology our engaging partners to look evolving commercial our We transmission map and road collaborations leadership demands. We key with our solidifying market further as companies in such strengthening meeting where technology reality with aligns OEM growth. fields, and can ensure intelligence, video our

collaboration its a and Abu FocalPoint Dhabi VR awards AXRL, on with League, innovation. Autonomous Our has of earned Racing this the example for is prime several

cost committed Vislink. updated are this focus please the keeping Looking recalibrated achieve on appreciate We service ongoing appropriate our strong to strategy, the align remain our continued the extended revenue to demand provide our in growth and reflect progress and you strategy quarters. Operator, confidence coming efficiency, ahead, long X-year have confident high-margin a the to timeline landscape, your term. We a the forward we sustainable, in our trusted With continued instructions. may support we on we adjust evolving shift over in for though to ability toward profitable structure our execute look market cost timeframe. to we with solutions, and our

Operator

Kinstlinger [Operator Alliance first today's Instructions] Global Partners. Brian comes with from question And

Brian Kinstlinger

I was share by some impacted total it's the have wondering if short-term pipeline? of I guess did your challenges. been you missed might it, I

Carleton Miller

we $XX at it, pipeline where miss above we We're The think million shared Brian. weighted right No, million. now. -- didn't around were pipeline is I you last $XX

think given As that than source positive above of traditionally less a that for we XX% opportunities, we was mentioned, which us. half XX% MilGov revenue of very is

the So side see we on well. Production to as opportunities continue Live

it with it's quarter, Live X.X and So a had just in were on some of to down. a customers Paris going of this some the for not that saw Olympics. busy -- softness We side do in It's just overall. Production with the those months are lot lot

Brian Kinstlinger

it was we if mentioned could expected. you than start MilGov So business. your with In lower prepared remarks,

And area big You was discussions it that any doesn't MilGov tension -- as the least, are order How ending the East at on what this in time delayed? a expectations commented, your order? that Middle heightened in appear based was was there soon? are

Carleton Miller

a was multiple particular In point. customer, demonstration a where XXX That's about to embedded customer that the receive demonstration of seeing that with. and as early good that We where rotary project. we opportunity incumbent new August, the in well had a do cover is have -- that helicopters proceeds had country. Yes. and that technology And we're this with we're signs next up source talking of the August, is you're will working they over entire part We're able a fixed-wing that that, on at sites to pick as and year to be trial delayed. executing the

about expecting X-month we're a So to delay that.

Brian Kinstlinger

about And You in you it. talk the about half. then can pipeline? Got MilGov mentioned

I think eliminate to the delayed, goal shortfalls was order getting to one due obviously.

So are just many diversification there trying the dozen Are of understand than opportunities pipeline. I'm the a there in there? to that? more

Carleton Miller

Yes. Great question. quite robust. Yes, it's

New We future. example, the Baltimore just year Metro on you Baltimore history State looking to Just we and in this D.C. Baltimore Baltimore past call. City, City, an talk at then this Jersey County, give mentioned the deployed we'll alone, Police, we deployed about --

with We Security. Homeland initial of also got our opportunity Department first

we've resulted and engagements record that. We most building of track on customer MOD. got the that success high-profile, recently, just order meaningful in from Danish quite a very So got we're have an

opportunities seeing BMS, now not a been has strong here in point to of having And our so of local, big of where we're with Eastern, state pickup But greater opportunities traditionally part and us. we're And much customers. the portfolio the through where which acquisition only U.S. Asian exposure weren't for we're Vislink Middle were the and European seeing they that that's incumbents.

Brian Kinstlinger

some actually understand rough percentage last it quarter? trajectory the what in on quarter you but maybe would Okay. gave number has know historically entire Can of I been, to and growth And you one quantify the numbers, be a third third helpful business. the MilGov. revenue the of the

Michael Bond

million, did, and $X Brian, was just $XXX,XXX. then was some revenue service had $X.X million, for $X.X the Production million there proportionately, of in we we Live out and MilGov

Brian Kinstlinger

Great. moving to entertainment. live And then

another months starting Just X after quarter? maybe a we'll the for with year see of kind expectations are is And to sluggish you the that and Are first we see of Here more Olympics. pickup? half and timing fourth investors.

Carleton Miller

Yes.

a in again, this purchasing of we're some be loaded. pickup activity. quoting good this think, We Brian, seeing quarter. sure. will to a But for and we I had back-end expect start That's

have will fourth we So a sluggish quarter.

proactive One of restructuring the took activity. reasons we

then the also Just on out production to BMS within when year. facility. BMS we last margins, Vislink. X facilities point we had had around saw that, acquired you that, And acquired With we production

a single that's improve And so our allow management to now obviously going we're conversion to consolidating our to inventory. improve facility cost, us of

So through looking year beginning hope good we we to is that strong will deliverables and that of October. much a looking good, got expect we be at December, next to but the the year. in looking weather this for in we're We this back the of November of are next start finish quarter. quarter, but growth to kind in

Brian Kinstlinger

is then you're Great. saving business. that million facilities? cut versus anything doing? Last X how equal or large question, answer or you moving to much X $X maybe production your started And else number reduced that to that, Are the is a footprint you

Carleton Miller

to you detail. Mike, Yes, give the and we're one, can moving

Michael Bond

quarter. headcount. remainder majority with the or of of of And we're of and quarter the and downsizing, we're be some Yes, first we're costs leave the leaving out headcount one out are majority next is say, next quarter the And they'll vast I then first business $X.X going the costs taking that significant of the that in the in next just notified at out And fourth the X a year. taking around year. quarter alone is million. fourth one number in associated out we're quarter in completely. taking would come facilities, out the $X million, next of will will end $XXX,XXX, either quarter, fourth the or is with But now Those

Brian Kinstlinger

for the per the math here is then quarter, adds quickly. doing Just When up? it $XXX,XXX say you that facility, and

Michael Bond

that will got year. we're that rate. That's of out taxes, business reduction the Total. over that, $X.X other to will total next like the run rent, alleviation ratable will probably There be expenses another of then about in we've And remainder $XXX,XXX. over out things time come our utilities, a cutting that million in it's

Operator

time, [Operator Miller our turn no like conclude Mr. questioners over back would at this in conference And time, to are and for this any question-and-answer I we Mickey showing does further session. At Instructions] queue, to the this closing remarks. the

Carleton Miller

you Thanks, Chris, look everyone, and company expect. to We forward deliver build you, thank for returns us joining that to today. those continue this and

So thanks very much.

Operator

us today Vislink's XXXX Thank now The you Third may Quarter concluded. joining for Conference conference disconnect. and now Call, for you has

Vislink (VISL) 14 Nov 242024 Q3 Earnings call transcript