VISL Vislink Technologies Inc

Vislink Technologies, Inc. (“Vislink” or the “Company”) (Nasdaq: VISL), whose brands are recognized as the global leaders in live video communications, announced its results for the first quarter ended March 31, 2020.

First Quarter Highlights:

• Named Carleton Miller as chief executive officer and Michael Bond as chief financial officer.
• Completed a capital raise of $6 million.
• Fulfilled delivery of the remaining equipment on the $2.8 million U.S. Army contract the Company received in 2019.
• Received a $1.3 million contract from a European partner to supply equipment and services for border protection.
• Received orders valued at over $400,000 for satellite communications equipment from Airbus Defence and Space Limited (“Airbus”).
• Received a $400,000 contract to supply an airborne surveillance video downlink solution to a government agency located in the MENA (Middle East and North Africa) region.
• Was selected to to provide High Definition ‘Live’ On-Board Video Systems for the prestigious European Ferrari Challenge Race Series.

“In the first quarter, we took actions to put the organization’s finances on a stable footing and provide a pathway to future business success,” said Carleton Miller, CEO of Vislink Technologies. “We implemented an OPEX cost reduction plan with the goal of aligning costs with revenue, and have already achieved appreciable savings, particularly in general and administrative expenses through headcount and other cost reductions. We expect to record additional cost savings in subsequent quarters. We also optimized our supply chain, which has improved our ability to capture and fulfill business. We continue to have access to the capital we require to adequately fund our operations, as shown by the $6 million public offering we completed.”

Mr. Miller continued, “We also further reorganized into the following four solution areas: Live Event Production, Military/Government, Satellite Communications and Managed Service. To that end, we made key new hires to lead these areas of the business with an emphasis on targeted product differentiation and customer-focused decision-making. Finally, we have taken important steps to weather the economic slowdown caused by the effects of COVID-19, including securing funding under the Paycheck Protection Program and maintaining essential business operations. We are confident this will allow us to seize new opportunities as business activity begins to return and help us achieve our goal of reaching sustainable and profitable growth.”

Review of Results

• First quarter 2020 revenues were $5.4 million compared to $8.2 million in the first quarter of 2019.
• Gross margins were 47% of revenue in the first quarter of 2020, compared to 50% of revenue in the first quarter of 2019.
• In the first quarter of 2020, net loss attributable to common shareholders was $4.4 million, or $(0.09) per share, compared to net loss of $3.1 million, or $(1.62) per share in the first quarter of 2019.
• EBITDA (earnings before interest, taxes depreciation and amortization) was a negative $3.9 million for the three months ended March 31, 2020, compared to a negative $2.1 million for the three months ended March 31, 2019.
• Ended the first quarter 2020 with $2.5 million in cash compared to $1.7 million at December 31, 2019.

About Vislink Technologies, Inc.

Vislink Technologies is a global leader in the development and distribution of advanced communication solutions. Driven by technical excellence that has led the industry for over 50 years, our innovative products and turnkey solutions provide reliable connectivity in the toughest environments across the global live production, military and government sectors. Our solutions include high-definition communication links that reliably capture, transmit and manage live event footage, as well as secure video systems that support mission-critical applications. Vislink Technologies shares are publicly traded on the Nasdaq Capital Market under the ticker symbol VISL. For more information, visit www.vislink.com.

Note on Forward-looking Statements

This press release may contain projections or other forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These statements involve risks and uncertainties, and actual events or results may differ materially. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are the risk that our reduction in operating expenses may impact our ability to meet our business objectives and achieve our revenue targets and may not result in the expected improvement in our profitability, the fact that our future growth depends in part on further penetrating our addressable market and also growing internationally, and we may not be successful in doing so; our dependence on sales of certain products to generate a significant portion of our revenue; the effect of a decrease in the sales or change in sales mix of these products would harm our business; the risks that an economic downturn or economic uncertainty in our key U.S. and international markets may adversely affect demand for our products; difficulty in accurately predicting our future customer demand; the importance of maintaining the value and reputation of our brand; and other factors detailed in the Risk Factors section of our Registration Statement on Form S-1, as amended (No. 333-225975), which is on file with the Securities and Exchange Commission. Additional information will also be set forth in our Annual Report on Form 10-K for the year ended December 31, 2019. These forward-looking statements speak only as of the date hereof or as of the date otherwise stated herein. The Company disclaims any obligation to update these forward-looking statements.

FOR MORE INFORMATION: investors@vislink.com

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (IN THOUSANDS EXCEPT NET (LOSS) INCOME PER SHARE DATA)

		For the Three Months Ended
		March 31,
		2020				2019
Revenue, net		$	5,352			$	8,206
Cost of revenue and operating expenses
Cost of components and personnel			2,821				4,127
Inventory valuation adjustments			25				47
General and administrative expenses			6,200				5,183
Gain on lease termination			(21	)			—
Research and development expenses			656				926
Amortization and depreciation			423				589
Total cost of revenue and operating expenses			10,104				10,872
Loss from operations			(4,752	)			(2,666	)
Other (expense) income
Changes in fair value of derivative liabilities			17				(74	)
Gain on settlement of related party obligation			331				—
Interest expense			(26	)			(350	)
Total other (expense) income			322				(424	)
Net (loss) income		$	(4,430	)		$	(3,090	)
Basic and diluted loss per share		$	(0.09	)		$	(1.62	)
Weighted average number of shares outstanding:
Basic and diluted			48,696				1,906
Comprehensive loss:
Net loss		$	(4,430	)		$	(3,090	)
Unrealized gain (loss) on currency translation adjustment			277				(33	)
Comprehensive loss		$	(4,153	)		$	(3,123	)

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

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)

		March 31,				December 31,
		2020				2019
		(unaudited)
ASSETS
Current assets
Cash		$	2,459			$	1,737
Accounts receivable, net			3,988				6,714
Inventories, net			8,374				7,674
Prepaid expenses and other current assets			662				660
Total current assets			15,483				16,785
Right of use assets, operating leases			1,782				1,925
Property and equipment, net			1,888				1,972
Intangible assets, net			2,621				2,922
Total assets		$	21,774			$	23,604
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable		$	4,390			$	6,784
Accrued expenses			2,449				1,912
Notes payable			293				339
Operating lease obligations, current			383				821
Due to related parties			—				505
Customer deposits and deferred revenue			2,137				2,821
Derivative liabilities			13				30
Total current liabilities			9,665				13,212
Operating lease obligations, net of current portion			1,332				1,163
Total liabilities			10,997				14,375
Commitments and contingencies (See Note 9)
Stockholders’ equity
Preferred stock – $0.00001 par value per share: 10,000,000 shares authorized as of March 31, 2020, and December 31, 2019; 0 shares issued and outstanding as of March 31, 2020, and December 31, 2019			—				—
Common stock – $0.00001 par value per share, 100,000,000 shares authorized, 81,100,685 and 21,567,287 shares issued and 81,084,731 and 21,551,333 outstanding as of March 31, 2020 and December 31, 2019, respectively			—				—
Additional paid in capital			267,572				261,871
Accumulated other comprehensive income			484				207
Treasury stock, at cost – 15,954 shares at March 31, 2020, and December 31, 2019, respectively			(277	)			(277	)
Accumulated deficit			(257,002	)			(252,572	)
Total stockholders’ equity			10,777				9,229
Total liabilities and stockholders’ equity		$	21,774			$	23,604

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