Q2 2021 Vislink Technologies Inc Earnings Call
[music].
Welcome to the Vista Technologies, 2021 second quarter earnings update meeting.
During todays presentation, there will be an opportunity to submit online questions.
Submit online questions using the window on the webcast.
Please note this event is being recorded.
I would now like to turn the conference over to Melinda Marino Corporate Secretary of the board of Directors. Please go ahead.
Thank you and good morning, everyone I'd like to remind everyone of the safe Harbor statement referenced in the SEC filings.
<unk> 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 herein that are not based upon current or historical facts are forward looking in nature and constitute forward looking statements within the meaning of section 27, a of the Securities Act of 1933 and section 21 E of the Securities and Exchange Act of 1934.
Forward looking statements reflect the company's expectations about its future operating results performance and opportunities that involve substantial risks and uncertainties.
When used herein the words anticipate believe estimate upcoming plan target intend and expect and similar expressions as they relate to the zinc technologies its subsidiaries or its management are intended to identify such forward looking statements.
These forward looking statements are based on information currently available to the company and are subject to a number of risks uncertainties and other factors that could cause the company's actual results performance prospects and opportunities to differ materially from those expressed in or implied by these forward looking statements for.
For a more detailed discussion of some of the ongoing risks and some uncertainties of the company's business. Please refer to the company's various filings with the security Securities and Exchange Commission and now I'd like to turn it over to Mickey Miller our CEO.
Thanks, Laura I'd like to welcome you all to the Q2 2021 earnings webcast I'll be joined on this webcast by my colleague CFO busily, we'd like to take this opportunity to report on our full year results.
And the progress you've made in the second quarter of 2021, we will also provide an update on our latest developments and future prospects participants will be able to submit questions. During the webcast from our main webcast page, we will try to take as many as possible at the end.
We're very pleased to report revenue in the second quarter that were 85% higher than the amount recorded in the first quarter of 2021.
In addition, our quoting activity continued to increase with new bookings growing over 250% during the first half of 2021 compared to the corresponding period in 2020, this accelerating sales growth.
Together with our ongoing focus on cost containment and strategic use of financial resources helped us significantly narrow our EBITDA loss in the second quarter to 570.8-K compared to 2.4 million EBITDA loss in the first quarter.
As a result, our operations have not only returned to pre pandemic levels, but we are well positioned for future growth.
Just a side comment I thought this was a great quarter for us. So let me just put in perspective, you know 18 months ago.
Mike and I started here. This company was under capitalized it was in that with our vendors. We had a very high operating cost our new product development was anemic and that business was declining year in and year out and then we were hit by the pandemic. The team. It does link didn't extraordinary job.
We had furloughs that effectively put in a 40% pay cut for all senior management in many levels of management and everybody in this company.
Paid a price in their salaries to be able to keep this company moving forward that we were able to get to where we were at the end of 'twenty.
2020, with the opportunity to raise additional capital so.
I want to give credit to the entire busily team for the extraordinary job and sacrifice that they've made for this company to get us here.
And I'm Super excited about the future that we've been able to build.
And the future is now for us because our commitment to relentless innovation, which has been a busy strength throughout its history resulted in a release of incredible products in 2021, including the IP linked three auto quantum receiver and the D. V 6100 that have already played a role in capturing substantial new.
Business this year, including the announced wins with Alabama public television in the U S Department of Defense. In fact, these three products alone have already surpassed 6 million initial sales. This year, we plan to continue to aggressively refresh our product offerings to maintain our leadership in the markets. We operate we have increased our.
Our R&D investment and we have recently hired a new head of R&D.
John Gass, who were very.
We're excited to have part of the team.
You also know about our very exciting news about closing on our purchase of mobile viewpoint. The acquisition allows us to explore a number of significant trends with respect to the market for live video.
It can be addressed by.
Mobile viewpoints innovations and bonded cellular five G and AI driven automated production technologies. These include the following 82% of all IP traffic today is video and live video is less than 20% estimates expect around 13%, but it's the fastest growing sector with seven.
82% CAGR in the last five years at 72% growth per year in the last five years According to Cisco.
Content consumption is diversifying becoming more personalized solutions that offer a hybrid of transport over a various amount of millions whether it's five G bonded cellular cost them fiber satellite for public IP will be the key for growth and that's what we're building remote production also known as Remy enables high value production at.
More cost effective price points with it reduce carbon footprint and finally, AI driven production will dramatically reduce why production costs, enabling a wider range of new content be red rendered economically.
As far as the strategic rationale for making this acquisition mobile viewpoint provides us with innovative technologies and solutions that combine with our own capabilities will enable our customers to acquire and deliver video over any preferred public or private networks. This presents a tremendous growth opportunity for us as five G and other.
It works along with machine learning will revolutionize how video is producing transported notably mobile viewpoint and also brings us very exciting AI driven automated production and camera solutions as well as pioneering development team that has a history of being first to market with solutions that make a real difference including some.
Port for multi camera Remy.
H Dot 265, which is.
A T V C. Five G and Starlink integration. This acquisition means that we can now make the most of these transformative live video trends and bring high quality lives video production.
That was historically, Anna and I got my uncle to produce like amateur and semi pro athletics.
The acquisition also provides us with increased scale and R&D power and creates a new powerhouse that leverages. Both there's links 50 plus years of broadcast technology leadership in mobile viewpoints innovations and bonded cellular and AI driven automated production. It should be noted that the two companies are also very complementary in terms of geographic coverage market.
Their footprint and product lines with virtually no overlap with combined offices across Americas, Europe, Middle East and Asia, and our reseller network of over 150 distributors does link has the scale to provide on the ground support to a wider customer base than before.
Finally, a result of the mobile viewpoint acquisition physical now have all the hardware and software solutions to acquire produce contribute and deliver IP video and data over whatever private or public network is preferred and available making our connected edge strategy a reality.
Bottom line is that for visiting this acquisition represents an ideal deployment of capital highly strategic and makes a lot of sense. This is a kind of targeted investment that we've been speaking for quite a while and we are confident that it will play a major role in the future growth of the company I'll now turn it over to Mike Bondi, who will walk us through our financials.
Thanks, Mickey and good morning, everyone.
Here's some of the main financial results for the first quarter.
Revenues for three months ended June 32021 were $7.6 million.
The way that does not include $4.3 million of deferred revenue.
That compares to $4.1 million for the first quarter of 2021, and 6 million for the three months ended June 32020.
EBITDA, which is earnings before interest taxes, depreciation and amortization was a negative 578000.
For the three months ended June 30 of 2021 and that compares to a negative $2.4 million for the three months ended March 31st burst 2021.
We ended the second quarter of 2021, with 50, $555.5 million in cash and cash equivalents compared to $60 million at the end of the first quarter of 2021.
Gross margins were 52, 8% of revenue in the second quarter of 2021 that compares to 46% in the first quarter of 2021.
Net loss attributable to common shareholders was 834, K or two cents per share in the second quarter of 2021 compared to a net loss of $2.7 million or seven cents per share in the first quarter 2021, and a net loss of 770.8-K or five cents per.
Sure in the second quarter of 2020.
Net loss attributable to common shareholders was $3.5 million or nine cents per share for the six months ended June 30th 2021 and that compares to a net loss of $5.2 million or 45 cents per share for the six months ended June 32020.
I'll now turn it back over to make you to provide an operational update and outlook on the business. Thank you.
Thanks, Mike.
Or is it like to share with you don't include the port for three of deferred revenue that if you looked at the K, our 10-K, which basically means we built we shipped and we delivered.
$4.3 million of goods to a customer that didn't make it through custom through the end of the quarter. So we were at eight were not able to recognize that as revenue, but that that that revenue has now been recognized and payment has been received so it was a heck of a quarter and again I want to extend.
Thanks to the entire visiting team you as owners of our company should should recognize that aren't the visiting team did a heck of a quarter here and we're only getting started so from an outlook perspective on the broadcast live production side.
Starting to see a resurgence in this market as live events have made of robots come back obviously with the Delta variant there there is some.
Uncertainty there, but we are starting to see a robust robots come back as you could see with you know the first half of this year, we had 250%.
More.
Orders than we had last year in terms of dollar volume, we expect that the integration of the mobile viewpoint technology and products will help us make a strong inroads into live production market as we now have a completely new suite of solutions to offer we were the first company now in this space that has like the complete suite. Many companies have bought itself.
Some companies have proprietary.
Proprietary networks on talk to them. We now have the complete suite of products to be able to offer our customers a very compelling solution that is managed by one single software application.
On the Mil Gov side, the Mil Gov market is showing strength as evidenced by another nice dip.
Department of Defense order received in the quarter, there could be some new exciting opportunities for cross selling mobile viewpoint products to law enforcement and military organizations.
Well will you use cases that mobile viewpoints have weather backhaul for drones that they've been able to deploy in many first responder locations as well as.
Cameras onsite during civil unrest or for forensics. So those are exciting opportunities that we see.
But we see as a great opportunity to take the technology both.
Our traditional as well as.
The mobile viewpoint integrated into a complete solution to provide.
First responders with incredible technologies to do their jobs more safely and to proactively protect and serve us.
Finally, satcom, we reconstituted our satellite product line in one of our new product offerings in the area.
A D V. Six has been a nice introduction. So we basically have two primary products. There are <unk> product, which is our mobile satellite product, where you can deploy anywhere you get productivity as.
As well as our new D V 6100.
Looking forward, we are optimistic that demand for our key markets. We will continue to increase for the balance of 2021, while there are some potential challenges on the horizon do the forces outside of our control such as the ongoing battle to manage COVID-19 around the world at this point in time, we are forecasting increased demand for the sectors. We operate in as a result, we.
See considerably considerable opportunities to grow our business and having new mobile viewpoint as part of the visiting family will certainly help make that a reality, we look forward to updating you on our progress.
Now we know we'd like to ask Ted to answer some questions that have been submitted during the webcast.
Thank you we will now begin the question and answer session. You may submit online questions at any time today using the window on the webcast.
At this time, we will pause momentarily to assemble our roster of questions.
Okay.
First of all I want to thank everybody for.
<unk> for the questions that we have.
Probably seen through our social efforts, we're trying to connect with our owners you. Our owners you own. This company, we want to connect with you and understand what's on your mind and address any any questions that you have and be transparent as we can be obviously.
We have NDA with many customers, we would love to put out.
Press releases every day and video of our product being used in the world.
But we're only allowed to do that when our customers approve and allow us to do that and certainly we're not able to disclose anything that's under NDA with customers, but we will be able to talk about any customers that has allowed us to to talk about things.
So so.
I think the first one.
First question is about I'm, sorry go ahead yeah.
I do want to say in order to drive questions. We did say we will.
Anyone who ask a question that we have on the call will send some swag too. So if you have if you do ask a question. Please D M us with your information that will.
We will send you just some slag we appreciate your.
Your support for visit Lincoln for your question, because we have more questions than ever doubt I'd really appreciate it go ahead Mike.
Oh, yeah. Thank you.
So first question I noticed right off the bat, obviously everyone's very excited and I think I'm curious about mobile viewpoint and so the first question. Obviously is how big is mobile viewpoint, how many people whats the revenue. So essentially there about revenue is about 7 million U S.
We expect obviously some synergies there we first order of business in terms of integration is to integrate their solutions their product line and with our own to create a combined go to market model. If you will to get out and aggressively pursue our customers. Just Mickey said, we now feel like we have another weapon.
Weapon in the armory that we can use with our customers and even potentially new customers so against.
The revenue there is about $7 million at this point.
You've got about 20 people.
They do a great job of leveraging that number of people with a very aggressive R&D schedule.
We think we'll be doing it.
And additional investment in their product development in there with their R&D team, but were looking forward to growing that business substantially.
Right here, Here's one do I have to worry about another reverse split I think Hell no is the answer and you can take all the words you have in your lives and put that wanted to very bombs or less.
Yeah.
Yeah. So we we we look in the past the company did a lot of reverse splits because they basically were funding losses in operations as Mickey as mentioned, but previously we think we've got the platform at this point to break even and we're looking forward to continuing to progress that and so we don't see any need to do anything.
Like a reverse split we think our share price.
Capitalization everything will stay above the minimums will stay listed and we'll continue to progress in our share price as we build a better platform.
Okay.
There's a lot of great ones here.
[laughter] what came first the chicken or the egg ha I just want a hat [laughter] mitral plasma until you go ahead you go ahead.
Okay.
Let's see.
Mike.
Mickey I agree.
It was a good one it says that with the new acquisition of mobile viewpoint, how do you see integrated this into our current your current business I think I had mentioned that we were going to take it easy at first because we don't want to overwhelm our group the size of the mobile viewpoint. So you know Michel vs. As their leader and we think highly of him. We are a strong part of.
Our reasoning and rationale for doing this acquisition was the talent and the leadership there and their vision. So we're going to try to marry that to our vision and our go to market model.
Progress in a combined fashion with our customers, but on the operational side you know we will obviously.
The men financially, but we'll leave them alone operationally at this point they are they are an outcome or the Netherlands.
And will be and we anticipate making many stops in Netherlands.
But we are we want to leave them alone operationally for a while and just integrate their solutions in their go to market model.
Yeah.
Yeah. I think you know this is a pretty common question is I think three or four times is.
Doesn't vivo mobile viewpoint already have starlink capabilities with starts being promoted by Sterling. So.
You know I think.
What what our goal here is what we've talked about have you seen our investor deck, it's about taking advantage of the Ah connected edge opportunity that we see.
Cisco expects over 500 billion Iot devices connected by 'twenty three our view is that in the next 10 years every industry will be disrupted by the connected edge and what that means that everything will be connected on the edge machines people.
Devices, you name it and that impacts the industries, we're in but also future industries that we may be in and we see that video you put things in perspective, historically video was handled over proprietary network audio was over proprietary network.
Ada over our network now with IP Internet protocol connectivity everywhere with IP. It's just one packet that packet can have video audio metadata you name it.
And can be distributed over any medium, whether it's five G. Whether Wi Fi six whether it's mash, whether it's a proprietary cost them, whether its starlink, whether it's G O sat whatever link and Thats, what we wanted to make sure that we can offer our customers an opportunity to use whatever lake. They is the most economical and.
<unk> fits their needs meets their needs based on the use case that they have to be able to connect their entire to their entire network because what's important.
Historically yeah.
Companies have always had an it department, but the future is that I T or connectivity or data and and massive processing power are all going to be one and so the operations are being disrupted.
The leverage to use these tools to be able to do that you got to have connectivity and you've got to be able to work across all types of connected devices. So that's our goal.
In addition, with the AI with mobile viewpoint, when we get an AI capability that that helps us move forward, our AI expectations and goals and then ultimately with built big data for real time analytics that will disrupt traditional workflows. So that that's our future and that's where we're headed and that's that's what the.
Relationship is today is yet another medium for us, but we see a lot of opportunity across the board to do a lot of things with a lot of different customers. Because we have this ability to bring things from the edge.
And create information too to fulfill our mission today, you know our mission today is to create technology that serves and protects us.
And connect us to the content, we love that's our mission today, but as we build and we do well there there'll be opportunities to take the the.
Technology, we have and the capabilities, we have to other markets to do the same thing.
So a question from Peter to lot Us. He said congrats on the acquisition. You said my question is about supply chain do you anticipate any supply chain disruptions.
You hadn't in the in the first quarter and we still feel the same we don't think we'll have any major supply chain disruptions, we do see the supply chain tightening up we are taking you know obviously some defensive measures. We're ordering out ahead of in some cases, our orders on keys key parts and supplies.
But we don't anticipate that becoming a factor in terms of our ability to meet our customers' orders.
Okay.
Thanks, Mike Here's a when do you expect this linked to become profitable you know we don't give guidance you know there's a lot of things going on in the world still today, you know as I mentioned, the Delta variant, we'll see what happens there, but but I mean, if you just take a look at this past quarter is that deferred revenue would have cleared custom one day before you.
Do the math I was $4 three you know what our average margins are.
And and so that would have dropped.
Now over $2 million to the bottom line so.
You know I think that that answers your question.
Yeah, and just to add to that look we we had a very difficult platform to work with as Mickey mentioned when we first started we think we've done a lot of yeoman's work in terms of making the platform able to create profit as we increase sales to drive leverage.
We went through a very difficult time with the pandemic. It is essentially put a big part of our business on hold that is live production. We were now seeing you know a major.
The increase in our order activity and quoting activity. So we think the life production business is coming back strong.
We have every confidence again as Vicki said that the business is going to come back and go back to pre pandemic levels and we feel like the work we've done on the platform. The money. We've raised some of the strategic opportunities, we're going to address including mobile viewpoint. It gives us a real <unk>.
Real leg up in terms of being able to create a profitable platform in the future.
Here's a question from John Hamre, I don't think you stated that most acquisitions failed previously why stay in their bids like would be very judicious in making any acquisition what made mobile viewpoint. The right acquisition for is like and how will you integrate them was there's like until they synergize the two into one successful company.
Yeah, Great question, we looked at we looked at a lot there there's not a lot of players and if you look at you.
The number one player is why view, which which was just acquired by Carlyle for $400 million. They.
They they were acquired by French Cisco partners two years ago for 200 million. So in two years, they increased the value by $200 million and those of you.
Carlyle is probably the best investor or one of the best investors in the world.
You know Blackstone Carlyle Big time, private equity companies and so.
Lie view and and.
There's a few others in the space and we've got to know most of there and we really like that to your point that the challenge with integration.
You can have a great strategy you can have it.
Great synergy and all these things, but it comes down to two people and we really like the people of mobile viewpoint Michel bikes has done an incredible job growing this company boots.
Boot strapping this company without any outside investment it's profitable they've been growing they have a great reputation with the customers. We talk to customers that are super excited that we're now together because they think that both mobile viewpoint and does link had the same regard to innovation and R&D until we're really.
Excited that we think that our culture has worked very well, they're super efficient that get things done.
You can see if.
You you go to their Youtube or two there any social you can see the things they do there.
They're very capable group of people that were really looking forward to two one plus one equals three type of thing so.
I think that's what put it over the top for us here.
Okay.
But here's a question that says do you anticipate additional acquisitions are you continually looking for new opportunities and the answer there is absolutely. We we we did a capital raise as you know back in February.
We just spent a bit of that in cash to acquire mobile viewpoint, we still have what I'll consider as good dry powder to do more strategic work.
We also reserve the opportunity to go to the market again, if we're successful and raised more capital to do more strategic acquisitions.
We will not stop will continue to look at our opportunities to grow the business Inorganically and kind of jumpstart the platform. If you will.
Here's a question from Jessica adult and is it stopped going to improve.
No.
I can't speak for the stock, but you know Warren Buffett says.
The market in the short term as a voting machine in the long term is a weighing machine our focus is on making the billing the value to make the weight of this thing.
Drive the stock. So obviously, you know, Mike and I and our team were very motivated by.
Our stock is a large part of our compensation. So we're focused on that but but we don't get caught up in it what we're focused on a day to day is building value in this company what is that that's connection with our customers' connection with bringing innovation to those customers and driving the opportunities secondly, as you know.
We're very judicious.
Judicious in how we deploy our capital.
We view this capital is your capital we are using your capital as owners. Your owners of this company and I can tell you we're very judicious in how we deploy this capital to get the returns that you deserve a shareholders and we'll continue to do that every single day to build long.
Term value for you the owner of this company.
Yes, Mickey that that plays into a question by John Rutherford here that he asked you know when do you see the revenue from the acquisition hitting the bottom line.
You know what when do you see the impact been basically and and the answer there is almost immediately you know Michel Who's run a great organization that is very profitable, we do expect to see obviously additive revenue and additive bottomline impact almost immediately so that's we're very excited about that we didn't.
Purchase a burn rate, we actually purchased a business, that's up and going profitable and produces cash and runs very well. So we're very excited by that as well.
Yeah.
It's from Billy Phillips, when do you anticipate being operationally cash flow positive paying shareholders dividends and what are the key drivers to financial health and growth.
We kind of mentioned answered this in one of the earlier questions.
If you look at the numbers for this past quarter I think I think that will that will answer that question, but our focus.
<unk>.
When we started off in this.
A little over 18 months ago.
To get to cash flow positive now paying a dividend.
We think there's tremendous opportunity here. So we don't think this will be a dividend stock.
But if we if we look at everything and we say hey, the best the best thing to do is buy back stock or or give a dividend. If that's the best use of capital for our shareholders. We will do that but right now we see the tremendous opportunity.
Cause of the connected edge opportunity to.
To invest that Youll get outside returns through the investments we make.
Here's a question from Mark Soma, you said gross margins increased by 10% in the second quarter to 52.8. He said is that your target market margin sorry, and the answer is yes, we essentially it's around 50% to 55%.
Obviously with product mix some of our products enjoy.
Much higher margins than that in some slightly lower but that is in general where we think margins should stay.
Going forward.
Yeah.
Okay. This is a question.
Can you discuss some businesses you've taken as a new CEO with exit plan what was the valuation is the valuation of exit what companies.
My crew I think you can see it on the website, but.
We sold.
<unk> built the tyco or the Lucent technologies power systems business, we sold it to.
Tyco electronics I ran that for four years that was a business that when we sold it was $1.6 billion in sales when he sold it for $2.5 billion and then was the group President of Andrew Corporation, which we grew from 800 million to $2.2 billion.
Hold that for $2.6 billion, Ralph pays and where the CEO of Andrew and he is actually on our board.
<unk> built a company called <unk> networks, which is a <unk> fixed wireless company that we sold to CCI and then.
Mike and I started here so.
Coincidentally, Mike was the one that loosened who sold the business at that.
What can we ran for for Tycho. So that's that's the connection small world.
And the other question go ahead Mike.
Oh, sorry, here's one from Ethan being how you think he says hi, Mike what impact system do you think.
The mobile viewpoint will have on margins and the answer there is we think you know it'll be positive.
Viewpoint has very good margins.
In some cases in excess of 60 and almost up to 70% in some cases, but we do think it'll have a.
Positive uplift on our margin potential.
And we're looking forward to integrate the integrating those products and to reap that benefit.
Yeah, Here's another one please discuss how much success you are someone on your team has with acquisitions what dollar amount.
First of all we did a lot of acquisitions and growing the Andrew Corporation. So I've done a lot around the integration, but I think you know our acquisition guy none better than Mike bond here, he's he's done over $30 billion of acquisitions in his career. He led this acquisition.
He spent four weeks in Amsterdam, bringing this to a close.
You know he he's got tons of experience the J P. Morgan for a while so so we're really excited that we have Mike <unk> got our sides to lead our acquisition.
Thanks Mickey.
Yeah.
Here's one from Eaton Bing I think keeping this might be your second question, you're doubling down here.
You said the purchase agreement did not explicitly prevent triple from hiring mobile viewpoint talent.
How do you plan to retain the talent and bridge our cause the two cultures that great question.
One we don't think there's any.
Problem or vulnerability to having our people leave to go to triple their two different businesses.
And so therefore, we don't think there's really a problem there in terms of integrating our cultures and incentive people. Yeah. We do have a with Mickey and I consider it as a fairly aggressive incentive plans inside the company.
Both bonus and competitive salaries.
Obviously, we reviewed with Michel the team and we looked at the key players in all of the players and we look forward to making sure that all of them are excited to be a part of the the vigilant family going forward. So we will do the hard work in terms of looking at R. R.
Our people costs, and making sure that everybody is competitively compensated and us feeling comfortable in their role at the company. So we're very excited to bring the the 20 people of the <unk>.
Mobile viewpoint into the family if you will.
Yeah.
Yeah, Here's here's one from Anthony to allow many I understand the nature of NDA, but I've seen visiting mentioned as a part of with Tesla and Starlink can you confirm or deny or give any information as to whether this is true.
Like I said earlier on we would love to talk about every single one of our customers.
But you know.
If we confirm or deny something then you got to know by deduction, whether we're doing something or not that means it doesn't make sense to have any india. As it also so I can assure you if we're allowed to talk about any customer.
Or have video from that customer.
We will as an example, you know the Olympics of course, you can't put anything about their about the Olympics The Olympics.
They obviously make a lot of money through through the rights that they have so the.
The only way we can do that is if.
If someone sees a vigilant spotted.
I know a lot of you don't like our visiting spotted stuff, but if it's in the public domain and someone census picture, we can use it if one of our partners.
Shows them using it we can use it but we can't use images that are owned by <unk>.
Buy other properties.
And so or talk about customers that we havent had permission to talk about so we'll continue to do that I know, it's frustrating for a lot of people but.
We're as I said, we're very focused on building this business on growing the connected edge, bringing that to the markets. We serve today and building that from her there as I've said, many times, Mike and I did not come here to run a small company, we see a massive opportunity here, we see the opportunity to build does linked into a very successful business and that's what we.
Focus on every day.
Well have time for one more question, Mike do you want to take that make me yeah here Here's a good question and it's from John Rutherford said to be clear.
We have a $4 million revenue, we didn't get reported question Mark and that's referring to the deferred revenue that Mickey spoke of in the body of our text.
And here, we had a and.
In order and we've disclosed this in our 10-Q, we had an order for the United States Army that we were originally going to ship to Afghanistan that shipment was diverted to a different location and given the complications of that are diverting and accepting that shipment. It missed by about two days in terms of being.
Accepted and included in the revenue for the second quarter, So accounting rules say that we shipped it. So therefore its revenue, but its deferred revenue, we don't we defer it and recognize it when it's accepted by the customer that's the terms of the contract. So given that we do defer it it's in deferred revenue.
At the end of the second quarter and will be picked up as revenue in the third quarter.
Yeah.
Okay and Mickey as you guys see one more quick question someone asked a good question about the P. P. P loan hasnt been forgiven and the answer there is we have made application we have done the calculations and we believe that yes, we will it will be forgiven and.
In its entirety and we won't.
Anything to the to the government in terms of paying that loan back.
Okay, all right well, let me just close.
I think we have a great opportunity here I think we've made progress quarter on quarter in terms of getting the operating platform that we need to be successful the new product development capability that we need to be successful.
And now with mobile viewpoint acquisition I think we have a tremendous opportunity to continue with our mission, which is to create technology that serves and protects us.
In connection with the content, we love and we will continue with that but we do see a bigger play in other industries as well around the connected edge I think it's gone transform and disrupt every industry today I think there's a tremendous opportunity for us to take advantage of it given our skill sets and our capabilities.
Video combined with audio combined with metadata does tremendous things in many industries, whether it's insurance whether its in security there's.
The capabilities that we have around that I think can be deployed in a lot of different areas, but our focus is this initial market that we are involved in of media and entertainment.
And first responders and Mil Gov.
As you can see with our customer base and department of defense.
Alabama P B S.
We have some long standing relationships with some very large customers and we think there's opportunities to build on those as well as opportunities to grow share and with the mobile viewpoint acquisition, we think that gives us more opportunities and more products to be able to position.
<unk> link as the supplier of choice as our customers make decisions on what their new technology going Florida's thank.
Thank you everyone for your support for visit link you are the owners of the stock we want to communicate with you we'll continue to try to find what the what the right time.
Tempo of communication, we want your ideas.
Now with mobile viewpoint. This is a product that can be sold in a lot of different places I think we're gonna see.
Someday with their IQ product.
The content that heretofore wasn't accessible like <unk>.
Division to division three type athletics that will be possible because of the cost effectively that'll be remote produced AI driven.
So do you see opportunities that are interesting and send it to us because we like our salesforce to follow up on that.
But we see a great opportunity for our shareholders to help us identify new opportunities in those lower tier markets as we continue to grow.
Again, we appreciate your support.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
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