Q2 2023 Vislink Technologies Inc Earnings Call
Yes.
Good morning, welcome to these links second quarter 'twenty towards Q3 earnings Conference call. My name is drew and I will be your operator for today's call.
Joining us for today's presentation are the company's CEO Micky Miller and CFO , Paul Norwich following their remarks, we will open the call to questions earlier today. This link released results for the second quarter ended June 32023.
A copy of the press release is available on the company's website.
Before we begin the call I would like to provide visiting <unk> Safe Harbor statement, which includes cautions regarding forward looking statements made during this call.
Management will make statements during the call that include forward looking statements within the meaning of the federal Securities laws, which are made pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1995 any statements contained in this call that are not statements of historical facts.
<unk> should be deemed to be forward looking statements all forward looking statements, including without limitation, our examination of operating trends and financial expectations are based on the company's current estimates and various assumptions. These statements.
Involve material risks and uncertainties that could cause actual results or events to differ material materially.
Differ from those anticipated or implied by these forward looking statements. Accordingly, you should not rely on these statements for a list of the risks and uncertainties associated with the company's business. Please see the company's filings with the Securities and Exchange Commission.
<unk> disclaims any intention or obligation, except as required by law to update or revise any financial projections or forward looking statements, whether because of new information future events or otherwise. This conference call contains time sensitive information that is accurate only as of the live broad.
All participants will be in listen only mode.
You need assistance. Please signal a conference specialist by pressing Star then zero on your telephone keypad.
Please note this event is being recorded.
Now I would like to turn the call over to visit links CEO Mr. Mickey Miller, Sir Please proceed.
Thank you operator, and thank you everyone for joining us today.
Morning, We filed our 10-Q with the SEC and issued a press release that provided our financial results for the second quarter and six months ended June 32023.
Along with highlighted business accomplishments.
As a brief overview for days call I'll begin by providing highlights from the second quarter of 2023 and summarizing some of our most recent update before passing the call to Paul to discuss our financial results in more detail.
Then come back to discuss progress on our go to market strategy developments.
Developments and updates within our key markets before moving to Q&A.
That lets begin.
In Q2, we made substantial operational progress as we continued transforming the business.
With a keen focus on the public safety growth market. Our efforts in this area led to a 91% year over year revenue growth and our Mil Gov sector reach.
Reaching one 2 million for Q2, and $2 1 million in the first half of 2023.
Our progress in public safety as highlighted by three key deliverables in Q2.
Two in the Eastern U S with a large city in a large county.
And the other one with a major country in the APAC region.
The successful deliveries are clear indicators of our progress in this growth segment and reflect our team's resilience throughout this organizational transformation. We are swiftly adapting to the dynamics of the public safety industry.
This includes navigating elongated sales cycles and dealing with budget cycles that heavily lean toward the second half of the fiscal year.
Along with decision, making patterns that follow a similar track Wally.
While these factors present near term challenges to our topline.
Remain confident in the alignment of our solutions and our services within the public safety market.
As we move into the second half of 2023, we are encouraged by having the most $1 billion plus opportunities in our sales funnel that we have had in several years and behind our revamped sales and marketing efforts already in motion.
We are confident that we will capitalize on many of these potential deals in the second half of the year in 2024.
During this transformative things as revenue decreased 10% year over year in the first half of 2023.
Active cost management has been Paramount.
In Q2, we reduced total expenses by 10% from the prior year, continuing with our transformation, we plan to implement additional cost saving measures in the second half, which will further rationalize our product set and position us to more cost effectively serve.
Our target markets.
Taken together these actions will contribute to saving over $1 million annually.
We have also augmented these managers through our pricing strategy as we have applied a 5% increase to all new quotes starting at the end of Q2.
Additionally, we continue to drive increased efficiencies throughout the organization, including heightened workflow optimization and financial accountability efforts, we will extend into the second half of the year.
A significant component of our transformation has been our ongoing progress in integrating our three ERP systems into a single more modern system. This consolidation not only streamlines our operations, but also enhancing reporting control our early efforts to boost operational.
Patiency across your organization have already begun to yield positive results.
Later in the call I'll elaborate on our product development and strategic initiatives in sales and marketing that are designed to complement and bolster the results of our operational improvements, but first I'd like to turn the call over to Paul to discuss our financial results for the quarter in greater detail.
Paul.
Thank you Nikki and good morning, everyone.
Looking at our financial results for the second quarter.
Total revenues for the first half of 2023 was $12 2 million compared to $13 6 million in the prior year period.
For the second quarter of 2023 revenue decreased to 5 million from $6 8 million in quarter. Two of 2022, the declining revenue. During the recent period is primarily due to our decision to discontinue several product lines in the third and fourth quarters of 2022. These products are phased out because they weren't in line with our evolving.
Strategic direction.
Gross profit for the first half of 2023 was $6 6 million compared to 7 million in the first half of 2022.
Our gross profit margin for the first half of 2023 was 54% an improvement from 52% in the first half of 2022 the improvement in gross margin resulted from cost savings and components and personnel.
In the second quarter of 2023 gross profit decreased to 2.7 million from $3 6 million in the prior year period. The gross profit margin for the second quarter of 2023 was 53% consistent with the 53% margin in the prior year period.
Total expenses in the first half of 2023 18 million a 7% decrease from $19 3 million for the same period in 2022.
For the second quarter of 2023 total expenses decreased 10% to $8 4 million from $9 3 million in the prior year period.
The improvement in total expenses was primarily driven by reductions in workforce related expenditures, including personnel expenses.
<unk>, we transitioned to Wang from our outsource partner opting to integrate additional engineering capabilities in house and further enhance our operational capabilities.
Turning to our profitability measures.
For the first half of 2023, we recorded an operating loss of $5 7 million consistent with the operating loss of $5 7 million in the prior year period.
For the second quarter of 2023, we recorded an operating loss of $3 4 million compared to an operating loss of $2 6 million in the prior year period. The increase in operating loss was primarily due to the changes in revenue previously noted.
Net loss attributed to common shareholders for the first half of 2023 tenths with 4.8 million or $2 and <unk> per share. This was no point 5 million improvement from the net loss of $5 3 million or $2.30 per share in the first half of 2022.
Net loss for the second quarter of 2023 total $3 million.
Or $1.27 per share compared to a net loss of $2 5 million or $1.10 per diluted share in the second quarter of 2022.
EBITDA for the first half of 2023 was a loss of $4 9 million compared to a loss of $4 5 million in the first half of 2022 <unk>.
Adjusted EBITDA, a non-GAAP metric for the first half was a loss of $3 2 million compared to a loss of <unk> 8 million in the same period a year ago.
EBITDA for the second quarter of 2023 was a loss of $3 1 million compared to a loss of $2 1 million in the prior year period, adjusted EBITDA and non-GAAP metrics for the second quarter of 2023 was a loss of $2 8 million compared to a loss of 1.5 million in the second quarter of 2022.
The EBITDA results were primarily a result of the changes in revenue, partially offset by cost management.
A reconciliation of EBITDA to GAAP measures is contained in our earnings release.
Finally to our balance sheet.
As of June 32023, we had cash and cash equivalents of $11 million compared to 14 million at the end of the first quarter.
In the second quarter, we increased inventory by 10% as we continue to enhance our capacity for immediate booking and shipping. We also have invested $10 8 million in federal bonds intended to be held to maturity.
We've maintained a strong balance sheet and from working capital standpoint, we have $35 6 million in working capital at the end of the second quarter compared to $38 6 million at the end of Q1.
We believe our strong debt free balance sheet that any shields us from macroeconomic pressures, but also it gives us the flexibility to invest in high return on investment opportunities that align with our long term growth potential we intend to remain proactive in exploring enhancements to our video communications areas, especially within defense and public.
Safety that concludes my prepared remarks, I'll now turn it back to Mickey.
Thanks, Paul.
Looking at our go to market efforts are pushed to secure more predictable recurring revenue by bolstering our software and services sales.
Constrained strong progress the service level agreement or SLA attachment rate to hardware sales has improved substantially and we are tracking toward our goal of a 90 10 split between hardware and software by the end of 2023, our software and services attachment strategy will diversify our revenue.
Training and deepened our relationship with clients, thus fostering a healthier sales pipeline over time. This is an important aspect of our sales funnel strategy.
As I mentioned earlier, we remain confident in our sales pipeline with strong contributions.
And that funnel from the growing public safety in the sports and entertainment areas in the second quarter, we prioritize our efforts further enhancing this funnel and building our bookings we have laid out additional sales initiatives under the new Americas sales leadership of Stephen piece, Stephen is an accomplished.
Sales leader with a demonstrated history of building high performance teams and driving growth in the technology sector with an extensive experience in solution sales and leadership development. Stephen had successfully led sales for companies like <unk> watch our video driving that's close to 150 million.
And sales from the start.
The newly appointed VP of sales for Americas at Bisley, Stephen will leverage his expertise in the public safety market to accelerate the penetration of <unk> market, leading video communication solutions.
His presence will play a key role in identifying television new opportunities solidifying <unk> position as the premier supplier of reliable scalable video centric networks in the region.
I would now like to dive a bit deeper and provide additional insight into the central priority that will fuel our sales growth in the United States.
Beginning with the U S public safety market, focusing specifically on state and local agencies you are already rolling out communications with each of the 250 aviation EBIT to the United States.
Eritrean consistent and ongoing relationships with these units will enable us to gain valuable insight into their needs deliver tailor made solutions and ultimately increased product adoption in the future. We will leverage Stephens valuable connections to major players in the public safety sphere to grow our parts.
Our ships.
Looking at U S. Federal agencies that we view these opportunities as longer term and scope. We believe that assessing key federal authorization is a pivotal aspect of our growth strategy and Mil Gov.
As a launching point, we are actively identifying opportunities within the federal domain. Our goal is to understand its intricacies and forge meaningful partnerships in this area.
Additionally, we are actively engaging with Oems to cultivate relationships that will lead to mutually beneficial opportunities.
These efforts have been accelerated as we introduce the arrow five five <unk> product, which leverages the existing four G L P and <unk> infrastructure.
Internationally, there are several opportunities for enhancement there pursuing in the second half our first aim as we strengthen our indirect selling channels through the Americas by enhancing training programs, providing additional tools and ramping up the marketing support we aim to maximize the potential of our strategic partner.
Chips. We are also actively developing partnerships with our value added resellers across north and South America.
We have identified and valued initial opportunity at approximately $1 million that set the stage for further expansion in South America.
These well defined priorities align our overreaching growth strategy and underscore the immense potential we envision for each region by.
By successfully executing these initiatives, we will bolster our market position and unlock new avenues for growth.
Also in Q2, we began revamping our marketing efforts, including leveraging our vast database of 15000 plus customer inputs to identify additional opportunities. We are actively working on launching marketing campaigns in the back half of the year.
Over the next several quarters, we will begin to see our marketing function to substantially increase their contributions to total sales and we are prioritizing this in the near term.
On top of these initiatives, we continue to drive business and industry conferences and trade shows last month, we attended <unk>.
In Orlando, where we met with various leaders in the aviation field and displayed our products.
We intended pad com in May the police Aviation conference, where we demonstrated the various air to ground solutions, we provide to law enforcement agencies worldwide.
While we primarily showcased our ABS products at these conferences. We also attended cab sat in Dubai will return back with many decision makers in the broadcast world and showcase the various systems. We have in place all three of these conferences generating hundreds of leads and we believe we are now positioned to capitalize on.
These opportunities and drive sales.
In conclusion, our go to market efforts are varied and focus spanning different areas, including strengthening partnerships enhancing marketing strategies and expanding our presence at industry events.
By our strong leadership in well defined growth strategies. These tactics position us to drive our sales growth effectively.
As we look forward to the second half of the year and beyond.
What about the immense potential of these initiatives also to increase our market presence drive revenue and shape the future of busily.
Now, let's move on to updates about our product developments.
Over the past few quarters, we have been strategically refining our product line to spur growth in new markets, while emphasizing cost efficiency.
This approach bolstered by our decision to bring engineering capabilities in house that has led to the successful rollout of several products in the public safety and sports and entertainment markets concurrently it is driven and enhance efficiency in our R&D expenditure.
Achieving over 25% improvement in the first half of 2023 compared to the same period in 2022.
Our product innovation journey has been a rigorous and sharply targeted.
Mining precisely with the markets evolving demands take for instance, our Aero five the most advanced <unk> LTE bonded cellular solution crafted, especially for airborne video downlink applications.
Not only does it both superior technical stacks.
But it's efficient Sim card management insurance optimal and uninterrupted connectivity by seamlessly switching or combining different network providers.
This capability is pivotal in aerial and contracts were stable connection is non negotiable.
The introduction of barrel five compliments, our existing airborne video downlink systems.
Which continues to resonate strongly in the market.
It provides many customers with an ideal gateway into the world of Bally systems, and we anticipate it will both expand the market and boost conversions to our costume and proprietary ABS systems.
Adding to this lineup we've made significant strides in our airlink transmitters, our technology will be used to execute law enforcement duties provide aerial surveillance and add situational awareness with a goal of bolstering public safety agencies operational proficiencies and ensuring say.
For communities reached.
Recently, we deployed a complete ABS system.
In a major city in the mid Atlantic region of the United States.
This installation is complete and the customers and experienced excellent improvements in it.
Crime prevention and intercepting capabilities.
The robust demand for these solutions, coupled with our award winning click or SDN transmitter has notably amplified our bookings for the quarter and latest strong foundation for growth in the latter half of the year.
About the first half of the year customers across various markets have been demo in the click and have expressed a considerable positive expression for this award winning product.
We anticipate these demos to convert into orders as the year progresses.
Click continues to revolutionize the market with its dual feed dual audio on F. D M transmission capability.
Capacity for four K transmission.
This technical logical be significantly enhancing content capture for our customers and due to the early success of click there developing even more innovative features.
Lastly, we've enhanced our software solutions.
Shelly when you're integrating link matrix with AWS simplify the adoption for service level agreements and enabling remote management access.
This integration offers users enhanced control flexibility and speed, thereby transforming production workflows and fostering innovation and live broadcasts and performance in the public safety field.
In tandem with the software advancements we have made deliberate shift to prioritize service and customer satisfaction.
<unk> the pivotal role of timely assistance in our target markets, we have begun offering 24 seven customer support.
Additionally, our commitment to warranty repairs ensures that our clients experience minimal disruption and maintain trust in our brand.
By grounding our efforts in these fundamental aspect, we aim to deliver an unmatched customer experience.
Apart.
What truly sets our product range apart it is universal applicability across diverse markets.
Sports and entertainment, where public safety this standardization not only lend us flexibility in sales and marketing.
But also in skills efficiency production.
As a result.
Observed market improvements in order for film it underpinned by refined supply chain management.
We are proud to be the sole provider in the market with capabilities spanning bonded cellular.
Five G and.
And proprietary cost them some.
Such product advancements places uniquely and competitively in the market with continuous enhancements to our software platform, we've created a compelling and comprehensive product offering that's hard to beat.
Now I'd like to shift focus and discuss updates with each of our targeted end markets.
First I'd like to highlight our core Mil Gov and market.
In the first half Mil Gov revenue improved 74% from the first half of 2022 Mil Gov made up 17% of revenue in the first six months as compared to 9% in the prior year period.
This quarter.
In addition to our success with one public safety agency in the mid Atlantic region.
We had key airlink system installations with another public safety agency also in the Middle mid Atlantic region.
These systems equipped law enforcement agencies with the advanced ABS technology to improve their air to ground operations.
There are strong traction domestically in this area and as I mentioned previously our sales efforts will focus on the benefits of these system to operations. This installation with prominent law enforcement agencies as a key proof point of the efficacy of our solution.
We also installed the system with a government agency and a large country in the APAC region for over $1 billion. We have seen strong traction in this region in 2023 as we have increased revenue in the APAC region by nearly 50%.
Year over year in the first half.
We are also building a solid pipeline of opportunities for this product line in Western Europe Asia, and the Middle East domestically. We believe the company is benefiting and will continue to benefit from the increased federal funding, particularly in the public safety market as it provides agencies with increased buying power.
With continued growth in public safety markets, we are actively exploring tangential markets, where we can expand our offering and we are optimistic about the number of use cases for our products in this area.
Moving to live broadcast end market I want to provide further color about the sales initiatives in this area.
Our focus here is to foster strong relationships with the top 300 writers in the industry in the Americas collaborating with these key players were granted access to a broader customer base and drive sales of our products to extend our market reach further we plan to onboard an additional sales channel for our bonded cellular product.
This strategic decision will augment our market share and open new avenues for revenue growth.
Live production driven by continued growth in sports media and entertainment.
He will remain a key part of our top line performance. We continue to hear from our sports media and entertainment customers that demand is still strong, but we are closely watching this given the state of the macro environment.
In summary, our Q2 performance and ongoing activities demonstrates our commitment to growth and transformation are solid multimillion dollar sales pipeline underpinned by a revamped go to market strategy and well defined initiatives presents promising growth prospects.
Bolstered by cost management, our ongoing product development have empowered us to effectively cater to our target markets offering groundbreaking solutions, while upholding cost efficiency. We believe we are on the costs of significant expansion.
As we secure more contracts, which we're now in law enforcement agencies, we expect our enhanced visibility to further enrich our pipeline across the Americas and globally.
Looking ahead to the latter half of 2023 and beyond we see immense potential in our initiatives to amplify and market presence.
Revenue in scope those links future.
With our unique positioning strategic direction promising pipeline and dedicated team we are confidently on course for sustained success.
Operator, please provide the appropriate instructions.
We will now begin the question and answer session.
To ask a question you May press Star then one on your telephone keypad.
If you're using a speakerphone please pick up your handset before pressing the keys if at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.
At this time, we will pause momentarily to assemble our roster.
The first question comes from Brian Kinsinger with Alliance Global partners.
Please go ahead.
Great. Thank you for taking my questions first you highlighted discontinuing some products.
First how much revenue do these products generate in 2022 and I'll show in the first quarter of 2023, I assume nothing in there in the second quarter.
Yeah.
Hey, Brian Thanks for joining.
This is Mickey.
The exact number Paul Paul can gather that but these products were.
Products that have been in the portfolio for quite some time so.
It had an impact, but I wouldn't say a material impact.
Part of those products as we've mentioned over time, we've been migrating to.
The new ATB see Q2, six five with four K capability.
Both for our Encoders and decoders. So we're seeing over time some of our legacy products that we phase those out.
And so you know we we didn't see I would say most of the fall off that we saw in Q2 and the live production area.
Element of that in Q1 was the.
Obsolescence of those products however.
It was largely due to we saw live production.
Reduce in second quarter.
As we mentioned in the first quarter, we were watching that carefully we continue to watch that we're still optimistic we had projects that slipped into Q3 and we are seeing.
Those bookings move forward and so we're happy to see that but it's an area that we still stay focused on I know you have a concern about that of how why production will grow and we're closely watching that as you know because historically that's been a large piece of our business.
So show they had nominal revenue in 2022 in the first quarter is that right.
In 2022, I'd say they'd probably yeah, but less than a half million dollars.
Yeah. So look I mean in your prepared remarks, you hardly touched on life production and what's happening there what are customers, saying are they not upgrading equipment are they extending the useful life of their older equipment and then do you think it's going to get worse before it gets better.
On the first part of our our customers that are providing outside broadcast services to the large networks are busier than they've ever been and they've seen that.
We're in a year, where there's not major events, we had the World Cup the women's World Cup in Australia, but beyond that not a lot of major global eventual see more of that.
In the years to come so.
But even with that they're seeing the.
The drive for live content and sporting events and entertainment events is still we're seeing I'm still still strong and so the feedback that were getting only in a couple of cases that we've seen both that and on the enterprise side, where we're seeing people pull back and say due to budget constraints.
We're only going to buy 20% of the systems that we intended to buy but for the most part the feedback that we're getting are globally is there still a large demand for live content and and.
And they need our technology to be able to reset and producing an innovative and intimate way. So we're watching that carefully.
Given the macroeconomic elements as well as you know there are private equity backed companies in our space the largest obs provider as a private equity backed companies or just seeing how that impacts what they're spending on capex is but so far we're still encouraged by what we're seeing in terms of the opportunities and the discussions around.
Those opportunities about deployment.
Great, but again if I can.
Think about the second half of the year I think you did about how just back out an old Guy like you did about 4.4 million life production in the quarter ish is.
Is that what you without some live events and big live events are we going to be in a similar.
You know type type of revenue situation for the next few quarters.
I don't think so I think.
You know, we've historically and a lot of production side.
The 5 million $5 million range, we had.
We saw that in Q1.
In Q2, as well off that and I think that we're seeing is an aberration not as a trend.
And from what we're seeing around the discussions around opportunities and new orders coming in and we think we think that gets gets back in that range.
Okay, and then in the Mil Gov side, you talked about some exciting growth opportunities I guess I'm curious how lumpy is this did you already recognized the revenue from the seven Aero links that were delivered and four.
Or do we expect that you can build each quarter off what you produced in the second quarter.
Yeah.
Well, what will we have as part of that Theres about.
15% or so that will be recurring revenue related to those opportunities.
S. L. A that are put in place.
So that will be deferred revenue, but both of those commissions are complete on the county opportunity in the city opportunity in the mid Atlantic region.
So we're real encouraged about that and the second thing is.
The APAC opportunity was a bonded cellular backhaul of surveillance on borders and we think that's a very interesting use case that that can be applied in other areas that was a very large opportunity for the APAC region as we see the APAC region finally open it up.
We struggled in APAC through Covid.
Because of all the closures among the different countries borders, but we're seeing that open up with that large order. There. So we're really encouraged about a growth in APAC and B a.
New use case that we think has applicability to elsewhere.
And I think the third thing that we're really encouraged about we introduced the euro five euro five is a five <unk> LTE product that can go.
Either in the in the aircrafts with our Aero link or by itself and what that brings right now if you want to.
Kieren Arrow link you need to buy receive stations that receive those links and that's where the cost of the deployment is if you leverage the <unk> architecture, no longer need an infrastructure and we think that broadens the opportunity for downlink from aircraft.
And allows us to get a recurring robbing around managing those families and supporting those products in the air and then secondly, it allows those customers who do two four may have not.
Purchased a downlink to experience what a downlink does and see what that does for either new Guardian operations or for their crime activity operations cut crime stopping.
<unk> operations.
And they May then migrate to full.
Full investment for a proprietary solution I think the big difference there is again.
You know where these aircraft are located.
What what elevation. They typically operate at we're really encouraged by what we're seeing not only here in the Americas, but globally for the <unk> product.
Okay Lastly, you've got over $20 million of cash I'm curious, where M&A is in your prior priority always take a tie if it is if you can provide some detail on your strategy and whether you have any serious discussions or with the burn being much higher in the second quarter than typical.
The priority conserve cash right now.
Yes, so as we've mentioned on previous calls we're looking at a lot of different opportunities opportunities around where we can leverage our capabilities or augment our capabilities either to bring us into new markets stretches defense or.
Leverage our capabilities in the existing markets of public safety and sports media and entertainment.
We're we're talking to a lot of folks we haven't seen something.
Yet that we're ready to close at the valuation.
That's being requested however, as.
As you mentioned.
Q2 with with the softness that we saw for that period in live production, we do want to make sure that that we get our operations, where we're breakeven are producing cash.
And then.
Prior to that potentially making an acquisition that augments that but we always wanted to have you know.
Cash on hand in the event that.
There may be some macro economic event that impacts on topline.
Again, if you have a question. Please press Star then one.
I'd now like to turn the call back over to management for additional questions. The company received from the investors.
Thank you we've received several important and inquiries from our investors over the past quarter, which I'd like to address now.
We'll start with one relating to our pipeline.
And which segment or markets other prospective deals in your sales funnel primary dislocated.
Historically.
Over the years, it's been a third public safety, a third defense and a third.
Sports Media Entertainment and broadcast.
In the last two years, given the exit out of Afghanistan, We saw our defense business.
Go away and the majority of our business being in the sports media and entertainment now when you look at our funnel, we're seeing much more public safety activity globally historically, you've been strong in the U S. Not saw in Europe , the middle East or APAC, we're starting to see a lot of opportunities there given the introduction of <unk>.
Our airlink product in our Aero, a byproduct, which we're very encouraged by.
And so I think overtime, we will see.
The public safety market.
Increased amount now those deals are larger and have a larger sale longer sales cycle, but the next 12 to 18 months, we expect to see a large increase in those public safety deals.
Particularly with the well defined strategy that we have now we brought on Steven piece who's been in the public safety.
Area for her many years he was.
He led the Watchguard sales team grown up from a startup to $150 million.
At which time they sorta Motorola so we're really encouraged to have Stephen on board.
We bring in additional team members to help hold that strategy in the Americas as well as.
We continue to focus outside the U S to bring on both federal agencies and local agencies that see the opportunity for <unk> solutions.
We also had a question of which international markets, where you're seeing the most opportunities in what will drive growth in these areas.
We see a large opportunity.
In international markets for our products I mentioned APAC.
We were real pleased to see that large opportunity and a major country for border security application. We continue to focus on that and we expect to see.
Good roads, there in the APAC region, but again that region has been.
Been struggling over the last few years, given COVID-19 and the shutdown there as I've mentioned on previous calls the middle East has been a strong growth area for US we continue to see growth there and it's predominantly in the in.
In the broadcast media Entertainment area, we expect over time as we focus for additional <unk> opportunities there that we'll see more.
More golf type opportunities.
Appear there we're in the process now developing the channel there to support that.
So overall I'm encouraged by what we have.
When you look at what we're doing around the sales teams, what we're doing to support our borrowers and channels and then our marketing efforts to be able to support this focus and we've got a unique position where we can take the same products you can repackage them or are keeping the same and sell them and their needs.
Quite diverse markets and now we're putting together the sales approach to be able to do that in a more effective way and we're encouraged by the results that we're seeing so far.
I understand that will conclude the Q&A session I would like to turn the call back to Mr. Miller for any concluding remarks.
Thank you operator, we appreciate your interest in our company and to our investors. Thank you for your continued support were dedicated more than ever before to building shareholder value and making things like the premier provider of technology solutions for the collection delivery management and distribution of high quality live video and data.
We remain committed to enabling creators to capture stream and monetize their contract content and ensuring that military and first responders have real time intelligence.
Fill their missions serve and protect.
With our collective efforts and shared vision I believe the best days are ahead.
The best days of <unk> are ahead of us. Thank you for your continued support of our mission and.
And thank you for being with us today.
Yeah.
Thank you for joining us today for <unk> second quarter 2023 Conference call you may now disconnect.
Okay.
Yeah.
[music].