Q3 2023 Vislink Technologies Inc Earnings Call
Speaker 1: Good afternoon. Welcome to VisLink's third quarter 2023 earnings conference call. My name is Alan and I will be your operator for today's call. Joining us today...
Good afternoon, welcome to visit links third quarter 'twenty twenty-three earnings Conference call. My name is Ellen and I will be your operator for today's call joining us today.
Speaker 1: are the company's CEO , Mickey Miller, and CFO , Paul Norwich. Following their remarks, we will open the call to questions.
Are the company's CEO, Micky Miller and CFO, Paul Norwich following their remarks, we will open the call to questions.
Speaker 1: Earlier this afternoon, BizLink release results for the third quarter ended September 30, 2023. A copy of the press release is available on the BizLink website.
Earlier, this afternoon, which link released results for the third quarter ended September 30th 20th twenty-three a copy of the press release is available on the company's website before.
Speaker 1: Before we begin the call, I would like to provide VisLink's 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 pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.
Before we begin the call I would like to provide vis link 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 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 should be deemed to be forward looking statements. All forward looking statements, including without limitation or examination of operating trends and financial expectations are based upon the company's current estimates and various assumption.
Speaker 1: Any statements contained in this call that are not statements of historical facts should be deemed to be forward-looking statements.
Speaker 1: All forward-looking statements, including without limitation or examination of operating trends and financial expectations, are based upon the company's current estimates and various...
These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward looking statements occur.
Speaker 1: These statements involve material risks and uncertainties that could cause actual results or events to 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.
Speaker 1: 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.
Speaker 1: VizLink 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 other.
This link 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 broadcast of this afternoon.
Speaker 1: This conference call contains time-sensitive information that is accurate only as of the live broadcast of this afternoon, November 8, 2020.
November 8th 20, twenty-three now I would like to turn the call over to visit link CEO Mr. Mickey Miller, Sir. Please proceed.
Speaker 1: Now I would like to turn the call over to VizLink CEO , Mr. Mickey Miller. Sir, please proceed.
Speaker 2: Thank you, operator, and thank you everyone for joining us today. This afternoon, we filed our 10Q with the FCC and issued a press release that provided our financial results for the third quarter ended September 30th, 2023, along with highlighted business accomplishments.
Thank you operator, and thank you everyone for joining US today. This afternoon, we filed our 10-Q with the SEC and issued a press release, providing our financial results for the third quarter ended September 32023, along with highlighted business accomplishments.
Speaker 2: As a brief overview for today's call, I'll begin by providing third quarter highlights and recent updates before passing the call to Paul to discuss our financial results in more detail.
As a brief overview for today's call I'll begin by providing third quarter highlights and recent updates before passing the call to Paul to discuss our financial results in more detail.
Speaker 2: I'll then come back on to discuss updates within our key markets.
I'll then come back on to discuss updates within our key markets.
Product development.
Speaker 2: and progress on our go-to-market strategy before taking your questions.
And progress on our go to market strategy before taking your questions.
And with that let's begin.
Speaker 2: In Q3, we made solid progress in our ongoing transformation, maintaining our strong focus on the growing public safety market.
In Q3, we made solid progress in our ongoing transformation, maintaining our strong focus on the growing public safety market.
Speaker 2: The standout moment for the quarter was the strategic acquisition of Broadcast Microwave Services, or BMS, as...
Handout moment for the quarter was a strategic acquisition of broadcast microwave services or BMS assets.
Speaker 2: This acquisition to liquefied BizLink's position as the leader in the Airborne video downlink or ABDS mark.
This acquisition solidifies <unk> position as the leader in the airborne video downlink or ABS market.
Speaker 2: Stemming our reach across OEMs and end customers, including key players in the emerging drone communications and control networks market. We believe this positions us for near-term top-line growth ahead of our initial projects.
Extending our reach across Oems and customers, including key players in the emerging drone communications and control networks market. We believe this positions us for near term top line growth ahead of our initial projections.
Speaker 2: Financially, our cost management efforts lowered our break even point alongside a noteworthy sequential rebound and total revenue led by core milgobre revenue growth of 34% year over year and improve key profitability measures, including a 10.6% increase in quarterly gross profit and a reduction in net loss by about $800,000 in Q3
Financially our cost management efforts lowered our breakeven point alongside a noteworthy sequential rebound in total revenue led by core 1000, Gov revenue growth of 34% year over year.
And improve key profitability measures included a 10, 6% increase in quarterly gross profit and a reduction in net loss by about $800000 in Q3.
Speaker 2: as we continue to execute on opportunities within our robust weighted sales funnel, which currently totals over 40 million and contains significant prospects in both milgov and live production.
As we continue to execute on opportunities within our robust weighted sales funnel, which currently totals over $40 million and contain significant prospects in both 1000 Gov and live production, our refined sales approach and commitment to providing industry, leading technology remains central to our <unk>.
Speaker 2: Our refined sales approach and commitment to providing industry-leading technology remains central to our strategy for enhancing overall performance.
Strategy for enhancing the overall performance.
In Q3, we continued to strengthen our strategically constructed product portfolio, we probably introduced a click costume transmitter and have already delivered six units to customers. We expect collect deliveries to vastly accelerate throughout 2024. We also added to our best in class products with the unveiling.
Speaker 2: In Q3, we continue to strengthen our strategically constructed product portfolio. We proudly introduce the ClickCostom Transmitter and I've already delivered six units to Cust-
Speaker 2: We expect click deliveries to vastly accelerate throughout 2024. We also added to our best in class products with the unveiling of the WMT live link, our new bond and cellular transmitter, which receive the IBC TVV Europe Best of Show award. This compact and power efficient product is driving demand across the middle of NLive production sectors by transforming remote video and data transmission.
Of the WMC lives link our new bonded cellular transmitter which received the I B C. T V. Europe Best of show Award this compact and power efficient product is driving demand across the 1000 Gov and live production sectors by transforming remote video and data transmission.
Speaker 2: When combined with our link matrix solution, it creates an all-encompassing workflow management platform.
When combined with our link matrix solution. It creates an all encompassing workflow management platform.
Speaker 2: enhancing operational efficiency for customers and generating valuable recurring revenue streams through integrated service level agreements for business.
<unk> operational efficiency for customers and generating valuable recurring revenue streams through integrated service level agreements for a visit.
Speaker 2: We have steadily improved our services revenue throughout the year.
We have steadily improved our services revenue throughout the year.
Speaker 2: In summary, the third quarter exemplified our transformation and growth. Behind our recent acquisition of BMS assets, our robust sales funnel, and improving sales and operations, we believe we are well positioned to continue improving our market position and financial performance.
In summary, the third quarter, exemplified our transformation and growth.
And our recent acquisition of BMS assets, a robust sales funnel and improving sales and operations. We believe we are well positioned to continue improving our market position and financial performance.
Speaker 2: I'll speak more specifically about some of our operations shortly, but first I'd like to pass it on to Paul to give the details of the financials.
I'll speak more specifically about some of our operations shortly but first I'd like to pass it on to Paul could give the details of the financials Paul.
Speaker 3: Thank you, Mickey, and good afternoon, everyone. Looking at our financial results for the third quarter.
Thank you Mickey and good afternoon, everyone looking at our financial results for the third quarter.
Speaker 3: Our total revenue for the third quarter of 2023 was $7.2 million compared to $7.1 million from quarter three 2022. The slight year over year increase in revenue is primarily due to growth in the milgolf sector and increased adoption of service level agreements.
Our total revenue for the third quarter of 2023 was 7.2 million compared to $7 1 million from quarter. Three 2022, the slight year over year increase in revenue is primarily due to growth in the noga sector and increased adoption of service level agreements.
Speaker 3: Gross profit for the third quarter of 2023 was 3.9 million compared to 3.5 million in the third quarter of 2022. Our gross profit margin for the third quarter of 2023 was 54 percent, an improvement from 49 percent in the third quarter of 2022. The improvement in our gross margin resulted from mil-gov mixed improvements and cost savings and components.
Gross profit for the third quarter of 2023 was $3 9 million compared to $3 5 million in the third quarter F. 2022 are great.
Profit margin for the third quarter of 2023 was 54% an improvement from 49% in the third quarter F. 2022 the.
The improvement in our gross margin resulted from milk of mix improvements and cost savings and components total expenses in the third quarter of 2023 were $9 5, Million% to 5% decrease from 19 9 million for the same period in 2022.
Speaker 3: Total expenses in the third quarter of 2023 were 9.5 million, a 5% decrease from 9.9 million for the same period in 2022. The improvement in total expenses was primarily driven by improvements in the cost of components previously mentioned. Turning to our profitability measure.
The improvement entitled expenses was primarily driven by improvements in the cost of components previously mentioned turning to our profitability measures. We recorded an operating loss of $2.3 million compared to $2 8 million in the prior year period. The decrease in operating loss was primarily due to the improvements in revenue.
Speaker 3: We recorded an operating loss of $2.3 million compared to $2.8 million in the prior year period. The decrease in operating loss was primarily due to the improvements in revenue and margin previously noted. Net loss attributable to common shareholders in the third quarter of 2023 was $2 million or $0.83 per share. An improvement compared to $2.7 million or $1.16 per share in the prior year period.
Our margin previously noted net loss attributable to common shareholders in the third quarter of 2023, with 2 million or <unk> 83 cents per share an improvement compared to 2.7 million or $1.16 per share in the prior year period EBITDA.
Speaker 3: EBITDA for the third quarter of 2023 was a loss of 2 million compared to a loss of 2.3 million in the prior year period. Adjusted EBITDA, non-GAP metrics for the third quarter of 2023 was a loss of 1.4 million compared to a loss of 1.9 million in the third quarter of 2022. The EBITDA results were primarily a result of cost management. A reconciliation of EBITDA to GAAP measures is contained in our earnings release issued earlier today. The EBITDA results were also a result of cost management.
EBITDA for the third quarter of 2023 was a loss of 2 million compared to a loss of $2 3 million in the prior year period, adjusted EBITDA, a non-GAAP metrics for the third quarter of 2023 was a loss of 1.4 million compared to a loss of 1.9 million in the third quarter of 2022.
EBIT dollar results were primarily a result of cost management, a reconciliation of EBITDA to GAAP measures is contained in our earnings release issued earlier today.
Moving now to our balance sheet.
Speaker 3: As of the September 30th of 2023, we had cash and cash equivalence of 7.2 million compared to 11 million at the end of the second quarter. We also invested 10.9 million in federal bonds intended to be held to maturity. In the third quarter, we increased inventory by 3% as we continue to enhance our capacity for immediate booking and shipping, optimizing inventory and increasing work in capital will be a priority over the coming quarters.
As of September 30 of 2023 we had cash and cash equivalents of $7 2 million compared to 11 million at the end of the second quarter. We also invested $10 9 million in federal bonds intended to be held to maturity.
In the third quarter, we increased inventory by 3% as we continue to enhance our capacity for immediate booking and shipping optimizing inventory and increasing working capital will be a priority over the coming quarters.
Speaker 3: The cash outflow experience in the third quarter was primarily influenced by lower than expected revenue volume in the second quarter of 2023. Additionally, approximately 5 million in shipments from the third quarter were delivered within the final two weeks of the quarter, leading to a deferral of cash collection to the first quarter in accordance with our standard net 30-day payment term.
Cash outflow experienced in the third quarter was primarily influenced by lower than expected revenue volume in the second quarter of 2023. Additionally, approximately 5 million in shipments from the third quarter were delivered within the final two weeks of the quarter, leading to a deferral of cash collection to the first quarter in accordance with our standard net 30 day payment terms.
Speaker 3: Improving cache performance is a top priority in the fourth quarter and in 2024.
Improving cash performance is a top priority in the fourth quarter and in 2024, we had $33 4 million in working capital at the end of the third quarter compared to $35 6 million at the end of quarter. Two we believe our strong debt free balance sheet gives us the flexibility to continue investing in high return on investment opportunities.
Speaker 3: We have 33.4 million in work in capital at the end of the third quarter, compared to 35.6 million at the end of quarter two. We believe our strong debt-free balance sheet gives us the flexibility to continue investing in high return-on-investment opportunities that align with our long-term growth potential.
In line with our long term growth potential. This includes actively seeking strategic acquisitions and partnerships in order to enhance our video communication areas, especially within the defense and public safety that concludes my prepared remarks, and I'll turn it back to Mickey.
Speaker 3: This includes actively seeking strategic acquisitions and partnerships in order to enhance our video communication areas, especially within the defense and public.
Speaker 3: That concludes my prepared remarks, and I'll turn it back to Mickey.
Thanks, Paul.
Speaker 2: I'd now like to provide more operational updates beginning with our Milgaugh gross.
I'd now like to provide more operational updates beginning with our 1000 Gov grudge segment.
As our results show our 1000 Gov segment has demonstrated consistent growth over the past several quarters and we've successfully establish a prominent position in the ABS market.
Speaker 2: As our results show, our Milgoff segment has demonstrated consistent growth of the past sub-recorders. And we've successfully established a prominent position in the AVDS market.
Speaker 2: Our momentum, buoyed by favorable industry conditions, is expected to further accelerate, following our acquisition of important VMS assets.
Our momentum buoyed by favorable industry conditions and is expected to further accelerate following our acquisition of important BMS assets.
Speaker 2: BMS is a longstanding recognized leader in designing and manufacturing microwave technology systems, serving a diverse clientele in government surveillance, law enforcement, UAVs, and unmanned ground vehicle market.
BMS is a long standing recognized leader in designing and manufacturing microwave technology systems, serving a diverse clientele and government surveillance law enforcement Uavs and unmanned ground vehicle markets, adding BMS reinforces visiting status as one of the world's largest and more.
Speaker 2: Adding BMS reinforces vis-link status as one of the world's largest and most technologically advanced AVDS providers.
Technologically advanced <unk> providers.
Speaker 2: It enhances our international presence, particularly in a media, and opens opportunities for us to introduce and promote our product within BMSs.
It enhances our international presence, particularly in EMEA and opens opportunities for us to introduce and promote our products within BMS.
Traditional networks this strategic move consolidates, our position in the ABS market and Leverages synergy between our offerings.
Speaker 2: This strategic move consolidates our position in the AVDS market and leverages synergy between our office.
Speaker 2: While we are not providing specific figures here today, the integration is progressing exceptionally well and has exceeded our initial expectations.
While we are not providing specific figures here today, the integration is progressing exceptionally well and has exceeded our initial expectations.
Speaker 2: Our outlook is optimistic with the potential for substantial revenue growth in the coming year.
Our outlook is optimistic with the potential for substantial revenue growth in the coming years.
Speaker 2: Outside of VMS Q3 was highlighted by complete AVDS, system deployment in a major city in the Middle-Annery.
Outside of BMS Q3 was highlighted by complete ABS system deployment in a major city in the mid Atlantic region deploy.
Speaker 2: Employments with large law enforcement agencies like these validate our technology as a key public safety personnel rely on our systems provide aerial surveillance and add situational awareness.
Deployments with large law enforcement agencies like these validate our technology as a key public safety personnel rely on our systems provide aerial surveillance and add situational awareness.
While these large scale deployments typically take months to complete they remain incredibly important to our overall strategy of bringing in larger deals from the public safety market.
Speaker 2: While these large scale deployments typically take months to complete, they remain incredibly important to our overall strategy of bringing in larger deals from the public safety market.
Speaker 2: Additionally, we're encouraged by the large deals that remain in our pipeline, especially in international markets. And we see solid growth opportunities.
Additionally, we are encouraged by the large deals that remain in our pipeline, especially in international markets and we see solid growth opportunities on the horizon.
Our live production segment continues to provide the largest percentage of total revenue and in Q3, we continue to expand our contributions to major events worldwide.
Speaker 2: Our live production segment continues to provide the largest for SEDS and total revenue. And in Q3, we continue to expand our contributions to major events worldwide.
Speaker 2: Visiting products help delivered coverage of important cultural events, including Pope Francis' visit to France.
As linked products helped delivered coverage of important cultural events, including Pope Francis's visit to France.
Speaker 2: the G20 summit in India and elections in Eastern Europe . Additionally, our technology has strong presence at sporting events such as Formula One races, MotoGP racing, the World Rugby Championship, and college golf champs.
The G 20 summit in India and elections in Eastern Europe. Additionally, our technology had a strong presence at sporting events, such as Formula One races, Moto GP racing the World Rugby Championship and College Golf Championships in Q3, we secured a 1.8 am.
Speaker 2: In Q3, we secured a $1.8 million agreement with a spire for the A2-RL Autonomous Race Year.
Dollar agreement with aspire for the H U R. L. Economists race series, providing reliable low latency video cockpit us to key personnel, our partnership with focal point B R enhances production quality and generates recurring revenue through an annual service.
Speaker 2: providing reliable low latency video cockpit views to key personnel. Our partnership with focal point VR enhances production quality and generates recurring revenue through an annual service level agreement by facilitating crucial data communication between the race cars and their controls.
Agreement by facilitating crucial data communication between the race cars and their control systems.
Speaker 2: In a move that expands our live production presence, we partner with Zoom Communications India, the nation's largest outside broadcast service provider.
In a move that expands our live production presence, we partnered with Zoom Communications, India. The nations largest outside broadcast service provider.
Speaker 2: They utilize our ultra low latency 4K wireless camera systems to enhance their broadcasting footprint across Southeast Asia, aiming to become the region's top radio frequency supplier. This order highlights the enduring value of our wireless camera systems in live event scenarios and demonstrates our ability to capitalize on significant opportunities in this dynamic market.
Lies our ultra low latency for K wireless camera systems to enhance their broadcasting footprint across southeast Asia aiming to become the region's top radio frequencies supplier.
This order highlights the enduring value of our wireless camera systems in live events scenarios and demonstrates our ability to capitalize on significant opportunities in this dynamic market.
Speaker 2: We recently partnered with JBNA, a leading value added distributor of audio video solutions in the US. Through this agreement, JBNA will offer our solutions, including IP, Botted Cellular Technology, V-Pilot, and Link Matrix, to broadcasters and content creators nationwide. While it's early in the partnership, we anticipate strong growth opportunities in our live productions.
We recently partnered with J D and a leading value added distributor of audio video solutions in the U S through disagreement JV Ing Ey will offer our solutions, including IP bonded cellular technology, the pilot and linked matrix to broadcasters and content creators nationwide.
While it's early in the partnership we anticipate strong growth opportunities in our live production segment.
As we continue to emphasize bill Gov live production remains a key part of our strategy top line.
Speaker 2: As we continue to emphasize Bill Gov, live production remains a key part of our strategy in top line.
And product innovation.
Speaker 2: In product innovation, we achieved early success with live link, our cutting edge bonded cellular transmitter. Live link delivers high quality video transmission, up to 4K resolution, making it a game changer for public safety agencies and broadcast teams. It's significant as the most compact and power efficient unit available is generating significant demand in both our Milgov and live production market.
We achieved early success with live link our cutting edge bonded cellular transmitter Ly link delivers high quality video transmission up to four K resolution, making it a game changer for public safety agencies and broadcast teams its significance as the most compact and power efficient unit available is.
A significant demand in both our 1000 Gov in live production markets.
Speaker 2: Click OFDM transmitter demand remains strong as it enables live broadcast to capture more dynamic content. These compact mini-camera transmitters have received highly positive responses from live broadcast customers, underscoring their appeal in a market that values compact design without compromising reliable video transmission.
Click O F. P. M transmitter demand remains strong as it enables live broadcast to capture more dynamic content.
These compact many camera transmitters have received highly positive responses from live broadcast customers underscoring their appeal in a market that values compact design without compromising reliable video transmission.
We've also taken significant steps to enhance our device management ecosystem, we expand our link matrix platform seamlessly work with AWS streamline our remote production workflows, enabling better collaboration this is especially crucial for both live broadcast inefficient field operation in public.
Speaker 2: We've also taken significant steps to enhance our device management ecosystem.
Speaker 2: We expand our Link Matrix platform to seamlessly work with AWS, Streamline and Remote Production workflows, and enabling better collaboration. This is especially crucial for both live broadcast and efficient field operation in public safety. With the AWS integration, we provide essential insights for improving remote product workflows.
Safety with the AWS integration, we provide essential insights for improving remote product workflows.
Speaker 2: further deepening our value proposition to our clients and fostering valuable touch points for integrated service level agreement.
Further deepening our value proposition to our clients and fostering valuable touch points for integrated service level agreements.
Speaker 2: Our public safety go to mark strategy continues to evolve and expand. While maintaining strong partnerships with major aviation units, we are actively cultivating our relationships with large OEMs and the BMS acquisition will accelerate.
Our public safety go to market strategy continues to evolve and expand while maintaining strong partnerships with major aviation units. We are actively cultivating our relationships with large Oems and the BMS acquisition will accelerate this we're leveraging the new team member.
Speaker 2: We're leveraging the new team members expertise to foster valuable connections and drive growth.
His expertise to foster valuable connections and drive growth.
Speaker 2: BMS has a strong position with military and public safety agencies throughout the Middle East. Combining Vizling's ABDS systems with BMS's Incompancy in the region uniquely positions us to support agencies as they upgrade their networks to support the latest and low latency video-centric IP network.
BMS has a strong position with military and public safety agencies throughout the middle East combining <unk>, a b B S systems with BMS is incumbency in the region uniquely positions us to support agencies as they upgrade their networks to support the latest and low latency.
Video centric IP networks were only seven and a half weeks into the integration of BMS into our platform. We're very encouraged about the possibilities of serve a wider audience and grow revenues accordingly.
Speaker 2: We're only seven and a half weeks into the integration of BMS into our platform, but we're very encouraged about the possibilities of serve a wider audience and grow revenues accordingly.
Speaker 2: Moreover, we are actively identifying promising opportunities in the drone communications and the control network space. The MS is particularly active in this unpenetrated sector, providing us with additional avenues to enhance our presence and expand our no-go business.
Moreover, we are actively identifying promising opportunities and they're drawing communications that are controlling that workspace.
BMS is particularly active in this underpenetrated sector, providing us with the digital avenues to enhance our presence and expand our 1000 Gov business.
Speaker 2: Our pipeline is showing early growth internationally, especially in South America. While these deals may require additional time for processing due to their size and complexity, we remain unwavering our commitment to see them through to fruition.
Our pipeline is showing early growth internationally, especially in South America. While these deals may require additional time for processing due to their size and complexity, we remain unwavering in our commitment to see them through to fruition.
Speaker 2: On the marketing front, we continue to seize opportunities at industry conferences and trade shows. For instance, we recently showcased our full product portfolio at the IBC.
On the marketing front, we continue to seize opportunities at industry conferences and trade shows for instance, we recently showcased our full product portfolio at the IDC.
Speaker 2: Later this month, I'll represent VisLink at the 2023 Millipole Paris Show, a four-day conference dedicated to security innovation on an international scale. This platform allows us to demonstrate our technology's ability to deliver high-quality, real-time video data in challenging safety and law enforcement environments, connecting us with major agencies worldwide. We've also strengthened our software and service sales,
Later this month all represent this link at the 2023 Millimole Paris show a four day conference dedicated to security innovation on an international scale. This platform allows us to demonstrate our technology's ability to deliver high quality real time video data and challenging safety and law enforced.
Environments connecting us with major agencies worldwide. We've also strengthened our software and service sales enhanced.
Enhancing our recurring revenue streams.
Speaker 2: Our catchment strategy for software and services diversifies our revenue sources, instructing our client relationships. Ultimately fostering a retention and a healthier sales pipe.
Our attachment strategy for software and services Diversifies, our revenue sources and strengthen our client relationships ultimately fostering a retention and a healthier sales pipeline.
We are making steady progress toward our goal of achieving a 90 10 sales split between software and services and hardware.
Speaker 2: We are making steady progress to our goal of achieving a 9010 sales split between software and services and hardware.
Speaker 2: Overall, our go-to-market strategies outlined earlier this year are beginning to bear fruit, and with the BMS acquisition, we anticipate expanding our customer base, fortifying our partnerships, and converting our robust pipeline into tangible sales. As we optimize our sales approach, we look forward to the opportunities that lie ahead in 2024, with the potential to significantly enhance our market presence, revenue generation, and the future trajectory of VisLink.
Overall, our go to market strategies outlined earlier this year are beginning to bear fruit and with the BMS acquisition, we anticipate expanding our customer base fortifying, our partnerships and converting our robust pipeline into tangible sales as we optimize our sales approach we look forward to the.
The opportunities that lie ahead in 2024 with the potential to significantly enhance our market presence revenue generation in the future trajectory of dislike.
Speaker 2: In closing, our Q3 performance and ongoing activities reflect our commitment to growth and transformation. REACH acquisitions and partnerships are strengthening our position in the MilGov market and present additional growth prospects.
In closing, our Q3 performance and ongoing activities reflect our commitment to growth and transformation recent acquisitions and partnerships are strengthening our position in the mill golf market and present additional growth prospects with a solid sales pipeline and our focus on financial sustainability. We believe we can achieve.
Speaker 2: With a solid sales pipeline and a focus on financial sustainability, we believe we can achieve success in Q4 throughout 2024. As we secure contracts with prominent law enforcement agencies, we expect our enhanced visibility to further enrich our pipeline across the Americas and globally. Looking ahead to the end of the year and beyond, we see a month's potential to amplify our market presence. That's great revenue and shapes the future of Vizlink. Operator, please provide the...
<unk> success in Q4 and throughout 2024.
We secure contracts with prominent law enforcement agencies, we expect our enhanced visibility to further enrich our pipeline across the Americas and globally looking ahead to the end of the year and beyond we see a month's potential to amplify our market presence escalate revenue and shape the future of there's like.
Operator, please provide the appropriate instructions.
Speaker 1: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touchtone.
Thank you we will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone, if you're using a speakerphone. Please pick up your handset before pressing the keys to withdraw your question. Please press Star then two at this time, we will pause momentarily to assemble our roster.
Speaker 1: If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then two. At this time, we
Speaker 1: Our first question comes from Brian Kinslinger from Alliance Global.
Our first question comes from Brian Kinsinger from Alliance Global.
Please go ahead.
Hey, guys. This is serving on for Brian Thanks for taking my questions.
Speaker 4: Hey guys, this is Shervin on for Brian . Thanks for taking more questions.
It's good to hear how the acquisition of Vietnam expands your addressable markets, but could you detail whether there will be where you believe there will be cross selling opportunities among existing customers.
Speaker 4: It's good to hear how the acquisition of BNMAS expands your addressable market. But could you detail whether there will be, or you believe there will be cross-linked opportunities among existing customers?
Speaker 2: Yeah, absolutely. That's a great question. We're really excited about this acquisition. Let me just give you a background of BMS. BMS has been in this business for over 40 years. They have a great track record and have incumbent customers throughout the world, particularly in Amia and with federal agencies here in the US. Our customer bases are very complimentary.
Yeah, absolutely. That's that's a great question, we're really excited about this acquisition and let me just give you a background of BMS BMS has been in this business for over 40 years.
They have a great track record and have incumbent customers.
Throughout the world, particularly in EMEA and with federal agencies here in the U S. Our customer bases are very complementary.
Speaker 2: And to give you an example, BMS prior to COVID was north of $15 million in sales.
And.
To give you an example, BMS prior to Covid was north of $15 million in sales.
Speaker 2: Through COVID, they ran into some liquidity challenges. They were uncapitalized, and they weren't able to make it through. But what we've done since the acquisition.
Through Covid, they ran into some liquidity challenges they run capitalized and they weren't able to make it through but what we've done since the acquisition.
Speaker 2: is talk to their key customers. Their key customers are excited that BMS brand is alive and well and moving forward with the VizLink brand. As an example, some customers in the Middle East
<unk> talked to their key customers Theyre key customers are excited that BMS brand is alive and well and moving forward.
With this link brand as an example.
Some customers in the middle East.
Speaker 2: when they want to see what's happening on their borders and these are several countries that are in very difficult border situations, they say let's go to the BMI. It's literally the brand that's being referred to, it's providing security and surveillance for these areas. So it's got a great reputation. Now coupled with our architecture and our
When when they wanted to see what's happening on their borders and these are several.
Countries that are in very difficult border situations.
When you say, let's go to the BMS. It's it's literally the brand that's being referred to that's providing security and surveillance for these areas. So it's got a great reputation now coupled with our architecture and our.
Speaker 2: Product roadmap that we've been building with Araling and Quantum, now they have a refreshed capability to upgrade their existing capabilities from Pigs.264 to H-265, from 1080i to 1080p and 4K, as well as a whole host of AI overlays that we have available for it. So we're really excited as our customer.
Our product roadmap.
We've been building with with Arrow link in quantum now they have a refreshed capability to upgrade their existing capabilities from pizza hut to six four to aged out to six five from 10 80, I to 10, ADP and four K, so as well as a whole host of AI overlay that we have available to work.
So we're really excited as our customers are.
Speaker 2: to bring those capabilities into the market.
To bring those capabilities into the market, we've been working very diligently with BMS as historical vendor base and to have a lot of success, there, bringing them back online to be able to support.
Speaker 2: We've been working very diligently with BMS's historical vendor base and have a lot of success there, bringing them back online to be able to store the goals that we have for BMS. So it's still early, but we're very encouraged by the team, by the customer base, and by the history, and respect that the customers have for this brand and this product. And we're looking forward to bringing it alive with the VIVLIG architectures in the future. And...
The goals that we have for BMS. So it's still early but we're very encouraged by the team by the customer base and by the history and respect that the customers have for this brand in this product and we're looking forward to bringing it alive with lake architectures in the future.
Bringing these complete <unk> solutions with an AI overlay.
Speaker 2: bringing these complete A-V-D-S solutions with an AI overlay to many countries, many federal agencies.
Many countries many federal agencies.
Speaker 4: Great, thanks. Next question. Mills up with up 34%. Could you quantify what the actual revenue contribution was in this quarter and how lumpy should we expect this business to be in the coming quarters? And also, is the segment impacted by the new government debt agreement, which has resulted in some lower government budgets in any way?
Great. Thanks next question.
Milk was up 34% could you quantify what the actual revenue contribution was in this quarter and how lumpy should we expect this business to be in the coming quarters.
And also as the sudden are impacted by the new government agreement, which has resulted in some lower government budgets in any way.
Speaker 2: Yeah, what we found as a business link historically in the US.
Yeah, what we felt.
As it does like historically in the.
The U S.
Speaker 2: We continue to see federal grants driving a lot of demands.
We continue to see federal grants driving a lot of demand.
Speaker 2: As we mentioned, we had one Mid-Atlantic large city deploy. We also had a county deploy a little bit earlier. And we see several opportunities that are, you know, over a million dollar of opportunities that are federal funded. So, we continue to see that source of capital being deployed in these types of, you know, use cases and applications.
As we mentioned we had a one mid Atlantic large city deploy we also had a county.
Boy, a little bit earlier.
We see several opportunities that are over a million dollars of opportunities that are federally funded so we continue to see that source of cash.
Capital being deployed in these types of use cases and applications.
Speaker 2: You know, what we're seeing as we're broadening our customer base and particularly with the BMS portfolio of customers, we think that we'll be able to get consistent growth on the millgov side, because it not only includes our AVDS product, but it also includes our traditional WCS.
You know, what we're seeing as we're broadening our customer base and particularly with <unk>.
The BMS portfolio of customers.
We think that we'll be able to get consistent growth on the 1000 Gov side because it not only includes our a b D S product, but it also includes our traditional WCS.
Speaker 2: camera systems that are used in a lot of military applications for
Camera systems that are used in a lot of our military applications for for war games and things like that as well as our bonded southern capability that we're seeing are deployed in public safety applications. And example of that is our new lives that we introduced that receives a T V Europe.
Speaker 2: for war games and things like that, as well as our bodied cellular capability that we're seeing deployed in public safety application.
Speaker 2: An example of that is our new live link that we introduced that received a TV Europe award in the show, which basically is a...
Show Show award at the show, which basically is a eight modem solution with bonded cellular that you can put on adult of a public safety personnel that allow them backhaul video data and voice to the cloud and so we're seeing we think we can move.
Speaker 2: eight modem solution with bonded cellular that you can put on a belt of a public safety personnel that allow them back-hauled video data and voice to the
Speaker 2: And so we're seeing, we think we can move away from the lumpiness that historically we've seen in the middle of Galveston.
Away from the Lumpiness that historically, we've seen in the middle go by by that the number of opportunities that we're seeing in the various use cases that we support.
Speaker 2: by the number of opportunities that we're seeing in the various use cases that we support.
That's great to hear the beginning part of that question do you think you could quantify what the actual revenue contribution was during the quarter for mill Doug.
Speaker 4: That's great to hear. The beginning part of that question, do you think you could quantify what the actual revenue contribution was during the quarter from Mill Doug?
Speaker 3: Sure, I think we have it in the materials. Paul, is that right? We disclose it at that level.
Sure I think I think we have it in the a and.
In the materials, Paul is that right.
Can you disclose at that level.
I think we disclosed at that level now.
Okay.
Yeah, So what I can.
Speaker 2: Yes, or what I can't bet. Typically, we typically break it up, but we can give you a historical, typically that's been a third of the business. And we've got two thirds on the live production side.
We typically don't break it out but we can.
We can give you a historical you know typically that's been.
A third of the business and we've got two thirds.
The live production side.
Okay.
Speaker 3: That's my rough and thin of number. Yeah. Typically, it's one of the mod, the mod.
Yeah.
Do you typically involves a lot of them on the Mega hubs.
Speaker 3: Typically as well the margins in that sector are very beneficial for us.
Typically as well on the margins in that sector.
Hum very beneficial for us.
Moving on do you think you could quantify the number of Aero link sales that were recognized during the quarter and is there any sort of visibility on near term sales.
Speaker 4: Moving on, do you think you could quantify the number of arrow link sales that were recognized during the quarter, and is there any sort of visibility on your term sale?
Speaker 2: Yes, on the aerolinks, we didn't have a great quarter on aerolinks even with our numbers. Allow that was because these larger opportunities that are taking a little bit longer time to close, but we've got, we have a forecast of a quite large forecast for this quarter on aerolinks. But again, you know, some of these are larger opportunities that may fall out in their next quarter.
Yes on the Arrow Lakes, we didn't have a great quarter on airlines, even even with our numbers a lot of that was to these larger opportunities that are taken a little bit longer time to close but we've got a we have a forecast of them quite large forecast for this quarter on Aero links.
But again you know some of these are larger opportunities that may fall out into the next quarter.
But as we mentioned our weighted.
Speaker 2: But as we mentioned, our weighted funnel is around $40 million. That's a weighted funnel. A lot of that includes a much larger exposure than mill government than we had in the past.
Bonnell was around $40 million at a weighted funnel a lot of that includes a much larger exposure to the mill government than we had in the past.
Speaker 2: So I think, you know, as we get a better track record of seeing now this combined BMS, VisLink capability with their incomeancy that they have with so many customers, I think we'll get a better feel and be able to, in the future, be able to project that. But I can say the funnel in the coming course looks positive.
As we get a better track record of seeing now this combined B M S.
Link capability with their incumbency that they have with so many customers I think we'll get a better feel and be able to.
In the future be able to project that but I can say the the funnel in the coming quarters looks positive.
Speaker 4: Speaking of funnel, you've mentioned a couple times that your pipeline is going, there's more large deals, and a lot of it's coming from the international.
Speaking of funnel you've mentioned a couple of times that you. Your pipeline is going there's more large deals and a lot of it is coming from the international.
Speaker 4: like more internationally rather than inside the United States. Some curious
Like more internationally, rather than inside the United States. So I'm curious.
Speaker 4: Is the price and power historically different internationally? Would there be some sort of pressure on margins for more international demands?
Is the pricing power historically different internationally would there be some sort of pressure on margins for more international demand.
Speaker 2: I think when we take a look at some of the opportunities that we've looked at, for instance, we announce the aspire order. That's a major opportunity that is consistent with the Mars that we see throughout the US. And the most interesting part of that application.
I think when you take a look at some of the opportunities that we've looked at for instance, we announced the aspire order.
That's right.
A major opportunity that is consistent with the margins that we see throughout the U S and but the most interesting part of that application as it now allows you to bring Dr capabilities.
Speaker 2: that now allows you to bring VR capabilities from Moose.
From moving video.
Speaker 2: and the ability to do that 4K 6KL38K.
And the ability to do that for K 6K, L. Three 8-K.
Speaker 2: and do that in a way that there is very extremely low latency. So I think we're finding, given the uniqueness that we bring around super low latency, high bandwidth, particularly around DVP2, which is a new wave form that we're deploying.
And do that in a way that there is various extremely low latency. So I think I think what we're finding given that.
The uniqueness that we bring around super low latency high bandwidth, particularly around DVT, two which is a new wave form that we're deploying.
Speaker 2: You know, customers are willing to pay for that level of
Customers are willing to pay for that level of reliability and consistency and sustainability.
Speaker 2: reliability and consistency and sustainability. And so we haven't seen pressures on-
So we haven't seen pressures.
Pressures on the margins outside the U S.
And that's good to hear and lastly, any update on the life production business, specifically around demand any broad based signs of recovery yet.
Speaker 4: And that's good to hear. And lastly, any update on the live production business specifically around demand. Any broad-based signs of recovery yet?
Speaker 2: Well, you know, I think, you know, a lot of production business remains consistent. And I think what's different for us than in other markets is, or then with other competitors that aren't in the wireless sector.
Well you know I think you know.
There are a lot of production business remains consistent and I think what's different for us than in other markets is then with other.
Competitors that aren't in the wireless segment.
Speaker 2: We are seeing the wireless segment of live production continuing to increase. Are partners that serve for live events like the Super Bowl are busier than ever? And the big reason is because with wireless, they can provide very intimate compelling.
We are seeing the wireless segment of life production continuing to increase our partner was that served for live events like the Super Bowl are busier than ever and the Big reason is because with wireless they can provide very intimate compelling.
Speaker 2: video that you can't do with a wired solution. So I think by the new products that we're introduced, click, which is a mobile unit as well as we'll be introducing Dragonfly towards the end of this year. That again is a body-worn type product. You can see the kinds of use cases you probably saw the M-cam during Major League Get World Series here in the US. Those are all capabilities that are brought to the end of this year.
Video is that you can't do with with a wired solution. So I think.
By the new products that were introduced click which is a mobile unit as well as.
We will be introducing dragonfly.
Towards the end of this year that again is a body worn type type product you can see the kinds of use cases, you probably saw the Cam during major League World series here in the U S. Those are all capabilities that are brought through wireless high fidelity low latency solutions like like because like provide.
Speaker 2: high fidelity low latency solutions like like does like provides and although perhaps
And although perhaps.
Speaker 2: live production could be flat. We're seeing the RF element that to continue to grow.
<unk> production could could be flat, we're seeing that RF element that to continue to grow.
Alright.
Speaker 4: Oh, really quickly just to clarify some unit prepare remarks, not sure I caught it correctly.
Really quickly just to clarify something in your prepared remarks, not sure I caught it correctly did you say that $5 million in some shipments came in the last two weeks and that revenue wont be recognized until next quarter, but I hear that correctly.
Speaker 4: Did you say that $5 million in some shimms came in the last two weeks and that revenue won't be recognized until next quarter? Did I hear that correctly?
Speaker 2: No, it's revenue recognized, but it's the cash timing at the cash collection. I got it. Yeah. Yeah. Yeah. I think that that was a key thing we wanted to highlight, you know, from a cash perspective, we did burn some cash, but as largely because of last quarter and then this quarter, as we mentioned, five million of sales were in the last couple of weeks. We expect to.
It's revenue recognized but its the cash.
The timing of the cash collection, so I got it yeah I.
I think that.
That was a key thing we wanted to highlight from a cash perspective, we did burn some cash but it was largely because of last quarter and this quarter as we mentioned $5 million of sales were in the last couple of weeks, we expect to.
Got it.
Paul just went in and out there for a second that's why I just wanted to make sure alright. Thanks. So much that's all I had.
Speaker 4: Paul just went in and out there for a second. That's why I just wanted to make sure. All right, thanks so much. That's all I have.
Okay. Thanks.
Speaker 1: This concludes our live, cute question and answer session. I'd like now to turn the call back over to management for additional questions the company received from investors.
This concludes our life cute question and answer session I'd like now to turn the call turn the call back over to management for additional questions. The company received from investors.
Yeah, I think you know what we've been hearing is a lot of questions about BMS again, we're very excited about this combination the team that now as a part of dislike are experts in their field they've got many years of experience around.
Speaker 2: Yeah, I think, you know, what we've been hearing is a lot of questions on BMS. Again, we're very excited about this combination. The team that now is a part of Vizlink are experts in their field. They've got many years of experience around the ABS use case. They're...
The Abd S use case.
Speaker 2: They're respected by our customer base and they're very professional about what they do. We're very excited to have that team on board and their customers to be able to support in the future.
They're there.
They are respected by our customer base and they're very professional about what they do so we're very excited to have that team on board and their customers to be able to support in the future.
Speaker 2: So we'll continue to report updates on that, but we're very encouraged by what we see in the early days. And we expect this to be very positive to our results in the future. The other question that we get a lot is about the 10.9 million in bonds being held to maturity. Can you give nature of the bonds, maturity dates, for example, et cetera. And I'll turn that into a poll.
So we will continue to report updates on that but we're very encouraged by what we see in the early days and we expect this to be.
I'm very positive to our results in the future.
The other question that we get a lot of.
About the $10 9 million of bonds being held to maturity.
Can you give nature of the bonds maturity dates for example, et cetera, and I'll turn it over to Paul.
Speaker 3: Yeah, thanks, Mickey. So basically in quarter one of this year we invested in three bonds totaling 10.9 million, two of which were federal bonds and two of which will be maturing in quarter four of this year and the other one will mature in quarter one of 2024.
Yeah, Thanks, Mickey and so basically in quarter one of this year, we invested in three bonds totaling $10 9 million two of which were with federal bonds.
And two of which.
We will be maturing in quarter four of this year and the other one will mature in quarter one of 2024.
Alright, Thanks, Paul.
Yeah.
Well thank you.
Speaker 2: Well, thank you for joining us today, everyone. To our investors, thank you for your continued support. We are dedicated more than ever to building shareholder value and making Vizlink 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 content and ensuring the military and first responders have real-time intelligence.
Yeah.
Joining us today everyone.
Our investors. Thank you for your continued support we are dedicated more than ever to building shareholder value and make invisalign. 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 content.
Ensuring the military and first responders have real time intelligence to fulfill their missions serve and protect with our collective efforts and shared vision I believe the best days are ahead of us. Thank you.
Speaker 2: of further missions, serve and protect. With our collective efforts and shared vision, I believe the best days of visiting are ahead of us.
Speaker 1: Thank you for joining us today for Vislink's third quarter 2023 conference call. You may now...
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