Vislink Technologies, Inc.

Revenue in Q3 was $7.1 million, compared with $7.2 million in Q3 2023. Gross margin was 51%, down from 54% in the prior-year period. Net loss was $3 million, or a loss of $1.22 per share, versus a $2 million loss, or $0.83 per share, last year; operating loss was $3.3 million versus $2.3 million last year. For the nine months ended September 30, 2024, revenue was $24.4 million, up 26% year over year. Cash and short-term investments were $9.2 million at September 30, 2024, down from $11.5 million at June 30, 2024, and working capital was $27.1 million versus $31.8 million in June. Management did not give formal next-quarter or full-year revenue/EPS guidance, but said Q4 would likely be sluggish, with much of the benefit from current activity and orders shipping next year. It expects over $9 million in MilGov bookings in 2024 and said restructuring should generate over $6 million in annualized savings starting in Q4.

Mickey Miller framed the quarter as a mix of temporary softness and strategic progress. He said Live Production was hurt by Olympics-related delays and some Middle East procurement delays, but emphasized that MilGov bookings are gaining momentum and that the pipeline is now about $50 million weighted, with about half of it in MilGov opportunities. He highlighted new wins and deployments with DHS, D.C. Metro Police, and a major Brazil order, and said the company is shifting toward recurring service revenue and higher-margin growth opportunities.

Mike Bond said the quarter reflected lower-than-expected revenue and higher fixed costs, including ERP implementation personnel and strategic R&D. He cited Q3 revenue of $7.1 million, gross margin of 51%, a $3 million net loss, and total expenses of $10.3 million, up from $9.5 million a year ago. On the balance sheet, he noted cash and short-term investments of $9.2 million and working capital of $27.1 million, and said the new ERP should improve working capital through better vendor terms, shorter installation/acceptance cycles, and better inventory management. He also detailed the restructuring: about $850,000 from facility reductions, about $3.7 million from headcount, and other reductions that should bring total annualized savings to over $6 million.

Analysts focused on whether the pipeline had been affected by short-term issues, how concentrated the MilGov opportunity set is, and whether the Live Production slowdown would persist into Q4. Management said the weighted pipeline is about $50 million, with half of it in MilGov, and stressed that Live Production opportunities are still growing even though Q3 was softened by the Olympics. On the delayed Middle East MilGov order, management said the delay is about six months and they now expect activity to restart early next year. They also said Q4 is likely to be sluggish, with some revenue pushed into 2025.