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Vislink Technologies Inc (VISL)
OTHER OTC:VISL
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Vislink Technologies
(OTC:VISL)
Select Model
Select Model
Rating:40Underperform
Price Target:
$2.00
▲(13.64% Upside)
Vislink Technologies faces significant financial and operational challenges, with poor financial performance being the most critical factor. Technical analysis also points to bearish trends, and the valuation metrics highlight the company's unprofitability. These factors collectively result in a low overall stock score.
Positive Factors
Strategic Leadership Change
The promotion of Raj Kotecha, who has expanded Vislink's footprint in key markets, could strengthen sales strategies and market penetration.
New Contracts
Securing significant contracts with law enforcement agencies enhances revenue streams and demonstrates product demand in public safety sectors.
Market Reach
Partnerships with industry leaders expand market reach and provide collaborative opportunities, supporting long-term revenue growth.
Negative Factors
Revenue Decline
Stagnant revenue growth suggests challenges in market expansion, potentially limiting future financial performance and competitiveness.
Cash Flow Issues
Negative cash flow raises concerns about the company's ability to fund operations and invest in growth, impacting long-term viability.
Operational Inefficiencies
Operational inefficiencies and lack of profitability suggest management challenges, potentially hindering strategic execution and growth.
Vislink Technologies (VISL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.59M
Dividend YieldN/A
Average Volume (3M)8.39K
Price to Earnings (P/E)―
Beta (1Y)0.68
Revenue Growth-39.06%
EPS Growth-188.78%
CountryUS
Employees105
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)N/A
Shares Outstanding2,467,618
10 Day Avg. Volume18,853
30 Day Avg. Volume8,393
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.55
Price to Sales (P/S)0.34
P/FCF Ratio-1.37
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue0.36
Enterprise Value/Gross Profit2.31
Enterprise Value/Ebitda-0.34
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Vislink Technologies Business Overview & Revenue Model
Company DescriptionVislink Technologies (VISL) is a leading provider of high-performance live video transmission solutions, specializing in wireless and fiber-optic technology. The company primarily serves sectors such as broadcast, sports, and public safety, offering products that enable real-time video streaming and communication. Key offerings include video encoders, decoders, and transmission systems that facilitate seamless video delivery for news production, live events, and emergency response situations.
How the Company Makes MoneyVislink Technologies generates revenue through the sale of its advanced video transmission equipment and services, which include hardware, software, and support solutions. The company's revenue model is anchored in direct sales of its products to broadcasters, sports organizations, and government agencies, complemented by recurring revenue from service contracts and software licensing. Significant partnerships with industry leaders in broadcasting and technology enhance its market reach and contribute to earnings through joint ventures and collaborative projects.
Vislink Technologies Earnings Call Summary
Earnings Call Date:Nov 14, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Apr 01, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative developments. While there was significant year-to-date revenue growth and promising expansion in the MilGov sector, the third quarter faced revenue decline, increased net loss, and gross margin challenges. The company is taking steps to improve operational efficiency and reduce costs, indicating a proactive approach to address these challenges.Q3-2024 Updates
Positive Updates
Year-to-date Revenue Growth
The company's year-to-date revenue increased by over 26% compared to the prior year, driven by growth in the MilGov sector and recurring revenue services.
MilGov Sector Expansion
Bookings in the MilGov sector gained momentum with expected year-over-year growth of over 60% for 2024, indicating strong demand for Vislink's solutions in law enforcement and defense.
Operational Efficiency and Cost Reduction
The launch of a new ERP system and restructuring program is expected to deliver annualized savings of over $6 million starting in Q4, consolidating manufacturing facilities, and optimizing staffing.
Negative Updates
Temporary Revenue Decline in Q3
Third quarter revenue was $7.1 million, down from $7.2 million in the prior year, impacted by unusual seasonal softness in the Live Production sector.
Increased Net Loss
Net loss for the quarter widened to $3 million or a negative $1.22 per share, compared to a loss of $2 million or a negative $0.83 per share in the prior year, due to lower-than-expected revenue and higher fixed costs.
Gross Margin Decline
Gross margin decreased to 51% from 54% in the prior year period, reflecting increased costs associated with ERP implementation and strategic R&D investments.
Challenges in Middle East Procurement
Delays in procurement activities in the Middle East due to heightened geopolitical tensions, expected to resume in the coming months.
Company Guidance
During Vislink's Q3 2024 earnings call, the company provided guidance on their strategic focus and financial expectations. CEO Carleton Miller reaffirmed Vislink's commitment to achieving cash flow positivity by 2025, supported by a strong growth trajectory in the MilGov sector and recurring revenue services. The company reported a year-to-date revenue increase of over 26% compared to the previous year, though Q3 revenues showed a temporary decline due to seasonal softness in the Live Production sector, exacerbated by the 2024 Summer Olympics. Vislink's MilGov sector demonstrated significant momentum, with bookings expected to exceed $9 million for 2024, representing over 60% year-over-year growth. CFO Michael Bond detailed the financials, noting a Q3 revenue of $7.1 million, a gross margin of 51%, and a net loss of $3 million. The company is implementing a restructuring program to reduce costs by over $6 million annually, including consolidating manufacturing facilities and reducing headcount. With a weighted pipeline of $50 million and strategic efforts to expand service and international markets, Vislink is positioned to drive long-term sustainable growth.Vislink Technologies Financial Statement Overview
Summary
Vislink Technologies is facing significant financial challenges across all verticals. The income statement reflects operational inefficiencies and lack of profitability, while the balance sheet shows declining equity and asset base. Cash flow issues further exacerbate the situation, highlighting a need for strategic realignment to improve financial performance.Income Statement
Vislink Technologies has faced consistent challenges in achieving profitability, with negative net income and declining gross profit margins. Revenue growth is stagnant, indicating difficulty in expanding market share. The EBIT and EBITDA margins are negative, signaling operational inefficiencies.35
Negative
Balance Sheet
The company's balance sheet shows moderate leverage with a relatively low debt-to-equity ratio. However, the declining stockholder equity and total assets over the years suggest weakening financial stability. The equity ratio is decreasing, indicating potential risk in asset management.40
Negative
Cash Flow
Cash flow analysis reveals consistent negative free cash flow and operating cash flow, which raises concerns about the company's ability to generate cash from operations. The free cash flow to net income ratio is unfavorable, suggesting issues in converting earnings to cash.30
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.84M | 27.73M | 27.48M | 28.13M | 33.88M | 22.88M |
| Gross Profit | 3.12M | 6.95M | 13.62M | 10.27M | 17.88M | 8.60M |
| EBITDA | -21.33M | -19.04M | -8.88M | -12.07M | -14.78M | -15.52M |
| Net Income | -22.32M | -20.50M | -9.13M | -13.54M | -16.39M | -17.57M |
Balance Sheet | ||||||
| Total Assets | 23.17M | 26.18M | 44.99M | 51.80M | 68.12M | 20.65M |
| Cash, Cash Equivalents and Short-Term Investments | 6.27M | 6.50M | 14.21M | 25.63M | 36.23M | 5.19M |
| Total Debt | 807.00K | 806.00K | 1.22M | 1.65M | 2.17M | 3.21M |
| Total Liabilities | 9.92M | 8.97M | 8.02M | 8.14M | 10.51M | 10.65M |
| Stockholders Equity | 13.24M | 17.21M | 36.98M | 43.65M | 57.61M | 10.00M |
Cash Flow | ||||||
| Free Cash Flow | -5.16M | -6.84M | -10.45M | -9.69M | -9.80M | -14.61M |
| Operating Cash Flow | -5.48M | -6.84M | -9.75M | -9.23M | -9.60M | -14.35M |
| Investing Cash Flow | 5.81M | 4.48M | -6.70M | -466.00K | -17.55M | -258.00K |
| Financing Cash Flow | -469.00K | -454.00K | -607.00K | -958.00K | 58.31M | 18.00M |
Vislink Technologies Technical Analysis
Negative
1.76
Price Trends
2.22
Negative
2.21
Negative
2.32
Negative
Market Momentum
-0.16
Positive
38.76
Neutral
20.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VISL, the sentiment is Negative. The current price of 1.76 is below the 20-day moving average (MA) of 2.08, below the 50-day MA of 2.22, and below the 200-day MA of 2.32, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 38.76 is Neutral, neither overbought nor oversold. The STOCH value of 20.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VISL.
Vislink Technologies Risk Analysis
Vislink Technologies disclosed 49 risk factors in its most recent earnings report. Vislink Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vislink Technologies Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $7.65M | ― | -7.48% | ― | -1.49% | 76.04% | |
54 Neutral | $82.50M | ― | -5.41% | ― | 12.67% | 80.62% | |
49 Neutral | $23.39M | -3.73 | -13.41% | ― | -34.53% | -50.58% | |
48 Neutral | $97.48M | -0.47 | -26.69% | ― | -7.56% | -47.16% | |
41 Neutral | $8.97M | -0.74 | -75.61% | ― | -42.90% | -427.39% | |
40 Underperform | $6.59M | -0.30 | -86.64% | ― | -39.06% | -188.78% |
* Technology Sector Average
VISL
Vislink Technologies
1.76
-1.73
-49.57%
CLRO
Clearone Communications
5.58
-2.90
-34.20%
CMTL
Comtech Telecommunications
3.52
0.06
1.73%
OCC
Optical Cable
9.82
7.65
352.53%
UTSI
UTStarcom
2.30
-0.34
-12.88%
MITQ
Moving iMage Technologies
0.70
0.03
4.48%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.