Vislink Technologies Inc (VISL) 2023 Q3 法說會逐字稿

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 are the company's CEO, Mickey Miller, and CFO, Paul Norridge. Following their remarks, we will open the call to questions.

午安.歡迎參加 Vislink 2023 年第三季財報電話會議。我叫艾倫，我將擔任您今天通話的接線生。今天加入我們的是公司執行長米奇·米勒 (Mickey Miller) 和財務長保羅·諾里奇 (Paul Norridge)。在他們發表講話後，我們將開始提問。

Earlier this afternoon, Vislink released results for the third quarter ended September 30, 2023. A copy of the press release is available on the company's website.

今天下午早些時候，Vislink 發布了截至 2023 年 9 月 30 日的第三季業績。新聞稿的副本可在該公司網站上取得。

Before we begin the call, I would like to provide Vislink 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.

在我們開始電話會議之前，我想提供 Vislink 安全港聲明，其中包括有關本次電話會議期間所做的前瞻性陳述的警告。管理層將在電話會議期間發表聲明，其中包括聯邦證券法含義內的前瞻性聲明，這些聲明符合 1995 年《私人證券訴訟改革法案》的安全港條款。

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 assumptions. 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.

本次電話會議中包含的任何非歷史事實陳述的陳述均應被視為前瞻性陳述。所有前瞻性陳述，包括但不限於對營運趨勢和財務預期的審查，均基於公司目前的估計和各種假設。這些陳述涉及重大風險和不確定性，可能導致實際結果或事件與這些前瞻性陳述預期或暗示的結果或事件有重大差異。

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. Vislink 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.

因此，您不應依賴這些陳述。有關與公司業務相關的風險和不確定性列表，請參閱公司向美國證券交易委員會提交的文件。 Vislink 不承擔任何意圖或義務，除非法律要求更新或修改任何財務預測或前瞻性陳述，無論是因為新資訊、未來事件或其他原因。

This conference call contains time-sensitive information that is accurate only as of the live broadcast of this afternoon, November 8, 2023. Now I would like to turn the call over to Vislink CEO, Mr. Mickey Miller. Sir, please proceed.

本次電話會議包含時效性信息，僅截至 2023 年 11 月 8 日下午直播時準確。現在我想將電話轉給 Vislink 首席執行官米基·米勒 (Mickey Miller) 先生。先生，請繼續。

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 that provided our financial results for the third quarter ended September 30, 2023, along with highlighted business accomplishments.

謝謝你，接線生。感謝大家今天加入我們。今天下午，我們向 SEC 提交了 10-Q 報告，並發布了一份新聞稿，提供了截至 2023 年 9 月 30 日的第三季財務業績，以及突出的業務成就。

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. I'll then come back on to discuss updates within our key markets, product developments and progress on our go-to-market strategy before taking your questions.

作為今天電話會議的簡要概述，我將首先提供第三季度的亮點和最新動態，然後再將電話轉給保羅，更詳細地討論我們的財務表現。然後，在回答您的問題之前，我將回來討論我們的主要市場的最新情況、產品開發以及我們的市場策略進展。

And with that, let's begin. In Q3, we made solid progress in our ongoing transformation, maintaining our strong focus on the growing public safety market. A standout moment for the quarter was a strategic acquisition of broadcast microwave services or BMS assets. This acquisition solidified this links position as the leader in the airborne video downlink or AVDS market, extending our reach across OEMs and end customers, including key players in the emerging drone communications and control networks market.

那麼，讓我們開始吧。第三季度，我們在持續轉型方面取得了紮實進展，並繼續高度關注不斷增長的公共安全市場。本季的一個突出時刻是對廣播微波服務或 BMS 資產的策略性收購。此次收購鞏固了該鏈路作為機載視訊下行鏈路或AVDS 市場領導者的地位，擴大了我們在OEM 和最終客戶中的影響力，包括新興無人機通訊和控制網路市場的主要參與者。

We believe this positions us for near term top-line growth ahead of our initial projections. Financially, our cost management efforts lowered our breakeven point alongside a noteworthy sequential rebound in total revenue, led by core MilGov revenue growth of 34% year over year and improved key profitability measures including a 10.6% increase in quarterly gross profit and a reduction in net loss by about $800,000 in Q3.

我們相信，這將使我們的近期營收成長超過我們最初的預測。在財務方面，我們的成本管理工作降低了盈虧平衡點，同時總收入顯著連續反彈，核心 MilGov 收入同比增長 34%，並改善了關鍵盈利指標，包括季度毛利潤增長 10.6% 和淨利潤下降第三季虧損約80萬美元。

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. Our refined sales approach and commitment to providing industry-leading technology remains central to our strategy for enhancing overall performance.

我們繼續在強大的加權銷售漏斗中抓住機會，目前總價值超過 4000 萬美元，並且在 MilGov 和現場製作方面都蘊藏著巨大的前景。我們精緻的銷售方式和對提供業界領先技術的承諾仍然是我們提高整體績效策略的核心。

In Q3, we continued to strengthen our strategically constructed product portfolio. We proudly introduced a cliq cofdum transmitter and have already delivered six units to customers. We expect cliq deliveries to vastly accelerate throughout 2024. We also added to our best-in-class products with the unveiling of the WMT LiveLink, our new bonded cellular transmitter, which received the IBC TVB Europe Best of Show Award.

第三季度，我們持續加強策略建構的產品組合。我們很自豪地推出了 cliq cofdum 發射機，並已向客戶交付了六台。我們預計cliq 的交付量將在2024 年大幅加速。我們還推出了WMT LiveLink，這是我們的新型綁定蜂窩發射器，該發射器獲得了IBC TVB 歐洲最佳表演獎，從而進一步豐富了我們的一流產品。

This compact and power-efficient product is driving demand across the MilGov and live production sectors by transforming remote video and data transmission. When combined with our link matrix solution, it creates an all-encompassing workflow management platform, enhancing operational efficiency for customers and generating valuable recurring revenue streams through integrated service-level agreements for Vislink.

這種緊湊且節能的產品透過改變遠端視訊和數據傳輸來推動 MilGov 和現場製作領域的需求。與我們的連結矩陣解決方案相結合，它創建了一個全方位的工作流程管理平台，提高客戶的營運效率，並透過 Vislink 的整合服務等級協定產生有價值的經常性收入流。

We have steadily improved our services revenue throughout the year. 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 position to continue improving our market position and financial performance.

全年服務收入穩定提升。總而言之，第三季是我們轉型和成長的體現。在我們最近收購 BMS 資產、強大的銷售管道以及不斷改善的銷售和營運的背後，我們相信我們有能力繼續提高我們的市場地位和財務表現。

I'll speak more specifically about some of our operations shortly. But first, I'd like to pass on to Paul to give the details of the financials. Paul?

我很快就會更具體地談論我們的一些業務。但首先，我想請保羅提供財務細節。保羅？

Thank you, Mickey and good afternoon, everyone. Looking at our financial results for the third quarter. Our total revenue for the third quarter of 2023 was $7.2 million compared to $7.1 million from Q3 2022. The slight year-over-year increase in revenue is primarily due to growth in the MilGov sector and increased adoption of service level agreements.

謝謝米奇，大家下午好。看看我們第三季的財務業績。我們 2023 年第三季的總收入為 720 萬美元，而 2022 年第三季的總收入為 710 萬美元。營收同比小幅成長主要是由於 MilGov 部門的成長以及服務水準協議的採用增加。

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%, an improvement from 49% in the third quarter of 2022. The improvement in our gross margin resulted from MilGov mix improvements and cost savings and components. 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.

2023 年第三季的毛利為 390 萬美元，而 2022 年第三季為 350 萬美元。2023 年第三季的毛利率為 54%，較 2022 年第三季的 49% 有所改善。我們毛利率的提高得益於MilGov 組合的改進以及成本和組件的節省。 2023 年第三季的總支出為 950 萬美元，比 2022 年同期的 990 萬美元下降 5%。總支出的改善主要是由於前面提到的組件成本的改善。

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 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. 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.

談到我們的獲利能力指標，我們的營業虧損為 230 萬美元，而去年同期為 280 萬美元。營業虧損的減少主要是由於先前提到的收入和利潤率的改善。 2023 年第三季普通股股東應佔淨虧損為 200 萬美元，即每股 0.83 美元，較上年同期的 270 萬美元，即每股 1.16 美元有所改善。 2023 年第三季的 EBITDA 虧損 200 萬美元，而去年同期虧損 230 萬美元。

Adjusted EBITDA 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. The EBITDA results are primarily a result of cost management. A reconciliation of EBITDA to GAAP measures is contained in our earnings release issued earlier today.

2023 年第三季調整後 EBITDA 非公認會計準則指標虧損 140 萬美元，而 2022 年第三季虧損 190 萬美元。EBITDA 結果主要是成本管理的結果。我們今天稍早發布的收益報告中包含了 EBITDA 與 GAAP 衡量標準的調整表。

Moving now to our balance sheet. As of September 30, 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.

現在轉向我們的資產負債表。截至 2023 年 9 月 30 日，我們的現金和現金等價物為 720 萬美元，而第二季末為 1,100 萬美元。我們還投資了 1,090 萬美元打算持有至到期的聯邦債券。

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. The 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 improving cash performance is a top priority in the fourth quarter and in 2024.

第三季度，隨著我們繼續增強即時預訂和運輸能力，我們的庫存增加了 3%，優化庫存和增加營運資金將是未來幾季的首要任務。第三季的現金流出主要受到 2023 年第二季營收低於預期的影響。此外，第三季約 500 萬美元的出貨量在該季的最後兩週內交付，導致根據我們的標準30 天淨付款條款，將現金收款推遲到第一季度，改善現金績效是第四季和2024 年的首要任務。

We have $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 that align 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 defence and public safety.

第三季末我們的營運資金為 3,340 萬美元，而第二季末為 3,560 萬美元。我們相信，我們強大的無債務資產負債表使我們能夠靈活地繼續投資於符合我們長期成長潛力的高回報投資機會。這包括積極尋求策略性收購和合作夥伴關係，以增強我們的視訊通訊領域，特別是在國防和公共安全領域。

That concludes my prepared remarks, and I'll turn it back to Mickey.

我準備好的發言就到此結束，我將把它轉回給米奇。

Thanks Paul. I'd now like to provide more operational updates beginning with our MilGov growth segment. As our results show, our MilGov segment has demonstrated consistent growth over the past several quarters, and we've successfully established a prominent position in the AVDS. market. Our momentum buoyed by favourable industry conditions is expected to further accelerate following our acquisition of important BMS assets.

謝謝保羅。我現在想從我們的 MilGov 成長部分開始提供更多營運更新。正如我們的結果所示，我們的 MilGov 部門在過去幾個季度表現出持續成長，並且我們已成功在 AVDS 中建立了顯著地位。市場。隨著我們收購重要的 BMS 資產，我們在有利的產業條件的推動下的發展勢頭預計將進一步加速。

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 Vislink status as one of the world's largest and most technologically advanced AVDS providers. It enhances our international presence, particularly in EMEA and opens opportunities for us to introduce and promote our products within BMS's traditional networks. This strategic move consolidates our position in the AVDS market and leverages synergy between our offerings.

BMS 是設計和製造微波技術系統領域長期公認的領導者，服務於不同的客戶和政府監控、執法、無人機和無人地面車輛市場。 BMS 的加入鞏固了 Vislink 作為全球最大、技術最先進的 AVDS 供應商之一的地位。它增強了我們的國際影響力，特別是在 EMEA 地區，並為我們在 BMS 的傳統網絡中介紹和推廣我們的產品提供了機會。這項策略舉措鞏固了我們在 AVDS 市場的地位，並利用了我們產品之間的協同效應。

While we are not providing specific figures here today, the integration is progressing exceptionally well and has exceeded our initial expectations. Our outlook is optimistic with potential for substantial revenue growth in the coming years. Outside BMS Q3 was highlighted by a complete AVDS system deployment in a major city in the Mid-Atlantic region. Deployments with large law enforcement agencies like these validate our technology as a key public safety personnel rely on our system provide aerial surveillance and add situational awareness.

雖然我們今天沒有提供具體數字，但整合進展非常順利，超出了我們最初的預期。我們的前景樂觀，未來幾年收入可望大幅成長。在 BMS 之外，第三季的亮點是在大西洋中部地區的一個主要城市部署了完整的 AVDS 系統。與此類大型執法機構的部署驗證了我們的技術，因為關鍵公共安全人員依賴我們的系統提供空中監視並增加態勢感知。

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. Additionally, we're encouraged by the large deals that remain in our pipeline, especially in international markets, and we see solid growth opportunities on the horizon.

雖然這些大規模部署通常需要數月才能完成，但它們對於我們從公共安全市場引入更大交易的整體策略仍然非常重要。此外，我們對仍在進行中的大型交易感到鼓舞，尤其是在國際市場上，我們看到了即將到來的堅實的成長機會。

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. Visiting products helped delivered coverage of important cultural events, including Pope Francis's visit to France, the G20 summit in India and elections in Eastern Europe. Additionally, our technology and a strong presence at sporting events such as Formula One races, Moto G P racing, The World Rugby Championship and College Golf Championships.

我們的現場製作部門繼續佔總收入的最大比例，在第三季度，我們繼續擴大對全球重大活動的貢獻。探訪產品幫助報道重要文化活動，包括教宗方濟各訪問法國、印度二十國集團峰會、東歐選舉等。此外，我們的技術以及在一級方程式賽車、Moto G P 賽車、世界橄欖球錦標賽和大學高爾夫錦標賽等體育賽事中的強大影響力。

In Q3, we secured a $1.8 million agreement with Aspire for the A2RL Autonomous Race Series, providing reliable low latency video cockpit use 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 control systems.

在第三季度，我們與 Aspire 就 A2RL 自主競賽系列達成了價值 180 萬美元的協議，為關鍵人員提供可靠的低延遲視訊駕駛艙使用。我們與 Focal Point VR 的合作夥伴關係透過促進賽車及其控制系統之間的關鍵數據通信，透過年度服務水準協議提高了生產品質並產生經常性收入。

In a move that expands our live production presence, we partner with Zoom communications, India, the nation's largest outside broadcast service provider. 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 enduring value of our wireless camera systems in live event scenarios and demonstrates our ability to capitalize on significant opportunities in this dynamic market.

為了擴大我們的現場製作業務，我們與印度最大的外部廣播服務提供者 Zoom communications 合作。他們利用我們的超低延遲 4K 無線攝影機系統來擴大其在東南亞的廣播足跡，旨在成為該地區的頂級射頻供應商。該訂單突顯了我們的無線攝影系統在現場活動場景中的持久價值，並展示了我們在這個充滿活力的市場中利用重大機會的能力。

We recently partnered with JB&A, a leading value-added distributor of audio video solutions in the US. Through this agreement, JB&A will offer our solutions, including IP bonded cellular technology, vPilot and LinkMatrix 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 MilGov, live production remains a key part of our strategy and top line.

我們最近與美國領先的音視頻解決方案增值分銷商 JB&A 合作。透過這項協議，JB&A 將向全國廣播公司和內容創作者提供我們的解決方案，包括 IP 綁定蜂窩技術、vPilot 和 LinkMatrix。雖然合作還處於早期階段，但我們預計現場製作領域將出現強勁的成長機會。我們繼續強調 MilGov，現場製作仍然是我們策略和營收的關鍵部分。

In product innovation, we achieved early success with LiveLink, our cutting-edge bonded cellular transmitter. LiveLink delivers high quality video transmission up to 4K 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 generating significant demand in both our MilGov and live production markets.

在產品創新方面，我們透過尖端的綁定蜂窩發射器 LiveLink 取得了早期成功。 LiveLink 提供高達 4K 解析度的高品質視訊傳輸，使其成為公共安全機構和廣播團隊的遊戲規則改變者。作為最緊湊、最節能的裝置，它的重要性正在為我們的 MilGov 和現場製作市場帶來巨大的需求。

Cliq 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.

Cliq OFDM 發射機需求仍然強勁，因為它使直播能夠捕捉更多動態內容。這些緊湊型迷你攝影機發射器得到了現場直播客戶的高度積極響應，突顯了它們在重視緊湊設計而又不影響可靠視訊傳輸的市場中的吸引力。

We've also taken significant steps to enhance our device management ecosystem. We expand our LinkMatrix platform to seamlessly work with AWS, streamline and remote production workflows in enabling better collaboration. This is especially crucial for both live broadcast in efficient field operation and public safety. With the AWS integration, we provide essential insights for improving remote product workflows, further deepening our value proposition to our clients, and fostering valuable touch points for integrated service level agreements.

我們也採取了重大措施來增強我們的設備管理生態系統。我們擴展了 LinkMatrix 平台，以便與 AWS 無縫協作，簡化遠端生產工作流程，從而實現更好的協作。這對於現場直播的高效作業和公共安全尤其重要。透過 AWS 集成，我們為改善遠端產品工作流程、進一步深化我們對客戶的價值主張以及為整合服務等級協定培育有價值的接觸點提供了重要的見解。

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 this. We're leveraging the new team members expertise to foster valuable connections and drive growth. BMS has a strong position with military and public safety agencies throughout the Middle East. Combining Vislink AVDS systems with BMS's incumbency in the region uniquely positions us to support agencies as they upgrade their networks to support the latest in low latency video centric IP networks. We're only 7.5 weeks into the integration of BMS into our platform, but we're very encouraged about the possibilities to serve a wider audience and grow revenues accordingly.

我們的公共安全目標策略不斷發展和擴展，同時與主要航空單位保持牢固的合作關係。我們正在積極培養與大型 OEM 廠商的關係，而 BMS 的收購將加速這一進程。我們正在利用新團隊成員的專業知識來培養有價值的聯繫並推動成長。 BMS 在整個中東地區的軍事和公共安全機構中擁有強大的地位。將 Vislink AVDS 系統與 BMS 在該地區的優勢相結合，使我們能夠在各機構升級網路以支援最新的以低延遲視訊為中心的 IP 網路時為其提供支援。我們將 BMS 整合到我們的平台僅 7.5 週，但我們對服務更廣泛受眾並相應增加收入的可能性感到非常鼓舞。

Moreover, we are actively identifying promising opportunities in the drone communications and control network space. BMS is particularly active in this unpenetrated sector, providing us with additional avenues to enhance our presence and expand our MilGov business. 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.

此外，我們正在積極尋找無人機通訊和控製網路領域的有前景的機會。 BMS 在這個未滲透的領域尤其活躍，為我們提供了額外的途徑來增強我們的影響力並擴展我們的 MilGov 業務。我們的管道在國際上顯示出早期增長，特別是在南美洲。儘管這些交易因其規模和複雜性而可能需要額外的處理時間，但我們仍然堅定不移地致力於幫助它們取得成果。

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. Later this month, all represent Vislink at the 2023 Milipol Paris show, a four-day conference dedicated to security innovation on an international scale. This platform allows us to demonstrate our technologies ability to deliver high-quality, real-time video data and challenging safety and law enforcement environments connecting us with major agencies worldwide. We've also strengthened our software and service sales, enhancing our recurring revenue streams.

在行銷方面，我們繼續抓住行業會議和貿易展覽的機會，例如，我們最近在 IBC 上展示了我們的完整產品組合。本月晚些時候，所有人都代表 Vislink 參加 2023 年 Milipol 巴黎展會，這是一場為期四天的會議，致力於國際範圍內的安全創新。該平台使我們能夠展示我們的技術能力，以提供高品質、即時視訊數據和具有挑戰性的安全和執法環境，將我們與全球主要機構聯繫起來。我們也加強了軟體和服務銷售，增強了我們的經常性收入來源。

Our attachment strategy for software and services diversifies our revenue sources and strengthen our client relationships ultimately, fostering retention and a healthier sales pipeline. We are making steady progress to our goal of achieving a 90-10 sales split between software and services and hardware. 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.

我們的軟體和服務附加策略使我們的收入來源多樣化，並最終加強我們的客戶關係，促進保留和更健康的銷售管道。我們正在穩步推進軟體、服務和硬體銷售比例為 90:10 的目標。總體而言，我們今年稍早概述的進入市場策略已開始取得成果。透過收購 BMS，我們預計將擴大我們的客戶群，加強我們的合作夥伴關係，並將我們強大的管道轉化為有形的銷售。隨著我們優化銷售方式，我們期待 2024 年的機會，這些機會有可能顯著提高我們的市場佔有率、創收能力和 Vislink 的未來發展軌跡。

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 MilGov market and present additional growth prospects. With a solid sales pipeline and a focus on financial sustainability, we believe we can achieve success in Q4 and 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.

最後，我們第三季的業績和正在進行的活動反映了我們對成長和轉型的承諾。最近的收購和合作夥伴關係正在加強我們在 MilGov 市場的地位，並帶來額外的成長前景。憑藉堅實的銷售管道和對財務可持續性的關注，我們相信我們能夠在第四季度和2024 年全年取得成功。隨著我們與知名執法機構簽訂合同，我們預計我們的知名度將得到提高，以進一步豐富我們在美洲和全球的管道。

Looking ahead to the end of the year and beyond, we see immense potential to amplify our market presence, escalate revenue and shape the future of Vislink. Operator, please provide the appropriate instructions.

展望今年年底及以後，我們看到了擴大市場份額、增加收入和塑造 Vislink 未來的巨大潛力。操作員，請提供適當的說明。

Thank you. We will now begin the question-and-answer session. (Operator instructions)

謝謝。我們現在開始問答環節。 （操作員說明）

Brian Kinstlinger from Alliance Global.

Alliance Global 的 Brian Kinslinger。

Hey, guys. This is Shervin on for Brian. Thanks for taking my questions. It's good to hear how the acquisition of BMS expands your addressable market, but could you detail whether there will be or you believe there will be cross-selling opportunities among existing customers?

大家好。這是謝文為布萊恩代言的。感謝您回答我的問題。很高興聽到收購 BMS 如何擴大您的潛在市場，但您能否詳細說明現有客戶中是否會有或您相信會有交叉銷售機會？

Yes, 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 EMEA and with federal agencies here in the US.

是的，一點沒錯。這是一個很好的問題。我們對這次收購感到非常興奮。我簡單介紹一下BM​​S的背景。 BMS 從事這一行業已有 40 多年的歷史。他們擁有良好的業績記錄，並在世界各地擁有現有客戶，特別是在歐洲、中東和非洲以及美國的聯邦機構。

Our customer bases are very complementary. And to give you example, BMS prior to COVID was north of $15 million in sales. Through COVID, they ran into some liquidity challenges around capitalized and they weren't able to make it through. But what we've done since the acquisition is talk to their key customers. Their key customers are excited that BMS brand is alive and well and moving forward with the Vislink brand.

我們的客戶群非常互補。舉個例子，在新冠疫情爆發之前，BMS 的銷售額超過 1,500 萬美元。由於新冠疫情，他們遇到了一些圍繞資本的流動性挑戰，但他們無法度過難關。但自收購以來我們所做的就是與他們的主要客戶交談。他們的主要客戶對 BMS 品牌的活力和活力以及與 Vislink 品牌一起向前發展感到興奮。

As an example, some customers in the Middle East, 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 BMS. 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, but now coupled with our architecture and our product road map that we've been building with AiroLink and Quantum, now they have a refresh capability to upgrade their existing capabilities from H.264 to H.265, from 108i to 1080p and 4K, so as well as a whole host of AI overlay that we have available for. So, we're really excited as our customers to bring those capabilities into the market.

舉例來說，中東地區的一些客戶想了解其邊境發生的情況，而這些國家的邊境局勢非常困難。他們說我們去 BMS 吧。從字面上看，它就是為這些區域提供安全和監控的品牌。因此，它享有很高的聲譽，但現在加上我們與 AiroLink 和 Quantum 一起構建的架構和產品路線圖，現在他們擁有更新功能，可以將其現有功能從 H.264 升級到 H.265，從108i 到1080p 和4K，以及我們可用的一整套AI 覆蓋。因此，作為我們的客戶，我們非常高興能夠將這些功能引入市場。

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 support 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 Vislink architectures in the future and bringing these complete AVDS solutions with an AI overlay to many countries, many federal agencies.

我們一直與 BMS 的歷史供應商群體非常努力地合作，並取得了巨大的成功，讓他們重新上線，以便能夠支持我們為 BMS 設定的目標。所以，現在還為時過早，但我們的團隊、客戶群以及客戶對這個品牌和產品的歷史和尊重都讓我們深受鼓舞。我們期待未來透過 Vislink 架構讓它煥發活力，並將這些帶有 AI 覆蓋的完整 AVDS 解決方案帶到許多國家、許多聯邦機構。

Great. Thanks. Next question. MilGov 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 segment impacted by the new government agreement has resulted in some lower government budgets and anyway ?

偉大的。謝謝。下一個問題。 MilGov 上漲 34%。您能否量化本季的實際收入貢獻是多少，以及我們預計該業務在未來幾季的波動程度如何，而且受新政府協議影響的部分已導致政府預算下降，無論如何？

Yes, what we found -- as Vislink historically in the US, we continue to see federal grants driving a lot of demand. 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 over $1 billion of opportunities that are federal funded. So we continue to see that source of capital being deployed in these types of use cases and applications.

是的，我們發現，正如 Vislink 在美國歷史上一樣，我們繼續看到聯邦撥款推動了大量需求。正如我們所提到的，我們部署了一個大西洋中部大城市。我們也早些時候部署了一個縣，我們看到了幾個由聯邦資助的超過 10 億美元的機會。因此，我們繼續看到資金​​來源部署在這些類型的用例和應用程式中。

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 MilGov side because it not only includes our AVDS product, but it also includes our traditional WCS camera systems that are used in a lot of military applications for war games and things like that as well as our bonded Southern capability that we're seeing deployed in public safety applications.

隨著我們擴大客戶群，特別是 BMS 客戶組合，我們認為我們將能夠在 MilGov 方面獲得持續成長，因為它不僅包括我們的 AVDS 產品，還包括包括我們傳統的WCS 攝影機系統，該系統用於戰爭遊戲等許多軍事應用，以及我們在公共安全應用中部署的保稅南方功能。

An example of that as our new LiveLink that we introduced that received the TVB Europe Show Award in the show, which basically is a 8 modem solution were bonded cellular that you can put on a belt 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 away from the lumpiness that historically we've seen in the MilGov, but by the number of opportunities that we're seeing in the various use cases that we support.

一個例子是我們推出的新LiveLink，它在節目中獲得了TVB 歐洲節目獎，它基本上是一個8 調製解調器解決方案，綁定了蜂窩網絡，您可以將其戴在公共安全人員的腰帶上，以便他們回傳視訊數據和語音到雲端。所以我們看到——我們認為我們可以擺脫歷史上我們在 MilGov 中看到的混亂狀態，但是我們在我們支持的各種用例中看到了機會的數量。

It's great to hear on the beginning part of that question, do you think you could quantify what the actual revenue contribution was during the quarter from MilGov?

很高興聽到這個問題的開頭部分，您認為您可以量化 MilGov 在本季度的實際收入貢獻嗎？

Sure. I think we have it in the materials Paul, is that right, we disclose it at that level ?

當然。我認為我們在材料中已經有了它，保羅，對嗎，我們在那個級別上披露了它？

I don�t think we disclosed at that level now.

我認為我們現在還沒有達到那個水平。

Okay. Yes, so we don�t typically don't break it out, but we can give you the historicals. Typically that's been a third of the business and we've got two thirds on the live production side.

好的。是的，所以我們通常不會透露它，但我們可以為您提供歷史記錄。通常情況下，這佔了業務的三分之一，而我們的三分之二則用於現場製作。

Okay.

好的。

Typically as well.

通常也是如此。

Yes, go ahead.

好，去吧。

Typically as well the margins in that sector are very beneficial for us.

通常情況下，該行業的利潤對我們來說非常有利。

Moving on, do you think you can quantify the number of AeroLink sales that were recognized during the quarter? And is there any sort of visibility on your term sales?

接下來，您認為您可以量化本季確認的 AeroLink 銷售額嗎？您的學期銷售狀況是否有任何可見性？

Yes, on the AiroLinks, we didn't have a great quarter on AiroLink, even with our numbers. A lot of that was to 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, some of these are larger opportunities that may fall out in the next quarter.

是的，在 AiroLinks 上，即使有我們的數據，我們在 AiroLink 上的季度表現也不佳。其中很大一部分是為了那些需要更長的時間才能完成的更大的機會。但我們預測 AeroLinks 本季會有相當大的預測。但同樣，其中一些更大的機會可能會在下個季度消失。

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 MilGov that we have in the past. So, I think as we get a better track record of see now this combined BMS Vislink capability with their incumbency that they have with so many customers, they will 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 quarters looks positive.

但正如我們所提到的，我們的加權漏斗約為 4000 萬美元，這是一個加權漏斗。其中許多包括比我們過去的 MilGov 更大的風險敞口。因此，我認為，當我們獲得更好的追蹤記錄，看到現在將BMS Vislink 功能與他們在眾多客戶中的現有能力相結合時，他們將獲得更好的感覺，並且能夠在未來能夠預測這一點。但我可以說，未來幾季的漏斗看起來是正面的。

Speaking of funnel, you mentioned a couple of times that your pipeline is going, there's more large deals and a lot of it's coming from the international, like more internationally rather than inside the United States. So, I'm curious, is pricing power historically different internationally? Would there be some sort of pressure on margins for more international demand?

說到漏斗，您多次提到您的管道正在進行中，有更多大型交易，其中許多來自國際市場，例如更多來自國際市場，而不是美國境內。所以，我很好奇，國際上的定價能力在歷史上是否有所不同？更多國際需求是否會對利潤率造成某種壓力？

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 a major opportunity that is consistent with the margins that we see throughout the US. And but the most interesting part of that application is it now allows you to bring VR capabilities from moving video and the ability to do that 4K, 6K, ultimately 8K and do that in a way that there is very extremely low latency.

我認為，當你看看我們所關注的一些機會時，例如，我們宣布了 ASPIRE 訂單。這是一個重大機會，與我們在美國各地看到的利潤率一致。但該應用程式最有趣的部分是，它現在允許您從行動視訊中引入 VR 功能，並能夠以 4K、6K、最終 8K 的方式實現這一點，並以極低延遲的方式實現這一點。

So I think what we're finding given the uniqueness that we bring around super low latency, high bandwidth, particularly around DVBT 2, which is a new waveform that we're deploying. Our customers are willing to pay for that level of reliability and consistency and sustainability. And also, we haven't seen pressures on the margins outside the U.S.

因此，我認為考慮到我們帶來的超低延遲、高頻寬的獨特性，特別是圍繞著 DVBT 2（我們正在部署的一種新波形），我們所發現的結果是獨一無二的。我們的客戶願意為這種程度的可靠性、一致性和永續性付費。而且，我們還沒有看到美國以外的利潤率面臨壓力。

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?

很高興聽到這個消息。最後，現場製作業務有什麼更新，特別是圍繞需求的更新嗎？有任何廣泛的復甦跡象嗎？

Well, I think our Live production business remains consistent. And I think what's different for us than in other markets -- with other competitors that aren't in the wireless segment. We are seeing the wireless segment of live production continuing to increase our 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 video that you can't do with a wired solution.

嗯，我認為我們的現場製作業務保持穩定。我認為我們與其他市場的不同之處在於，與其他不屬於無線領域的競爭對手相比。我們看到現場製作的無線部分不斷增加，為超級盃等現場活動提供服務的合作夥伴比以往任何時候都更加繁忙。主要原因是，透過無線，它們可以提供非常親密、引人注目的視頻，這是有線解決方案無法做到的。

So I think by the new products that were introduced, Cliq, which is a mobile unit as well as we'll be introducing Dragon fly 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 UmpCam during Major League World Series here in the US. Those are all capabilities that are brought through wireless, high fidelity, low latency solutions like Vislink provides. And although perhaps live production could be flat. We're seeing that RF element that to continue to grow.

因此，我認為，透過推出的新產品 Cliq（這是一款行動裝置）以及我們將在今年年底推出的 Dragon Fly，這又是一款隨身佩戴型產品。您可以在美國職棒大聯盟世界大賽期間看到 UmpCam 的各種用例。這些都是透過 Vislink 提供的無線、高傳真、低延遲解決方案所帶來的功能。儘管現場製作可能會持平。我們看到射頻元件將繼續成長。

All right. Really quickly, just to clarify something in your prepared remarks, I'm not sure I caught it correctly. Did you say that $5 million and some shipments came the last two weeks and that revenue will be recognized until next quarter. If I hear that correctly?

好的。真的很快，只是為了澄清你準備好的演講中的一些內容，我不確定我是否正確地理解了它。您是否說過 500 萬美元和一些發貨是在過去兩週內完成的，收入要到下個季度才能確認。如果我沒聽錯的話？

No, its revenue recognized, but it's the cash .

不，它的收入是確認的，但它是現金。

Timing of the cash collection.

現金收取的時間。

Got it. Yes.

知道了。是的。

I think that was the key thing we wanted to highlight from a cash perspective, we did burn some cash flows largely because of last quarter and then this quarter, as we mentioned, $5 million of sales were in the last couple of weeks, we expect to use them.

我認為這是我們想要從現金角度強調的關鍵問題，我們確實消耗了一些現金流，主要是因為上個季度，然後這個季度，正如我們提到的，過去幾週的銷售額為500 萬美元，我們預計使用它們。

Got it. Paul just went in and out there for a second. That's why, just wanted to make sure. All right. Thanks so much. That all I have.

知道了。保羅只是進進出出一會兒。這就是原因，只是想確認一下。好的。非常感謝。這就是我所擁有的一切。

Okay, thanks.

好的謝謝。

This concludes our live question and answer session. I'd like now to turn the call and turn the call back over to management for additional questions the Company received from investors.

我們的現場問答環節到此結束。我現在想轉接電話，並將電話轉回管理階層，詢問公司向投資者收到的其他問題。

Yes, I think you know what we've been hearing is a lot of questions on BMS. Again, very excited about this combination. The team that now is a part of Vislink are experts in their field. They've got many years of experience around the AVDS use case there. They're 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 build support in the future.

是的，我想您知道我們聽到了很多關於 BMS 的問題。再次，對這個組合感到非常興奮。現在屬於 Vislink 的團隊都是各自領域的專家。他們在 AVDS 用例方面擁有多年的經驗。他們受到我們客戶群的尊重，並且他們的工作非常專業。因此，我們非常高興該團隊及其客戶能夠加入，以便在未來提供支援。

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.

因此，我們將繼續報告這方面的最新情況，但我們對早期所看到的情況感到非常鼓舞，我們預計這對我們未來的結果非常積極。

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 over to Paul.

我們經常聽到的另一個問題是關於持有至到期的 1,090 萬美元債券。您能否給予債券的性質、到期日等資訊？我會把它交給保羅。

Yes. Thanks, Mickey. And so basically in quarter one of this year, we invested in three bonds totalling $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.

是的。謝謝，米奇。因此，基本上在今年第一季度，我們投資了三支債券，總額為1,090 萬美元，其中兩支是聯邦債券，其中兩支將於今年第四季到期，另一支將於2024 年第一季到期。

All right. Thanks Paul. 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 Vislink the premier provider of Technology Solutions for the collection delivery management and distribution of high-quality live video and data.

好的。謝謝保羅。好的，謝謝大家今天加入我們。感謝我們的投資者一直以來的支持。我們比以往任何時候都更致力於創造股東價值，並使 Vislink 成為高品質即時視訊和資料擷取交付管理和分發的技術解決方案的首要提供者。

We remain committed to enabling creators to capture stream and monetize their content and ensuring the military and first responders have real-time intelligence to fulfil their missions, serve and protect. With our collective efforts and shared vision, I believe the best days of Vislink are ahead of us.

我們仍然致力於使創作者能夠捕獲串流內容並透過其內容獲利，並確保軍隊和急救人員擁有即時情報來完成其任務、服務和保護。透過我們的集體努力和共同的願景，我相信 Vislink 最好的日子就在前方。

Thank you.

謝謝。

Thank you for joining us today for Vislink Third Quarter 2023 conference call. You may now disconnect.

感謝您今天參加 Vislink 2023 年第三季電話會議。您現在可以斷開連線。