Vislink Technologies Inc (VISL) 2024 Q2 法說會逐字稿

Good morning, and welcome to the Vislink Second Quarter 2024 Earnings Conference Call.

早安，歡迎參加 Vislink 2024 年第二季財報電話會議。

My name is Megan, and I will be your operator for today's call.

我叫梅根，我是今天電話的接線生。

Joining us for today's presentation are the company's CEO, Mickey Miller; and CFO, Mike Bond, who will report results for the second quarter ended June 30, 2024.

加入我們今天的演講的是該公司的執行長米奇·米勒 (Mickey Miller)；財務長 Mike Bond 將報告截至 2024 年 6 月 30 日的第二季業績。

A copy of the press release is available on the company's website.

該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's safe harbor statement, which includes cautions regarding forward-looking statements made during this call.

在我們開始電話會議之前，我想提供 Vislink 的安全港聲明，其中包括有關本次電話會議期間所做前瞻性陳述的警告。

Management will make statements during the call that include forward-looking statements within the meaning of the federal securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

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，這些聲明是根據 1995 年《私人證券訴訟改革法案》的安全港條款制定的。

Any statements contained in this call that are not statements of historical facts should be deemed to be 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。

All forward-looking statements, including without implementation, examination of operating trends and financial expectations are based upon the company's current estimations and various assumptions.

所有前瞻性陳述，包括未實施、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。

These statements involve risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward-looking statements.

這些陳述涉及風險和不確定性，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.

因此，您不應依賴這些陳述。

For lists of the risks and uncertainties associated with the company's business, please see the company's filings with the Securities and Exchange Commission.

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 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, events or otherwise.

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，無論是由於新資訊、事件或其他原因。

This conference call contains time-sensitive information that is accurate only as of the live broadcasting this morning, August 14, 2024.

本次電話會議包含時效性訊息，僅截至 2024 年 8 月 14 日上午直播時準確。

Please note, this event is being recorded.

請注意，此事件正在被記錄。

Now I would like to turn the call over to Vislink's CEO, Mr. Mickey Miller.

現在我想把電話轉給Vislink 的執行長Mickey Miller 先生。

Please go ahead.

請繼續。

Thank you, operator, and thank you, everyone, for joining us today.

謝謝運營商，也謝謝大家今天加入我們。

This morning, we filed our Form 10-Q with the SEC and issued a press release that provided our financial results for the second quarter ended June 30, 2024, along with key business accomplishments.

今天早上，我們向 SEC 提交了 10-Q 表格，並發布了新聞稿，提供了截至 2024 年 6 月 30 日的第二季度財務業績以及主要業務成就。

As a brief overview for today's call, I'll start by discussing our second quarter performance and highlighting our progress toward our three-year financial goals.

作為今天電話會議的簡要概述，我將首先討論我們第二季度的業績，並強調我們在實現三年財務目標方面取得的進展。

I'll then pass the call to Mike to discuss our financial results.

然後我會將電話轉給麥克，討論我們的財務表現。

Afterwards, I'll return to discuss recent updates within our key target markets, product developments and our go-to-market strategies.

之後，我將回來討論我們的主要目標市場、產品開發和上市策略的最新動態。

As we advance through 2024, we are on track to meet our three-year financial and operational objectives.

隨著 2024 年的進展，我們有望實現三年財務和營運目標。

Our targets include doubling revenue by 2026, increasing recurring revenue streams, and achieving cash flow positivity in 2025.

我們的目標包括在 2026 年收入翻倍、增加經常性收入流以及到 2025 年實現正現金流。

While we aim for cash flow neutrality by the end of 2024, the timeline may adjust due to the need to invest in promising growth opportunities we are actively pursuing.

雖然我們的目標是到 2024 年底實現現金流中性，但由於需要投資於我們正在積極尋求的有前景的成長機會，因此時間表可能會進行調整。

I'm excited to share that the second quarter of '24 has been another confident step forward for Vislink in pursuit of our three-year goals.

我很高興地告訴大家，24 年第二季是 Vislink 在實現我們三年目標的過程中又向前邁出了充滿信心的一步。

Our efforts have resulted in robust financial performance and significant progress in executing our strategic initiatives.

我們的努力帶來了強勁的財務業績，並在執行策略計劃方面取得了重大進展。

In Q2, we achieved a 73% year-over-year increase in revenue, reaching $8.7 million.

第二季度，我們的營收年增 73%，達到 870 萬美元。

This growth was driven by both our Live Production and MilGov markets.

這一增長是由我們的現場製作和 MilGov 市場推動的。

Our strategic focus on new products particularly in the MilGov sector is paying off.

我們對新產品（尤其是 MilGov 領域）的策略重點正在取得回報。

In recent months, we have landed key MilGov orders and successfully converted opportunities with BMS customers.

近幾個月來，我們獲得了 MilGov 的關鍵訂單，並成功地與 BMS 客戶轉換了機會。

In 2024, our systems were successfully deployed with US Customs and Border Protection, Baltimore City Police, Baltimore County Sheriff and the New Jersey State Police, and initial orders were received with the Danish Ministry of Defense and DC Metropolitan Police.

2024 年，我們的系統成功部署在美國海關和邊境保護局、巴爾的摩市警察局、巴爾的摩縣治安官和新澤西州警察局，並收到了丹麥國防部和華盛頓特區警察局的初步訂單。

Additionally, we have positioned Vislink for expanded market reach in the coming years by obtaining NATO Stock Numbers and successful shipments to several OEM customers.

此外，我們透過取得北約庫存編號並成功向多家 OEM 客戶出貨，將 Vislink 定位為在未來幾年擴大市場覆蓋範圍。

NATO Stock Numbers, included in the NATO codification system, are critical for standardizing and streamlining procurement processes within the 63 partner nations.

北約庫存編號包含在北約編纂系統中，對於標準化和簡化 63 個夥伴國家的採購流程至關重要。

Obtaining NSNs for our AVDS product portfolio significantly raises Vislink's credibility and market access in the defense sector.

為我們的 AVDS 產品組合獲得 NSN 可以顯著提高 Vislink 在國防部門的可信度和市場准入。

This milestone could enable more efficient and widespread adoption of our technology within NATO forces, opening the door to significant contracts.

這一里程碑可以使我們的技術在北約部隊中更有效、更廣泛地採用，從而為簽訂重要合約打開大門。

Additionally, achieving approved supplier status with three new OEM partners solidifies our relationships and paves the way for more reliable revenue streams.

此外，與三個新的 OEM 合作夥伴取得批准的供應商地位鞏固了我們的關係，並為更可靠的收入來源鋪平了道路。

We've also made significant strides in expanding our weighted sales pipeline, now valued at $51 million, up from record levels reported in Q1.

我們在擴大加權銷售管道方面也取得了重大進展，目前價值 5,100 萬美元，高於第一季報告的創紀錄水準。

This reflects the demand for our current offerings in new products and our potential to expand into emerging markets such as Drone Command and Control or Drone C2.

這反映了對我們目前新產品的需求以及我們擴展到無人機指揮與控製或無人機 C2 等新興市場的潛力。

Our increased R&D investment in Drone C2 highlights our proactive approach to pursuing emerging opportunities in both manned and unmanned applications.

我們對 Drone C2 研發投入的增加凸顯了我們在載人和無人應用領域積極尋求新興機會的方法。

As we navigate the remainder of '24, our goal remains to achieve cash flow neutrality by year-end and transition to cash flow positivity in 2025.

在 24 年剩餘的時間裡，我們的目標仍然是在年底前實現現金流中性，並在 2025 年過渡到現金流正值。

Our Q2 expenses were higher than expected due to talent acquisitions, nonstandard governance costs and R&D investments.

由於人才收購、非標準治理成本和研發投資，我們第二季的支出高於預期。

We are actively pursuing operational enhancements and cost optimizing measures alongside our strong revenue growth trajectory to ensure effective cash management.

我們正在積極尋求營運改善和成本優化措施以及強勁的收入成長軌跡，以確保有效的現金管理。

In line with these efforts, we have appointed Donnie Gilliam as VP of Operations to further improve our operational efficiency and effectiveness.

為了配合這些努力，我們任命 Donnie Gilliam 為營運副總裁，以進一步提高我們的營運效率和效益。

His extensive experience in operations, supply chain management and lean manufacturing will be instrumental in driving customer satisfaction, cost reduction and working capital improvements.

他在營運、供應鏈管理和精益製造方面的豐富經驗將有助於提高客戶滿意度、降低成本和改善營運資本。

Donnie will also lead the implementation of our new ERP system this fall, which will enhance our cost structure, inventory management and customer deliveries.

Donnie 也將在今年秋天領導實施我們新的 ERP 系統，這將改善我們的成本結構、庫存管理和客戶交付。

Additionally, Bill Sweeney with his extensive MilGov background is leading our global sales efforts as a new Senior VP of Sales.

此外，擁有豐富 MilGov 背景的 Bill Sweeney 作為新任銷售高級副總裁領導我們的全球銷售工作。

Our focus on the MilGov market is paving the path for our growth, bolstered by opportunities opened by the BMS network.

在 BMS 網路帶來的機會的支持下，我們對 MilGov 市場的關注正在為我們的成長鋪平道路。

These factors, combined with our increased governmental investment given the current geopolitical landscape, will drive our revenue growth.

這些因素，加上我們在當前地緣政治格局下增加的政府投資，將推動我們的收入成長。

We expect to continue growing by ramping up and refining our sales efforts, supporting our enhanced channel capabilities and ever-improving product portfolio.

我們希望透過加大和完善我們的銷售力度、支持我們增強的通路能力和不斷改進的產品組合來繼續成長。

Before I proceed with further updates, I'll pass the call over to our CFO, Mike Bond, to provide a detailed overview of our financial results for the second quarter.

在進行進一步更新之前，我會將電話轉給我們的財務長 Mike Bond，他將詳細介紹我們第二季的財務表現。

Mike?

麥克風？

Thank you, Mickey, and good morning, everyone.

謝謝米奇，大家早安。

Looking at our financial results for the second quarter.

看看我們第二季的財務表現。

Our total revenue increased 73% to $8.7 million, up from $5 million in the prior year period.

我們的總收入從去年同期的 500 萬美元成長了 73%，達到 870 萬美元。

The increase in total revenue resulted from continuing growth in sales to both Live Production and MilGov customers.

總收入的成長得益於 Live Production 和 MilGov 客戶的銷售額持續成長。

Gross profit increased to $4.9 million, up from $2.6 million in the prior year period.

毛利從去年同期的 260 萬美元增至 490 萬美元。

The gross profit margin for the quarter was 56% up from 53% in the prior year.

該季度的毛利率為 56%，高於去年同期的 53%。

The year-over-year improvement in gross margin reflects greater operational efficiency.

毛利率的同比改善反映了營運效率的提高。

The gross margin improvement was partially offset by a higher mix of revenue from Live Production markets as well as from installation timing for a large MilGov opportunity.

毛利率的提高部分被現場製作市場收入的增加以及大型 MilGov 機會的安裝時間所抵消。

Total expenses were $11.3 million compared to $8.4 million in the prior year period.

總支出為 1,130 萬美元，去年同期為 840 萬美元。

Beyond the costs associated with the increased revenue, our Q2 expenses reflect onetime corporate costs, including new higher recruiting fees, legal fees associated with evaluating inorganic growth opportunities and an increase in personnel in preparation for the upcoming ERP implementation.

除了與收入增加相關的成本之外，我們第二季度的支出還反映了企業的一次性成本，包括新增加的招聘費用、與評估無機增長機會相關的法律費用以及為即將到來的ERP 實施做準備的人員增加。

We also saw an increase in R&D investments, which we anticipate will continue over the next several quarters as we strategically invest in our Drone C2 platform.

我們也看到研發投資的增加，隨著我們對無人機 C2 平台的策略性投資，我們預計這種投資將在未來幾季繼續增加。

Turning now to our profitability measures.

現在轉向我們的獲利能力指標。

Operating loss improved to a negative $2.6 million, down from a negative $3.4 million in the prior year period.

營運虧損從去年同期的負 340 萬美元降至負 260 萬美元。

Net loss attributable to common shareholders improved to a negative $2.3 million or a negative $0.93 per share.

普通股股東應佔淨虧損改善至負 230 萬美元，即每股負 0.93 美元。

That's from a negative $3 million or a negative $1.27 per share in the prior year period.

上一年期間每股收益為負 300 萬美元，每股收益為負 1.27 美元。

This improvement demonstrates that our strategic cost management is working and will continue to enhance operational efficiencies.

這項改進表明我們的策略成本管理正在發揮作用並將繼續提高營運效率。

Moving now to the balance sheet.

現在轉向資產負債表。

As of June 30, 2024, our cash and short-term investments stood at $11.5 million compared to $14.2 million at December 31, 2023.

截至 2024 年 6 月 30 日，我們的現金和短期投資為 1,150 萬美元，而 2023 年 12 月 31 日為 1,420 萬美元。

We experienced higher-than-expected cash usage during Q2, primarily due to onetime corporate items including talent acquisition and nonstandard governance costs.

第二季我們的現金使用量高於預期，主要是因為人才收購和非標準治理成本等一次性公司專案。

These items are not expected to recur, and we anticipate improved cash performance moving forward.

這些項目預計不會再次發生，我們預計未來現金績效將有所改善。

Despite these challenges, we maintained a robust working capital of $29 million at the end of the second quarter compared to $31.8 million at December 31, 2023.

儘管面臨這些挑戰，我們在第二季末仍維持了 2,900 萬美元的強勁營運資本，而 2023 年 12 月 31 日為 3,180 萬美元。

As we launch our ERP system this fall, we expect to see continued improvements in cash performance, inventory management, supply chain and our working capital turns in the coming quarters.

隨著我們今年秋季推出 ERP 系統，我們預計未來幾季現金績效、庫存管理、供應鏈和營運資金周轉率將持續改善。

That concludes my prepared remarks.

我準備好的發言就到此結束。

I'll now turn it back to Mickey.

我現在把它轉回給米奇。

Thanks, Mike.

謝謝，麥克。

We turn to operational updates.

我們轉向營運更新。

In our MilGov markets, we continue to demonstrate strong growth, largely fueled by the success of our AeroLink platform solutions and translating the BMS networks into loyal Vislink customers.

在我們的 MilGov 市場中，我們繼續表現出強勁的成長，這主要得益於我們的 AeroLink 平台解決方案的成功以及將 BMS 網路轉化為忠實的 Vislink 客戶。

We achieved significant milestones this quarter, including delivery, initial shipments to US Customs and Border Protection.

本季我們實現了重要的里程碑，包括交貨、首次向美國海關和邊境保護局發貨。

These orders involve providing advanced air-to-ground communication systems that enhance CBP's situational awareness.

這些訂單涉及提供先進的空對地通訊系統，以增強 CBP 的態勢感知能力。

Orders like these validate our capability to meet the stringent technical requirements of MilGov clients.

此類訂單驗證了我們滿足 MilGov 客戶嚴格技術要求的能力。

These orders should serve as a strong reference as we pursue growth globally.

當我們追求全球成長時，這些訂單應該成為強而有力的參考。

We've also executed on our approved supplier status with three new OEM partners, further solidifying our relationships and paving the way for more reliable revenue streams.

我們還與三個新的 OEM 合作夥伴一起執行我們批准的供應商身份，進一步鞏固我們的關係，並為更可靠的收入來源鋪平道路。

Turning to the Live Production markets.

轉向現場製作市場。

Our performance remains strong with consistent revenue contributions compared to the prior year.

與前一年相比，我們的業績依然強勁，營收貢獻穩定。

Notably, we had a significant installed base at the Olympics, displaying Vislink's prominence.

值得注意的是，我們在奧運會上擁有了重要的安裝基礎，這顯示了 Vislink 的突出地位。

In addition to the Olympics, our solutions were deployed in other marquee events this year, including the Tour de France, Wimbledon and COPA America.

除了奧運之外，我們的解決方案今年還部署在其他大型賽事中，包括環法自行車賽、溫布頓網球公開賽和美洲盃。

In Q2, we completed a $1 million program installation at the new Walt Disney Company headquarters in New York.

第二季度，我們在紐約華特迪士尼公司新總部完成了價值 100 萬美元的專案安裝。

Our technology will allow for seamless indoor and outdoor coverage of top-rated shows, including The View, LIVE with Kelly and Mark, Tamron Hall, ABC Nightly News, and ESPN New York.

我們的技術將實現頂級節目的室內外無縫覆蓋，包括 The View、LIVE with Kelly and Mark、Tamron Hall、ABC Nightly News 和 ESPN New York。

We also completed $1 million shipment to the National Hockey League.

我們也完成了向國家冰球聯盟運送 100 萬美元的貨物。

The NHL uses our wireless video system to visually monitor and ensure the integrity of their scoring system.

NHL 使用我們的無線視訊系統來直觀地監控並確保其評分系統的完整性。

We continue to grow our brand and presence in emerging geographical markets.

我們繼續在新興地區市場發展我們的品牌和影響力。

Recently, we have had significant wins with Doordarshan the state-owned public broadcaster, and Zoom Communications, the country's largest Live Production service provider.

最近，我們與國有公共廣播公司 Doordarshan 和全國最大的現場製作服務提供商 Zoom Communications 取得了重大勝利。

Doordarshan, one of India's largest broadcasting organizations provides television, online and mobile services across metropolitan and regional India as well as internationally through its satellite network.

Doordarshan 是印度最大的廣播組織之一，透過其衛星網路在印度大都市和地區以及國際範圍內提供電視、線上和行動服務。

This partnership increases our visibility and positions us at the forefront of India's expansive broadcasting landscape.

這種夥伴關係提高了我們的知名度，並使我們處於印度廣闊的廣播領域的前沿。

These strategic wins in India, a rapidly growing market with significant potential, lay a robust foundation for our continued expansion across South Asia.

印度是一個快速成長且潛力巨大的市場，這些戰略勝利為我們在南亞的持續擴張奠定了堅實的基礎。

As we deliver innovative solutions in these key regions, we reinforce our ability to provide cutting-edge technology and expand our global footprint.

當我們在這些關鍵地區提供創新解決方案時，我們增強了提供尖端技術並擴大全球足跡的能力。

Upgrading and expanding our product lineup remains a critical part of our growth strategy.

升級和擴大我們的產品陣容仍然是我們成長策略的重要組成部分。

In Q2, we made significant progress in several areas.

第二季度，我們在多個領域取得了重大進展。

We are particularly excited about the advancements in our Drone Command and Control technology.

我們對無人機指揮和控制技術的進步感到特別興奮。

We are taking a proactive approach to capturing new opportunities in both manned and unmanned applications.

我們正在採取積極主動的方法來捕捉有人和無人應用中的新機會。

This market is expected to grow rapidly, and our technology is well positioned to meet the demand.

該市場預計將快速成長，而我們的技術足以滿足需求。

In Q2, we kicked off a feasibility study, engaging with key industry leaders to identify the future market requirements, leveraging Vislink's unique expertise.

在第二季度，我們啟動了一項可行性研究，與主要行業領導者合作，利用 Vislink 獨特的專業知識來確定未來的市場需求。

This effort has provided an overwhelmingly positive feedback, confirming our decision to increase spending in this area.

這項努力提供了壓倒性的正面回饋，證實了我們增加該領域支出的決定。

This investment will produce a waveform-agnostic, bidirectional command, control and video platform that will support multiples of short- and long-range unmanned aerial and terrestrial systems.

這項投資將產生一個與波形無關的雙向命令、控制和視訊平台，該平台將支援多個短程和遠端無人機和地面系統。

We will work closely with existing and new customers in this area.

我們將與該領域的現有和新客戶密切合作。

We look forward to providing updates in subsequent quarters and expect this effort to generate revenue in late 2025.

我們期待在接下來的幾個季度提供更新，並預計這項努力將在 2025 年末產生收入。

Additionally, we are building a robust digital platform to improve our market presence.

此外，我們正在建立一個強大的數位平台，以提高我們的市場影響力。

The launch of our new website this fall is expected to significantly enhance our online visibility and lead generation capabilities.

我們今年秋季推出的新網站預計將顯著提高我們的線上知名度和潛在客戶開發能力。

We also continue our trade show activities, such as the Airborne Public Safety Association Convention and the Texas Association of Broadcasters.

我們也繼續進行貿易展覽活動，例如機載公共安全協會大會和德克薩斯州廣播協會。

And we are preparing for the international broadcasting convention, where we are a finalist for the IBC Innovation Award in content creation.

我們正在為國際廣播大會做準備，我們已入圍 IBC 內容創作創新獎的決賽。

We are pleased to announce that Vislink has joined the Grass Valley Technology Alliance, a certification program that ensures our products work seamlessly with Grass Valley systems.

我們很高興地宣布 Vislink 已加入 Grass Valley 技術聯盟，這是一項認證計劃，可確保我們的產品與 Grass Valley 系統無縫配合。

Grass Valley is a leading media technology provider for the media and entertainment industry.

Grass Valley 是媒體和娛樂產業領先的媒體技術供應商。

This partnership extends our potential customer base and enhances the products we can offer, including the wireless camera transmitter which is designed for high-quality video capture in various settings from sports events to emergency situations.

這種合作夥伴關係擴大了我們的潛在客戶群，並增強了我們可以提供的產品，包括無線攝影機發射器，該發射器專為從體育賽事到緊急情況等各種環境下進行高品質視訊捕捉而設計。

We remain focused on leveraging our hardware and infrastructure to drive recurring service and software revenues.

我們仍然專注於利用我們的硬體和基礎設施來推動經常性服務和軟體收入。

Our Air-to-Anywhere platform will be the cornerstone of future advancements.

我們的空對任何地方平台都將成為未來進步的基石。

An AI-enhanced video processing to improve the detection and analysis of activities such as crowd control, drug trafficking and border surveillance.

人工智慧增強視訊處理，可改善人群控制、販毒和邊境監視等活動的偵測和分析。

These efforts align with our strategy to increase recurring revenue streams and enhance the functionality and quality of our visual solutions.

這些努力與我們增加經常性收入流並增強視覺解決方案的功能和品質的策略相一致。

Leveraging common technology components to enhance system scalability and quality will remain our key product development strategy, continuing to drive margin improvements and efficiencies.

利用通用技術組件來增強系統可擴展性和品質將仍然是我們的關鍵產品開發策略，繼續推動利潤率提高和效率。

As we continue to pursue growth opportunities, maintaining a strong focus on operating cost management ensures that we will remain at the forefront of industry advancements.

在我們繼續尋求成長機會的同時，保持對營運成本管理的高度關注可確保我們始終處於行業進步的前沿。

Our go-to-market strategies continue to evolve, showing promising results across our four focus areas: live video connectivity, video data transport, AVDS, and Drone Command and Control.

我們的市場進入策略不斷發展，在我們的四個重點領域中顯示出可喜的成果：即時視訊連接、視訊資料傳輸、AVDS 以及無人機指揮與控制。

Our progress in the Drone C2 is particularly encouraging.

我們在 Drone C2 的進展尤其令人鼓舞。

Although it's an emerging market, we expect it to grow rapidly in the coming years, and meaningful conversations with key industry leaders earlier this year have led us to ramp up our investment in this area.

儘管這是一個新興市場，但我們預計它在未來幾年將快速成長，今年稍早與主要產業領導者進行的有意義的對話促使我們加大了在這一領域的投資。

Our bonded cellular technology continues to play a crucial role in live video connectivity and in video data transport, providing reliable and high-quality video transmission for various applications.

我們的綁定蜂窩技術繼續在即時視訊連接和視訊資料傳輸中發揮關鍵作用，為各種應用提供可靠且高品質的視訊傳輸。

We are advancing discussions with key OEM participants to ensure our technology road map aligns with our future requirements, reinforcing our position as a leader in meeting the evolving needs of our markets.

我們正在推進與主要 OEM 參與者的討論，以確保我們的技術路線圖符合我們未來的需求，從而鞏固我們作為滿足市場不斷變化的需求的領導者的地位。

Additionally, our engagement with key industry stakeholders has shown strong interest and positive feedback, which we believe will convert into firm orders in the coming quarters.

此外，我們與主要行業利益相關者的接觸表現出了強烈的興趣和積極的反饋，我們相信這將在未來幾季轉化為確定的訂單。

Our efforts in demonstrating the capabilities and reliability of our technology are gaining considerable traction, especially in sectors that demand robust and flexible video data transport solutions.

我們在展示技術的功能和可靠性方面所做的努力正在獲得相當大的關注，特別是在需要強大而靈活的視訊資料傳輸解決方案的領域。

In Q2, we saw considerable traction with increasing market interest and trial usage.

在第二季度，隨著市場興趣和試用使用的增加，我們看到了相當大的吸引力。

In the second half, our focus remains on converting interest into orders through demonstrations and trials, ensuring that our innovations lead to tangible growth.

下半年，我們的重點仍是透過示範、試驗將興趣轉化為訂單，確保創新帶來實質的成長。

Looking ahead, we are energized by the positive start to the year and have promising catalysts on the horizon to maintain this momentum.

展望未來，我們對今年的積極開局感到充滿活力，並且即將出現有希望的催化劑來保持這一勢頭。

Our solid foundation from the first half of the year, along with our ongoing strategic initiatives and exploration of exciting new growth areas should propel us towards meeting our ambitious targets in the coming quarters and years.

我們上半年的堅實基礎，加上我們持續的策略性舉措和對令人興奮的新成長領域的探索，應該會推動我們在未來幾季和幾年實現雄心勃勃的目標。

Our robust $51 million weighted sales pipeline reflects our strong market position and the demand for our innovative solutions.

我們強大的 5,100 萬美元加權銷售管道反映了我們強大的市場地位和對我們創新解決方案的需求。

As we stay focused on our strategic goals and expand our market reach, we are well positioned to continue driving value for our stakeholders and achieving long-term growth.

當我們專注於我們的策略目標並擴大我們的市場覆蓋範圍時，我們將處於有利地位，能夠繼續為利害關係人創造價值並實現長期成長。

Thank you for your continued support and confidence in Vislink.

感謝您一直以來對 Vislink 的支持與信任。

We look forward to updating you on our progress in the coming quarters.

我們期待向您通報我們未來幾季的最新進展。

Operator, please provide the appropriate instructions.

操作員，請提供適當的說明。

(Operator Instructions) Sam McColgan, Breakout Investors.

（操作員指示）Sam McColgan，突破投資者。

Congratulations.

恭喜。

Strong quarter and, yes, it was great to hear so much commentary about kind of new clients you're getting in, new partnerships, new kind of certifications.

這是一個強勁的季度，是的，很高興聽到這麼多關於您所獲得的新客戶、新合作夥伴關係、新認證類型的評論。

So well done on all fronts there.

那裡在各方面都做得很好。

I wondered if you can talk a little bit about your journey towards cash flow neutrality and positivity next year.

我想知道您是否可以談談明年實現現金流中性和積極性的旅程。

How much of that do you think will be attributed towards revenue growth?

您認為其中有多少將歸因於收入成長？

And how much is, you think, attributed to operating costs?

您認為營運成本有多少？

I'm not obviously looking for anything super specific here but just a general sense. joining.

我顯然不是在這裡尋找任何超級具體的東西，而只是一般意義上的。加入。

Sam, thanks for joining.

山姆，感謝您的加入。

I'll say a few words and then I'll let Mike give some more color.

我會說幾句話，然後讓麥克提供更多的色彩。

As we've talked about in the past, we being a small company -- a small public company, there are some fixed costs associated with being public, whether it will be third-party costs, attorney fees, auditors, NASDAQ fees.

正如我們過去談到的，我們是一家小公司——一家小型上市公司，有一些與上市相關的固定成本，無論是第三方成本、律師費、審計師費用、納斯達克費用。

And so we see that contribution, once you -- we contribute to that fixed cost -- that effective fixed cost, then things drop to the bottom, so you get operating leverage.

因此，我們看到了這種貢獻，一旦你——我們為固定成本做出了貢獻——有效的固定成本，那麼事情就會降到最低點，這樣你就可以獲得營運槓桿。

So that's one area.

這就是一個領域。

The second area is obviously as we grow, our goal to grow and double our revenue with the margins we have today will allow us to again drop that through and get the EBITDA growth that we've talked about and the positive cash flow.

第二個領域顯然是隨著我們的發展，我們的目標是在現有的利潤率基礎上實現收入增長和翻倍，這將使我們能夠再次實現這一目標，並獲得我們所討論的EBITDA 增長和正現金流。

We're also, as we mentioned, going through an ERP upgrade, which will -- currently, we operate on four different systems throughout the company.

正如我們所提到的，我們也正在進行 ERP 升級，目前，我們在整個公司的四個不同系統上運行。

So we see a large opportunity to become more efficient and more effective in our operating costs, which will reduce our operating costs and again drive more operating leverage.

因此，我們看到了提高營運成本效率和效益的巨大機會，這將降低我們的營運成本並再次推動更高的營運槓桿。

Mike, do you want to add to that?

麥克，你想補充一下嗎？

Mickey covered it pretty well, Sam.

米奇把它掩蓋得很好，山姆。

But as we look forward, we do think we're going to obviously increase sales.

但展望未來，我們確實認為我們的銷售額將會大幅增加。

We have a great mix of new products coming online, and so we do see a lot of interest.

我們推出了多種新產品，因此我們確實看到了許多興趣。

And so we think we'll hold margin and potentially move up a few points in margin.

因此，我們認為我們將保持保證金，並有可能將保證金提高幾個百分點。

So that's one good contributor.

所以這是一位很好的貢獻者。

The other is we're on a heavy cost containment exercise at this point.

另一個是我們目前正在進行一項沉重的成本控制工作。

As Mickey mentioned, we had some very upsized kind of onetime costs associated with talent acquisition.

正如米奇所提到的，我們在人才招募方面存在一些非常大的一次性成本。

We do have a huge effort going on with our ERP conversion at this point, and that does obviously cost us some G&A dollars to implement that.

目前，我們確實在 ERP 轉換方面付出了巨大的努力，這顯然需要我們花費一些管理費用來實現這一目標。

So we're kind of doubling up on some costs there as we run four systems and then integrate a new system into the fabric of the company.

因此，當我們運行四個系統，然後將一個新系統整合到公司結構中時，我們的成本會增加一倍。

So we think that our expenses going forward will reduce to a certain extent.

所以我們認為未來我們的開支將會有一定程度的減少。

We're looking to rationalize our expenses as we go forward and reduce those as much as we can.

我們希望在前進的過程中合理化我們的開支，並盡可能減少開支。

And we also think that, as Mickey said, this new ERP system will give us a lot of operational efficiency throughout the company.

而且我們也認為，正如 Mickey 所說，這個新的 ERP 系統將為我們整個公司帶來很大的營運效率。

And we think that, that will give us some real cost benefit going forward.

我們認為，這將為我們帶來一些真正的成本效益。

Right.

正確的。

Very exciting to hear.

很令人興奮。

My next question was about the R&D expenses.

我的下一個問題是關於研發費用。

You're expecting that to increase.

你期望這個數字會增加。

And if I understood right, a decent portion of that increase is kind of directed towards the kind of work around the drones.

如果我理解正確的話，那麼成長的很大一部分是針對無人機的工作。

I was wondering if you can maybe help me understand how best to think about that.

我想知道你是否可以幫助我理解如何最好地思考這個問題。

And the improvements or the research and development you're doing, am I right in thinking that's essentially to prepare for quite specific deals or products which specific customers have in mind rather than just kind of making general improvements to improve your general standing in the marketplace?

您正在進行的改進或研發，我的想法是否正確，這本質上是為特定客戶所考慮的特定交易或產品做準備，而不僅僅是進行一般性改進以提高您在市場中的整體地位？

It sounds like you have more specific end goals with these improvements, but I just wanted to check that with you.

聽起來您對這些改進有更具體的最終目標，但我只是想與您核實一下。

Yes.

是的。

We see it as a platform, Sam.

我們將其視為一個平台，山姆。

So currently today, in our manned systems, typically, it's one man's unit to one system.

因此，目前，在我們的載人系統中，通常是一個人的單位對一個系統。

But as you know, with Class II, III, IV drones, you can need multiple drones, multiple unmanned both terrestrial and aerial and long ranges.

但如您所知，對於 II、III、IV 級無人機，您可能需要多架無人機，多架地面、空中和遠程無人機。

So to be able to have that capability.

所以能夠有這個能力。

We have a unique capability around pieces of that, but there's other elements that we need to add to our platform to allow us to address that larger market.

我們在這方面擁有獨特的能力，但我們也需要將其他元素添加到我們的平台中，以便我們能夠應對更大的市場。

So that's the effort that we have kicked off after our investigation in the first half of this year, working with some of the key leaders in the space.

這就是我們在今年上半年進行調查後與該領域的一些主要領導者合作開始的努力。

And that will then augment our current capabilities to be able to open up a much larger market to us.

這將增強我們當前的能力，從而能夠為我們打開一個更大的市場。

Sam, the one thing I would add is that we did have some nonrecurring R&D charges in the first quarter associated with bringing some of our new products online.

山姆，我要補充的一件事是，我們在第一季確實有一些與將一些新產品上線相關的非經常性研發費用。

We don't think -- we don't expect those to continue.

我們不認為這種情況會持續下去。

But as Mickey said, now we'll start making some incremental investment in R&D associated with some very targeted technology towards specific customer groups.

但正如米奇所說，現在我們將開始對研發進行一些增量投資，這些投資與針對特定客戶群的一些非常有針對性的技術相關。

Yes.

是的。

Understood.

明白了。

Great.

偉大的。

Last one for me.

最後一張給我。

I think one of the perhaps the most significant announcements you made was -- have to do with securing their NATO Stock Numbers for your AVDS products.

我認為你們發布的最重要的公告之一可能是——與確保你們的 AVDS 產品的北約庫存編號有關。

I was wondering if you could just elaborate a little bit more on what kind of doors does that open for you, what kind of time line might we expect to see something perhaps happen out of that.

我想知道你是否可以詳細說明一下這會為你打開什麼樣的大門，我們預計會在什麼樣的時間線上看到可能會發生的事情。

Yes.

是的。

Great question, Sam.

好問題，山姆。

So in order to get an NSN, you have to have 1 of the 63 member countries effectively sponsoring you and drive the requirement to be able to have NSN-designed.

因此，為了獲得 NSN，您必須獲得 63 個成員國之一的有效贊助，並推動能夠進行 NSN 設計的要求。

And so we're able to achieve that.

所以我們能夠實現這一目標。

And now we have the opportunity as we engage with other NATO countries, it's a very simplified process as opposed to the more extensive processes we're going through, getting qualified, getting -- the process of obtaining the numbers, which takes some time.

現在我們有機會與其他北約國家接觸，這是一個非常簡化的過程，而不是我們正在經歷的更廣泛的過程，獲得資格，獲得數字的過程，這需要一些時間。

So this should accelerate as we develop more opportunities with the 63 partner nations in NATO.

因此，隨著我們與北約 63 個夥伴國家開發更多機會，這一進程應該會加速。

Congratulations again, a strong quarter.

再次祝賀，這是一個強勁的季度。

Great commentary.

很棒的評論。

And I look forward to seeing how things progress for the rest of the year.

我期待著看到今年剩餘時間事情的進展。

Thanks, Sam.

謝謝，山姆。

(Operator Instructions) That concludes our question-and-answer session.

（操作員說明）我們的問答環節到此結束。

Thank you for joining us today for Vislink's Second Quarter 2024 Conference Call.

感謝您今天參加 Vislink 2024 年第二季電話會議。

You may now disconnect.

您現在可以斷開連線。