Vislink Technologies Inc (VISL) 2024 Q3 法說會逐字稿

Good morning, and thank you for holding. Welcome to Vislink's third-quarter 2024 earnings results conference call. My name is Chris, and I will be your operator for today's call.

早上好，謝謝您的支持。歡迎參加 Vislink 2024 年第三季收益結果電話會議。我叫克里斯，今天我將擔任您的電話接線生。

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 September 30, 2024. A copy of the press release is available on the company's website.

參加今天演講的有公司執行長米奇·米勒 (Mickey Miller) 和財務長邁克·邦德 (Mike Bond)，他們將報告截至 2024 年 9 月 30 日的第二季業績。新聞稿副本可在該公司網站上查閱。

Before we begin today's call, I would like to provide Vislink's Safe Harbor statements, 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 made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

在我們開始今天的電話會議之前，我想提供 Vislink 的安全港聲明，其中包括對本次電話會議期間做出的前瞻性陳述的警告。管理階層將在電話會議中做出包括聯邦證券法所定義之前瞻性聲明的聲明，這些聲明均依據 1995 年《私人證券訴訟改革法案》的安全港條款做出。

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, our 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. Accordingly, you should not rely on these statements.

本電話會議中包含的任何非歷史事實陳述均應被視為前瞻性陳述。所有前瞻性陳述，包括但不限於我們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。這些聲明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聲明預期或暗示的結果或事件有重大差異。因此，您不應依賴這些聲明。

For a list of these 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. This conference call contains time-sensitive information that is accurate only as of the live broadcast this morning, November 14, 2024.

有關與公司業務相關的風險和不確定因素的列表，請參閱公司向美國證券交易委員會提交的文件。除法律要求外，Vislink 不承擔更新或修改任何財務預測或前瞻性聲明的任何意圖或義務，無論是由於新資訊、未來事件或其他原因。本次電話會議包含時間敏感訊息，僅截至 2024 年 11 月 14 日上午的現場直播時準確。

At this time, I would like to turn the call over to Vislink's CEO, Mickey Miller. Please, proceed sir.

現在，我想將電話轉給 Vislink 的執行長 Mickey Miller。先生，請繼續。

Thank you, operator, and thank you, everyone, for joining us today. This morning, we filed our Form 10-Q with the SEC and issued a press release that provided our financial results for the third quarter ended September 30, 2024, along with key business accomplishments.

謝謝接線生，也謝謝大家今天加入我們。今天早上，我們向美國證券交易委員會提交了 10-Q 表，並發布了一份新聞稿，其中提供了截至 2024 年 9 月 30 日的第三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 third quarter performance and highlighting our progress toward our 3-year financial goals. I'll then pass the call to Mike to discuss our financial results. Afterward, I'll return to discuss recent updates within our key target markets, product developments and our go-to-market strategies.

作為今天電話會議的簡要概述，我將首先討論我們的第三季業績並強調我們在實現三年財務目標方面取得的進展。然後我會將電話轉給麥克討論我們的財務結果。之後，我將回來討論我們的主要目標市場、產品開發和市場進入策略的最新進展。

I'd like to begin by reaffirming our three-year financial and operational goals which are central to our overall strategy. These objectives include maintaining our strong position in Live Production, while accelerating growth in the MilGov sector and our recurring revenue services business, with the intent to achieve cash flow positivity in 2025.

首先，我想重申我們三年的財務和營運目標，這是我們整體策略的核心。這些目標包括保持我們在現場製作領域的強勢地位，同時加速 MilGov 領域和經常性收入服務業務的成長，旨在到 2025 年實現現金流為正。

We are pleased to report that our year-to-date revenue has increased over 26% compared to the prior year. The results recorded in the third quarter alone reflected a temporary decline in revenues compared to the prior year, primarily caused by unusually high seasonal softness in the Live Production sector. We believe this is primarily driven by broadcasters focusing on the 2024 Summer Olympics, which led to several non-Olympics projects being put on hold.

我們很高興地報告，今年迄今為止我們的收入與前一年相比增長了 26% 以上。僅第三季的業績就反映出營收與去年相比暫時下降，這主要是由於現場製作領域季節性疲軟異常所致。我們認為，這主要是因為廣播公司專注於 2024 年夏季奧運會，導致一些非奧運會項目被擱置。

We also experienced some delays in procurement activities for new programs in the Middle East region due to heightened alert status caused by regional geopolitical tensions. We expect these activities to return to their usual pace in the coming months.

由於地區地緣政治緊張局勢導致警戒狀態加強，我們在中東地區新專案的採購活動也遇到了一些延遲。我們預計這些活動將在未來幾個月內恢復正常節奏。

This quarter brought several encouraging developments, signaling strong growth opportunities ahead. Bookings within the MilGov sector continued to gain momentum, fueled by increased demand for our solutions. We currently have numerous field product evaluations underway across local, national and international law enforcement and defense agencies. This reflects our strategic commitment to ensuring public safety and maintaining a tactical edge.

本季出現了多項令人鼓舞的發展，預示著未來強勁的成長機會。由於對我們解決方案的需求不斷增加，MilGov 領域的預訂量持續成長。目前，我們正在對地方、國家和國際執法和防禦機構進行大量現場產品評估。這體現了我們確保公共安全和維持戰術優勢的戰略承諾。

Our Airborne Video Downlink Systems powered by the industry-leading AeroLink transceiver and the Air-to-Anywhere solution continue to set the benchmark for unparalleled reliability, efficiency and performance in surveillance and emergency response. We take pride in having our Downlink solutions deployed in some of the most demanding and high-profile environments around the world.

我們的機上視訊下行鏈路系統採用業界領先的 AeroLink 收發器和 Air-to-Anywhere 解決方案，繼續為監控和緊急應變領域無與倫比的可靠性、效率和性能樹立標竿。我們很自豪我們的下行鏈路解決方案能夠部署在世界上一些要求最嚴格、最引人注目的環境中。

Recently, we initiated the deployment of our systems with the U.S. Department of Homeland Security. We also secured an order from the D.C. Metro Police Department, and our technology is set to play a key role in supporting law enforcement at the 2025 G7 Summit in Alberta, Canada.

最近，我們開始與美國國土安全部合作部署我們的系統。我們還獲得了華盛頓特區市警察局的訂單，我們的技術將在 2025 年加拿大阿爾伯塔省 G7 峰會上發揮關鍵作用，為執法提供支援。

Additionally, we received a major order in Brazil for our Downlink solution which will be used for police and surveillance operations utilizing our bonded cellular technology.

此外，我們在巴西收到了一份關於下行鏈路解決方案的重要訂單，該解決方案將利用我們的綁定蜂窩技術用於警察和監視行動。

With expanding opportunities across global MilGov markets, including the U.S., Europe, the Middle East and Africa, we are well positioned to build on this momentum and drive significant revenue growth in the coming months and years.

隨著美國、歐洲、中東和非洲等全球 MilGov 市場機會的不斷擴大，我們已做好準備，利用這一勢頭，在未來幾個月和數年內實現顯著的收入成長。

In the third quarter, we launched a new ERP system to unify and optimize our core operations driving greater efficiency across the organization. This system enables us to initiate a restructuring program to reduce significant costs, delivering annualized savings of over $6 million starting in Q4.

第三季度，我們推出了新的 ERP 系統，以統一和優化我們的核心運營，從而提高整個組織的效率。該系統使我們能夠啟動重組計劃以大幅降低成本，從第四季度開始每年可節省 600 多萬美元。

While we are pleased with our year-to-date revenue growth, we've proactively responded to signs of near-term revenue softness by consolidating operations and strategically positioning ourselves for continued growth in the MilGov sector. As part of this effort, we are consolidating our manufacturing facilities into a single location and streamline our organization to better support our target markets. These actions are designed to eliminate underperforming product lines, optimize staffing and align our resources with the company's long-term objectives We remain committed to identifying additional opportunities for cost reduction.

雖然我們對今年迄今的營收成長感到滿意，但我們已積極應對近期營收疲軟的跡象，透過整合業務和策略性地定位自己以在 MilGov 領域繼續成長。作為這項努力的一部分，我們將把我們的製造設施整合到一個地方，並精簡我們的組織，以更好地支持我們的目標市場。這些措施旨在淘汰表現不佳的產品線，優化人員配置，並使我們的資源與公司的長期目標保持一致，我們將繼續致力於尋找更多降低成本的機會。

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 third quarter. Mike?

在繼續進行進一步更新之前，我將把電話轉給我們的財務長 Mike Bond，以詳細概述我們第三季的財務業績。麥克風？

Thank you, Mickey, and good morning, everyone. Looking at our financial results for the third quarter. Revenue in the third quarter was $7.1 million compared to $7.2 million in the third quarter of 2023. Revenue for the 9 months ended September 30, 2024, was $24.4 million, an increase of 26% over the prior period. Gross margin was 51%, that's down from 54% in the prior year period.

謝謝你，米奇，大家早安。查看我們第三季的財務業績。第三季營收為 710 萬美元，而 2023 年第三季營收為 720 萬美元。截至 2024 年 9 月 30 日的 9 個月營收為 2,440 萬美元，較上一期間成長 26%。毛利率為51%，低於去年同期的54%。

Net loss for the quarter was $3 million or a negative $1.22 per share. That compares to a loss of $2 million or a negative $0.83 per share in the prior year period. This was a result of lower-than-expected revenue in the quarter and higher fixed costs across the organization. Total expenses were $10.3 million compared to $9.5 million in the prior year period. Our Q3 expenses reflected an increase in costs associated with personnel required for the ERP implementation, which ramped up during the quarter as well as higher expenditures for strategic R&D investments.

本季淨虧損為 300 萬美元，即每股虧損 1.22 美元。相比之下，去年同期的虧損為 200 萬美元，即每股虧損 0.83 美元。這是由於本季收入低於預期以及整個組織的固定成本較高所造成的。總支出為 1,030 萬美元，而去年同期為 950 萬美元。我們第三季的支出反映了 ERP 實施所需人員相關成本的增加，該成本在本季有所增加，同時策略性研發投資支出也有所增加。

Turning to our profitability measures. Operating loss was a negative $3.3 million compared to a loss of $2.3 million in the prior year period. Net loss attributable to common shareholders was a negative $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 period. Moving to our balance sheet. As of September 30, 2024, our cash and short-term investments stood at $9.2 million compared to $11.5 million in June 30 -- at June 30, 2024.

談到我們的獲利指標。營業虧損為負 330 萬美元，而去年同期的虧損為 230 萬美元。歸屬於普通股股東的淨虧損為負 300 萬美元，即每股負 1.22 美元，而去年同期的虧損為 200 萬美元，即每股負 0.83 美元。前往我們的資產負債表。截至 2024 年 9 月 30 日，我們的現金和短期投資為 920 萬美元，而 2024 年 6 月 30 日為 1,150 萬美元。

Working capital was $27.1 million at the end of third quarter compared to $31.8 million at June 30, 2024. The company expects to see improving working capital performance in the coming periods, primarily due to better vendor terms through consolidated purchasing, shorter installation and customer acceptance periods for large systems implementations and better inventory management, all driven by the new ERP system implemented in the third quarter. That concludes my prepared remarks. I'll now turn it back to Mickey.

第三季末的營運資金為 2,710 萬美元，而 2024 年 6 月 30 日的營運資金為 3,180 萬美元。該公司預計未來一段時間營運資本表現將會改善，這主要得益於透過合併採購實現的更好的供應商條款、大型系統實施的更短的安裝和客戶驗收期以及更好的庫存管理，所有這些都受到第三季度實施的新 ERP 系統的推動。我的準備好的發言到此結束。現在我將把它交還給米奇。

Thanks, Mike. Returning to operational updates. Our MilGov markets remain on a strong growth trajectory. Our strategic initiatives to grow in this market are continuing to bear fruit. Currently, half of our sales funnel with a 40% or higher probability are MilGov opportunities.

謝謝，麥克。返回營運更新。我們的 MilGov 市場依然保持強勁成長動能。我們在這個市場中發展的策略性舉措正在繼續取得成果。目前，我們的銷售管道中有一半的 MilGov 機會的機率為 40% 或更高。

This represents a significant shift for a market that historically accounted for less than 30% of our revenue. It is important to note that this is not a result of a decline in our Live Production funnel, opportunities in both markets continue to grow. We project over $9 million in MilGov bookings for 2024, which would represent year-over-year growth of over 60%. Our success in the MilGov sector is driven by our Airborne Video Downlink Systems which are market leaders in delivering real-time video intelligence for critical missions. AeroLink, our aircraft-based transmission unit has become the cornerstone of our Downlink solution.

對於歷史上占我們收入不到 30% 的市場來說，這是一個重大轉變。值得注意的是，這並不是由於我們的現場製作管道衰退，兩個市場的機會都在持續成長。我們預計 2024 年 MilGov 預訂金額將超過 900 萬美元，年增超過 60%。我們在軍事政務領域的成功得益於我們的機載視訊下行鏈路系統，該系統在為關鍵任務提供即時視訊情報方面處於市場領先地位。AeroLink 是我們基於飛機的傳輸裝置，已成為我們下行鏈路解決方案的基石。

In fact, the growing popularity of AeroLink is helping drive sales of other components in our Downlink system. Once law enforcement and defense organizations experience the enhanced image quality, lower latency and other capabilities of AeroLink, it often leads them to upgrade their ground infrastructure and other components of their transmit and receive systems, including migrating to our Air-to-Anywhere secure streaming platform, ensuring optimal situational awareness for all stakeholders. Further, the release of our Aero5 bonded cellular solution addresses the needs of those customers interested in leveraging the public cellular infrastructure. We believe the drone public safety and defense industry is well positioned for growth, driven by increased defense spending in formalized policy. Enhanced investment in R&D for autonomous systems, and secure communication technologies will drive innovation, positioning companies to lead in advancing global security and uncrewed solutions.

事實上，AeroLink 的日益普及正在推動我們 Downlink 系統中其他組件的銷售。一旦執法和防禦組織體驗到 AeroLink 增強的影像品質、更低的延遲和其他功能，他們通常會升級地面基礎設施和傳輸和接收系統的其他組件，包括遷移到我們的 Air-to-Anywhere 安全串流平台，確保所有利害關係人獲得最佳的態勢感知。此外，我們推出的 Aero5 綁定蜂窩解決方案滿足了那些有興趣利用公共蜂窩基礎設施的客戶的需求。我們相信，在正式政策增加國防開支的推動下，無人機公共安全和國防工業將迎來良好的成長機會。加強對自主系統和安全通訊技術研發的投資將推動創新，使公司在推動全球安全和無人駕駛解決方案方面處於領先地位。

We view this as an exciting trend and believe that the increased investment we've made in drone command and control position us to capitalize on emerging opportunities in this sector. We are taking steps to enhance our visibility as a thought leader in the sector of uncrewed communications and to engage more with key players in the market. Turning to our services capability. We continue to focus on driving more recurring revenue through service level agreements for 24/7 support, depot repair and software upgrades. Less than 10% of our product base is covered by an SLA.

我們認為這是一個令人興奮的趨勢，並相信我們在無人機指揮和控制方面增加的投資使我們能夠利用該領域的新興機會。我們正在採取措施提高我們作為無人通訊領域思想領袖的知名度，並與市場上的主要參與者進行更多接觸。談到我們的服務能力。我們將繼續致力於透過全天候支援、維修站維修和軟體升級等服務等級協議來增加經常性收入。我們的產品群中只有不到 10% 受到 SLA 的覆蓋。

We see tremendous upside in this area, and we'll continue to invest to create a capability to support our global customer base. In December, we will introduce the LinkMatrix v2, which will provide a secure user-friendly interface to communicate and diagnose not only our cellular products, but our entire product portfolio. This will enable our service teams to remotely diagnose, manage and provide software updates to all Vislink customers.

我們看到這一領域的巨大優勢，我們將繼續投資以創建支持我們全球客戶群的能力。12 月，我們將推出 LinkMatrix v2，它將提供一個安全的用戶友好介面，不僅用於通訊和診斷我們的蜂窩產品，還用於通訊和診斷我們的整個產品組合。這將使我們的服務團隊能夠遠端診斷、管理並為所有 Vislink 客戶提供軟體更新。

Going forward, we plan to continue targeted R&D investments introducing incremental enhancements and major upgrades to sustain our competitive advantage. Among the noteworthy installations in our Live Production area in Q3, we won several bids from news agencies for Airborne Downlink Systems featuring the AeroLink transmitter. In these cases, our Downlink Systems will be used to deliver aerial coverage for breaking news and sports. This highlights how we are leveraging our expertise in supporting complex military and public safety missions to provide the broadcast and [ENG] market with high-quality video, reliable connectivity and seamless distribution across all broadcast and cloud platforms. We are also seeing exciting growth in the international markets for our Live Production solutions.

展望未來，我們計劃繼續有針對性的研發投資，引入漸進式改進和重大升級，以保持我們的競爭優勢。在第三季的現場製作領域中，值得關注的安裝項目包括，我們贏得了多個新聞機構的採用 AeroLink 發射器的機載下行鏈路系統投標。在這些情況下，我們的下行鏈路系統將用於提供突發新聞和體育賽事的空中報告。這凸顯了我們如何利用我們在支援複雜的軍事和公共安全任務方面的專業知識，為廣播和 [ENG] 市場提供高品質的視訊、可靠的連接以及跨所有廣播和雲端平台的無縫分發。我們也看到我們的現場製作解決方案在國際市場上取得了令人興奮的成長。

During the quarter, we secured a bid for our bonded cellular transmission system to support live telecast of Mexico Supreme Court. Additionally, our bonded cellular solutions were deployed to cover the elections in the country of Georgia at the end of October. We also won a project to upgrade Malaysia's national broadcaster, enhancing live news and sports coverage.

本季度，我們贏得了綁定蜂窩傳輸系統的投標，以支持墨西哥最高法院的現場直播。此外，我們還部署了綁定蜂窩解決方案，以報告十月底格魯吉亞舉行的選舉。我們也贏得了升級馬來西亞國家廣播公司的項目，增強現場新聞和體育報道。

Overall, international quoting activity remains strong, and we expect continued robust contributions to our global revenues from non-North American markets. Our go-to-market strategy is continually evolving, yielding encouraging outcomes across our 4 primary focuses: live video connectivity; video data transport; AVDS; and Drone C2. Progress in Drone C2 has been especially notable. While still an emerging sector, we anticipate a rapid expansion in the coming years, particularly related to border security, and a focus on American-made defense platforms. Our bonded cellular technology continues to be a cornerstone for live video connectivity and video data transport, providing reliable, high-quality video transmission for a wide range of applications.

整體而言，國際報價活動依然強勁，我們預計非北美市場將繼續為我們的全球收入做出強勁貢獻。我們的行銷策略不斷發展，並在四個主要重點領域取得了令人鼓舞的成果：即時視訊連線；視訊資料傳輸；AVDS；以及無人機 C2。無人機 C2 的進展尤其顯著。雖然這仍是一個新興領域，但我們預計未來幾年將迅速擴張，特別是在邊境安全領域，並專注於美國製造的國防平台。我們的綁定蜂窩技術繼續成為即時視訊連接和視訊資料傳輸的基石，為廣泛的應用提供可靠、高品質的視訊傳輸。

We are strengthening collaborations with key OEM partners to ensure our technology road map aligns with our evolving needs, further solidifying our leadership in meeting market demands. We look forward to engaging with companies in emerging technology fields, such as virtual and augmented reality and artificial intelligence, where our live video transmission technology can unlock new commercial applications and drive growth. Our collaboration with FocalPoint VR on the A2RL, Abu Dhabi Autonomous Racing League, is a prime example of this and has earned several awards for its innovation. Looking ahead, we remain committed to our 3-year strategy, though we may adjust the timeline to reflect the evolving market landscape, we have recalibrated our cost structure to align with this extended timeframe. With strong ongoing demand for our trusted solutions, a shift toward high-margin service revenue and a continued focus on cost efficiency, we are confident in our ability to execute our strategy and achieve sustainable, profitable growth over the long term.

我們正在加強與主要 OEM 合作夥伴的合作，以確保我們的技術路線圖符合我們不斷變化的需求，進一步鞏固我們在滿足市場需求方面的領導地位。我們期待與虛擬實境、擴增實境和人工智慧等新興技術領域的公司合作，我們的即時視訊傳輸技術可以解鎖新的商業應用並推動成長。我們與 FocalPoint VR 在阿布達比自動駕駛賽車聯盟 A2RL 上的合作就是一個很好的例子，並因其創新而獲得了多個獎項。展望未來，我們仍將致力於我們的三年策略，儘管我們可能會調整時間表以反映不斷變化的市場格局，但我們已經重新調整了成本結構以適應這一延長的時間表。由於對我們值得信賴的解決方案的持續強勁需求、向高利潤服務收入的轉變以及對成本效率的持續關注，我們有信心執行我們的策略並實現長期可持續的盈利增長。

We appreciate your continued support and confidence in Vislink. We look forward to keeping you updated on our progress in the coming quarters. Operator, please provide the appropriate instructions.

我們感謝您對 Vislink 的持續支持與信任。我們期待在未來幾季向您通報我們的進展。操作員，請提供適當的指示。

(Operator Instructions)

（操作員指示）

Brian Kinstlinger, Alliance Global Partners.

布萊恩金斯特林格 (Brian Kinstlinger)，Alliance Global Partners 成員。

I might have missed it, did you share the total pipeline? I guess I was wondering if it's been impacted by some of your short-term challenges.

我可能錯過了，你分享了整個流程嗎？我想知道它是否受到了一些短期挑戰的影響。

No, you didn't miss it, Brian. The pipeline is above where we were last -- I think we shared at $48 million. We're around $50 million weighted pipeline right now. As we mentioned, half of that above 40% of MilGov opportunities, which we think is very positive given that traditionally was a less than 30% revenue source for us. So we continue to see opportunities on the Live Production side as well.

不，你沒有錯過，布萊恩。管道價格高於我們上次的水平——我認為我們共享了 4800 萬美元。我們目前的加權管道價值約為 5,000 萬美元。正如我們所提到的，其中一半以上的 MilGov 機會為 40%，我們認為這是非常積極的，因為傳統上這是我們不到 30% 的收入來源。因此，我們也繼續看到現場製作方面的機會。

So it's not that those are going down. It's just overall. We just saw some -- in this quarter, some softness on the Live Production side and a lot of it had to do with a lot of customers were busy for 1.5 months in Paris with the Olympics.

所以這些數字並沒有下降。這只是總體而言。我們剛剛看到——本季度，現場製作方面出現了一些疲軟，這在很大程度上是因為許多客戶在巴黎奧運會期間忙碌了一個半月。

So if we could start with MilGov business. In your prepared remarks, you mentioned it was lower than expected. You commented, there was a MilGov order in the Middle East that was delayed? How big was this order? And what are your expectations based on discussions as -- at least, it doesn't appear the heightened tension in that area are ending any time soon?

因此，如果我們可以從 MilGov 業務開始。在您準備好的發言中，您提到它低於預期。您評論說，中東的 MilGov 命令被推遲了？這個訂單有多大？鑑於至少看起來該地區的緊張局勢不會很快結束，根據討論您有何期待？

Yes. That's a good point. We had -- in August, we had a demonstration of the new technology that we're working with. And this is a customer, that particular opportunity you're talking about is a customer where we're the embedded incumbent source where they have over 200 rotary helicopters and fixed-wing as well as multiple receive sites to cover the entire country. In August, that was delayed.

是的。這是一個很好的觀點。我們在八月演示了我們正在使用的新技術。這是一個客戶，您談論的那個特定機會是一個客戶，我們是嵌入式現任來源，他們擁有超過 200 架旋翼直升機和固定翼飛機以及多個接收站點，覆蓋整個國家。八月份，這項計劃被推遲了。

We're seeing signs that, that will pick up at the early part of next year to be able to do that demonstration and trial and proceeds with executing on that project. So we're expecting about a 6-month delay to that.

我們看到一些跡象表明，明年年初將會開始進行演示和試驗，並繼續執行該專案。因此我們預計這將延遲 6 個月。

Got it. And then can you talk about the pipeline? You mentioned in MilGov about half. I think the goal was to eliminate shortfalls due to one order getting delayed, obviously. So are there a dozen opportunities in there?

知道了。那你能談談管道嗎？您在 MilGov 中提到了大約一半。我認為目標顯然是消除由於一個訂單延遲而造成的短缺。那麼這裡面有十幾個機會嗎？

Are there many more than that? I'm just trying to understand the diversification of the pipeline.

還有更多嗎？我只是想了解管道的多樣化。

Yes. Great question. Yes, it's quite robust. Just to give you an example, in this past year alone, Baltimore -- we deployed Baltimore City, just looking at history and then we'll talk about the future. We deployed Baltimore City, Baltimore County, the New Jersey State Police, we mentioned D.C.

是的。好問題。是的，它非常堅固。舉個例子，僅在過去的一年裡，巴爾的摩——我們部署了巴爾的摩市，只回顧歷史，然後再談論未來。我們部署了巴爾的摩市、巴爾的摩縣、新澤西州警察，我們提到了華盛頓特區。

Metro on this call. We also got our first initial opportunity with Department of Homeland Security. So we've got quite a track record of high-profile, very meaningful customer engagements that have resulted in success and we're building on that. We just most recently, got an order from the Danish MOD. And so we're seeing pickup not only here in the U.S.

地鐵接獲此電話。我們也獲得了與國土安全部合作的第一次機會。因此，我們在高調、非常有意義的客戶互動方面有著相當好的記錄，並且取得了成功，我們正在以此為基礎繼續努力。我們最近剛收到丹麥國防部的訂單。因此，我們看到的回升不僅發生在美國。

with state and local, which has been a strong point for us. But through our acquisition of BMS, now we're having much greater exposure to Middle Eastern, European and Asian opportunities where they were incumbents. And that's where we're seeing the big opportunities that traditionally weren't part of the Vislink portfolio of customers.

與州和地方的關係一直是我們的強項。但透過收購 BMS，我們現在在中東、歐洲和亞洲市場擁有了更大的曝光機會，而 BMS 正是這些市場的現有參與者。而這正是我們看到的巨大機遇，而這些機會傳統上並不屬於 Vislink 客戶組合。

Okay. And the last one on MilGov. Can you quantify the percentage of revenue actually in the third quarter? I know you gave some rough numbers, and what it historically has been, but maybe a third quarter number would be helpful to understand the growth trajectory of the entire business.

好的。最後一個是關於 MilGov 的。您能量化第三季的實際收入百分比嗎？我知道您給出了一些粗略的數字以及歷史數據，但也許第三季的數字有助於了解整個業務的成長軌跡。

Brian, just proportionately, out of the $7 million, we did, Live Production was $4.4 million and MilGov was $1.8 million, and then we had some service revenue in there for $700,000.

布萊恩，按比例計算，在我們所做的 700 萬美元中，現場製作為 440 萬美元，MilGov 為 180 萬美元，然後我們還獲得了 70 萬美元的服務收入。

Great. And then moving to live entertainment. Here we are 5 months after the Olympics. Are you starting to see a pickup? And is that more first half of the year and we'll see another sluggish fourth quarter?

偉大的。然後轉向現場娛樂。奧運結束已經五個月了。你開始看到皮卡了嗎？這是否意味著今年上半年的情況會更加糟糕，而第四季又將再次陷入低迷？

Just kind of maybe with timing and expectations for investors.

可能只是與投資者的時機和期望有關。

Yes. I think, Brian, we're seeing a pickup in quoting and purchasing activity. That's for sure. We had a good start to this quarter. But again, we expect some of this will be back-end loaded.

是的。布萊恩，我認為我們看到報價和購買活動有所回升。這是肯定的。本季我們有一個好的開始。但我們再次預計其中一些將會在後端加載。

So we will have a sluggish fourth quarter. One of the reasons we took proactive restructuring activity. Just to point out on that, when you saw around margins, we had acquired BMS last year. With that, we acquired the BMS production facility. And then we also had 2 production facilities within Vislink.

因此，我們的第四季將會表現疲軟。我們採取積極重組活動的原因之一。需要指出的是，當您看到利潤率時，我們去年已經收購了 BMS。由此，我們收購了 BMS 生產設施。而且我們在 Vislink 內還有 2 個生產設施。

And so now we're consolidating to a single facility that's going to allow us to obviously improve our conversion cost, improve our management of inventory. So we expect to weather through this next quarter, but we're looking back to the kind of growth that we are looking at the beginning of the year in this quarter. We got a good start in October. November is looking good, and we hope to finish strong in December, but much of that will be for deliverables next year.

因此，現在我們正在整合到一個單一的設施，這將使我們能夠明顯改善我們的轉換成本，並改善我們的庫存管理。因此，我們預計下一季將會順利度過，但我們將在本季回顧年初時所看到的成長情況。十月我們有了一個好的開始。十一月看起來不錯，我們希望在十二月取得好成績，但這很大程度上將取決於明年的交付成果。

Great. Last question, you started the answer that, $6 million is a large number to cut your business. Are you moving to 1 or 2 production facilities? And then how much is that reduced footprint saving versus equal or maybe anything else that you're doing?

偉大的。最後一個問題，您一開始就回答說，600 萬美元對於削減您的業務來說是一個很大的數字。您要轉移到 1 或 2 個生產設施嗎？那麼，與您所做的同等或任何其他事情相比，減少的佔地面積節省了多少？

Yes, we're moving to one, and Mike, can give you the detail.

是的，我們正在轉向一個，邁克可以給你詳細信息。

Yes, we're taking out costs associated with 2 facilities, one we're downsizing, one we're taking out completely. Those costs are around $800,000, and they'll come out in the next I would say, the next quarter, in fourth quarter or first quarter of next year. And then we're taking out a significant number of headcount. And just of that $6 million, the headcount alone is $3.7 million. And the majority of that is either notified and is leaving the business now or will leave in the fourth quarter with some remainder in the first quarter of next year.

是的，我們正在削減與 2 個設施相關的成本，其中一個我們正在縮減規模，另一個我們正在完全取消。這些成本約為 80 萬美元，我想它們將在下個季度、第四季或明年第一季出現。然後，我們又裁減了大量員工。而光是這 600 萬美元中，光是員工人數就花了 370 萬美元。其中大部分員工要么已經收到通知並立即離開公司，要么將在第四季度離開，還有一些員工將在明年第一季離開。

But the vast majority will be going out at the end of the fourth quarter.

但絕大多數將在第四季末出局。

Just doing the math here quickly. When you say $800,000 for the facility, is that per quarter, and then it adds up?

只是在這裡快速地做一下計算。您說的設施費用是 80 萬美元，是按季度計算，然後累積嗎？

Total. That's alleviation of rent, taxes, utilities, things like that, it's about $850,000. And then we've got other expenses that we're cutting in the business that will total out to probably another $1.1 million that will come out over time over the remainder of next year. There will be a ratable reduction in our run rate.

全部的。這包括減免租金、稅收、水電費等，約 85 萬美元。此外，我們也正在削減業務中的其他開支，這些開支總計可能達到 110 萬美元，這些開支將在明年剩餘時間內逐漸消減。我們的運行率將會隨之降低。

(Operator Instructions)

（操作員指示）

And at this time, we are showing no further questioners in the queue, and this does conclude our question-and-answer session. At this time, I would like to turn the conference back over to Mr. Mickey Miller for any closing remarks.

此時，隊列中沒有其他提問者，我們的問答環節就此結束。現在，我想將會議交還給米奇·米勒先生，請他作最後發言。

Thanks, Chris, and thank you, everyone, for joining us today. We look forward to continue to build this company and deliver those returns that you expect. So thanks very much.

謝謝克里斯，也謝謝大家今天加入我們。我們期待繼續建立這家公司並為您帶來您所期望的回報。非常感謝。

The conference has now concluded. Thank you for joining us today for Vislink's Third Quarter 2024 Conference Call, and you may now disconnect.

會議現已結束。感謝您今天參加 Vislink 2024 年第三季電話會議，現在您可以斷開連線了。