Vislink acquires Mobile Viewpoint

Vislink, a technology provider for capture, delivery and management of high quality, live video and associated data, announced the acquisition of Mobile Viewpoint for 15.5 million Euro. The deal is comprised of a €14.8 million stock purchase agreement and the assumption and payment of €700,000 in intercompany debt.

Privately-held Mobile Viewpoint, a subsidiary of Triple IT Corporate B.V., is headquartered in The Netherlands, with offices in Dubai and Mexico City. It is an innovator in mobile live streaming solutions, including 5G & bonded cellular and AI-based technologies for news teams, TV production companies, outside broadcast facilities, security and public safety agencies.

The Mobile Viewpoint acquisition will enable Vislink to fulfill its strategic aim of providing an industry-leading portfolio of live video acquisition, contribution and distribution solutions that meet the demanding needs of media, enterprise, defense and government organizations. Vislink and its customers should benefit from the ability to address the most transformative trends in today’s live video market.

When discussing the timing and strategic rationale for this acquisition, Mickey Miller, CEO of Vislink, said: “Mobile Viewpoint provides us with innovative technologies and solutions that, combined with Vislink’s capabilities, will enable our customers to acquire and deliver video over any preferred public or private network. This presents a tremendous growth opportunity for us as 5G and other new networks, along with machine learning, are about to revolutionize how video is produced and transported. This acquisition means that we can now make the most of these transformative live video trends and bring high-quality live production to events that were historically economically challenging to produce like amateur and semi-pro athletics. Mobile Viewpoint also brings us very exciting AI-driven automated production and camera solutions, as well as a pioneering development team that has a history of being first to market with solutions that make a real difference, including support for multi-camera/REMI production, H.265, 5G and Starlink.” He continued: “We are very excited about closing on our purchase of Mobile Viewpoint. For Vislink, this represents an ideal deployment of capital on an acquisition that is highly strategic for the Company, and that we believe will play a major role in its future growth. It will allow us to leverage major market trends and needs that can be addressed by Mobile Viewpoint’s innovations in bonded cellular, 5G and AI-driven automated production technologies.”

And Michel Bais, Managing Director of Mobile Viewpoint, said: “It is exciting that Mobile Viewpoint will now be part of delivering Vislink Connected Edge solutions. Being part of a larger entity will enable us to accelerate our innovative product roadmap. It also opens up the military, government and American markets for us. It’s been a fascinating and rewarding journey over the last ten years, but the time is right to join with Vislink to ensure we continue to excel and be first to market with transformative solutions. With almost zero overlap in solutions and markets, together, Vislink and Mobile Viewpoint will be much more than the sum of their parts.”

At August 17, 2021 Vislink reported financial results for the quarter ended June 30, 2021. Subsequent to the end of the second quarter, the Company announced the acquisition of Mobile Viewpoint. More details to the Q2 2021 Business Update:

Received a $3.8 million order from the U.S. Department of Defense for the supply of handheld intelligence, surveillance and reconnaissance (ISR) receiver devices and accessories.

Introduced three new products in Q1 2021—IP Link 3.0, Quantum Receiver and DVE 6100—already surpassed $6 million in initial sales this year.

Deployed the newly introduced Quantum Receiver to support major events including the Olympics and Euro 2020.

Shipped a $2.8 million order to Alabama Public Television (APT) to support a statewide ATSC 0 network upgrade.

Increased R&D headcount in the Company by 20%.

Hired a new VP of Engineering, John Gass, an experienced leader with an established record of introducing market-leading products.

Was added to the Russell Microcap Index effective June 28, 2021.

Financial Update:

Revenues for the three months ended June 30, 2021 were $7.6 million (not including $4.3 million in deferred revenue), compared to $4.1 million in the first quarter of 2021 and $6 million for the three months ended June 30, 2020.

EBITDA (earnings before interest, taxes depreciation and amortization) was a negative $578,000 for the three months ended June 30, 2021, compared to a negative $2.4 million for the three months ended March 31, 2021.

Ended the second quarter of 2021 with $55.5 million in cash and cash equivalents, compared to $60 million at the end of the first quarter of 2021.

Gross margins were 52.8% of revenue in the second quarter of 2021, compared to 46% in the first quarter of 2021.

Net loss attributable to common shareholders was $834,000, or $(0.02) per share in the second quarter of 2021 compared to a net loss of $2.7 million, or $(0.07) per share in the first quarter of 2021 and a net loss of $778,000, or $(0.05) per share in the second quarter of 2020.

Net loss attributable to common shareholders was $3.5 million, or $(0.09) per share for the six months ended June 30, 2021 compared to a net loss of $5.2 million, or $(0.45) per share for the six months ended June 30, 2020.

“We are very pleased to report revenues in the second quarter that were over 85% higher than the amount recorded in the first quarter of 2021,” said Mickey Miller. “In addition, our quoting activity continued to increase, with new bookings growing over 250% during the first half of 2021 compared to the corresponding period in 2020. This accelerating sales growth, together with our ongoing focus on cost containment and strategic use of financial resources, helped us significantly narrow our EBITDA loss in the second quarter to $578,000, compared to a $2.4 million EBITDA loss in the first quarter. As a result, our operations have not only returned to pre-pandemic levels, but are well positioned for future growth and investment.”

Miller continued, “Our commitment to relentless innovation, a Vislink strength throughout its history, resulted in the release of notable new products in 2021, including IP Link 3.0, Quantum Receiver and DVE 6100, that have already played a role in capturing substantial new business this year, including the announced wins with Alabama Public Television and the Department of Defense. We will continue to aggressively refresh our product offerings to maintain our leadership in the markets we operate in.”

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