UK-based Vislink plc, which owns the Advent, Link, and MRC brands, announced that its revenue in 2010 from its news and entertainment business unit was £31.6m, a decline of 28% versus 2009.
The company attributed its poor performance to weak market conditions, and to the completion of the 2GHz relocation project in the USA, which accounted for £9.75m in revenue in 2009. Excluding 2GHz revenue, the company’s “core revenue” declined 7% in 2010 versus 2009.
Vislink said that core revenue was adversely impacted by a continuing slowdown in broadcasters’ expenditure. This trend was most pronounced in Europe, but also impacted revenues in the Americas and Middle East regions. On a brighter note, the company said its revenue in the Asia Pacific region grew by 45 per cent during 2010.
The company also reported that its operating margins for the year were 13%, down from 20% in 2009. Vislink said the reduction in the operating margins was due to a combination of a 2.2 point reduction in gross margin due to increasingly competitive pricing; and higher overheads as a proportion of total sales despite the fact that sales and marketing costs were reduced by 15 per cent over the course of the year.
These results come as the company is in the middle of major corporate transformation program. Last year Vislink announced its intention to restructure its operations by selling its marine energy (ME) business and focusing on the broadcast and public safety markets. After selling the ME business, the company then shed 25% of its workforce through a layoff round, which saw 60 people lose their jobs. At the beginning of 2011, the company announced that its CEO will step down at its AGM in April.
As part of its previous M&A announcement, Vislink said that it intends to buy Gigawave, a competitor in the wireless camera, microwave and antenna markets; and to dispose of Western Technical Services (WTS), a small US-based services business.
Vislink is continuing to shop WTS and says it will continue to operate independently until the business is sold. Until such time it will be reported as a discontinued activity.
However, it now looks like the Gigawave deal may not happen. As part of the earnings announcement, the company said “Whilst we continue to believe in the industrial logic of bringing Gigawave and Vislink and their associated brands together we have, to date, been unable to reach an agreement with the vendors.”