Vislink Reports Small Loss in 1H 2011, Announces Strategic Review

Posted by Joe Zaller
Sep 02 2011

Vislink plc announced that its revenue from continuing operations for the first six months of 2011 was £20m, down 1% versus the same period a year ago. Excluding the contribution from Gigawave, which was acquired earlier this year, the company’s revenue for the first half of 2011 was £19.1m, a 6% decline versus last year.

The company’s operating loss for the period was £3.7m, which includes £0.6m charge for the amortization of acquired intangibles, and £1.2m for non-recurring costs including acquisition costs associated with Gigawave, and corporate restructuring.

Vislink said it was seeing a “slow recovery” in its news & entertainment market, thanks to an increase in activity in South America, Asia and the Middle East that is being driven by current and upcoming political and sporting events. However, the company also said that the North American market “remains challenging.”

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Western Technical Services to be Retained

Vislink said that its Western Technical Services (WTS) subsidiary, which it had slated for disposal as part of a major corporate restructuring program, will now be retained and transitioned “from being a broadcast based business to developing alternative sources of revenue building on our established experience in designing and installing broadcast
infrastructure.” The company says it is doing this because it sees strategic value in its capability to provide full integration services to both its news and entertainment and law enforcement and public safety markets.  Vislink says that WTS will be incorporated into its US management structure, resulting in extract revenue synergies and a reduction in the overall US cost base.

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Strategy Under Review
Vislink said that its board is currently “undertaking a full review of the business that is focused on returning the Group to profitable growth by the end of 2011.”

This review will include an assessment of growth opportunities, both organic and through acquisition, and the technology drivers that underpin the market opportunity for Vislink. The review also recognizes the need to build sustainable recurring revenue opportunities, hence the decision to integrate WTS fully into the US business. The results of the review will be announced in October 2011.

Company chairman and CEO John Hawkins said that the company is “cautiously optimistic that the second half of 2011 will show further improvement in trading. We have a
strong order book which underpins our third quarter revenue.”

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Related Content:

Press Release: Vislink Interim results for the six months ended 30 June 2011

Press Release: Vislink Acquires Gigawave

Vislink Interim Management Statement for 1H 2011

Vislink News & Entertainment Revenue Declined 28 Percent in 2010

Vislink CEO to Step Down, Will be Replaced by New Chairman on Interim Basis

Vislink Lays off 25% of Workforce

Vislink Restructuring Operations. Announces M&A Program to Focus Business on IP Video for Broadcast and Public Safety Markets

Vislink Trading Update for 1H 2010

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