Vislink Reports Q3 2011 Results, Outlines Plans to Double Revenue Over Next Three Years

Posted by Joe Zaller
Nov 08 2011

UK-based Vislink plc, which owns the Advent, Link, MRC and Gigawave brands, issued a statement that provides an update on its Q3 2011 results, and outlines its strategy to double its revenue over the next three years.

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Trading Update

Vislink’s revenue for the quarter ended 30 September 2011 was £14.8m, an increase of 24% versus the same period a year ago, and in line with management’s expectations.  Excluding the contribution from Gigawave, which was acquired by Vislink in June of 2011, the company’s revenue was up 6% to £12.6m.

Order intake during the quarter was £14.4m, an increase of 11% versus the same period a year ago.

Year-to-date order intake is  £36.2, up 9% versus the same period a year ago.  Including the contribution from Gigawave, year-to-date order intake at the end of the quarter was £39.5m. At the end of the quarter the company’s order book stood at £15.0m. The company said it has seen increased demand for its broadcast products in the Middle East and South America.

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Company Strategy

Vislink says that following a full review of the business including an assessment of growth opportunities and technology drivers, it will:

  • continue to exploit the strengths of its established brands – Advent, Gigawave, Link, MRC and PMR

 

  • maintain investment through its core product development program particularly in IT based technologies such as IP transport over 3G/4G and WiFi infrastructures

 

  • exploit the continuing growth of video content contribution both in its traditional broadcast markets and also in other vertical markets

 

  • use partnerships to extend the use of its video technologies into semi-professional and prosumer markets

 

  • use partnerships to leverage its technologies into the surveillance markets beyond existing law enforcement and public safety customers

 

  • pursue applications for its products in defence, mining and utility verticals that provide incremental revenue opportunities beyond the core broadcast and surveillance business

 

  • create a software and services culture in order to build recurring revenues into the business model

 

  • seek “bolt on” acquisitions to strengthen its software and services capabilities exploiting the growth of cloud based IP transport technologies and content tagging

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Based on the above strategy, the company believes that it can double its revenue to £80m within three years, while delivering an adjusted operating margin of 10%.

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Company chairman John Hawkins said: “The improved order intake for the Group provided us with an order book of circa £15.0 million at the start of the fourth quarter. We remain optimistic that the final quarter of 2011 will show further improvement in trading; our key performance metrics are continuing to move us forward in a positive direction. The Group has strengthened the Board with the addition of two new non-executive directors, John Varney and Andrew Sleigh, both of whom provide an in depth knowledge of the broadcast and surveillance markets. They have already contributed to the formation of our strategy review and three year plan. The Group is returning to profit and has net cash. We have a realistic strategy which will provide long term growth and generate positive shareholder value.”

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Related Content:

Vislink Interim Management Statement and Strategy Update November 2011

Vislink plc – Interim results for the six months ended 30 June 2011

More Broadcast Vendor M&A: Vislink Completes Acquisition of Gigawave for £3.75 Million

Vislink Interim Management Statement for 1H 2011

Vislink Says Orders Up in Q1, Expects to Post Smaller Loss for First Half of 2011

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