Posts Tagged ‘broadcast microwave’

Revenue and Profits Jumps at Vislink in 1H 2012

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Sep 03 2012

UK-based Vislink plc, which owns the Advent, Link, MRC and Gigawave brands, announced that its revenue from continuing operations for the first six months of 2012 was £27.5, up 38% versus the same period a year ago. Excluding the contribution from Gigawave, which was acquired by Vislink in June 2011, the company’s revenue was £22.4m, up 17% versus the first half of 2011.

Broadcast revenue in 1H 2012 was £24.2m, up 46% versus the first half of 2011, and down 6% versus the second half of 2011.  The 1H broadcast revenue figure includes a contribution of £4.2m from Gigawave, which has added incremental revenues in markets outside of the Americas. Weakness in South America led to a 52% decline in the region to £1.5m, but this was offset by strong performances in Europe and North America.

The company posted a pre-tax profit of £1.4m, compared to a pre-tax loss of £1.9m last year.  On an operating basis, the company reported a profit of £700,000, versus an operating loss of £3.7m last year.

Bookings in 1H 2012 were £25.4m, up 2% versus last year, but underlying orders (excluding the contribution from Gigawave) were down 14% to £20.5m.  The order backlog at the end of the first six months of 2012 was £10.4m, down 16% versus the same period last year.

The company attributed its reduced order intake to lower demand for satellite terminals in the broadcast market.  However, it expects to see improvement in the second half of 2012 thanks to newly introduced products.

Gross margins for the first half of the year were 40.4%, up 1.4 percentage points versus last year.  The company said its margin expansion was due to lower manufacturing overhead costs thanks to a focus on cost control.  The materials margin was 52.4%, down slightly from last year.

The company ended 1H 2012 with £8.4m of cash, down from £10.1m six months ago.  The company says its cash flow will improve in the second half of the year as it reduces its working capital following an inventory build in the first half of 2011 for the London Olympics.

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Outlook

The company reiterated its objective of reaching £80m of sales and £8m of pre-tax profit within three years, saying this goal seems remains realistic and achievable.

Vislink executive chairman CEO John Hawkins said that the company will “continue to seek “bolt on” acquisitions to strengthen our software and services capabilities that exploit the growth of cloud based IP transport technologies.

“We believe that the Group is capable of exploiting the continuing growth of video content contribution both in our traditional broadcast market and also in other vertical markets that, with the development of unlicensed spectrums include opportunities within the pro-sumer markets. The second half has begun positively with orders received of £11.0m (2011: £8.4m) in the 8 weeks to 25 August as we have secured some significant prospects that experienced delays in the first half. The full year outcome is subject to this order intake level continuing throughout the third quarter.

“We are cautiously optimistic that the second half of 2012 will show further improvement in trading. We have a strong order book which underpins our third quarter revenue.”

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Press Release: Vislink plc – 2012 Interim Results Announcement

Vislink Says its Revenue is Up 61 Percent Through April 2012

Vislink Reports Full Year 2011 Results, Reaffirms Goal of Growing Revenue by 60% Within Three Years

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

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

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© Devoncroft Partners. All Rights Reserved.

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Vislink News & Entertainment Revenue Declined 28 Percent in 2010

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Mar 24 2011

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.

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M&A Update:

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.”

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Related Content:

Vislink Issues Results for 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

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

broadcast industry trends, Broadcast technology vendor financials, Broadcast Vendor M&A, Quarterly Results | Posted by Joe Zaller
Nov 23 2010

Vislink a provider of technology and solutions for microwave radio, satellite transmission, wireless camera and marine CCTV, announced that it plans to restructure its operations.  The company owns several brands in the broadcast industry including Advent, Link, MRC, Pacific Microwave, and Western Technical Services.

After conducting a strategic review of its operations, Vislink said it is re-shaping itself to focus on IP based systems for the news & entertainment and law enforcement & public safety markets where “it believes it is already regarded as a market leader.”

As a result of this decision, the Vislink announced an M&A program though which it will divest certain assets and buy others in order to focus more fully on the broadcast and public safety markets.

Specifically, the company will

  • sell its marine and energy (M&E) business to Hernis Scan Systems for £32.5m
  • sell Western Technical Services (WTS) for between £2.5m – £4.5m
  • acquire Gigawave, one of its competitors in the broadcast market, for an expected £5.75m

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The company said it will use the proceeds from the sales of WTS and its M&E business to pay down debt, invest further in IP development, and make earnings enhancing acquisitions such as Gigawave.

According to a Financial Times article, Vislink CEO Duncan Lewis, said the acquisition of Gigawave will “send a signal to the market of how serious we are about news and entertainment.”

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Vislink Trading Update

The company said that its revenue increased in the third quarter by 15% versus the previous quarter of this year, but that year to date sales are down 24% versus the first nine months of 2009.

News and entertainment market orders for the first nine months of the year were 6% higher than in the same period in 2009.

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Management Changes

The company also said that chairman Tim Trotter will be stepping down as in 2011, and that it intends to appoint John Hawkins as his replacement.  Hawkins has led a number of companies through successful turnarounds and is currently nonexecutive Chairman of Psion plc.

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You can read the full Vislink announcement here.

A Financial Times article about the announcement is here.

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