Posts Tagged ‘Vislink’

Vislink Revenue Declines 7 Percent in Q3 2012, Reaffirms Plan to Double Revenue By End of 2014

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Nov 15 2012

UK-based Vislink plc, which owns the Advent, Link, MRC and Gigawave brands, reported in an interim management statement that its trading for the third quarter of 2012 was in line with management expectations.

Revenue for the third quarter of 2012 was £13.8m, down 7% versus the same period a year ago. The company attributed the lower revenue to the delay in shipment of an £800,000 of its new Mantis MSAT data terminal, which was pushed back to the fourth quarter of 2012.

Revenue for the first nine months of 2012 was £41.3m, up 18% versus the same period last year. This includes an un-quantified contribution from Gigawave, which was acquired by Vislink in June 2011. Through the first six months of 2012, Gigawave contributed £4.2m in revenue.

Bookings through the third quarter were £40.4m, up 2.3% versus the same period last year. The company did not disclose its order book at the end of the quarter.

Adjusted profit for the year to date was £2m.

The company ended the third quarter with no debt and a cash balance of £6.3m.

 

Guidance:

The company said it is on track to achieve its previously stated goal of achieving £80m revenues and a 10% operating margin by the end of 2014.

 

Strategy

Vislink says it has revisited the three year growth it published last year, and is on track to fulfill its strategic and financial goals by doing the following:

 

  • Exploit the strengths of its established brands – Advent, Gigawave, Link, MRC and PMR
  • Maintain investment in 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, providing the technologies for surveillance applications, which will be achieved through partnerships
  • Maintain market leadership in the provision of wireless video delivery and miniaturization, while extending the use of its technologies, principally through partnerships, into the semi-professional and prosumer market
  • Leverage technologies into the surveillance markets beyond existing defence, law enforcement and public safety customers
  • Create a software and services culture that will enable recurring revenues into the company’s our business model
  • Seek “bolt on” acquisitions to strengthen software and services capabilities, and exploit the growth of cloud based IP transport technologies and content tagging

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Related Content:

Press Release: Vislink Interim Management Statement – Q3 2012

Previous Quarter: Revenue and Profits Jumps at Vislink in 1H 2012

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

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

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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 Says its Revenue is Up 61 Percent

Broadcast technology vendor financials | Posted by Joe Zaller
Apr 30 2012

UK-based Vislink plc, which owns the Advent, Gigawave, Link and MRC brands, said in an interim management statement that its 2021 revenue through April 25th 2012 was £13.7m, up 61% versus the same period a year ago.  On an organic basis (excluding the contribution from Gigawave, which was acquired in June 2011) revenue was up 37% versus the same period a year ago.

Orders in the period were £13.4m, up 43% versus last year, and up 16% on an organic basis. The company said it experienced growth in both its broadcast and surveillance segments.

Vislink said it made a profit during the period and that it traded profitably and in line with management expectations for the quarter ended 31 March 2012.

The company reiterated guidance issued last quarter that it believes it can achieve profitable growth to £80 million of annualized revenues within 3 years (2011 revenue was £50.3m) with a 10% operating profit.

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Related Content:

Vislink Interim Management Statement

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

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© Devoncroft Partners. All Rights Reserved.

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The 2012 Big Broadcast Survey

broadcast technology market research | Posted by Joe Zaller
Apr 03 2012

I am pleased to announce that the 2012 Big Broadcast Survey (BBS), our annual study of the broadcast market, has been completed and that the reports from this project will be published soon.

We once again had record-breaking participation in this project.   Almost 10,000 broadcast professionals in 100+ countries participated in the 2012 BBS, making it the largest ever and most comprehensive market study of the broadcast industry.  We are humbled by and grateful for the unprecedented participation from so broadcast industry professionals who took the time to contribute to this year’s study.

The 2012 BBS offers unique insight into the broadcast industry by providing information about industry trends, budgets, capital projects, HD and file-based upgrade cycles, and more. It also provides detailed brand data on more than 100 broadcast technology vendors in 30+ product categories (see list in post tags below).

We created the BBS to help our clients, and readers of this website, better understand the issues and trends impacting the broadcast and digital media industries.  We received many positive comments about the BBS from both participants and our research clients, so we feel that we are on the right track and we will continue to publish data about the market on a regular basis.

We will begin to post summary data from the 2012 study on this website, so please check back regularly.

I will also be presenting a summary of the 2012 data on Sunday April 15th at the NAB Show, at a half-day conference session called Media Technology: Strategy and Valuation, which is being produced by Devoncroft, Silverwood Partners and the NAB Show.  It’s free for all registered NAB Show attendees, so please come along.

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Related Content:

Devoncroft – 2012 Broadcast Market Research Reports Now Available

Devoncroft – 2011 Broadcast Market Research Articles

NAB Media Technology: Strategy and Valuation Conference presented by Devoncroft, Silverwood and the NAB

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© Devoncroft Partners. All Rights Reserved.

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

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Mar 27 2012

Vislink plc, which owns the Advent, Gigawave, Link and MRC brands, reported that its revenue for the full year 2011 was £50.3m and increase of 17% versus 2010.

On an organic basis (excluding the £4.5m contribution from Gigawave, which was acquired in June 2011) revenue was £44.7m, up 4% versus 2010.

Broadcast revenue was £42.3m (84% of total revenue), an increase of 16% versus the previous year. Excluding the contribution from Gigawave, 2011 broadcast sales were up 3% versus 2010.

On a geographic basis, broadcast revenue dropped 14% in both Western Europe and North America, the company’s two largest markets.  These declines were offset by strong growth in the Latin America and MEA regions, where sales in 2011 were up 63% and 61% respectively compared to the same period a year ago. APAC revenue was down 1%.

 

Guidance:

Vislink reaffirmed its strategic goal of achieving profitable growth to revenue of £80m within 3 years with an adjusted operating profit margin of 10%.  The company said it expects to meet this goal through a combination of organic growth at 10 -15% per year and “bolt on” acquisitions that strengthen its software and services capabilities, and exploit the growth of cloud based IP transport technologies and content tagging.

 

“2011 was a year of transition for the Group.” said company chairman John Hawkins.  “We achieved the objective of returning the business to profit in the second half of the year; we have growth in underlying revenue and orders received and we have increased our order book. We have improved our margins, substantially reduced the underlying cost base and simplified the management structure.  We have a good strategy based primarily on organic growth coupled with seeking out acquisitions in cellular and IP-driven technology. The successful execution of the strategy will provide long term growth and generate an increase in shareholder value. ”

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Related Content:

Press release: Vislink plc, Results for the year ended 31 December 2011

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

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

Previous Year: Vislink News & Entertainment Revenue Declined 28 Percent in 2010

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© Devoncroft Partners. All Rights Reserved.

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

broadcast technology market research, Broadcast technology vendor financials, Quarterly Results | 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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Vislink Reports Small Loss in 1H 2011, Announces Strategic Review

Broadcast technology vendor financials, Quarterly Results | 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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More Broadcast Vendor M&A: Vislink Completes Acquisition of Gigawave for £3.75 Million

Broadcast Vendor M&A | Posted by Joe Zaller
Jun 03 2011

UK-based Vislink plc, which owns the Advent, Link, and MRC brands, announced that it has closed the acquisition of Gigawave. The purchase price was £3.75m, and Vislink says the deal will be accretive to earnings.

Gigawave designs and manufacturers wireless camera, microwave and antenna products for the broadcast market. For the year ended April 30, 2011 Gigawave posted a pre-tax loss of £430,000 on revenue of £10m.  In the previous year, the company lost £1m on revenue of £12.5m.

Under the terms of the deal Vislink is paying £1.75m cash up front and repaying £400,000 of shareholder loans. Vislink will then pay an additional £1m cash on each of the first and second anniversary of the transaction.

Vislink says that Gigawave, which currently employs 87 people, will be integrated into its UK operations, and will strengthen its position in its broadcast market by broadening the its capabilities in terms of engineering, product portfolio and geographic reach.

Henry Barczynski, Gigawave’s founder and current managing director will remain with Vislink after the transaction. He will become Vislink’s chief marketing officer and report to CEO John Hawkins.

Vislink first telegraphed its intention to buy Gigawave in November of 2010 when it said it was restructuring its operations to focus more fully on the broadcast and public safety markets. At that time Vislink said it expected to pay £5.75m for Gigawave, and Vislink’s then CEO Duncan Lewis was quoted in a Financial Times article as saying the acquisition of Gigawave would “send a signal to the market of how serious we are about news and entertainment.”

Then in a March 2011 trading update, Vislink indicated that the deal might not happen, saying “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:

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

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
May 18 2011

UK-based Vislink plc, which owns the Advent, Link, and MRC brands, said in an interim management statement that it expects to post a loss in the first half of 2011 that is less than the loss it posted for the first half of 2010.

The company said its trading in the first quarter of 2011 was “in line with expectations,” and that orders and margins increased versus the same period last year, led by higher demand for its broadcast products in Asia and South America.

The company also said that its previously announced cost reduction program has lowered its total operating expenditure by almost 20% versus the first quarter of 2010.

Vislink says that new interim CEO John Hawkins is undertaking a full review of the business, with a focus on returning the company to profitable growth by the end of 2011. This review will include an assessment of growth opportunities and technology drivers.

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Related Content:

Vislink Interim Management Statement

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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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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