So no announcement today. I find it a bit disappointing - my normal point of view on these boards is that companies should get on with running things and calls for constant updates and RNS's from PIs are unnecessary. Usually it's the companies that are constantly announcing non-material information that are the ones to avoid. However I would like to see a little bit more proactive communication from Vislink. GoPro has a market cap of $5bn and have made a big deal about this product - the very fact that VLK have linked up with this significant industry player to launch a fairly significant product would seem to be worthy of a market update.
13 Apr '15
GoPro have announced today the launch of Herocast - this is the result of the collaboration between GoPro and Vislink http://investor.gopro.com/releases.cfm Could be pretty significant as it is being sold directly to the retail market by GoPro and presumably Vislink carry a share of the profits. It's relatively expensive so not mass market but it still a retail product for end consumers, which is a first for Vislink and GoPro are the prime company for action cameras and equipment so it still likely this will sell in good quantities. I think an extra £1million bottom line per year must be acheivable. There should also be revenue streams through tie ups with major sporting organizations plus potential commercial uses. Announcement tomorrow I would guess.
30 Mar '15
RE: Yes there are risks....
Yep, agree with all of that, good post.
27 Mar '15
Very nice to see a 100,000 share purchase from one of the Directirs today. A real vote of confidence. Vislink is a long term hold and I think we will see 80p plus now within 3 years. In the meantime the dividend on offer is attractive.
26 Mar '15
Nice positive update from Simon Thompson in Investors Chronicle today. 60p target price set.
25 Mar '15
RE: Yes there are risks....
These were highly significant results for Vislink but it hasn't yet been recognized by the market. Until last year much of Vislink's business has been hardware, which is lower margin, capex and working capital intensive and typically lumpy in terms of revenue. It is still somewhat the case as the UK government contract is around £5-7million in non-recurring revenues. However these results were all about Pebble beach systems - this is high margin, cash generative and much less cash intensive and likely much more predictable. PBS generated only 15% of revenue but over half of unadjusted operating profit and this from only 9 months of trading and VLK was able to grow PBS considerably - this should continue to be a very reliable generator of profitability and cash and can reduce the reliance on the lumpy hardware revenue stream with these larger contracts effectively being a bonus. Revenue could well potentially remain stagnant or even drop in 2015 if the hardware division does not secure another large deal,however cash and net profit should still grow, while the GoPro deal could offer material upside. I also believed the believe the PBS and broadcasting segment could well make Vislink an attractive acquisition target for some of the larger players. I'm not necessarily expecting rapid share price growth - the market still looks for top line growth - however I think this is a very solid longer term hold that should be able to maintain a consistent dividend.
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