Last checked at 8 Dec 2015 07:00
8 December 2015
Vislink plc
(the "Company" or the "Group")
Trading Statement
Vislink Group plc, the global technology business specialising in solutions for the capture, management and delivery of high quality video for the broadcast and surveillance and public safety markets, announces the following trading update for the period from 1 July 2015.
The introduction of IP based technologies into our target markets continues to give Vislink Communication Systems ("VCS") and Pebble Beach Systems significant opportunities.
Pebble Beach Systems' outlook remains strong and revenue remains in line with management expectations, benefitting from further product innovation, and a strengthening relationship and access to the North American market.
Pebble Beach Systems recently announced a major order of approximately US$2.0 million with Scripps Group, a leading US developer of high-profile content for lifestyle media platforms including television, digital, mobile and publishing, as well as its first order for Orca, an IP-enabled software-defined integrated channel, which runs on a virtualised platform. In the period Pebble Beach Systems invested in identifying and scoping new organic products and solutions, which they believe will deliver significant opportunities in future years. Additionally the Harmonic Inc. relationship continues to strengthen.
In its core markets, VCS has found market conditions challenging but it has successfully developed a number of products incorporating IP technology. These products, which have been introduced during Q4 of this year, have been very well reviewed and the Company is confident that they will continue to keep VCS as the market leader. Nevertheless, the timings of these launches has resulted in VCS' revenue becoming more 'back end' loaded in the financial year than usual. Order intake after 11 months was £42.4 million. December remains a key trading month, and whilst management forecasts for VCS order intake remain achievable, there is risk that associated revenues will not be received within December. Any sales which VCS fails to complete in December are expected to complete in early 2016.
As a result the Group's current revenue expectation for the financial year ending 31 December 2015 is in the range of £54.0 million to £58.0 million.
As the Group continues to transition to a software and services business, represented by the evolving profit mix and strengthened margins, it will also benefit from increasing visibility of revenues. This combined with its investments in new products both in hardware and software is expected to provide an improving position in 2016 and beyond.
To augment its software strategy the Company is in advanced discussions with a small bolt-on acquisition, which would provide software to broadcasters and be highly complementary to Pebble Beach Systems' existing broadcast solutions.
To fund the Group's ongoing software growth strategy the Company has increased its revolving credit facility from £10.0 million to £15.0 million. The Company's balance sheet remains strong, although the back end loaded nature of the hardware sales this year will increase its year end net debt position, but this is expected to unwind positively in 2016. VCS' successful restructuring is now complete with significant cost savings achieved that are expected to continue to benefit the Group in 2016 and beyond.
ends
A copy of this trading update will be available from the Group's website www.vislink.com
Enquiries: | |
Vislink plc: John Hawkins, Executive Chairman | +44 (0)1488 685500 |
Vislink plc: Ian Davies, Finance Director N+1 Singer: Shaun Dobson / Alex Wright | +44 (0)1488 685500 +44 (0)20 7496 3000 |
Hudson Sandler: Charlie Jack / Bertie Berger | +44 (0)207 796 4133 |
About Vislink plc
Vislink plc is a leading global technology business specialising in the collection, delivery and management of high quality live video 'from scene to screen'.
For the broadcast markets, Vislink provides wireless communication solutions for the collection of live news, sport and entertainment as well as software solutions for channel playout automation, channel-in-a-box and video content management. Vislink also provides secure video communications for surveillance and public safety applications such as law enforcement and homeland security.
Vislink employs over 250 people worldwide with offices in the UK, USA, UAE and Singapore and manufacturing operations in the UK and the USA. Vislink has net assets of over £54 million and continues to invest in innovation.
The Company is listed on the AIM market of the London Stock Exchange (AIM: VLK). For further information, visit www.vislink.com.
Forward-looking statements
Certain statements in this announcement are forward-looking. Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to be correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements. The Group undertakes no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise. Nothing in this announcement should be construed as a profit forecast.