Vislink Technologies Inc

Hello, and thank you for joining me. I'm Mickey Miller, CEO of VizLink Technologies, and I'm pleased to share our results for the first quarter of 2026. Q1 was a landmark quarter for us, one we've been working toward for the last 18 months. For the first time in VizLink's recent history, we delivered EBITDA profitability. That's a milestone I'm generally proud of. I want to walk you through what drove it, what it means strategically, and where we're headed. In Q1, we've delivered non-GAAP EBITDA profit of 0.2 million. To put that in context, in Q1 of last year, we had non-GAAP EBITDA loss of 2.2 million. That's a swing of 2.4 million in 12 months. achieved by improving revenue, dramatically expanding margins, and cutting costs in a disciplined, structural way. This wasn't a one-time benefit. It reflects the transformation we've been executing. A leaner cost structure, a more profitable product mix in a business that is generally shifting towards higher value markets. The model is working. Revenue for the quarter was 5.4 million, up 17% from Q1 last year. and 2% from Q4 2025. That growth was driven almost entirely by our military and government segment, which I'll address in a moment. Gross margin reached 65%, up meaningful from prior year quarter. That's a reflection of the product rationalization work we've done, and the shift towards higher margin MilGov solutions. On expenses, we brought operating costs down to 3.6 million, a 35.1% reduction year over year. GNA alone fell by more than a million dollars from Q1 2025. That's a result of a real structural change. Leadership restructuring, reduced legal spend, lower insurance costs, and a smaller, more focused team. and we expect expenses to continue declining throughout the rest of the year. We ended the quarter with $3.7 million in cash, and we expect to be cash neutral in Q2. The most important thing that happened in Q1 was the acceleration of our MilGov business. MilGov revenue increased 159% year-over-year and 93% sequentially from Q4. For the first time, MilGov represented the majority of our quarterly revenue. That's the transformation we've been talking about, and it's now clearly underway. Two highlights stand out. We deployed a million dollar receive network for a large European public safety organization, and we shipped a million dollar aerial video downlink system to a key European ministry of defense. These aren't just revenue events, they're proof points that Visling's technology performs in demanding operational environments, and that our reputation in defense and public safety is growing. I also want to acknowledge that live production revenue is down in the quarter. The legacy broadcast market continues to face disruptive headwinds, and we're being very deliberate about where we invest our sales efforts. Having said that, we continue to support the world's most demanding live production environments, including Formula One, MotoGP, the NFL, NHL, Premier League, the Academy Awards, the Emmys, and many, many others. Demand for our technology continues to grow in sports venues and live events. As an example, our technology was key to enabling James Cameron's and Billie Eilish's recently released 3D concert film, Hit Me Hard and Soft. We see many more opportunities as a global audience craves live immersive experiences. Beyond Europe, we're making real progress in the US federal market. We've now submitted eight RFI responses year to date including submissions to DHS on 5G deployable systems, U.S. Army on NetWarrior Edge, and the U.S. Air Force on tactical comms. Our technology is generally well suited to what the Department of War and Homeland Security agencies need right now. Low latency video, command and control for unmanned systems, most of the compliant architectures and platforms that work in contested and degraded environments. We're also building out a federal partner channel. We're being realistic about timing. Federal procurement cycles are long. and delays have slowed some MilGov bookings in the near term, but the pipeline is strong and we're doing the right things to position VizLink as a trusted supplier in this market for the long term. We're extremely excited about this market because the macro environment has never been more favorable for what we do. The US is proposing a $1.5 trillion defense budget for 2027, Europe and Japan are both committed to doubling their defense spending. Across every one of these programs, the direction is the same. Unmanned systems, AI, robotics, and electronic warfare. These aren't emerging trends anymore. They're procurement priorities with real budgets behind them. VisLink sits at the intersection of all of it. Every drone needs a video link. Every autonomous system needs real-time situational awareness. Every command center needs reliable, low-latency communications in environments where the enemy is actively trying to disrupt them. That's exactly what we've been building for 50 years. First for broadcast and increasingly for public safety in the battlefield. Our technology is proven, our platform is mostly compliant, and we're already engaged with the agencies writing these requirements. The spending wave is coming and we intend to be in front of it. On the product side, we have several exciting developments. Our Aero 5 is progressing through DO-160 airworthiness certification. When complete, it will be the only DO-160 certified bonnet solution in the aviation market. That's a meaningful, competitive differentiator for our public safety and OEM customers. We're also developing a stealth product based on our many customer conversations we believe meets a critical need. We look forward to sharing information about this exciting new product in the future. We've also formally launched an AI initiative across the company, initially covering sales, engineering, and customer service. The goal is to increase revenue per employee, cut time to market, and improve quality. We will become AI native in the coming months, and it's already changing how we work. We entered Q2 with solid momentum. We have a strong pipeline across both MilGov and live production. We're continuing to reduce costs, and our new products are gaining traction in the markets that matter. The work of the last 18 months is showing up in these numbers. Thank you for your time and your continued support of VizLink. We'll have our financial statements available on our investor relations page at vislink.com. We welcome any questions through investors at vislink.com. Please follow us on our Instagram and Mickey Miller LinkedIn and X. Thank you.