Vislink puts shine on mixed interims with Harmonic partnership

2nd Sep 2014 09:40

Mixed interim results from AIM-listed Vislink were countered to some extent by the announcement that Nasdaq-listed video group Harmonic has become a strategic partner and provided a significant order for the second half of the year. Harmonic, which specialises in video delivery infrastructure for emerging television and video services, has placed a £2m initial order receivable in 2014 to secure product for onward sale in its integrated packages.Harmonic has also subscribed for 4m newly issued shares in Vislink at 50p apiece, giving it a 3.26% stake in the company.However, the first half of the year saw adjusted profit before tax down 15% to £1.7m, although ahead 3% in constant currency, reflecting a mixed performance as an uncertain broadcast market and delayed surveillance contracts hit the hardware division. On the upside, software division Pebble Beach Systems performed ahead of expectations. The group looked to reduce costs in its hardware division and saw the order book strengthen significantly in the second quarter.Executive chairman John Hawkins said Vislink was delivering on its software strategy with software performing ahead of expectations and now providing longer term visibility. "2014 represents a transitional and transformational year for the group and with the increasing focus on our software division, we believe that this will enhance the group's overall quality of earnings in 2014 and beyond."Vislink shares were down 13.6% to 44.3p at 08:48 on Tuesday.