Strong growth in software, hardware declining

Vislink has announced that trading for FY16 is in line with management expectations, with Q4 exhibiting the usual seasonal uplift. In addition, on Friday, it announced it had entered into a business purchase agreement to sell the assets of Vislink Communications Systems (VCS) for $16m, progressing from the informal agreement in principle announced in October, to a detailed formal agreement. The disposal remains conditional on shareholder approval. We leave our estimates, which assume that VCS remains within the group, unchanged and will review them when shareholder approval has been received.