Genasys Inc. (NASDAQ: GNSS), the leader in Protective
Communications, today announced financial results for the Company’s
fiscal third quarter ended June 30, 2024.
Richard S. Danforth, Chief Executive Officer of
Genasys, Inc., commented, “Genasys is making positive progress
across each of its end markets. The large, announced projects with
PREPA and the US Army provide long-term confidence in our hardware
business. The recent improvement in international bookings also
lends confidence that the broader hardware business is
stabilizing.”
Mr. Danforth continued, “As has been the case
all year, our software business continues to track in line with our
aggressive expectations. Our coverage area in
California continues to expand and we are also gaining traction in
several western states. Additionally, we are beginning to realize
broader synergies between our software and hardware businesses in
both the law enforcement and critical infrastructure protection
industry segments, as is best illustrated by the Early Warning
System we will be installing in Puerto Rico.”
Fiscal
3Q 2024 Financial Summary
- Revenue of $7.2 million, versus
$14.3 million in 3Q 2023
- GAAP operating loss of ($5.4)
million, versus ($1.4) million in 3Q 2023
- GAAP net loss of ($6.7) million
versus ($1.4) million in 3Q 2023
- GAAP net loss per share ($0.15)
versus ($0.04) in 3Q 2023
- Adjusted EBITDA of ($4.3) million,
versus ($0.4) million in 3Q 2023
Business Highlights
- Received Financial Oversight &
Management Board (FOMB) for Puerto Rico approval for the $75
million dam project with PREPA on June 28th
- Increased market share and realized
synergies with Law Enforcement customers leveraging Genasys CONNECT
and LRAD solutions across the United States
- Expanded Genasys Protect coverage
in California with the activation of Genasys EVAC in San Diego
County and the recent multi-year contract with Santa Barbara
County
- Announced improving international
sales with recent orders from Europe, Asia and the Middle East
- Completed reconstitution of Board
of Directors, providing greater expertise and oversight for the
direction the Company is heading
Business Outlook
With the final approval from the FOMB for Puerto
Rico, we remain on track to begin the implementation phase of the
project later this summer. As we stated in May, we expect the
project in Puerto Rico to generate approximately $75 million in
revenue for Genasys over the course of the project. We expect most
of the revenue and positive cash flow to be realized in fiscal
years 2025 and 2026.
The CROWS AHD program of record has been
established, and initial planning for future procurement and
production is underway. Though revenues are not likely to be
realized this fiscal year, this substantial program should provide
consistent revenues in fiscal year 2025 and the several years
following.
Software revenues continue to track to
expectations of finishing fiscal 2024 with both recurring revenues
and ARR at least doubling year over year.
Fiscal 3Q 2024 Financial
Review
Fiscal third quarter revenue was $7.2 million, a
decrease of nearly 50% from $14.3 million in the prior year's
quarter. Software revenue increased 120% while hardware revenue
decreased 62%, compared with the fiscal 2023 third quarter. Within
software, quarterly recurring revenue increased 138% year over
year, and ARR finished the quarter at $7.6 million.
Gross profit margin was 52.8%, compared with
46.9% in the third quarter of fiscal 2023. The improvement in gross
profit is primarily attributable to a stronger mix of software
revenues and a 330 basis point improvement on the prior year
hardware gross margins.
Operating expenses of $9.1 million increased
from $7.1 million in fiscal 3Q 2023. Selling, general and
administrative expenses increased 11% from $6.0 million in the
prior year to $6.6 million in the quarter ended June 30, 2024.
Research and development expenses increased 17% year over year to
$2.5 million primarily due to the acquisition of Evertel and
efforts to increase the features and functionality of our software
offerings.
GAAP net loss in the quarter was ($6.7) million,
or ($0.15) per share, compared with a GAAP net loss of ($1.4)
million, or ($0.04) per share, in the third quarter of fiscal
2023.
Excluding other income and expense, net income
tax expense (benefit), depreciation, stock-based compensation and
amortization of intangibles, Adjusted EBITDA was ($4.3) million for
the third quarter of fiscal 2024, compared with ($0.4) million for
the prior fiscal year period.
Cash, cash equivalents and marketable securities
totaled $12.7 million as of June 30, 2024, compared with $10.1
million as of September 30, 2023. Not included is the
$3.5 million Bid Bond for the Puerto Rico project that is reflected
in Prepaid Expenses.
We include in this press release the non-GAAP
operational metrics of adjusted EBITDA, which we believe provide
helpful information to investors with respect to evaluating the
Company’s performance. Adjusted EBITDA represents our net loss
before other income and expense, net, income tax expense (benefit),
depreciation and amortization expense and stock-based compensation.
We do not consider these items to be indicative of our core
operating performance. The items that are non-cash include
depreciation and amortization expense and stock-based compensation.
Adjusted EBITDA is a measure used by management to understand and
evaluate our core operating performance and trends and to generate
future operating plans, make strategic decisions regarding
allocation of capital and invest in initiatives that are focused on
cultivating new markets for our solutions. In particular, the
exclusion of certain expenses in calculating Adjusted EBITDA
facilitates comparisons of our operating performance on a
period-to-period basis.
Webcast and Conference Call
Details
Management will host a conference call to
discuss the financial results for the third quarter of fiscal year
2024 this afternoon at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific
Time. To access the conference call, dial toll-free (888) 390-3967,
or international at (862) 298-0702. A webcast will also be
available at the following link:
https://app.webinar.net/awpEXDdXLYd
Questions to management may be submitted before
the call by emailing them to: ir@genasys.com. A replay of the
webcast will be available approximately four hours after the
presentation on the Events page of the Company’s
website.
About Genasys Inc.
Genasys Inc. (NASDAQ: GNSS) is the global leader
in Protective Communications Solutions and Systems, designed around
one premise: ensuring organizations and public safety agencies are
“Ready when it matters™”. The Company provides the Genasys Protect
platform, the most comprehensive portfolio of preparedness,
response, and analytics software and systems, as well as Genasys
Long Range Acoustic Devices® (LRAD®) that deliver directed, audible
voice messages with exceptional vocal clarity from close range to
5,500 meters. Genasys serves state and local governmental agencies,
and education (SLED); enterprise organizations in critical sectors
such as oil and gas, utilities, manufacturing, and automotive; and
federal governments and the military. Genasys Protective
Communications Solutions have diverse applications, including
emergency warning and mass notification for public safety, critical
event management for enterprise companies, de-escalation for
defense and law enforcement, and automated detection of real-time
threats like active shooters and severe weather. Protecting people
and saving lives for over 40 years, Genasys covers more than 70
million people in over 100 countries worldwide, including more than
550 U.S. cities. For more information, visit genasys.com.
Forward-Looking Statements
Except for historical information contained
herein, the matters discussed are forward-looking statements within
the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995. You should not place
undue reliance on these statements. We base these statements on
particular assumptions that we have made in light of our industry
experience, the stage of product and market development as well as
our perception of historical trends, current market conditions,
current economic data, expected future developments and other
factors that we believe are appropriate under the circumstances.
Forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from those
suggested in any forward-looking statement. The risks and
uncertainties in these forward-looking statements include without
limitation the business impact of geopolitical conflicts, epidemics
or pandemics, and other causes that may affect our supply chain,
and other risks and uncertainties, many of which involve factors or
circumstances that are beyond the Company's control. Risks and
uncertainties are identified and discussed in our filings with the
Securities and Exchange Commission. These forward-looking
statements are based on information and management's expectations
as of the date hereof. Future results may differ materially from
our current expectations. For more information regarding other
potential risks and uncertainties, see the "Risk Factors" section
of the Company's Form 10-K for the fiscal year ended September 30,
2023. Genasys Inc. disclaims any intent or obligation to publicly
update or revise forward-looking statements, except as otherwise
specifically stated.
Investor Relations Contacts
Brian Alger, CFASVP, IR and Corporate
Developmentir@genasys.com(858) 676-0582
|
|
Genasys
Inc. |
|
Condensed
Consolidated Balance Sheets |
|
(Unaudited -
in thousands) |
|
|
|
|
|
|
|
|
|
June
30, |
|
September
30, |
|
|
|
2024 |
|
2023 |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
8,672 |
|
$ |
8,665 |
|
Short-term marketable securities |
|
|
4,046 |
|
|
1,481 |
|
Restricted cash |
|
|
- |
|
|
758 |
|
Accounts receivable, net |
|
|
5,661 |
|
|
5,952 |
|
Inventories, net |
|
|
7,315 |
|
|
6,501 |
|
Prepaid expenses and other |
|
|
5,927 |
|
|
1,851 |
|
Total current assets |
|
|
31,621 |
|
|
25,208 |
|
Long-term restricted cash |
|
|
346 |
|
|
96 |
|
Property and equipment, net |
|
|
1,373 |
|
|
1,551 |
|
Goodwill |
|
|
13,235 |
|
|
10,282 |
|
Intangible assets, net |
|
|
9,123 |
|
|
8,427 |
|
Operating lease right of use asset |
|
|
3,307 |
|
|
3,886 |
|
Other assets |
|
|
404 |
|
|
455 |
|
Total assets |
|
$ |
59,409 |
|
$ |
49,905 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
|
$ |
3,562 |
|
$ |
2,785 |
|
Accrued liabilities |
|
|
7,683 |
|
|
7,466 |
|
Operating lease liabilities, current portion |
|
|
1,026 |
|
|
1,008 |
|
Total current liabilities |
|
|
12,271 |
|
|
11,259 |
|
|
|
|
|
|
|
Notes payable, at fair value |
|
|
11,699 |
|
|
- |
|
Warrant liability |
|
|
3,104 |
|
|
- |
|
Other liabilities, noncurrent |
|
|
343 |
|
|
551 |
|
Operating lease liabilities, noncurrent |
|
|
3,518 |
|
|
4,283 |
|
Total liabilities |
|
|
30,935 |
|
|
16,093 |
|
|
|
|
|
|
|
Total stockholders' equity |
|
|
28,474 |
|
|
33,812 |
|
Total liabilities and stockholders' equity |
|
$ |
59,409 |
|
$ |
49,905 |
|
|
|
Genasys
Inc. |
|
Condensed
Consolidated Statements of Operations |
|
(Unaudited -
in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
June
30, |
|
June
30, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
7,167 |
|
|
$ |
14,262 |
|
|
$ |
17,267 |
|
|
$ |
35,962 |
|
|
Cost of revenues |
|
3,383 |
|
|
|
7,567 |
|
|
|
9,827 |
|
|
|
19,510 |
|
|
Gross profit |
|
3,784 |
|
|
|
6,695 |
|
|
|
7,440 |
|
|
|
16,452 |
|
|
|
|
52.8 |
% |
|
|
46.9 |
% |
|
|
43.1 |
% |
|
|
45.7 |
% |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
6,649 |
|
|
|
6,004 |
|
|
|
19,806 |
|
|
|
18,443 |
|
|
Research and development |
|
2,496 |
|
|
|
2,141 |
|
|
|
7,218 |
|
|
|
6,357 |
|
|
Total operating expenses |
|
9,145 |
|
|
|
8,145 |
|
|
|
27,024 |
|
|
|
24,800 |
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
(5,361 |
) |
|
|
(1,450 |
) |
|
|
(19,584 |
) |
|
|
(8,348 |
) |
|
Other income (expense), net |
|
(1,363 |
) |
|
|
1 |
|
|
|
(1,236 |
) |
|
|
(4 |
) |
|
Loss before income taxes |
|
(6,724 |
) |
|
|
(1,449 |
) |
|
|
(20,820 |
) |
|
|
(8,352 |
) |
|
Income tax benefit |
|
(42 |
) |
|
|
(26 |
) |
|
|
(476 |
) |
|
|
(18 |
) |
|
Net loss |
$ |
(6,682 |
) |
|
$ |
(1,423 |
) |
|
$ |
(20,344 |
) |
|
$ |
(8,334 |
) |
|
|
|
|
|
|
|
|
|
|
Net loss per common share: |
|
|
|
|
|
|
|
|
Basic |
$ |
(0.15 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.46 |
) |
|
$ |
(0.23 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
44,598 |
|
|
|
37,053 |
|
|
|
44,217 |
|
|
|
36,855 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP measures to non-GAAP
measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(6,682 |
) |
|
$ |
(1,423 |
) |
|
$ |
(20,344 |
) |
|
$ |
(8,334 |
) |
|
Other income (expense), net |
|
1,363 |
|
|
|
(1 |
) |
|
|
1,236 |
|
|
|
4 |
|
|
Income tax benefit |
|
(42 |
) |
|
|
(26 |
) |
|
|
(476 |
) |
|
|
(18 |
) |
|
Depreciation and amortization |
|
733 |
|
|
|
636 |
|
|
|
2,193 |
|
|
|
1,918 |
|
|
Stock based compensation |
|
299 |
|
|
|
396 |
|
|
|
1,269 |
|
|
|
1,329 |
|
|
Adjusted EBITDA |
$ |
(4,329 |
) |
|
$ |
(418 |
) |
|
$ |
(16,122 |
) |
|
$ |
(5,101 |
) |
|
Genasys (NASDAQ:GNSS)
過去 株価チャート
から 7 2024 まで 8 2024
Genasys (NASDAQ:GNSS)
過去 株価チャート
から 8 2023 まで 8 2024