Genasys Inc. Reports Fiscal Fourth Quarter and Fiscal Year 2024 Financial Results
Record Fiscal 2024 Bookings of
Starting Fiscal 2025 with 12-month Backlog of
Richard S. Danforth, Chief Executive Officer of Genasys, Inc., commented, “Looking back, fiscal year 2024 was a challenging year from a financial perspective. With the completion of the prior program of record with the US Army and poor bookings in fiscal 2023, we started 2024 with less than
Danforth continued, “Fiscal 2024 did have a number of important positive milestones that now set the Company up for substantial growth in 2025 and beyond. The
Fiscal 4Q 2024 Financial Summary
-
Revenue of
$6.7 million $10.7 million -
GAAP operating loss of
( , versus$7.1) million ( in the fiscal 2023 fourth quarter$2.6) million -
Adjusted EBITDA of
( , versus$6.0) million ( in the fiscal 2023 fourth quarter$1.7) million -
GAAP net loss of
( versus$11.4) million ( in the fiscal 2023 fourth quarter. GAAP net loss per share ($10.1) million $0.26 $0.27
Fiscal 2024 Financial Summary
-
Revenue of
$24.0 million $46.7 million -
GAAP operating loss of
( , versus$26.7) million ( in fiscal 2023.$11.0) million -
Adjusted EBITDA of
( , versus$22.1) million ( in fiscal 2023.$6.8) million -
GAAP net loss of
( versus$31.7) million ( in fiscal 2023. GAAP net loss per share of ($18.4) million $0.72 $0.50
Business Highlights
-
Announced
$3.4 million -
Announced 4-year contract with
Los Angeles County for the addition of Genasys ALERT to pre-existing contract for Genasys EVAC. -
Announced 4-year contract with
Maui County for Genasys EVAC and TRAFFIC AI - Announced statewide agreement with Oregon’s Office of Resilience and Emergency Management (OREM) for Genasys EVAC.
-
Announced Critical Infrastructure Protection (CIP) orders from Hoover Dam, Port of
Houston , and Alabama-Coushatta Tribe. -
Expanded project value of previously announced Early Warning System (EWS) for 37 dams on the island of
Puerto Rico to approximately$75 million
Business Outlook
Software pipeline and bookings continue to grow. The rate of growth in our fiscal 2025 software revenues is expected to moderate from the triple digit rate experienced in fiscal 2024, partially due to the full year inclusion of Evertel results, and a normalization of growth relative to our resource allocation. Hardware bookings in fiscal 2024, including the substantial award from
Fiscal Fourth Quarter 2024 Financial Review
Fiscal fourth quarter revenue was
Gross profit margin was
Operating expenses of
GAAP net loss in the quarter was
Adjusted EBITDA was
Fiscal 2024 Financial Review
Revenue for fiscal 2024 was
Gross profit margin was
Operating expenses of
GAAP net loss for the fiscal year was
Adjusted EBITDA was
Cash, cash equivalents and marketable securities totaled
We include in this press release Non-GAAP operational metrics of adjusted EBITDA, adjusted net loss, and adjusted net loss per share, which we believe provide helpful information to investors with respect to evaluating the Company’s performance. Adjusted EBITDA represents our net income before other income, 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 fourth 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/gwlAD37D8WY
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 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. Today, Genasys protects over 70 million people globally and is used in more than 100 countries, including more than 500 cities, counties, and states in the
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 conflict, 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.
| Genasys Inc. | ||||||
| Condensed Consolidated Balance Sheets | ||||||
| (Unaudited - in thousands) | ||||||
| September 30, | ||||||
2024 |
2023 |
|||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ |
4,945 |
$ |
8,665 |
||
| Short-term marketable securities |
|
7,945 |
|
1,481 |
||
| Restricted cash |
|
95 |
|
758 |
||
| Accounts receivable, net |
|
3,283 |
|
5,952 |
||
| Inventories, net |
|
7,313 |
|
6,501 |
||
| Prepaid expenses and other |
|
2,559 |
|
1,851 |
||
| Total current assets |
|
26,140 |
|
25,208 |
||
| Long-term marketable securities |
|
249 |
|
— |
||
| Long-term restricted cash |
|
250 |
|
96 |
||
| Property and equipment, net |
|
1,291 |
|
1,551 |
||
| Goodwill |
|
13,329 |
|
10,282 |
||
| Intangible assets, net |
|
8,506 |
|
8,427 |
||
| Operating lease right of use assets, net |
|
3,110 |
|
3,886 |
||
| Other assets |
|
1,061 |
|
455 |
||
| Total assets | $ |
53,936 |
$ |
49,905 |
||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ |
4,034 |
$ |
2,785 |
||
| Accrued liabilities |
|
9,030 |
|
7,466 |
||
| Operating lease liabilities, current portion |
|
1,021 |
|
1,008 |
||
| Total current liabilities |
|
14,085 |
|
11,259 |
||
| Notes payable, at fair value |
|
12,010 |
|
— |
||
| Warrant liability |
|
6,640 |
|
— |
||
| Long-term deferred revenue |
|
369 |
|
551 |
||
| Operating lease liabilities, noncurrent |
|
3,269 |
|
4,283 |
||
| Total liabilities |
|
36,373 |
|
16,093 |
||
| Total stockholders' equity |
|
17,563 |
|
33,812 |
||
| Total liabilities and stockholders' equity | $ |
53,936 |
$ |
49,905 |
||
| Genasys Inc. | ||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (Unaudited - in thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended September 30, |
Years Ended September 30, |
|||||||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| Revenues | $ |
6,741 |
|
$ |
10,700 |
|
$ |
24,008 |
|
$ |
46,663 |
|
||||
| Cost of revenues |
|
3,992 |
|
|
5,391 |
|
|
13,819 |
|
|
24,901 |
|
||||
| Gross profit |
|
2,749 |
|
|
5,309 |
|
|
10,189 |
|
|
21,762 |
|
||||
|
40.8 |
% |
|
49.6 |
% |
|
42.4 |
% |
|
46.6 |
% |
|||||
| Operating expenses | ||||||||||||||||
| Selling, general and administrative |
|
7,454 |
|
|
6,178 |
|
|
27,261 |
|
|
24,621 |
|
||||
| Research and development |
|
2,427 |
|
|
1,770 |
|
|
9,644 |
|
|
8,127 |
|
||||
| Total operating expenses |
|
9,881 |
|
|
7,948 |
|
|
36,905 |
|
|
32,748 |
|
||||
| Loss from operations |
|
(7,132 |
) |
|
(2,639 |
) |
|
(26,716 |
) |
|
(10,986 |
) |
||||
| Other expense, net |
|
(4,183 |
) |
|
(6 |
) |
|
(5,419 |
) |
|
(10 |
) |
||||
| Loss before income taxes |
|
(11,315 |
) |
|
(2,645 |
) |
|
(32,135 |
) |
|
(10,996 |
) |
||||
| Income tax (benefit) expense |
|
71 |
|
|
7,417 |
|
|
(405 |
) |
|
7,400 |
|
||||
| Net loss | $ |
(11,386 |
) |
$ |
(10,062 |
) |
$ |
(31,730 |
) |
$ |
(18,396 |
) |
||||
| Net loss per common share - basic and diluted | $ |
(0.26 |
) |
$ |
(0.27 |
) |
$ |
(0.72 |
) |
$ |
(0.50 |
) |
||||
| Weighted average common shares outstanding - basic and diluted |
|
44,598 |
|
|
37,190 |
|
|
44,317 |
|
|
36,939 |
|
||||
| Reconciliation of GAAP measures to non-GAAP measures | ||||||||||||||||
| Net loss | $ |
(11,386 |
) |
$ |
(10,062 |
) |
$ |
(31,730 |
) |
$ |
(18,396 |
) |
||||
| Other expense, net |
|
4,183 |
|
|
6 |
|
|
5,419 |
|
|
10 |
|
||||
| Income tax (benefit) expense |
|
71 |
|
|
7,417 |
|
|
(405 |
) |
|
7,400 |
|
||||
| Depreciation and amortization |
|
736 |
|
|
640 |
|
|
2,929 |
|
|
2,558 |
|
||||
| Stock based compensation |
|
383 |
|
|
313 |
|
|
1,652 |
|
|
1,642 |
|
||||
| Adjusted EBITDA | $ |
(6,013 |
) |
$ |
(1,686 |
) |
$ |
(22,135 |
) |
$ |
(6,786 |
) |
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241209559892/en/
Investor Relations Contact
Brian Alger, CFA
SVP, IR and Corporate Development
ir@genasys.com
(858) 676-0582
Source: Genasys Inc.
