SAN DIEGO - Genasys Inc. (NASDAQ: NASDAQ:GNSS), a company specializing in Protective Communications, has secured new orders for its Long Range Acoustic Device (LRAD) systems, including a law enforcement order from a West African country and a defense follow-on order from Damen Schelde Naval Shipbuilding B.V. (Damen). The West African law enforcement order will see LRAD systems installed on police vehicles to facilitate public safety operations and crowd communication. Additionally, Damen has exercised an option to equip two more German Navy F-126 frigates with multiple LRAD 950NXT systems, following an initial order announced in June.
Richard Danforth, CEO of Genasys, noted the rebound of international LRAD business, highlighted by the recent orders from the EU, Middle East, and APAC regions earlier this summer. He also anticipates further international orders for the company's LRAD systems within this calendar year.
Peter Ayre, Genasys Vice President of EMEA Business Development, commented on the increasing demand for LRAD systems due to escalating regional tensions and ongoing civil unrest. Ayre emphasized the devices' capability to communicate clearly over long distances, establish safety zones, deescalate dangerous situations, and save lives.
LRAD systems are designed to project voice messages and alert tones with exceptional clarity over distances up to 5,500 meters. The systems have a wide range of applications, including public safety, defense, border security, and wildlife preservation. Genasys has been providing protective communication solutions for over 40 years and currently serves more than 70 million people in over 100 countries, including over 550 U.S. cities.
The information in this article is based on a press release statement from Genasys Inc. The company advises that the forward-looking statements within the release are subject to various risks and uncertainties, and actual results could differ materially from those projected. These statements are not guarantees of future performance, and undue reliance should not be placed on them.
In other recent news, Genasys Inc. has reported a series of significant developments. The protective communications technology company has secured a number of orders, including one from the Alabama-Coushatta Tribe of Texas for its ACOUSTICS systems, aimed at enhancing public safety. An order has also been received from the Port of Houston for an upgrade of its PortAlert system with Genasys' EDGE 800 Power and Control cabinets.
In addition, Genasys has been awarded a FEMA-funded project in Puerto Rico, involving the deployment of an Emergency Warning System across 37 dams. This significant contract is projected to generate approximately $75 million in revenue for the company.
In the company's fiscal third quarter of 2024 earnings call, Genasys revealed robust growth. The company's software business is expected to double recurring revenues and ARR, and international hardware bookings have risen by 117% year-over-year. Genasys also maintains a strong cash position, holding $12.7 million in cash and equivalents.
The company anticipates over $200 million in highly profitable revenue from key projects in the coming years, and its software business is projected to achieve triple-digit growth in ARR this year. However, Genasys has withheld detailed guidance due to uncertainties in larger award revenue recognition timing. These are all recent developments contributing to the company's strong business outlook.
InvestingPro Insights
Genasys Inc. (NASDAQ: GNSS), while securing new orders and experiencing a rebound in its international business, faces a challenging fiscal environment. According to InvestingPro data, the company's market capitalization stands at $154.33 million, reflecting its place within the market. However, analysts have expressed concerns regarding the company's financial health, anticipating a sales decline and a drop in net income in the current year. This is corroborated by a recent revenue decrease of 46.22% over the last twelve months as of Q3 2024, a significant contraction that could impact future operations.
InvestingPro Tips provide further insights, indicating that Genasys is not expected to be profitable this year, with a negative Price/Earnings (P/E) ratio of -4.82. This is a critical metric that potential investors often consider when evaluating a company's earnings relative to its stock price. Additionally, the company's liquid assets exceed its short-term obligations, which can be a positive sign of financial stability in the face of declining sales and profits.
Despite the financial headwinds, Genasys has shown a strong stock performance with a return of 18.97% over the last month and a notable 75.13% over the last three months, trading near its 52-week high. This suggests investor confidence in the company's market position or future prospects, despite the lack of profitability over the last twelve months. It's also worth noting that Genasys does not pay a dividend to shareholders, which may influence investment decisions for those seeking regular income streams from their investments.
For readers interested in a deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/GNSS, providing a comprehensive assessment of Genasys Inc.'s financial health and market performance.
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