SAN DIEGO - Genasys Inc. (NASDAQ: NASDAQ:GNSS), known for its Protective Communications technology, has secured an order from the Alabama-Coushatta Tribe of Texas for its ACOUSTICS systems. The order aims to enhance public safety and protect tribal members, visitors, and tourists on the tribe's reservation.
The Genasys ACOUSTICS systems, which will be integrated with the Genasys ALERT platform, are designed to provide high-fidelity outdoor emergency voice warnings and notifications. This technology is particularly pertinent for the reservation's location on several thousand wooded acres in East Texas, an area susceptible to natural disasters such as wildfires, severe storms, and hurricanes.
The systems will include satellite connectivity, solar power, and battery backup to ensure functionality during emergencies. This development is part of a broader regional effort, as the Deep East Texas Council of Governments already utilizes Genasys Protect as a multi-agency mass notification solution across 11 counties and various municipalities in the same region.
Genasys CEO Richard Danforth highlighted the company's expansion in 39 states since the launch of Genasys Protect in August of the previous year. The company has received significant orders from various state and city governments, including the State of New Hampshire, Los Angeles and San Diego Counties, and the City of Boston. With ongoing projects like the Puerto Rico dams and anticipated further orders, Genasys anticipates a strong business outlook for its software and hardware solutions.
The Genasys Protect platform offers a full suite of tools for critical infrastructure protection and emergency management, focusing on targeted communication, data-driven decision-making, and secure inter-agency collaboration. The company's portfolio includes Long Range Acoustic Devices (LRAD®), covering more than 70 million people in over 100 countries, including over 550 U.S. cities.
This announcement is based on a press release statement and comes with the customary caution regarding forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from those projected. These statements should not be relied upon unduly and are subject to factors beyond the company's control.
In other recent news, Genasys Inc., a leader in Protective Communications technology, has reported a series of promising developments. The company has secured an order from the Port of Houston to upgrade its PortAlert system with Genasys' EDGE 800 Power and Control cabinets, enhancing safety and security measures at the port.
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 expected to generate approximately $75 million in revenue for the company, reaffirming Genasys' commitment to emergency communications infrastructure in Puerto Rico.
In an earnings call, Genasys revealed robust growth for the fiscal third quarter of 2024. 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 recent developments and investors are advised to keep an eye on further updates from the company.
InvestingPro Insights
Genasys Inc. (NASDAQ: GNSS), while expanding its reach with the recent order from the Alabama-Coushatta Tribe of Texas, shows a mixed financial outlook based on real-time data and analysis from InvestingPro. The company's market capitalization stands at $131.58 million, reflecting its position in the market. However, analysts are cautious about the company's performance in the near term, anticipating a sales decline and expecting net income to drop in the current year. These projections are in line with the company's revenue growth, which has seen a significant decrease of 46.22% over the last twelve months as of Q3 2024.
Moreover, Genasys Inc. operates with a moderate level of debt, which could be a factor in its ability to navigate the anticipated downturn in profitability. The company's valuation implies a poor free cash flow yield, which is an important metric for investors looking for growth potential and financial health. Despite these challenges, Genasys has managed to maintain a strong return over the last three months, with a 62.98% price total return, and a robust return over the last month at 20.41%. This recent uptick in share price performance may reflect investor confidence in the company's strategic initiatives and market presence.
For readers looking to delve deeper into Genasys Inc.'s financials and future prospects, InvestingPro offers additional insights. There are currently 11 more InvestingPro Tips available, which can provide a more comprehensive understanding of the company's position and what to expect moving forward. Visit https://www.investing.com/pro/GNSS for a full list of tips and a more detailed analysis.
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