LRAD® Corporation Acquires Location-Based Mass Messaging Solutions Provider, Genasys Holding S.L.
January 19 2018 - 9:00AM
LRAD Corporation (NASDAQ: LRAD), the world’s leading
provider of acoustic hailing devices and advanced mass notification
systems, today announced the acquisition of Genasys Holding S.L.
(“Genasys”), a leading software provider of advanced location-based
mass messaging solutions for emergency warning systems and
workforce management.
Genasys, headquartered in Madrid, Spain, has an
experienced group of developers with over 200 man years of software
development and a strong, international technical sales, service,
and support team. Genasys currently has two main product offerings:
news - a reliable solution for sending SMS-based warnings of public
safety hazards to affected populations with industry-leading speed;
and, haz – a low cost, easy-to-use solution for remotely monitoring
employees, planning tasks, and managing workplace incidents.
“The acquisition of Genasys enables LRAD to
significantly enhance its advanced mass notification capabilities
and pursue broader geolocation based mass messaging projects and
services,” stated Richard S. Danforth, Chief Executive Officer of
LRAD Corporation. “Many of the mass notification opportunities we
target, including universities, cities, and countries, require an
integrated location-based mass messaging service. With this
acquisition, LRAD expects to generate revenue on initial
installations and recurring revenue from long-term support
contracts for updating and maintaining the messaging service over
the life of the installations.”
“I am eager to leverage LRAD’s worldwide sales
channels to seek accelerated growth of the Genasys mass
notification software solutions,” remarked Pablo Colom, Genasys'
Chief Executive Officer. “Genasys has a solid track record of
location-based mass messaging integrations and deployments, which
include solutions for small workgroups to fully integrated
country-wide systems. The synergies of Genasys’ push notification
products and LRAD’s award-winning mass notification systems will
provide state-of-the-art solutions to communicate potentially
lifesaving information to those affected by severe weather,
man-made and natural disasters and other emergencies.”
Revenues for Genasys in calendar 2017
(unaudited) were €1.9 million. Total consideration for the
acquisition is €3.1 million, which includes a €1.9 million purchase
price and the assumption of €1.2 million of debt.
Management will host a conference call to
discuss the Genasys acquisition on Monday, January 22, 2018, at
12:00 pm U.S. EST. To access the conference call, dial toll-free
888.567.1602 from the U.S., or international at +1.404.267.0373. A
webcast will also be available at the following link:
https://www.webcaster4.com/Webcast/Page/1375/24207. A replay of the
call will be available approximately four hours after the call
concludes, and remain available for 90 days at the aforementioned
webcast link. Questions to management may be submitted before or
during the call by emailing them to investor@lrad.com.
About LRAD Corporation
Using advanced technology and superior voice
intelligibility, LRAD Corporation’s proprietary Long Range Acoustic
Devices® and revolutionary ONE VOICE® mass notification systems are
designed to enable users to safely hail and warn, inform and
direct, prevent misunderstandings, determine intent, establish
large safety zones, resolve uncertain situations, and save lives.
LRAD systems are in service in more than 70 countries around the
world in diverse applications including mass notification and
public address, fixed and mobile defense deployments, homeland,
border, critical infrastructure, maritime, oil & gas, and port
security, public safety, law enforcement and emergency responder
communications, asset protection, and wildlife control and
preservation. For more information, please visit www.LRAD.com.
About Genasys Holding S.L.
Genasys Holding S.L. is backed by Adara Ventures
and Caixa Capital Risc, and is a leading software provider of
advanced location-based mass messaging solutions for Emergency
Warning Systems and Workforce Management. For more information,
please visit www.LRAD.com/genasys.
Forward Looking
Statements
Except for historical information contained
herein, the matters discussed are forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934.
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. These statements involve risks and
uncertainties that could cause actual results to differ materially
from those suggested in the forward-looking statements. These risks
and uncertainties include those associated with the integration of
Genasys into the Company’s business, that the anticipated benefits
and synergies of the transaction may not materialize as expected,
that customer demand for the integrated product offerings may not
meet expectations, and other risks and uncertainties 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, 2017. LRAD Corporation
disclaims any intent or obligation to update those forward-looking
statements, except as otherwise specifically stated.
Company Contact
E. Brian Harvey
Director, Investor Relations and Capital Markets
858.753.8974
ebharvey@lrad.com
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