Genasys Inc. (NASDAQ: GNSS), a global provider of
critical communications systems and solutions, today announced
financial results for its fiscal second quarter ended March 31,
2020.
Fiscal Second Quarter 2020 Financial
Summary
Fiscal 2020 second quarter revenues were $8.3
million, compared with $10.2 million in the same period last year.
The COVID-19 outbreak partially impacted the acceptance testing and
delivery of two orders with a total value of approximately $1.6
million. Virtual acceptance testing and partial deliveries were
completed in April, with the balance scheduled to ship in the
fiscal third quarter.
Gross profit margin was 48.4%, compared with
50.9% in the second quarter of fiscal 2019. Gross profit decreased
compared with the same quarter in the prior year primarily due to
$0.1 million of additional engineering charges resulting from the
use of a more precise process to charge engineering expenses to
cost of sales.
Operating expenses were $3.7 million, down
slightly from $3.8 million in the same period last year.
Net income for the quarter was $0.3 million, or
$0.01 per diluted share, compared with net income of $1.2 million,
or $0.04 per diluted share, in the second quarter of fiscal
2019.
Cash and cash equivalents totaled $16.4 million
on March 31, 2020, compared with $18.8 million on September 30,
2019.
Working capital totaled $25.5 million on March
31, 2020, compared with $24.8 million on September 30, 2019.
First Six Months Financial
Summary
Revenues for the first six months of fiscal 2020
were $17.1 million, compared with $20.4 million in the same period
last year. Revenues decreased for the six-month period ended
March 31, 2020 compared to the same prior year period due to the
timing for delivery of the backlog at September 30, 2019.
Gross profit margin was 50.5%, unchanged from
the first six months of fiscal 2019.
Operating expenses were $7.6 million, mostly
unchanged from the same period last year.
Net income for the first six months was $0.9
million, or $0.03 per diluted share, compared with net income of
$2.2 million, or $0.07 per diluted share, in the first six months
of fiscal 2019.
“Fiscal second quarter and first half revenues
met expectations in spite of the COVID-19 outbreak partially
impacting the delivery of $1.6 million in orders at the end of the
quarter,” said Richard S. Danforth, Chief Executive Officer of
Genasys Inc.
“The Company continues to receive domestic and
international orders that are adding to bookings and backlog,” Mr.
Danforth continued. “As an essential provider of critical
hardware and software communications systems, our facility remains
open and the production team is working overtime to build product
and deliver orders.”
Select Fiscal Second Quarter 2020
Operating and Business Highlights
- Released COVID-19 interactive map
layer service for free public and enterprise use
- Homeland security and public safety agencies in the U.S.,
Spain, Poland, Morocco, South Africa, Thailand and Malaysia
deployed LRAD systems in the agencies’ COVID-19 responses
- Launched the Company’s Personal Safety Service, a unified,
multi-channel critical communications solution for governments and
enterprises
- Received $1.8 million in international homeland security and
critical infrastructure protection orders
- Announced $1.5 million in international naval and port security
orders
- Received $1.2 million in defense
and mass notification orders
“Governments continue to fund important
initiatives, providing the Company with new and follow-on
business,” continued Mr. Danforth. “We believe that the coronavirus
initiatives we implemented in March are opening many doors,
producing results and accelerating the growth of our software
business.”
“While the pandemic’s effects on our business
are uncertain, our systems and solutions are proving to be vital
for a world experiencing exponential safety concerns,” Mr. Danforth
added. “With our strong balance sheet and expanding business
pipeline, Genasys remains on track for record fiscal year revenues
and well-positioned for future revenue growth.”
Webcast and Conference Call
Details
Management will host a conference call to
discuss the fiscal second quarter 2020 financial results 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://www.webcaster4.com/Webcast/Page/1375/34372.
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 & Presentations page of the
Company’s website.
About Genasys Inc.
Genasys™ provides a multi-channel approach to
deliver geo-targeted alerts, notifications, instructions and
information before, during and after public safety threats and
critical business events. The Company’s unified critical
communications platform includes its National Emergency Warning
System (NEWS), Personal Safety Service (PSS), Team Safety
Management (TSM), LRAD® systems and more.
Genasys critical communication systems are in
service in 72 countries around the world in diverse applications,
including public safety, national emergency warning systems, mass
notification, defense, law enforcement, critical infrastructure
protection and many more. 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 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
forward-looking statements are subject to a number of risks and
uncertainties, including the consequences of the COVID-19 outbreak,
other pandemics 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, 2019. Genasys Inc. disclaims any
intent or obligation to update those forward-looking statements,
except as otherwise specifically stated.
Investor Relations Contacts
Jim Fanucchi and Satya ChillaraDarrow Associates,
Inc.ir@genasys.com
Genasys
Inc. |
Condensed
Consolidated Balance Sheets |
(000's
omitted) |
|
|
|
|
|
|
|
|
|
March
31, |
|
|
|
2020 |
|
September
30, |
|
(unaudited) |
|
2019 |
|
|
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
16,399 |
|
$ |
18,819 |
Short-term marketable securities |
|
3,465 |
|
|
3,695 |
Restricted cash |
|
265 |
|
|
263 |
Accounts receivable, net |
|
5,849 |
|
|
3,644 |
Inventories, net |
|
6,922 |
|
|
5,835 |
Prepaid expenses and other |
|
995 |
|
|
1,782 |
Total current assets |
|
33,895 |
|
|
34,038 |
Long-term marketable securities |
|
1,646 |
|
|
1,385 |
Long-term restricted cash |
|
395 |
|
|
435 |
Deferred tax assets, net |
|
5,118 |
|
|
5,387 |
Property and equipment, net |
|
2,106 |
|
|
2,269 |
Goodwill |
|
2,319 |
|
|
2,306 |
Intangible assets, net |
|
1,034 |
|
|
1,176 |
Operating lease right of use asset |
|
5,534 |
|
|
- |
Prepaid expenses and other - noncurrent |
|
124 |
|
|
124 |
Total assets |
$ |
52,171 |
|
$ |
47,120 |
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
1,933 |
|
$ |
860 |
Accrued liabilities |
|
5,442 |
|
|
8,134 |
Notes payable, current portion |
|
281 |
|
|
280 |
Operating
lease liabilities, current portion |
|
728 |
|
|
- |
Total current liabilities |
|
8,384 |
|
|
9,274 |
|
|
|
|
Notes
payable, less current portion |
|
17 |
|
|
33 |
Other
liabilities, noncurrent |
|
436 |
|
|
2,432 |
Operating
lease liabilities, noncurrent |
|
6,743 |
|
|
- |
Total liabilities |
|
15,580 |
|
|
11,739 |
|
|
|
|
Total stockholders' equity |
|
36,591 |
|
|
35,381 |
Total liabilities and stockholders' equity |
$ |
52,171 |
|
$ |
47,120 |
|
|
|
|
Genasys
Inc. |
Condensed
Consolidated Statements of Operations |
(000's
omitted except share and per share amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Six months
ended |
|
March 31, |
|
March 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
Revenues |
$ |
8,276 |
|
$ |
10,192 |
|
$ |
17,058 |
|
$ |
20,369 |
Cost
of revenues |
|
4,266 |
|
|
5,001 |
|
|
8,446 |
|
|
10,089 |
Gross profit |
|
4,010 |
|
|
5,191 |
|
|
8,612 |
|
|
10,280 |
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Selling, general and administrative |
|
2,732 |
|
|
2,475 |
|
|
5,554 |
|
|
5,227 |
Research and development |
|
949 |
|
|
1,280 |
|
|
2,033 |
|
|
2,328 |
Total
operating expenses |
|
3,681 |
|
|
3,755 |
|
|
7,587 |
|
|
7,555 |
|
|
|
|
|
|
|
|
Income from
operations |
|
329 |
|
|
1,436 |
|
|
1,025 |
|
|
2,725 |
Other income
and expense, net |
|
70 |
|
|
17 |
|
|
166 |
|
|
57 |
Income
before income taxes |
|
399 |
|
|
1,453 |
|
|
1,191 |
|
|
2,782 |
Income tax
expense |
|
97 |
|
|
274 |
|
|
269 |
|
|
557 |
Net
income (loss) |
$ |
302 |
|
$ |
1,179 |
|
$ |
922 |
|
$ |
2,225 |
|
|
|
|
|
|
|
|
Net
income (loss) per common share - basic and diluted |
$ |
0.01 |
|
$ |
0.04 |
|
$ |
0.03 |
|
$ |
0.07 |
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
33,094,596 |
|
|
32,584,952 |
|
|
33,036,786 |
|
|
32,738,871 |
Diluted |
|
33,732,619 |
|
|
33,077,255 |
|
|
33,708,832 |
|
|
33,272,164 |
|
|
|
|
|
|
|
|
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