Genasys Inc.
(NASDAQ:
GNSS), the
global leader in critical communications systems and solutions,
today announced financial results for the Company's fiscal second
quarter ended March 31, 2021.
“Strong performances from our Genasys Emergency
Management (GEM) software, Integrated Mass Notification Systems
(IMNS) and LRAD® Acoustic Hailing Devices (AHD), business segments
fueled the 37% rise in year-over-year revenue,” said Richard S.
Danforth, Chief Executive Officer of Genasys Inc. “As compared with
fiscal Q2 2020, GEM, IMNS and AHD revenues were up 64%, 45% and
34%, respectively.”
Fiscal Second Quarter 2021 Financial
Summary
Fiscal second quarter revenues were $11.3
million, an increase of 37% from prior year quarter.
Gross profit margin was 47.2%, compared with
48.5% in the second quarter of fiscal 2020. The decrease as a
percentage of revenue was attributable to a 56% increase in
engineering personnel, primarily software- related.
Operating expenses were $4.8 million, up from
$3.7 million in the same period a year ago. The increase was
largely due to a 67% increase in sales and marketing personnel over
the prior year to support future revenue growth opportunities,
including opening sales offices in Singapore and the United Arab
Emirates.
Net income for the quarter was $0.3 million, or
$0.01 per share, a slight decrease from the fiscal 2020 second
quarter.
“Revenue growth in our GEM, IMNS and AHD
business segments is expected to continue through the second half
of fiscal 2021 and into fiscal 2022,” Mr. Danforth added. “With
bookings off to a strong start in the fiscal second half, Genasys
is on track for record fiscal year bookings, backlog and
revenue.”
First Six Months Financial
Summary
Revenues for the first six months of fiscal 2021
were $19.3 million, up 13% from $17.1 million in the same period
last year.
Gross profit margin was 46.8%, compared with
50.5% in the first six months of fiscal 2020. Gross profit as a
percentage of revenue was lower compared to the prior year period
primarily due to higher software expenses from the recent addition
of the Genasys Communications Canada subsidiary, and additional
employees to support the Australia, EU, and enterprise software
initiatives.
Operating expenses were $9.2 million, up from
$7.6 million in the same period last year largely due to a 67%
increase in sales and marketing personnel over the prior year to
support future revenue growth opportunities.
Net loss for the first six months was $0.4
million, or $(0.01) per diluted share, compared with net income of
$0.9 million, or $0.03 per diluted share, in the first six months
of fiscal 2020. The decrease was primarily due to the higher
operating expenses, partially offset by the higher revenue, in the
current year period.
Cash, cash equivalents and marketable securities
totaled $26.4 million on March 31, 2021, compared with $31.4
million on September 30, 2020.
Working capital totaled $26.5 million on March
31, 2021, compared with $29.8 million on September 30, 2020. The
decrease in working capital was primarily due to the use of cash to
complete the Amika Mobile asset purchase in the first quarter of
fiscal 2021.
“Revenues increased globally,” continued Mr.
Danforth. “In Europe, the Middle East and Africa; the Asia Pacific;
and the Americas, revenues were up 69%, 46% and 4%, respectively,
as compared to the first half of fiscal 2020. We expect revenue
growth in all our major geographic business areas this fiscal year
and in fiscal 2022.”
Select Fiscal Second Quarter 2021
Operating and Business Highlights
- Opened international offices in Dubai and Singapore as part of
planned regional expansion
- Awarded software services contract from Spain's Ministry of the
Interior
- Announced Government of Canada COVID vaccination tracking
software project
- Received multi-year enterprise software services contract from
global automobile manufacturer for its operations in North
America
- Signed a $10 million revolving line of credit with MUFG Union
Bank, N.A.
“Our European business development and
engineering teams are very active responding to EU Article 110
public warning system requests for proposal from EU member states,”
said Mr. Danforth. “The GEM contracts recently received from
Riverside County, CA and a global automaker are opening doors to
large emergency management and enterprise safety sales
opportunities.
“The culmination of key business initiatives to
further augment Genasys' technology and product offerings and
extend the Company's market reach are anticipated this fiscal
year,” Mr. Danforth concluded. “On the strength of the recently
announced U.S. Army and Riverside County, CA, awards, as well as
other expected GEM, IMNS and AHD orders, Genasys is well-positioned
for record fiscal year bookings, backlog and revenue, and poised
for long-term business growth.”
We include in this press release Non-GAAP
operational metrics of bookings, which we believe provide helpful
information to investors with respect to evaluating the Company’s
performance. We consider bookings as leading indicators of future
revenues and use these metrics to support production planning.
Bookings is an internal, operational metric that measures the total
dollar value of customer purchase orders executed in a period,
regardless of the timing of the related revenue recognition.
Webcast and Conference Call
DetailsManagement will host a conference call to discuss
the fiscal second quarter 2021 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 (U.S. and Canada),
or international at (862) 298-0702. A webcast will also be
available at the following link:
https://www.webcaster4.com/Webcast/Page/1375/41032
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™ is a
global provider of critical communications systems and solutions to
help keep people safe. 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 Genasys Emergency
Management (GEM) applications, National Emergency Warning Systems
(NEWS), LRAD® long-range voice broadcast systems, and
more.
Genasys systems are in service in 72 countries
and in more than 500 U.S. cities in diverse applications, including
public safety, emergency warning, mass notification, critical event
management, defense, law enforcement, homeland security, and other
applications. For more information, visit genasys.com.
Forward-Looking
StatementsExcept 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 without limitation the business impact of
health crises or outbreaks of disease, such as epidemics or
pandemics and how they 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, 2020. 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 |
(Unaudited -
in thousands) |
|
|
|
|
|
|
|
|
|
March
31, |
|
|
|
2021 |
|
September
30, |
|
(unaudited) |
|
2020 |
|
|
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
18,455 |
|
$ |
23,319 |
Short-term marketable securities |
|
5,474 |
|
|
4,265 |
Restricted cash |
|
282 |
|
|
282 |
Accounts receivable, net |
|
5,445 |
|
|
5,442 |
Inventories, net |
|
6,451 |
|
|
5,949 |
Prepaid expenses and other |
|
1,082 |
|
|
860 |
Total current assets |
|
37,189 |
|
|
40,117 |
Long-term marketable securities |
|
2,450 |
|
|
3,805 |
Long-term restricted cash |
|
1,190 |
|
|
395 |
Deferred tax assets, net |
|
10,817 |
|
|
11,095 |
Property and equipment, net |
|
1,901 |
|
|
1,930 |
Goodwill |
|
8,380 |
|
|
2,472 |
Intangible assets, net |
|
3,570 |
|
|
943 |
Operating lease right of use asset |
|
5,216 |
|
|
5,285 |
Prepaid expenses and other - noncurrent |
|
195 |
|
|
125 |
Total assets |
$ |
70,908 |
|
$ |
66,167 |
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
2,555 |
|
$ |
1,370 |
Accrued liabilities |
|
6,994 |
|
|
7,880 |
Notes payable, current portion |
|
300 |
|
|
300 |
Operating lease liabilities, current portion |
|
859 |
|
|
771 |
Total current liabilities |
|
10,708 |
|
|
10,321 |
|
|
|
|
Notes
payable, less current portion |
|
- |
|
|
18 |
Other
liabilities, noncurrent |
|
884 |
|
|
293 |
Operating
lease liabilities, noncurrent |
|
6,172 |
|
|
6,395 |
Total liabilities |
|
17,764 |
|
|
17,027 |
|
|
|
|
Total stockholders' equity |
|
53,144 |
|
|
49,140 |
Total liabilities and stockholders' equity |
$ |
70,908 |
|
$ |
66,167 |
Genasys
Inc. |
Condensed
Consolidated Statements of Operations |
(Unaudited -
in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Six months
ended |
|
March
31, |
|
March
31. |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
|
|
Revenues |
$ |
11,301 |
|
|
$ |
8,276 |
|
$ |
19,329 |
|
|
$ |
17,058 |
Cost
of revenues |
|
5,964 |
|
|
|
4,266 |
|
|
10,288 |
|
|
|
8,446 |
Gross profit |
|
5,337 |
|
|
|
4,010 |
|
|
9,041 |
|
|
|
8,612 |
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Selling, general and administrative |
|
3,824 |
|
|
|
2,732 |
|
|
7,155 |
|
|
|
5,554 |
Research and development |
|
960 |
|
|
|
949 |
|
|
2,026 |
|
|
|
2,033 |
Total
operating expenses |
|
4,784 |
|
|
|
3,681 |
|
|
9,181 |
|
|
|
7,587 |
|
|
|
|
|
|
|
|
Income
(loss) from operations |
|
553 |
|
|
|
329 |
|
|
(140 |
) |
|
|
1,025 |
Other income
and expense, net |
|
(8 |
) |
|
|
70 |
|
|
61 |
|
|
|
166 |
Income
(loss) before income taxes |
|
545 |
|
|
|
399 |
|
|
(79 |
) |
|
|
1,191 |
Income tax
expense |
|
283 |
|
|
|
97 |
|
|
278 |
|
|
|
269 |
Net
income (loss) |
$ |
262 |
|
|
$ |
302 |
|
$ |
(357 |
) |
|
$ |
922 |
|
|
|
|
|
|
|
|
Net
income (loss) per common share: |
|
|
|
|
|
|
|
Basic and diluted |
$ |
0.01 |
|
|
$ |
0.01 |
|
$ |
(0.01 |
) |
|
$ |
0.03 |
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
33,683 |
|
|
|
33,095 |
|
|
33,629 |
|
|
|
33,037 |
Diluted |
|
34,779 |
|
|
|
33,733 |
|
|
33,629 |
|
|
|
33,709 |
|
|
|
|
|
|
|
|
Genasys (NASDAQ:GNSS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Genasys (NASDAQ:GNSS)
Historical Stock Chart
From Apr 2023 to Apr 2024