Genasys Awarded LRAD Systems Order from Damen Schelde Naval Shipbuilding B.V. for German Navy F-126 Frigate Project
Genasys (NASDAQ: GNSS) announced an order for its LRAD 950NXT systems from Damen Schelde Naval Shipbuilding for the German Navy's F-126 frigates, marking the largest shipbuilding project in German Navy history. This order includes outfitting four frigates with the option for two more. The first shipment is set for September, with further deliveries in 2025 and 2026. The LRAD 950NXT, a leading maritime acoustic hailing device, provides long-range communication up to 3,000 meters and integrates with Thales Group’s Combat Management System. Genasys’ technology is widely used by the U.S. Navy and 31 international navies and coast guards, offering capabilities such as exclusion zone enforcement and anti-piracy operations.
- Genasys secured a significant order for LRAD 950NXT systems from Damen Schelde Naval Shipbuilding for the German Navy's F-126 frigates, potentially increasing future sales.
- The first shipment is scheduled for September, with subsequent deliveries planned for 2025 and 2026, ensuring a stream of revenue over multiple fiscal years.
- The LRAD 950NXT is integrated with Thales Group’s Combat Management System, showcasing its advanced technology and compatibility with other high-end systems.
- The growing demand for Genasys’ maritime safety and critical infrastructure protection solutions is generating a robust business pipeline.
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Insights
The recent order of LRAD 950NXT systems from Genasys Inc. to Damen Schelde Naval Shipbuilding B.V. for the German Navy's F-126 frigates stands as a notable event for several reasons. First, the financial implications are considerable, given that this is the largest shipbuilding project in the German Navy’s history. While the exact financial figures are undisclosed, we can infer that the order is substantial. The phased shipments spanning from September this year until 2026 indicate a steady revenue stream for Genasys over the next few fiscal years. This will likely stabilize earnings and add predictability to Genasys’s financial outlook, a positive sign for shareholders.
Additionally, the long-term contracts with optional additional orders enhance Genasys’s order backlog. This is important for improving the company's market valuation as it reflects future earning potential. Investors often favor companies with substantial backlogs because they signify assured future revenues. Overall, the deal should improve investor sentiment toward Genasys, boosting its stock price in the short to medium term.
The integration of LRAD 950NXT systems with Thales Group’s Combat Management System highlights the strategic importance of this order. These long-range acoustic hailing devices (AHDs) serve multiple functions including long-range communication up to 3,000 meters, escalation of force protocols and perimeter security. Such multi-functional capabilities make the LRAD 950NXT a valuable asset for modern naval warfare, enhancing the German Navy’s operational effectiveness.
The LRAD systems are already employed by 31 international navies and coast guards, which speaks to their reliability and versatility. The rugged design and successful completion of approximately 40 separate U.S. government tests, including MILSPEC testing for extreme conditions, further validate their efficacy. This order from the German Navy reinforces Genasys’s position in the defense sector, potentially paving the way for more international contracts. For investors, this can imply sustained growth and market expansion.
The market demand for Genasys’s LRAD 950NXT systems extends beyond naval applications into critical infrastructure protection (CIP). This diversification is important as it mitigates risks associated with over-reliance on a single market segment. The mention of a 'robust pipeline of 950NXT business' indicates strong market interest and potential future orders.
Genasys’s emphasis on innovation with features like an integrated HD camera, high-intensity searchlight and full pan & tilt drive enhances the product’s appeal. Such innovations can be a differentiator in competitive markets, particularly in sectors like CIP where advanced security solutions are in high demand. For retail investors, the focus on innovation and market diversification provides an added layer of security and growth potential.
6th International Navy to Select LRAD 950NXTs for Long-Range Communication and Scalable Escalation of Force
SAN DIEGO, June 26, 2024 (GLOBE NEWSWIRE) -- Genasys Inc. (NASDAQ: GNSS), the global leader in Protective Communications, today announced an LRAD 950NXT systems order from Damen Schelde Naval Shipbuilding B.V. (Damen) for the German Navy’s new F-126 frigates, the largest shipbuilding project in the history of the German Navy. Damen will outfit four frigates with multiple LRAD 950NXT systems, with an option to outfit two additional frigates. The first shipment is scheduled this September with further shipments in fiscal years 2025 and 2026
“Since its launch two years ago, the 950NXT has quickly become the world’s leading remotely operated, maritime acoustic hailing device (AHD) with six international navies and several superyacht installations,” said Richard Danforth, Chief Executive Officer of Genasys. “The 950NXTs in this order will be integrated with Thales Group’s Combat Management System to provide long-range communication out to 3,000 meters and initiate escalation of force (EOF) protocols for the German Navy’s F-126 frigates.”
Mr. Danforth added, “Beyond naval and maritime deployments, 950NXTs have also been installed for critical infrastructure protection (CIP) throughout the world. The growing demand for our maritime safety and CIP solutions are driving a robust pipeline of 950NXT business.”
Every U.S. Navy surface combatant and 31 international Navies and Coast Guards are using LRAD systems for a wide variety of applications including exclusion zone enforcement, search and rescue operations, ship self-defense, environmental response, and during anti-piracy, human trafficking and smuggling interdictions.
Featuring an integrated HD camera, high-intensity searchlight and robust, IP-addressable full pan & tilt drive, when integrated with radar or motion sensors the LRAD 950NXT provides automated alerts and becomes a fully functional, unmanned communication, perimeter security, and first response system.
LRAD’s unmatched acoustic technology is enclosed in a rugged housing and operates reliably and effectively in the harshest maritime conditions. LRAD is the most thoroughly tested AHD available having successfully passed approximately 40 separate U.S government tests, including all MILSPEC testing for heat, humidity and shock
About Genasys Inc.
Genasys Inc. (NASDAQ: GNSS) is the global leader in Protective Communications. The Genasys Protect platform, the most comprehensive portfolio of preparedness, response, and analytics software and systems, as well as the Company’s Long Range Acoustic Devices (LRAD®), are designed around one premise: ensuring organizations and public safety agencies are “Ready when it matters™.” Protecting people and saving lives for over 40 years, Genasys covers more than 70 million people in over 100 countries worldwide, including more than 500 U.S. cities. 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 the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. 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. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those suggested in any forward-looking statement. The risks and uncertainties in these forward-looking statements include without limitation the business impact of geopolitical conflicts, epidemics or pandemics, and other causes that 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, 2023. Genasys Inc. disclaims any intent or obligation to publicly update or revise forward-looking statements, except as otherwise specifically stated.
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