Genasys Inc. Reports Fiscal Third Quarter 2021 Financial Results
Genasys, a leader in critical communications, reported fiscal third quarter results for 2021, reflecting a revenue increase to $12.6 million, up from $11.9 million year-over-year. Bookings reached $44.3 million, setting the stage for record fiscal year-end backlog and revenue. Despite a net income decline to $0.3 million, attributed to increased operating expenses, the company showed substantial growth in international markets with revenue growth of 31% in Asia Pacific. The acquisition of Zonehaven aims to bolster future software sales and revenue growth.
- Record fiscal third quarter bookings of $44.3 million.
- Year-to-date revenue growth: Asia Pacific (31%), Europe/Middle East/Africa (16%), Americas (7%).
- Recent acquisition of Zonehaven expected to boost software sales and recurring revenue.
- Net income decreased to $0.3 million from $1.5 million year-over-year.
- Operating expenses rose 38% to $6.2 million, primarily due to increased personnel costs.
Achieves Record Fiscal Year Bookings
On Track for Record Fiscal Year-End Backlog and Revenue
SAN DIEGO, July 28, 2021 (GLOBE NEWSWIRE) -- Genasys Inc. (NASDAQ: GNSS), the global leader in critical communications systems and solutions, today announced financial results for the Company's fiscal third quarter ended June 30, 2021.
"Revenue growth and record quarterly bookings in our LRAD hardware and Genasys Emergency Management (GEM) software segments, and the acquisition of fast growing evacuation management and public safety software provider, Zonehaven, highlighted the fiscal third quarter," said Richard S. Danforth, Chief Executive Officer of Genasys Inc. "Investments in sales, marketing, and engineering personnel affected profitability in the quarter, but are important elements for expediting software and enterprise revenue growth. Year-to-date revenues in our major geographic business areas of Asia Pacific, Europe/Middle East/Africa, and the Americas, grew
"Increasing emergency warning, enterprise, and public safety needs are driving demand for our full suite of hardware systems and software solutions," Mr. Danforth continued. "Genasys' unified platform is uniquely positioned to capitalize on rapid growth in the critical communications and mass notification markets. The acquisitions of Amika Mobile and Zonehaven are serving as catalysts to produce significant GEM Enterprise and Integrated Mass Notification System (IMNS) business opportunities. Our combined systems and solutions are expected to increase software sales, grow recurring revenues, and enhance profit margins.
"Record quarterly bookings of
Fiscal Third Quarter 2021 Financial Summary
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Net income for the quarter was
Select Fiscal Third Quarter 2021 Operating and Business Highlights
- Acquired Zonehaven Inc., an emergency evacuation planning and public safety resources software provider
- Received
$28.0 million in follow-on program of record LRAD 450XL orders from the U.S. Army - Announced
$9.0 million U.S. Army mobile mass notification systems order - Awarded mass notification and emergency management software services contract from Riverside County, CA
- Received
$3.0 million in LRAD domestic and international security orders - Announced
$1.0 million in international infrastructure protection and wildlife preservation orders - Received IMNS order from Southern Marin Fire Protection District
Nine Months Financial Summary
Revenues for the first nine months of fiscal 2021 were
Gross profit margin was
Operating expenses were
Net loss for the first nine months was
Cash, cash equivalents and marketable securities totaled
Working capital totaled
We include in this press release Non-GAAP operational metrics of bookings and backlog, which we believe provide helpful information to investors with respect to evaluating the Company’s performance. We consider bookings and backlog 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. Backlog is a measure of purchase orders received that are planned to ship within the next 12 months.
Webcast and Conference Call Details
Management will host a conference call to discuss the fiscal third 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/1375/42289.
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 that help keep people safe. Genasys provides a multichannel 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), Integrated Mass Notification Systems (IMNS), LRAD® long-range voice broadcast systems, Zonehaven™ public safety resources, and more.
Genasys systems are in service in more than 100 countries in a range of 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 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 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 Contact
Kimberly Rogers
Hayden IR
ir@genasys.com
Genasys Inc. | ||||||
Condensed Consolidated Balance Sheets | ||||||
(Unaudited - in thousands) | ||||||
June 30, | ||||||
2021 | September 30, | |||||
(unaudited) | 2020 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 14,540 | $ | 23,319 | ||
Short-term marketable securities | 5,976 | 4,265 | ||||
Restricted cash | 286 | 282 | ||||
Accounts receivable, net | 6,270 | 5,442 | ||||
Inventories, net | 6,422 | 5,949 | ||||
Prepaid expenses and other | 1,464 | 860 | ||||
Total current assets | 34,958 | 40,117 | ||||
Long-term marketable securities | 2,297 | 3,805 | ||||
Long-term restricted cash | 1,202 | 395 | ||||
Deferred tax assets, net | 10,694 | 11,095 | ||||
Property and equipment, net | 1,836 | 1,930 | ||||
Goodwill | 23,908 | 2,472 | ||||
Intangible assets, net | 13,431 | 943 | ||||
Operating lease right of use asset | 5,048 | 5,285 | ||||
Prepaid expenses and other - noncurrent | 193 | 125 | ||||
Total assets | $ | 93,567 | $ | 66,167 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 2,708 | $ | 1,370 | ||
Accrued liabilities | 13,305 | 7,880 | ||||
Notes payable, current portion | 304 | 300 | ||||
Operating lease liabilities, current portion | 877 | 771 | ||||
Total current liabilities | 17,194 | 10,321 | ||||
Notes payable, less current portion | - | 18 | ||||
Other liabilities, noncurrent | 5,420 | 293 | ||||
Operating lease liabilities, noncurrent | 5,952 | 6,395 | ||||
Total liabilities | 28,566 | 17,027 | ||||
Total stockholders' equity | 65,001 | 49,140 | ||||
Total liabilities and stockholders' equity | $ | 93,567 | $ | 66,167 | ||
Genasys Inc. | |||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||
(Unaudited - in thousands, except per share amounts) | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||
Revenues | $ | 12,627 | $ | 11,971 | $ | 31,956 | $ | 29,029 | |||||
Cost of revenues | 5,941 | 5,500 | 16,229 | 13,946 | |||||||||
Gross profit | 6,686 | 6,471 | 15,727 | 15,083 | |||||||||
Operating expenses: | |||||||||||||
Selling, general and administrative | 4,776 | 3,330 | 11,931 | 8,884 | |||||||||
Research and development | 1,390 | 1,200 | 3,416 | 3,233 | |||||||||
Total operating expenses | 6,166 | 4,530 | 15,347 | 12,117 | |||||||||
Income from operations | 520 | 1,941 | 380 | 2,966 | |||||||||
Other income and expense, net | (2 | ) | 36 | 59 | 202 | ||||||||
Income before income taxes | 518 | 1,977 | 439 | 3,168 | |||||||||
Income tax expense | 228 | 473 | 506 | 742 | |||||||||
Net income (loss) | $ | 290 | $ | 1,504 | $ | (67 | ) | $ | 2,426 | ||||
Net income (loss) per common share: | |||||||||||||
Basic and diluted | $ | 0.01 | $ | 0.05 | $ | - | $ | 0.07 | |||||
Diluted | $ | 0.01 | $ | 0.04 | $ | - | $ | 0.07 | |||||
Weighted average common shares outstanding: | |||||||||||||
Basic | 34,109 | 33,289 | 33,798 | 33,122 | |||||||||
Diluted | 35,271 | 34,281 | 33,798 | 33,878 | |||||||||
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