Genasys Inc. Reports Fiscal Third Quarter 2023 Financial Results
- Recurring revenue up 47% year over year
- Year-to-date software bookings up 180%
- Recent competitive wins in Colorado, Texas, and the East Coast of the United States
- Secured over $5 million of ARR, up 100% year over year
- Adjusted EBITDA improved sequentially
- Revenues for the June quarter were in line with the year-ago quarter
- Adjusted EBITDA was lower year over year
- Anticipates Fiscal 2023 to be down from Fiscal 2022 with fourth quarter revenues approximately 5% below the prior quarter
- GAAP net loss of ($0.04) per share
Genasys Protect Re-Brand and Launch Underway
SAN DIEGO, Aug. 10, 2023 (GLOBE NEWSWIRE) -- Genasys Inc. (NASDAQ: GNSS), the leader in Protective Communications solutions, today announced financial results for the Company’s fiscal third quarter ended June 30, 2023.
Richard S. Danforth, Chief Executive Officer of Genasys, Inc., commented, “As expected, revenues for the June quarter improved versus the second quarter and were in line with the year-ago quarter. Adjusted EBITDA improved sequentially but was lower year over year, reflecting the ongoing investment in Genasys Protect. With recurring revenue up
Mr. Danforth continued, “The steady growth and expansion of our recurring software revenue footprint is gaining momentum. Recent competitive wins in Colorado, Texas, and the East Coast of the United States further demonstrate the value we are delivering with Genasys Protect™. Based on existing orders and orders currently in contracting, we have secured over
Fiscal 3Q 2023 Financial Highlights
- Revenue of
$14.3 million , versus$14.2 million in 3Q 2022 - GAAP operating loss of (
$1.5) million , versus, ($0.6) million in 3Q 2022. - Adjusted EBITDA loss of (
$0.4) million , versus profit of$0.4 million in 3Q 2022. - GAAP net loss per share of (
$0.04) versus ($0.02) in 3Q 2022.
Business Highlights
- Executed branding relaunch, with an updated website, go to market, and product UI.
- Expanded coverage to
16% of Colorado with Boulder County’s adoption of Genasys Protect. - Selected for first statewide contract for Genasys Protect.
- Awarded protective communications contract in a large East Coast city, displacing a keycompetitor
- Received
$10.7 million follow-on AHD program of record order from U.S. Army
Business Outlook
Software bookings are tracking ahead of internal expectations. Recent competitive wins and our brand relaunch earlier this week provide added confidence in our solutions and go-to-market approach. While our hardware pipeline continues to grow, delays in closing associated orders continue to challenge this year’s revenues. As a result, we are realigning our resources accordingly. Genasys expects Fiscal 2023 to be down from Fiscal 2022 with fourth quarter revenues approximately
Fiscal 3Q 2023 Financial Summary
Fiscal Third quarter revenue was
Gross profit margin was
Operating expenses were
GAAP net loss in the quarter was
Adjusted EBITDA was (
Year To Date Fiscal 2023 Financial Summary
Revenue for the first nine months of fiscal 2023 was
Gross profit margin was
Operating expenses were
GAAP net loss was
Adjusted EBITDA was
Cash, cash equivalents and marketable securities totaled
We include in this press release Non-GAAP operational metrics of adjusted EBITDA and bookings, which we believe provide helpful information to investors with respect to evaluating the Company’s performance. Adjusted EBITDA represents our net income before other income, net, income tax expense (benefit), depreciation and amortization expense and stock-based compensation. We do not consider these items to be indicative of our core operating performance. The items that are non-cash include depreciation and amortization expense and stock-based compensation. Adjusted EBITDA is a measure used by management to understand and evaluate our core operating performance and trends and to generate future operating plans, make strategic decisions regarding allocation of capital and invest in initiatives that are focused on cultivating new markets for our solutions. In particular, the exclusion of certain expenses in calculating adjusted EBITDA facilitates comparisons of our operating performance on a period-to-period basis. 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 Details
Management will host a conference call to discuss the financial results for the third quarter of fiscal year 2023 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/1375/48683
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 page of the Company’s website.
About Genasys Inc.
Genasys Inc. (NASDAQ: GNSS) is the global leader in Protective Communications Solutions and Systems, designed around one premise: ensuring organizations and public safety agencies are “Ready when it matters™”. The company provides the Genasys Protect platform, the most comprehensive portfolio of preparedness, response, and analytics software and systems, as well as Genasys Long Range Acoustic Devices (LRAD®) that deliver directed, audible voice messages with exceptional vocal clarity from close range to 5,500 meters. Genasys serves state and local governmental agencies, and education (SLED); enterprise organizations in critical sectors such as oil and gas, utilities, manufacturing, and automotive; and federal governments and the military. Genasys Protective Communications Solutions have diverse applications, including emergency warning and mass notification for public safety, critical event management for enterprise companies, de-escalation for defense and law enforcement, and automated detection of real-time threats like active shooters and severe weather. Today, Genasys protects over 70 million people globally and is used in more than 100 countries, including more than 500 cities, counties, and states in the U.S. 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 conflict, 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, 2022. Genasys Inc. disclaims any intent or obligation to publicly update or revise forward-looking statements, except as otherwise specifically stated.
Investor Relations Contacts
Brian Alger, CFA
SVP, IR and Corporate Development
ir@genasys.com
(858) 676-0582
Genasys Inc. | |||||||
Condensed Consolidated Balance Sheets | |||||||
(Unaudited - in thousands) | |||||||
June 30, | |||||||
2023 | September 30, | ||||||
(unaudited) | 2022 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 2,971 | $ | 12,736 | |||
Short-term marketable securities | 3,549 | 6,397 | |||||
Restricted cash | 755 | 100 | |||||
Accounts receivable, net | 10,353 | 6,744 | |||||
Inventories, net | 7,950 | 6,008 | |||||
Prepaid expenses and other | 1,683 | 3,577 | |||||
Total current assets | 27,261 | 35,562 | |||||
Long-term marketable securities | 392 | 781 | |||||
Long-term restricted cash | 96 | 823 | |||||
Deferred tax assets, net | 7,399 | 7,373 | |||||
Property and equipment, net | 1,666 | 1,757 | |||||
Goodwill | 10,348 | 10,118 | |||||
Intangible assets, net | 8,958 | 10,505 | |||||
Operating lease right of use asset | 4,094 | 4,541 | |||||
Prepaid expenses and other - noncurrent | 547 | 394 | |||||
Total assets | $ | 60,761 | $ | 71,854 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 3,324 | $ | 2,334 | |||
Accrued liabilities | 8,182 | 12,083 | |||||
Operating lease liabilities, current portion | 998 | 948 | |||||
Total current liabilities | 12,504 | 15,365 | |||||
Other liabilities, noncurrent | 116 | 907 | |||||
Operating lease liabilities, noncurrent | 4,551 | 5,189 | |||||
Total liabilities | 17,171 | 21,461 | |||||
Total stockholders' equity | 43,590 | 50,393 | |||||
Total liabilities and stockholders' equity | $ | 60,761 | $ | 71,854 | |||
Genasys Inc. | |||||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||||
(Unaudited - in thousands except per share amounts) | |||||||||||||||
Three months ended | Nine months ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||
Revenues | $ | 14,262 | $ | 14,152 | $ | 35,962 | $ | 37,997 | |||||||
Cost of revenues | 7,567 | 7,289 | 19,510 | 18,654 | |||||||||||
Gross profit | 6,695 | 6,863 | 16,452 | 19,343 | |||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative | 6,004 | 5,785 | 18,443 | 16,794 | |||||||||||
Research and development | 2,141 | 1,707 | 6,357 | 5,314 | |||||||||||
Total operating expenses | 8,145 | 7,492 | 24,800 | 22,108 | |||||||||||
Loss from operations | (1,450 | ) | (629 | ) | (8,348 | ) | (2,765 | ) | |||||||
Other income and expense, net | 1 | 9 | (4 | ) | 12 | ||||||||||
Loss before income taxes | (1,449 | ) | (620 | ) | (8,352 | ) | (2,753 | ) | |||||||
Income tax benefit | (26 | ) | (31 | ) | (18 | ) | (367 | ) | |||||||
Net loss | $ | (1,423 | ) | $ | (589 | ) | $ | (8,334 | ) | $ | (2,386 | ) | |||
Net loss per common share: | |||||||||||||||
Basic and diluted | $ | (0.04 | ) | $ | (0.02 | ) | $ | (0.23 | ) | $ | (0.07 | ) | |||
Weighted average common shares outstanding: | |||||||||||||||
Basic and diluted | 37,053 | 36,567 | 36,855 | 36,459 | |||||||||||
Reconciliation of GAAP measures to non-GAAP measures | |||||||||||||||
Net loss | $ | (1,423 | ) | $ | (589 | ) | $ | (8,334 | ) | $ | (2,386 | ) | |||
Other income and expense, net | (1 | ) | (9 | ) | 4 | (12 | ) | ||||||||
Income tax benefit | (26 | ) | (31 | ) | (18 | ) | (367 | ) | |||||||
Depreciation and amortization | 636 | 638 | 1,918 | 1,920 | |||||||||||
Stock based compensation | 396 | 355 | 1,329 | 1,650 | |||||||||||
Adjusted EBITDA | $ | (418 | ) | $ | 364 | $ | (5,101 | ) | $ | 805 | |||||
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