Genasys Lands $900K in LRAD Defense Orders from Middle East
Genasys (NASDAQ: GNSS) has secured $900K in new and follow-on defense orders from the Middle East, part of a larger $2.7M foreign military sales (FMS) contract. The orders involve deploying LRAD systems on shore installations and naval ships. CEO Richard S. Danforth highlighted the influx of delayed international orders and projected significant revenue growth driven by FMS orders, the Puerto Rico dams project, the CROWS Effectors program, and other LRAD and acoustics business initiatives. Genasys' proprietary technology enhances mission success through clear, long-range communication capabilities.
- Secured $900K in new and follow-on defense orders from the Middle East.
- Total FMS contract value exceeds $2.7M.
- Projected significant revenue growth next fiscal year.
- Increased international orders that were previously delayed.
- Proprietary technology enables clear communication over long distances.
- None.
Insights
Genasys' recent announcement of securing defense orders worth
From a financial perspective, FMS contracts are typically stable and lucrative because they often involve long-term commitments and consistent revenue streams. This particular contract also suggests potential for additional follow-on orders, which can lead to sustained revenue growth. The CEO's comments about the influx of international orders and a robust pipeline reinforce the company's optimistic outlook. These factors could translate to positive investor sentiment and potentially bolster the stock price.
However, investors should consider the geopolitical risks associated with FMS orders, specifically those from regions with volatile political climates. While these contracts are financially promising, there is always a degree of risk tied to potential changes in foreign policy or regional instability.
Moreover, the company's reliance on large, specific contracts means that any delays or cancellations could significantly impact financial results. Investors should weigh these risks alongside the promising revenue growth potential.
Genasys' LRAD systems leverage proprietary technology to deliver clear, intelligible voice and tone transmissions over distances exceeding 5,500 meters. This technology is important for effective communication in diverse environments, ranging from combat zones to disaster response settings.
For investors, the emphasis on scalable escalation of force (EOF) is particularly noteworthy. This capability allows defense and security forces to manage situations with a measured response, enhancing operational efficiency and safety. The unique technological advantages offered by LRAD systems could provide Genasys with a competitive edge in securing further contracts.
It's important to recognize that while the technology is robust, continuous innovation and improvements are necessary to maintain this competitive edge. The company must also protect its intellectual property to prevent potential competitors from replicating its success.
SAN DIEGO, June 25, 2024 (GLOBE NEWSWIRE) -- Genasys Inc. (NASDAQ: GNSS), the global leader in Protective Communications, today announced new and follow-on defense orders from the Middle East. The follow-on order is part of a previously announced foreign military sales (FMS) contract award to deploy LRAD systems on shore installations and naval ships. The combined value of the original award and the follow-on order is over
“International orders that have been delayed are starting to come in”, said Richard S. Danforth, Chief Executive Officer of Genasys. “FMS orders, the Puerto Rico dams project, the Common Remotely Operated Weapon Station (CROWS) Effectors program, and other LRAD and ACOUSTICS business are expected to drive record pipeline and backlog and position the Company for significant revenue growth next fiscal year and beyond.”
Domestic and international defense forces are required to support the full spectrum of missions, from combat and counterinsurgency to disaster response and humanitarian assistance. Regardless of the assigned mission, clear communication and scalable escalation of force (EOF) are critical to mission success. Exclusive to LRAD is Genasys’ proprietary technology that focuses audible voice and tone transmissions forward from close range to more than 5,500 meters to communicate with exceptional clarity and intelligibility, and safely initiate and scale EOF.
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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