GENASYS INC. Fiscal 1Q 2024 Financial Summary
- Revenue of
$4.4 million , versus$10.5 million in 1Q 2023 - GAAP operating loss of
($7.2) million , versus($3.5) million in 1Q 2023. - GAAP net loss of
($6.7) million versus($3.5) million in 1Q 2023. GAAP net loss per share ($0.15 ) versus ($0.10 ) in 1Q 2023. - Adjusted EBITDA of
($6.1) million , versus($2.4) million in 1Q 2023.
Business Highlights
- Selected to provide comprehensive Early Warning System (EWS) for 37 dams on the island of
Puerto Rico . The$60 million to$70 million solution includes both Genasys Protect software and ACOUSTICS, integrated with sensors and communication equipment. - Chosen for multi-year statewide CONNECT contract with the
Utah Department of Corrections - Won 5-year Genasys Protect EVAC contract with
Los Angeles County , the nation’s most populous county spanning more than 4,000 square miles. - Expanded contracts with
Marin andSan Mateo counties inCalifornia to include Traffic AI, powered by Ladris. Genasys named a Strong Performer in The Forrester Wave™: Critical Event Management Platforms, Q4 2023 report.
Business Outlook
Given the low backlog entering fiscal 2024 and the continuing uncertainty surrounding the US Federal budget and other budget cycles, we continue to expect a very back-end loaded fiscal year with the significant majority of our hardware revenues coming in the second half of fiscal 2024. Sequentially, we expect continued growth in our software revenues, and on the full year, we continue to believe that hardware revenues will approach fiscal 2022 levels.
Fiscal 1Q 2024 Financial Review
Fiscal first quarter revenue was
Gross profit margin was 33.9%, compared with 46.1% in the first quarter of fiscal 2023. The drop in gross profit is attributable to lower hardware revenue in this year’s quarter and the related reduction in overhead absorption. Software gross margins improved nearly 15 percentage points year over year.
Operating expenses of
GAAP net loss in the quarter was
Excluding other income and expense, net income tax expense (benefit), depreciation, stock-based compensation and amortization of intangibles, Adjusted EBITDA was
Cash, cash equivalents and marketable securities totaled
We include in this press release the non-GAAP operational metrics of adjusted EBITDA, which we believe provide helpful information to investors with respect to evaluating the Company’s performance. Adjusted EBITDA represents our net loss before other income and expense, 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.
Webcast and Conference Call Details
Management will host a conference call to discuss the financial results for the first quarter of fiscal year 2024 this afternoon at
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
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
Investor Relations Contacts
SVP, IR and Corporate Development
ir@genasys.com
(858) 676-0582
| Condensed Consolidated Balance Sheets | ||||||||
| (Unaudited - in thousands) | ||||||||
| 2023 | 2023 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 4,780 | $ | 8,665 | ||||
| Short-term marketable securities | 8,777 | 1,481 | ||||||
| Restricted cash | - | 758 | ||||||
| Accounts receivable, net | 4,435 | 5,952 | ||||||
| Inventories, net | 6,890 | 6,501 | ||||||
| Prepaid expenses and other | 2,100 | 1,851 | ||||||
| Total current assets | 26,982 | 25,208 | ||||||
| Long-term restricted cash | 346 | 96 | ||||||
| Property and equipment, net | 1,587 | 1,551 | ||||||
| 13,151 | 10,282 | |||||||
| Intangible assets, net | 10,366 | 8,427 | ||||||
| Operating lease right of use asset | 3,712 | 3,886 | ||||||
| Prepaid expenses and other - noncurrent | 494 | 455 | ||||||
| Total assets | $ | 56,638 | $ | 49,905 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,897 | $ | 2,785 | ||||
| Accrued liabilities | 8,618 | 7,466 | ||||||
| Operating lease liabilities, current portion | 1,031 | 1,008 | ||||||
| Total current liabilities | 11,546 | 11,259 | ||||||
| Other liabilities, noncurrent | 509 | 551 | ||||||
| Operating lease liabilities, noncurrent | 4,030 | 4,283 | ||||||
| Total liabilities | 16,085 | 16,093 | ||||||
| Total stockholders' equity | 40,553 | 33,812 | ||||||
| Total liabilities and stockholders' equity | $ | 56,638 | $ | 49,905 | ||||
| Condensed Consolidated Statements of Operations | |||||||
| (Unaudited - in thousands, except per share amounts) | |||||||
| Three months ended | |||||||
| 2023 | 2022 | ||||||
| (unaudited) | (unaudited) | ||||||
| Revenues | $ | 4,361 | $ | 10,487 | |||
| Cost of revenues | 2,882 | 5,655 | |||||
| Gross profit | 1,479 | 4,832 | |||||
| 33.9 | % | 46.1 | % | ||||
| Operating expenses: | |||||||
| Selling, general and administrative | 6,518 | 6,384 | |||||
| Research and development | 2,191 | 1,935 | |||||
| Total operating expenses | 8,709 | 8,319 | |||||
| Loss from operations | (7,230 | ) | (3,487 | ) | |||
| Other income and expense, net | 77 | (20 | ) | ||||
| Loss before income taxes | (7,153 | ) | (3,507 | ) | |||
| Income tax benefit | (429 | ) | - | ||||
| Net loss | $ | (6,724 | ) | $ | (3,507 | ) | |
| Net loss per common share: | |||||||
| Basic | $ | (0.15 | ) | $ | (0.10 | ) | |
| Weighted average common shares outstanding: | |||||||
| Basic | 43,729 | 36,696 | |||||
| Reconciliation of GAAP measures to non-GAAP measures | |||||||
| Net loss | $ | (6,724 | ) | $ | (3,507 | ) | |
| Other income and expense, net | (77 | ) | 20 | ||||
| Income tax benefit | (429 | ) | - | ||||
| Depreciation and amortization | 729 | 643 | |||||
| Stock based compensation | 446 | 420 | |||||
| Adjusted EBITDA | $ | (6,055 | ) | $ | (2,424 | ) | |
2024 GlobeNewswire, Inc., source
