Quarterly Revenue Up 12% Year-Over-Year
Growth Investment Gaining Traction with New Contract Wins and Increase in Software Revenue
“In fiscal year 2021, we made the strategic decision to invest globally in our SaaS critical communications platform to support our future growth. We continue to add personnel and other resources essential to executing our SaaS growth strategy. Importantly, the investments related to our growth initiatives continue to be self-funded. Cash flow provided by operating activities in the third quarter was
Outlook
Fiscal Third Quarter 2022 Financial Summary
Fiscal third quarter revenue was
Gross margin was 46.5%, a decrease of 440 basis points, compared with 50.9% in the third quarter of fiscal 2021. The decrease in gross margin percentage was largely due to higher costs of components in this year’s quarter.
Operating expenses were
Net loss in the quarter was
Adjusted EBITDA was
First Nine Months Financial Summary
Revenue for the first nine months of fiscal 2022 was
Gross margin was 49.2%, up 100 basis points from the first nine months of fiscal 2021.
Operating expenses were
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, backlog and bookings, which we believe provides 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. Backlog is a measure of purchase orders received that are planned to ship within the next 12 months. 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 2022 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 Events & Presentations page of the Company’s website.
About
The Company’s unified software-as-a-service and hardware platform includes
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
Investor Relations Contact
Hayden IR
ir@genasys.com
Condensed Consolidated Balance Sheets
(Unaudited - in thousands)
2022 | ||||||
(unaudited) | 2021 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | ||||||
Short-term marketable securities | 5,270 | 5,686 | ||||
Restricted cash | 100 | 279 | ||||
Accounts receivable, net | 5,691 | 7,682 | ||||
Inventories, net | 8,806 | 6,416 | ||||
Prepaid expenses and other | 1,233 | 2,255 | ||||
Total current assets | 32,823 | 35,485 | ||||
Long-term marketable securities | 2,004 | 1,875 | ||||
Long-term restricted cash | 971 | 1,082 | ||||
Deferred tax assets, net | 8,408 | 8,039 | ||||
Property and equipment, net | 1,644 | 1,755 | ||||
23,511 | 23,834 | |||||
Intangible assets, net | 11,098 | 12,804 | ||||
Operating lease right of use asset | 4,315 | 4,862 | ||||
Prepaid expenses and other - noncurrent | 337 | 392 | ||||
Total assets | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | ||||||
Accrued liabilities | 11,827 | 14,111 | ||||
Notes payable, current portion | - | 296 | ||||
Operating lease liabilities, current portion | 882 | 899 | ||||
Total current liabilities | 15,210 | 17,466 | ||||
Other liabilities, noncurrent | 975 | 995 | ||||
Operating lease liabilities, noncurrent | 5,057 | 5,709 | ||||
Total liabilities | 21,242 | 24,170 | ||||
Total stockholders' equity | 63,869 | 65,958 | ||||
Total liabilities and stockholders' equity |
Condensed Consolidated Statements of Operations
(Unaudited - in thousands, except per share amounts)
Three months ended | Nine months ended | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||
Revenues | $ | 14,152 | $ | 12,627 | $ | 37,997 | $ | 31,956 | |||||||
Cost of revenues | 7,572 | 6,206 | 19,315 | 16,556 | |||||||||||
Gross profit | 6,580 | 6,421 | 18,682 | 15,400 | |||||||||||
46.5 | % | 50.9 | % | 49.2 | % | 48.2 | % | ||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative | 5,502 | 4,776 | 16,133 | 11,931 | |||||||||||
Research and development | 1,707 | 1,125 | 5,314 | 3,089 | |||||||||||
Total operating expenses | 7,209 | 5,901 | 21,447 | 15,020 | |||||||||||
(Loss) income from operations | (629 | ) | 520 | (2,765 | ) | 380 | |||||||||
Other income and expense, net | 9 | (2 | ) | 12 | 59 | ||||||||||
(Loss) income before income taxes | (620 | ) | 518 | (2,753 | ) | 439 | |||||||||
Income tax (benefit) expense | (31 | ) | 228 | (367 | ) | 506 | |||||||||
Net (loss) income | $ | (589 | ) | $ | 290 | $ | (2,386 | ) | $ | (67 | ) | ||||
Net (loss) income per common share: | |||||||||||||||
Basic | $ | (0.02 | ) | $ | 0.01 | $ | (0.07 | ) | $ | (0.00 | ) | ||||
Diluted | $ | (0.02 | ) | $ | 0.01 | $ | (0.07 | ) | $ | (0.00 | ) | ||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 36,567 | 34,109 | 36,459 | 33,798 | |||||||||||
Diluted | 36,567 | 35,271 | 36,459 | 33,798 | |||||||||||
Reconciliation of GAAP measures to non-GAAP measures | |||||||||||||||
Net (loss) income | $ | (589 | ) | $ | 290 | $ | (2,386 | ) | $ | (67 | ) | ||||
Other income and expense, net | (9 | ) | 2 | (12 | ) | (59 | ) | ||||||||
Income tax (benefit) expense | (31 | ) | 228 | (367 | ) | 506 | |||||||||
Depreciation and amortization | 638 | 401 | 1,920 | 953 | |||||||||||
Stock based compensation | 355 | 446 | 1,650 | 956 | |||||||||||
Adjusted EBITDA | $ | 364 | $ | 1,367 | $ | 805 | $ | 2,289 | |||||||
Source:
2022 GlobeNewswire, Inc., source