SAN DIEGO, CA – May 11, 2020 – Genasys Inc. (NASDAQ: GNSS), a global provider of critical communications systems and solutions, today announced financial results for its fiscal second quarter ended March 31, 2020.
Fiscal Second Quarter 2020 Financial Summary
Fiscal 2020 second quarter revenues were $8.3 million, compared with $10.2 million in the same period last year. The COVID-19 outbreak partially impacted the acceptance testing and delivery of two orders with a total value of approximately $1.6 million. Virtual acceptance testing and partial deliveries were completed in April, with the balance scheduled to ship in the fiscal third quarter.
Gross profit margin was 48.4%, compared with 50.9% in the second quarter of fiscal 2019. Gross profit decreased compared with the same quarter in the prior year primarily due to $0.1 million of additional engineering charges resulting from the use of a more precise process to charge engineering expenses to cost of sales.
Operating expenses were $3.7 million, down slightly from $3.8 million in the same period last year.
Net income for the quarter was $0.3 million, or $0.01 per diluted share, compared with net income of $1.2 million, or $0.04 per diluted share, in the second quarter of fiscal 2019.
Cash and cash equivalents totaled $16.4 million on March 31, 2020, compared with $18.8 million on September 30, 2019.
Working capital totaled $25.5 million on March 31, 2020, compared with $24.8 million on September 30, 2019.
First Six Months Financial Summary
Revenues for the first six months of fiscal 2020 were $17.1 million, compared with $20.4 million in the same period last year. Revenues decreased for the six-month period ended March 31, 2020 compared to the same prior year period due to the timing for delivery of the backlog at September 30, 2019.
Gross profit margin was 50.5%, unchanged from the first six months of fiscal 2019.
Operating expenses were $7.6 million, mostly unchanged from the same period last year.
Net income for the first six months was $0.9 million, or $0.03 per diluted share, compared with net income of $2.2 million, or $0.07 per diluted share, in the first six months of fiscal 2019.
“Fiscal second quarter and first half revenues met expectations in spite of the COVID-19 outbreak partially impacting the delivery of $1.6 million in orders at the end of the quarter,” said Richard S. Danforth, Chief Executive Officer of Genasys Inc.
“The Company continues to receive domestic and international orders that are adding to bookings and backlog,” Mr. Danforth continued. “As an essential provider of critical hardware and software communications systems, our facility remains open and the production team is working overtime to build product and deliver orders.”
Select Fiscal Second Quarter 2020 Operating and Business Highlights
- Released COVID-19 interactive map layer service for free public and enterprise use
- Homeland security and public safety agencies in the U.S., Spain, Poland, Morocco, South Africa, Thailand and Malaysia deployed LRAD systems in the agencies’ COVID-19 responses
- Launched the Company’s Personal Safety Service, a unified, multi-channel critical communications solution for governments and enterprises
- Received $1.8 million in international homeland security and critical infrastructure protection orders
- Announced $1.5 million in international naval and port security orders
- Received $1.2 million in defense and mass notification orders
“Governments continue to fund important initiatives, providing the Company with new and follow-on business,” continued Mr. Danforth. “We believe that the coronavirus initiatives we implemented in March are opening many doors, producing results and accelerating the growth of our software business.”
“While the pandemic’s effects on our business are uncertain, our systems and solutions are proving to be vital for a world experiencing exponential safety concerns,” Mr. Danforth added. “With our strong balance sheet and expanding business pipeline, Genasys remains on track for record fiscal year revenues and well-positioned for future revenue growth.”
Consolidated Balance Sheets and Statements of Operations
Webcast and Conference Call Details
Management will host a conference call to discuss the fiscal second quarter 2020 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, or international at (862) 298-0702. A webcast will also be available at the following link:
https://www.webcaster4.com/Webcast/Page/1375/34372
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™ provides a multi-channel 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 its National Emergency Warning System (NEWS), Personal Safety Service (PSS), Team Safety Management (TSM), LRAD® systems and more.
Genasys critical communication systems are in service in 72 countries around the world in diverse applications, including public safety, national emergency warning systems, mass notification, defense, law enforcement, critical infrastructure protection and many more. 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 the consequences of the COVID-19 outbreak, other pandemics 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, 2019. Genasys Inc. disclaims any intent or obligation to update those forward-looking statements, except as otherwise specifically stated.
Investor Relations Contacts
Jim Fanucchi and Satya Chillara
Darrow Associates, Inc.
ir@genasys.com