Latest news with #Genasys
Yahoo
3 hours ago
- Climate
- Yahoo
Brush fire burning near I-5 at Fort Tejon prompts evacuation warning
BAKERSFIELD, Calif. (KGET) — An evacuation warning remains in effect after a brush fire broke out overnight along Interstate 5 near Fort Tejon. The fire broke out Wednesday night at around 11:30 p.m. near southbound lanes of I-5 at Fort Tejon Road, according to officials. As of Thursday morning the Fort Fire has burned approximately 133 acres and is at 5% containment. The fire has prompted an evacuation warning for the KRN-535 zone, according to Genasys evacuation map — Kern County's evacuation mapping system for residents. The evacuation warning zone includes areas north of Temescal Drive, Digier Road; south of I-5; east of Grapevine Road; and west of I-5. View a map of the zone at this link. Multiple firefighting crews have worked to contain the fire overnight including water dropping helicopters. The #4 lane of southbound I-5 remains closed as of 6:30 a.m. and there appeared to be no slowdowns. Check back for updates. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
19-05-2025
- Business
- Yahoo
Genasys Inc. Provides Update on Puerto Rico Dam EWS Project
Implementation Phase Has Begun SAN DIEGO, May 19, 2025--(BUSINESS WIRE)--Genasys Inc. (NASDAQ: GNSS), the global leader in Protective Communications, today provided updated information related to the previously announced $75 million contract to provide Puerto Rico Electric Power Authority (PREPA) with an Emergency Warning System (EWS) to protect residents and visitors downstream of the island's 37 dams. Since signing the definitive agreement in August 2024, PREPA and Genasys have been actively working to complete the implementation. The overall project has been broken down into 7 groups of dams, that will each have an Emergency Operating Center (EOC) established. The agreement stipulates that after each group's design is approved, a deposit of 60% of the group's value will be paid to Genasys, in order to facilitate procurement, manufacturing, and delivery of all hardware and instrumentation. The first three of seven groups have been designed and approved to proceed. The total value of these first three groups is over $36 million. In the fiscal first quarter earnings release on February 11th, Genasys reported that it had received two of the deposits and that a third deposit was expected soon. On the company's May 13th second quarter earnings call, management reported that the third deposit had not yet been received but was expected shortly. Last Friday, May 16th, Genasys received a partial deposit for the third group of dams. The remainder of the third deposit is expected to be received within the next few weeks. Detailed plans and permits have been approved on a number of the sites. Initial construction on the island of Puerto Rico began in early April. Instrumentation and material is being aggregated and assembled in Genasys' San Diego facility with shipments for the first three groups now expected to begin this month. Current shipping schedules call for all of the material required to complete the first three groups of dams be delivered to Puerto Rico in the Company's fiscal fourth quarter. As discussed during the second quarter earnings call, cash receipts will precede revenue and profit recognition. Initial 'percent of complete' revenues will be recognized on a cost basis for the delivery of hardware and instrumentation to Puerto Rico. Then, as installation and implementation of the equipment is completed, additional revenues will be accrued on an hourly basis. The resulting impact of this treatment is that the vast majority of revenues associated with the first three groups is expected to be recognized in the September quarter. Initial revenue recognition on the delivery of instrumentation will be on a cost, or zero margin basis, with subsequent revenues reflecting the profits on both the equipment and the implementation. This update has been provided with the intent of informing investors of the progress of this significant contract, though no obligation or commitment to further update progress exists. About Genasys Inc. Genasys Inc. (NASDAQ: GNSS) is the global leader in Protective Communications. Incorporating the most comprehensive portfolio of preparedness, response, and analytics software and systems, as well as the Company's Long Range Acoustic Devices® (LRAD®) the Genasys Protect platform is 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 155 million people in all 50 states and in over 100 countries worldwide. . For more information, visit 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 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, 2024. Genasys Inc. disclaims any intent or obligation to publicly update or revise forward-looking statements, except as otherwise specifically stated. View source version on Contacts Investor Relations Contact Brian Alger, CFASVP, IR and Corporate Developmentir@ (858) 676-0582
Business Wire
19-05-2025
- Business
- Business Wire
Genasys Inc. Provides Update on Puerto Rico Dam EWS Project
SAN DIEGO--(BUSINESS WIRE)--Genasys Inc. (NASDAQ: GNSS), the global leader in Protective Communications, today provided updated information related to the previously announced $75 million contract to provide Puerto Rico Electric Power Authority (PREPA) with an Emergency Warning System (EWS) to protect residents and visitors downstream of the island's 37 dams. Since signing the definitive agreement in August 2024, PREPA and Genasys have been actively working to complete the implementation. The overall project has been broken down into 7 groups of dams, that will each have an Emergency Operating Center (EOC) established. The agreement stipulates that after each group's design is approved, a deposit of 60% of the group's value will be paid to Genasys, in order to facilitate procurement, manufacturing, and delivery of all hardware and instrumentation. The first three of seven groups have been designed and approved to proceed. The total value of these first three groups is over $36 million. In the fiscal first quarter earnings release on February 11 th, Genasys reported that it had received two of the deposits and that a third deposit was expected soon. On the company's May 13 th second quarter earnings call, management reported that the third deposit had not yet been received but was expected shortly. Last Friday, May 16 th, Genasys received a partial deposit for the third group of dams. The remainder of the third deposit is expected to be received within the next few weeks. Detailed plans and permits have been approved on a number of the sites. Initial construction on the island of Puerto Rico began in early April. Instrumentation and material is being aggregated and assembled in Genasys' San Diego facility with shipments for the first three groups now expected to begin this month. Current shipping schedules call for all of the material required to complete the first three groups of dams be delivered to Puerto Rico in the Company's fiscal fourth quarter. As discussed during the second quarter earnings call, cash receipts will precede revenue and profit recognition. Initial 'percent of complete' revenues will be recognized on a cost basis for the delivery of hardware and instrumentation to Puerto Rico. Then, as installation and implementation of the equipment is completed, additional revenues will be accrued on an hourly basis. The resulting impact of this treatment is that the vast majority of revenues associated with the first three groups is expected to be recognized in the September quarter. Initial revenue recognition on the delivery of instrumentation will be on a cost, or zero margin basis, with subsequent revenues reflecting the profits on both the equipment and the implementation. This update has been provided with the intent of informing investors of the progress of this significant contract, though no obligation or commitment to further update progress exists. About Genasys Inc. Genasys Inc. (NASDAQ: GNSS) is the global leader in Protective Communications. Incorporating the most comprehensive portfolio of preparedness, response, and analytics software and systems, as well as the Company's Long Range Acoustic Devices® (LRAD®) the Genasys Protect platform is 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 155 million people in all 50 states and in over 100 countries worldwide. . For more information, visit 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 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, 2024. Genasys Inc. disclaims any intent or obligation to publicly update or revise forward-looking statements, except as otherwise specifically stated.
Yahoo
14-05-2025
- Business
- Yahoo
Q2 2025 Genasys Inc Earnings Call
Brian Alger; Senior Vice President Investor Relation and Corporate Development; Genasys Inc Richard Danforth; Chief Executive Officer, Director; Genasys Inc Dennis Klahn; Chief Financial Officer, Secretary; Genasys Inc Scott Searle; Analyst; Roth Capital Mike Latimore; Analyst; Northland Capital Edward Woo; Analyst; Ascendiant Capital Operator Good day: ladies and gentlemen, and welcome to the Genasys Fiscal Second Quarter 2025 results conference call. All lines have been placed on a listen-only mode, and the floor will be open for questions and comments following the presentation. [Operator Instructions] At this time, it is my pleasure to turn the floor over to your host, Brian Alger, SVP, Investor Relations and Corporate Development. Welcome, Brian. The floor is yours. Brian Alger Good afternoon. Welcome to Genasys's fiscal 2025 2nd quarter results conference call. I'm Brian Alger, SVP Investor relations and corporate development for Genesis. With me on the call today are Richard Danforth, our CEO; and Dennis Klahn, the company's CFO. During today's call, management will make forward-looking statements regarding the company's plans, expectations, outlook, and future financial performance that involves certain risks and uncertainties. The company's results may differ materially from the projections described in these forward-looking statements. Factors that might cause such differences and other potential risks and uncertainties can be found in the risk factors section of the company's Form 10k for the fiscal year ended September 30, 2024. Other than statements of historical facts, forward-looking statements made on this call are made based on information and management's expectations as of today, May 13, 2025. We explicitly disclaim any intent or obligation to update those forward-looking statements except as otherwise specifically stated. We will also discuss non-GAAP financial measures and operational metrics including adjusted EBITDA bookings and backlog which we believe provide helpful information to investors with respect to evaluating the company's performance. For reconciliation of adjusted EBITDA to GAAP financial metrics, please see the table in the press release issued by the company at the close of the market today. We consider bookings and backlog 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 given period regardless of the timing of the related revenue recognition. Backlog is a measure of purchase orders received that are scheduled to ship within the next 12 months. Finally, a replay of this call will be available approximately 4 hours through the Investor Relations page on the company's website. Now, at this time, it's my pleasure to turn the call over to the Genasys' CEO, Richard Danforth. Richard? Richard Danforth Thank you, Brian, and Welcome everyone. Fiscal 2025 is turning out to be an exceptional year for Genesis. On a February call, we discussed how the January fires in LA brought global attention to the use of Genesis Protect for managing emergency response and evacuation notifications. As we have stated multiple times, the Genesis Protect platform proved to be incredibly resilient and effective at saving lives. The balance of the March quarter progressed largely as expected, but one meaningful LRAD order that was expected to close moved to our fiscal 3rd quarter. Since last November, we have known that the second half of fiscal 2025 was going to see tremendous growth and acceleration in our hardware business. Throughout the March quarter and continuing into our 3rd fiscal quarter, design, planning, and procurement for the Puerto Rico project has been progressing well. Recently we began implementation and installation work on the first of 19 dams currently approved. Substantially all of the materials for the 1st 3 groups have either been received or are on order. In Puerto Rico since the final week of March quarter, we have been expecting the down payment for the 3rd group of dances. The designs have been approved. Our invoices for the down payment have been delivered and approved. All of the authorizations for the payment have been made. We have not yet received a deposit, however. To be clear, this has absolutely nothing to do with FEMA or anything else occurring in Washington DC. The FEMA money for the development and installation of the early warning system for the identified 37 dams in Puerto Rico was funded in early 2024. We have received multiple assurances from our customer that the payment will be made shortly. That said, management and the board made the decision to obtain additional capital to maintain momentum and enable Genesis to capture the opportunity at our doorstep. Because of the timing and various provisions within our existing secure debt agreement, we signed a $4 million first amendment to the term loan with our creditor White Fox. This smaller loan comes at the same interest rate as the original debt but is intended to be very short term. In fact, it expires at the end of this calendar year. Additionally, the agreement comes with a statement for the availability of an additional $4 million to be made at Genesis. Suffice it to say, if we had received the down payment for the third group, we would not have sourced the bridge capital. We continue to drive to an aggressive timeline that delivers all of the hardware for the 1st 3 groups to the island by the end of this fiscal year with installation schedules already underway. Dennis will go into the revenue recognition in much greater detail, but hitting the schedule as it stands today would result in record quarterly revenue in the 4th quarter this fiscal year. Beyond the project in Puerto Rico, bookings for our LRAD business continue to track ahead of our last year, driving further improvements in our 12-month backlog. This is in spite of a handful of opportunities slipping, including the one I just referenced. International and domestic demand continues to improve for both critical infrastructure as well as military needs. New use cases continue to emerge like a recent article that described the use of LRAD units on autonomous surface vessels in Singapore or the upgrading of physical security systems like the one we recently announced for the SIP-14 electrical substation here in the US. Looking out a bit further, the project award in Puerto Rico is providing a meaningful proof point in a number of countries looking to provide citizens with reliable emergency communication. Finally, I want to take a moment to talk about Crow's AHD program. Like its predecessor, this program is expected to span multiple years with eventual deliveries of thousands of LRAD units. Based on our conversations with the Army Program Office, we expect to receive the initial production order under this program this fiscal year. Given that we don't yet have the purchase order, we cannot state for certain the size of the order or our ability to complete deliveries against that order this fiscal year. However, the importance of this milestone is critical, as it should serve as mice to our LRAD business for the next several years. We look forward to updating you further. Purchase order is issued. Now I would like to shift gears and speak a little about our software business as you all are aware, we had a major proof point this past January. While that won't convert into instant lift in revenues, it has contributed to a number of opportunities. Since the fires within LA County alone, we are in various stages of discussion with three separate communities for implementation of EVAC and acoustic systems. Nationwide, the performance of the system during the LA complex of fires, as well as the high-profile events in Oklahoma, North Carolina, New Jersey, and even Long Island, are contributing to an expanding pipeline. Still a way from closing and being converted to revenue, this pipeline measurement has increased more than 100% since the beginning of fiscal 2025. Many of you are aware of Congressman Garcia's recently released a report regarding lessons from the Kenneth Fire false alerts. The event highlighted a breakdown in alert targeting that originated from within a complex environment of rapidly evolving conditions, overlapping systems, and high-stake decision making during a historic disaster. Importantly, what has not been covered by this investigation, nor in any media reports are the dramatic improvements Genesis software enabled in quickly disseminating evacuation notices to the public. During previous devastating wildfires, the elapsed time from first responder requesting evacuations to evacuation alerts being issued averaged 40 to 60 minutes. Using the Genesis Protect platform, LA County reduced the average time to 6 minutes. This significantly, significant improvement likely saved hundreds and possibly thousands of lives. What we witnessed was more than just technology at work. It was a culmination of dedication, preparation, and coordination across multiple agencies. Emergency teams sent over 400 zone status changes to critical lifesaving situations through Genesis all in record time. As the report mentioned, a local network level disruption interfered with data transfer to a federal alerting backbone iPod. The alert was correctly configured by the operator and properly localized across all channels. Intermittent network issue prevented the targeted area from registering in one channel, result resulting in a broader than intended warning. This wasn't a software failure. It was a breakdown in connectivity in the middle of a crisis. Networks are strained with the unprecedented condition around Los Angeles County. Since that initial incident, we have taken the following actions implementing new safeguards, strengthening cross-channel validation, and introducing fail-safes to ensure that geo-targeting data is fully aligned or any alert is sent. These enhancements will live within 48 hours of the original occurrence. Our technology remains the most widely deployed multi-channel a learning platform in California and continues to expand nationwide. We remain the trusted targeted communication partner to agencies across 39 states with Genesis Protect, and we are expanding rapidly. Our platform is stronger, smarter, and more resilient because of what we've learned, and we're only accelerating from here. In addition to the tailwinds for EVAC that have come in the wake of the LA fires, our CONNECT software is rapidly gaining traction with even greater awareness being fuelled by the signal gate disclosures. Most CONNECT deals are relatively small from a revenue standpoint. Recently, however, we have been engaged with a number of larger organizations. One is a federal agency. Another is a combination of regional agencies in one of the highest populated cities in the United States. Each of these opportunities are currently in trial and are expected to progress to contract. As strong as the momentum and growth in our pipeline is, we do have to acknowledge that a few deals, fewer deals are closing. The opportunities are not going away but rather being delayed. This is particularly true at the state level where access to federal grant money is in question. While some deals are closing, many of the larger Genesis Protect deals, including those with acoustics, have slowed. Up until last Monday, grant payments from the $553 billion Urban Area Security Initiative and the $374 billion state Homeland Security program were frozen. Our expectation is that that funding becomes more certain deals that are further in our pipeline will accelerate through closing. With that said, we still expect sequential growth in our software business over the remainder of fiscal 2025. At the macro level, Genesis is not being impacted by the ongoing tariff and trade negotiations. The administration's rapid pace of change is affecting procurement processes in that it introduces uncertainty into an already complicated process of securing funding, as not only do federal decisions affect federal agencies, but many state budgets rely heavily on the funds from the federal government, thus affecting state appropriation priorities. In summary, fiscal 2025 is challenging to forecast and precisely predict, but it is still on course for substantial growth and improvement in profitability, particularly in the fiscal 4th quarter. Beyond 2025, the outlook continues to improve with a broadening pipeline for both our hardware and software offerings, ultimately delivering increased visibility and predictability. Now, I will turn the call over to Dennis to go through the financials and outlook in greater details. Dennis? Dennis Klahn Thank you, Richard. Before I begin to review the operational and financial details of the quarter, I would like to speak about my decision to retire. I've been fortunate to work with companies doing exciting things and learn something new in every organization I served in my 45-year career. Genasys has been an amazing opportunity, both personally and professionally, with rapid organic growth, multiple acquisitions, worldwide expansion, and essentially growing a new software company out of a hardware company. Genasys has a great team of passionate, hardworking, and dedicated employees that have made it a joy to come to the office every day. I want to thank Richard, the board and the Genasys team for the opportunity to serve as Genasys CFO for the past 8 years. I have some travel plans this year, but I'm available to assist the new CFO as needed to ensure that there's a smooth and orderly transition. In the second quarter of fiscal 2025, Genesis generated roughly flat revenues sequentially and 21% growth compared to the prior year quarter. Hardware revenues grew slightly sequentially and were up 17% year over year. Total software revenue in the quarter grew 29% year over year, but we're down 3% or $64,000 sequentially as a few customers chose not to renew their expiring agreements. Gross profit margin was 37.7% in the March quarter, effectively flat with the prior year's period, but down nearly eight points from December. Sequentially, this is primarily due to a mix of lower margin hardware revenue and the significantly higher volume network and messaging costs linked to software platform usage during the LA Fire event. Quarterly operating expenses were $8.9 million versus $9.1 million in the December quarter and $9.2 million in last year's second quarter. Sequentially, the improvement is seen in SGA, while on a year over year comparison, R&D is down slightly. On a GAAP basis, our second fiscal quarter operating loss was $6.3 million compared to a loss of $7 million in the year quarter and a loss of $5.9 million in the December 2024 quarter. Adjusted EBITDA, which also excludes non-cash do compensation, was a negative $5.1 million. An improvement from the negative $5.7 million in the second quarter of 2024, but down slightly from the $4.8 million in the December 2024 quarter. GAAP net loss in this fiscal year's second quarter was $6.1 million which compares to last year's second quarter net loss to $7 million in the first quarter of fiscal year 2025's $4.1 million-dollar net loss. Which benefited from $2.2 million of non-cash other income related to the quarterly adjustment to the fair value of the warrants issued with thEBITDA term loan last May. Cash equivalents, and marketable securities at the end of March 31, 2025, totalled $7.2 million, down from $13.9 million on December 31, 2024. Cash used in operating activities in the second fiscal quarter was $6.3 million including a $973,000 use of cash from changes in operating assets and liabilities. Subsequently quarter end, we'd expected to receive the deposit for the 3rd group of Puerto Rico dams. The receipt is believed to be imminent. Management and the board of directors chose to shore up the balance sheet to the $4 million bridge loan announced in the earnings released today. With the bridge financing in place and the 3rd deposit expected shortly, we look forward to delivering on the growth investors have been waiting for. Third quarter revenues are expected to recognize additional initial shipments of materials to Puerto Rico as well as improved other LRAD orders. As pertains to the Puerto Rico project, percentage of completion accounting requires that we record hardware material revenues initially at cost and then only after installation and the profit on the material be recognized. Thus, gross margins will initially be compressed before accelerating through installation and implementation of the systems. Initially, cash will precede revenue and profit recognition during the Puerto Rico project. On March 31, 2025, we've received a net $9.7 million of customer deposits, net of local taxes and revenue recognized to date for the first two groups of dams on this project. The final 40% of cash is expected to be received upon customer acceptance of each dam. As Richard indicated, we achieved our first milestones with the project, and initial revenues were recorded in the 2nd fiscal quarter with more significant revenue recognition coming in the June quarter and the broader deliveries and implementation on the first group gets underway. As we have stated from the beginning of this fiscal year, we expect to recognize significantly more revenues in the second half of this fiscal year and the 1st. Once revenue recognition on the completion of dams begins, we anticipate relatively steady contribution through project completion. With a 12-month backlog that has grown to $50 million, including ARR of $8.6 million, and an expanding pipeline of opportunities, Genesis financial turnaround is well underway. Now I'd like to turn the call back to Richard for some final remarks. Richard Danforth Thank you, Dennis. On behalf of myself, the Board of Directors, and all of the employees of Genasys, I would like to express heartfelt gratitude for all you have done for Genasys over the past 8 years. You have been instrumental in transforming this company from a small hardware business with 45 employees to a much more diversified technology leader with more than 200 employees and customers spanning the globe. Although we are all saddened by your retirement, after 45 years it is well deserved. I wish you all the best as you went to this next phase and thank you for all you have done for me personally and for Genasys. Now I would like to open it up for Q&A operator. Operator Thank you. Ladies and gentlemen, the floor is now open for questions. [Operator Instructions] Scott Searle; Roth Capital. Scott Searle Hey, good afternoon. Thanks for taking the questions. Dennis, congratulations and good luck on your retirement. Dennis Klahn Thank you. Scott Searle Maybe just to dive in quickly to start on PREPA, rev-rec issues or assembly gets to change, but in terms of things progressing, it seems on track. Just want to make sure I understand a couple of things for starters that the initial material shipment were basically at cost. So, we're looking at zero gross margin before we start to see the rev-rec again, and then much, much higher gross margins on the remaining portion of the contract as you hit those installed milestones. Is that correct? Dennis Klahn Yes, I mean, the theory is that, you ship the materials, that's part of a solution, but the only way to really measure the percentage of completion of the project is by the level of installation cost and hours that have been expended against what the total project. Dam by dam is anticipated to be. Scott Searle Got you. Okay. And then moving beyond the 1st 3 groups, I think there are 7 groups in total. I'm wondering what the progress is, on groups 4 to 7 at this point in time. Richard Danforth Scott, it's Richard, the 3rd group has been approved. That means all the designs have been signed off and we're ready to go, that was standing to deposit hasn't arrived yet. The next group of dams, we will begin the detailed design process here shortly and then continue that until the 4th and the 7th group is complete. Scott Searle Got you. Okay. And moving on to the impact of federal budgets in terms of what they contribute to your state agencies and state customers. I'm wondering if there's a number in terms of that opportunity pipeline that is dependent on those federal funds. Just kind of a number of ballpark in terms of percentage. And I'm not sure if you provided a total for the opportunity pipeline other than saying it was growing pretty significantly. Richard Danforth Yeah, I don't think we put an absolute on it, Scott. In terms of your first question, it's all over the map. I can't give you a specific percentage, but particularly in our software world, they are frequently dependent on grants. Scott Searle Okay. And moving over to CROWS, it sounds like you don't have an order in hand yet, but you're getting close. I think in terms of how you size the opportunity before, in terms of thousands of vehicles, that the CROWS opportunity would be larger than it historically represented before the old program expired. I'm wondering if that still holds and you would expect this to annualize out at some point in time of $10 million to $15 million or so a year. Dennis Klahn That's exactly right. Scott Searle Gotcha. And finally, and then I'll jump back in the queue. It seems like there's a lot of announcements that go outside of, I'll call it your traditional core base in terms of, local, state, and federal agencies starting to see more utilities. You also announced a Qua product in the last week or so. I'm wondering if you could just give us a quick update in terms of what's going on in those non-traditional markets and opportunities if you're starting to gain some momentum on that front. Thanks. Richard Danforth So, Scott, much like Puerto Rico, the software enabled us to secure a $73 million hardware opportunity. The Shake Alert thing that we released is a similar kind of deal that when all else fails, the acoustic devices will work and will be able to have emergency messages go out when traditional channels no longer work. So, I think, a software piece is driving us into different markets for our hardware. Scott Searle And let me just throw one last in supply chains. I know you had some comments in tariffs not being meaningful, but there were some long lead time items in terms of polls and other things as related to the proper contract. I'm just wondering if you're seeing any other pressures on that front. Thanks. Richard Danforth No, it's the simple answer. And the polls are moving their way to Puerto Rico as we speak. Operator Mike Latimore; Northland Capital. Mike Latimore All right, great. Thank you. Yeah, Dennis, congratulations and great working with you over several years here. Dennis Klahn Thank you. Mike Latimore I guess just on the supplies for the Puerto Rico deal, I think you said you've received some and some are on order. Can you just kind of give an update on what percent of the total amount you've received? What percent on order? And for those that are on order, when do you expect to receive them? Richard Danforth So a 100% is either on order or received for the three groups. All of those materials are expected to deliver to the island before the end of this fiscal year. Mike Latimore Okay. Is that different? I thought there was a large tranche in the supposed to be in mid-May here. Richard Danforth Material is starting to flow to the island, but the large numbers will happen. Later in our 3rd quarter and into our 4th. Mike Latimore Okay, got it. Can you talk about recognizing the hardware at cost in the 3rd quarter. I assume there's a similar dynamic in the 4th quarter as well, given you'll get some of the hardware supplies in the 4th quarter. How do we think about the balance there? Dennis Klahn No. Yeah, that's correct. I mean, there will be a similar, as we start new dams in the fourth quarter, those materials initially will go in at cost. However, the materials that are shipped in the third quarter, presumably there will be installation costs and implementation. Dams will start to be completed. So as that installation, percentage of installation increases, that's when we'll be picking up more margins. So there should be more, a higher level of margin than the cost once you get over that initial material cost at revenue at cost. Mike Latimore Okay. And then over the course of this program, you still expect the same level of EBITDA and cash flow as always. Dennis Klahn Yes, that has not changed. Mike Latimore Okay. Thank you. Operator Thank you. (operator instructions) Edward Woo; Ascendant Capital Edward Woo Yeah, I'd also like to congratulate you, Dennis. I hope you enjoy your retirement. My question is, you mentioned that in the U.S., because of some of the federal budget issues. Have you noticed any longer lead times with any international opportunities? Richard Danforth No. The international opportunities usually take longer by its very nature, but no, we're not experiencing any additional increased time to close. Edward Woo Great. Well, that's all the questions I have. I wish you guys good luck and congratulations again, Dennis. Good luck. Dennis Klahn Right, thank you, man. Operator O[Operator Instructions] And there appear to be no further questions at this time, I'd like to turn the floor back to Brian Alger for closing remarks. Brian Alger All right. Thank you, everyone. Thank you for participating in today's conference call. A replay of the call will be available on our website shortly. For additional information and up-to-date news and activity regarding Genasys, our products, and the customers we serve, we strongly recommend you follow the company and Genasys for deck on your social networks, particularly LinkedIn and X, where we actively post and comment events as they're happening. And as we saw yesterday, keep an eye on our website for blog posts, where we often respond to breaking news as it happens. We look forward to speaking with each of you again next quarter, when we report3rd quarter 2025 results. And with that, good night. Operator Thank you. Ladies and gentlemen, this does conclude today's teleconference. We thank you for your participation. You may disconnect your lines at this time and have a great day. Sign in to access your portfolio
Yahoo
13-05-2025
- Business
- Yahoo
Genasys Inc. CFO Dennis Klahn to Retire After 45-Year Accounting & Finance Career
Company Details CFO Transition Plan SAN DIEGO, May 13, 2025--(BUSINESS WIRE)--Genasys Inc. (NASDAQ: GNSS), the global leader in Protective Communications, today announced that Dennis Klahn will retire by the end of the Company's current fiscal year after a 45-year career in accounting and finance. Mr. Klahn has served as the Company's chief financial officer (CFO) since September 2017. He will continue as CFO until a successor is chosen and will help ensure a smooth and orderly transition. The Company's Board of Directors has initiated a comprehensive search process with the support of an executive search firm. Mr. Klahn began his career at Coopers & Lybrand in 1980, after receiving a B.A. in Accounting from St. Ambrose University and earning his CPA. He was appointed CFO by Genasys Inc. after having served as Controller or CFO at several publicly traded companies, including Teledyne RD Instruments (a subsidiary of Teledyne Technologies Incorporated), Overland Storage, Inc., and Anacomp, Inc. Richard Danforth, Chief Executive Officer of Genasys Inc., stated, "Dennis has been an integral part of Genasys' transition from a hardware systems supplier to the only global provider of unified Software-as-a-service (SaaS) and hardware Protective Communications solutions in the large and growing emergency warning and mass notification industries. During his time as CFO, he has been instrumental in facilitating and integrating four software company acquisitions, opening offices in Europe and the Middle East, growing our worldwide operations from 45 employees to more than 200, increasing SaaS sales the last three consecutive fiscal years, and expanding our sales into more than 100 countries. "We appreciate Dennis' willingness to continue serving in his role until a successor is selected and providing support during the transition period," Mr. Danforth continued. "We will miss his business expertise, financial acumen, and professionalism. All of us at Genasys wish Dennis the very best as he embarks on his well-deserved retirement." Mr. Klahn commented, "It has been a privilege to work in accounting and finance throughout my career and an honor to serve as Genasys Inc.'s CFO for 8 years. I am proud to have contributed in building Genasys into a trusted source of Protective Communications solutions throughout the world. I want to extend my appreciation to Richard and the Board for their leadership and trust and look forward to supporting a smooth transition to my successor." About Genasys Inc. Genasys Inc. (NASDAQ: GNSS) is the global leader in Protective Communications. Incorporating the most comprehensive portfolio of preparedness, response, and analytics software and systems, as well as the Company's Long Range Acoustic Devices® (LRAD®) the Genasys Protect platform is 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 155 million people in all 50 states and in over 100 countries worldwide. For more information, visit 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 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, 2024. Genasys Inc. disclaims any intent or obligation to publicly update or revise forward-looking statements, except as otherwise specifically stated. View source version on Contacts Investor Relations Contact Brian Alger, CFASVP, IR and Corporate Developmentir@ (858) 676-0582 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
