Genasys Inc. Reports Fourth Quarter and Full Year Fiscal 2024 Financial Results
Genasys Inc. (NASDAQ: GNSS), a leader in Protective Communications Solutions and Systems, reported its fiscal fourth quarter and full-year 2024 financial results, ending September 30, 2024.
Key Financial Metrics (in USD millions except per share data)
| Metric | Fiscal 4Q 2024 | Fiscal 4Q 2023 | % Change Year-over-Year |
|---|---|---|---|
| Total Revenue | $6.7 | $10.7 | -37.4% |
| GAAP Operating Loss | ($7.1) | ($2.6) | -173.1% |
| Adjusted EBITDA | ($6.0) | ($1.7) | -252.9% |
| GAAP Net Loss | ($11.4) | ($10.1) | -12.9% |
| GAAP Net Loss Per Share | ($0.26) | ($0.27) |
Despite a challenging fiscal year 2024 with lower-than-expected revenue and margins, the company saw positive momentum with a record year for bookings and strategic contract wins, setting the stage for potential growth in fiscal 2025.
Revenue Breakdown by Segment (in USD millions)
| Segment | % Change Year-over-Year |
|---|---|
| Software Revenue | +92.4% |
| Hardware Revenue | -51.9% |
Software revenue growth was notable, led by a significant increase in recurring revenue, while hardware revenue faced a downturn, impacting the overall profitability due to its typically higher gross margin contribution.
Key Developments and Operational Highlights
- Secured a $75 million Early Warning System contract for 37 dams in Puerto Rico.
- Announced a $3.4 million renewal contract for LRAD systems maintenance with the Indian Navy.
- Established major agreements in key jurisdictions, including:
- A 4-year contract with Los Angeles County for Genasys ALERT.
- A 4-year contract with Maui County for Genasys EVAC and TRAFFIC AI.
- A statewide agreement with Oregon's Office of Resilience and Emergency Management for Genasys EVAC.
- Critical Infrastructure Protection orders received from Hoover Dam, Port of Houston, and the Alabama-Coushatta Tribe.
Comments from Company Officers
Richard S. Danforth, CEO of Genasys, Inc., highlighted the fiscal year 2024 challenges, including low backlog and decreased margins. However, he emphasized positive milestones like the significant Puerto Rico contract and a robust increase in software bookings and international hardware demand. Genasys enters fiscal 2025 with a backlog of $40 million, promising a potential turnaround.
Forward Guidance
Genasys anticipates substantial growth in hardware revenues in fiscal 2025 driven by recent orders, yet it did not provide specific financial guidance due to uncertainties in equipment delivery and installation timelines.
In summary, while facing financial hurdles in fiscal 2024, Genasys Inc. is positioned optimally for recovery and growth in the coming fiscal year, buoyed by strong pipelines and significant contractual wins.
For more in-depth analysis and insights, stay tuned with our platform to stay ahead of the market.
