Yahoo Finance Genasys Inc (GNSS) Q2 2024 Earnings Call Transcript Highlights: Diving Into Financials and ...
Revenue: $5.7 million in Q2, down 49% year-over-year.
Software Revenue: $1.7 million, with recurring revenue growth of 123%.
Hardware Revenue: $4 million, down 61%.
Gross Profit Margin: 38%, a decrease of 6 percentage points year-over-year.
Operating Expenses: $9.2 million, up 10% from the previous year.
Operating Loss: $7 million on a GAAP basis.
Adjusted EBITDA: Negative $5.7 million.
Cash and Equivalents: $6.6 million as of March 31, 2024.
Cash Used in Operations: $6.8 million in Q2.
Bookings: Software bookings over $4 million; Hardware bookings $2.1 million.
Annual Recurring Revenue (ARR): $6.5 million exiting March quarter, up 124% year-over-year.
Release Date: May 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: On the CROWS revenue, is there clarity on whether funding for the CROWS order will be received by calendar year-end? A: Richard Danforth, CEO of Genasys Inc, mentioned that the funding is not currently in their internal forecast. The initial kickoff meeting is scheduled for the first week of June, after which more clarity will be available.
Q: Regarding the fiscal '24 guidance excluding Puerto Rico, is there an expectation for a payment right after closing the deal? A: Richard Danforth explained that no revenue from Puerto Rico is expected this fiscal year as the initial phase requires acceptance of designs for each of the 37 dams. However, an initial deposit is expected subsequent to the contract signing.
Q: Can you provide clarity on how much revenue might be recognized from the Puerto Rico deal this year? A: The CEO clarified that they are not expecting any revenue this fiscal year from the Puerto Rico deal. The focus is currently on getting approvals for the designs, with revenue recognition likely pushed to fiscal '25.
Q: What is the expected timeline for deployment and revenue recognition for the Puerto Rico deal? A: Richard Danforth indicated that the original RFP required completion within 240 days post-approval, but it might take longer. More details will be provided in the next earnings call.
Q: Have there been any upticks in civil disobedience type of opportunities with police forces for LRAD devices? A: The CEO noted an increase in inquiries but emphasized that crises are not the best times for sales. He mentioned that most major U.S. police forces already have LRADs, and these events typically highlight the need for more devices.
Q: How is the company addressing the current challenges and opportunities in the market? A: Richard Danforth discussed the company's strategy to aggressively pursue opportunities in public safety and critical infrastructure protection, leveraging their fortified balance sheet and strong anchor wins.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
