Notable News to Watch: Genasys Inc. (NASDAQ:GNSS)

On Dec. 09, 2019, Genasys Inc. (NASDAQ:GNSS) a leading critical communications company, notified financial results for its fiscal year ended September 30, 2019.

Fiscal fourth quarter revenues improved significantly from the same quarter last year and helped propel total fiscal 2019 revenues to $37.0 million, the highest ever for the Company. Bookings for fiscal 2019 grew to a record $45.9 million, up 26% compared with last fiscal year, resulting in a record backlog of $27.0 million on September 30, 2019, said Richard S. Danforth, Chief Executive Officer of Genasys Inc. Growing demand for Acoustic Hailing Devices (AHDs) and Public Safety Mass Notification (PSMN) systems drove revenue increases of 34% and 12% respectively over the prior fiscal year.

Fiscal 2019 Fourth Quarter Financial Summary

Fiscal 2019 fourth quarter revenues were $7.7 million, an increase of 135%, compared with $3.3 million in the same period last year.

Gross profit margin was 46.2%, compared with 31.8% in the fiscal 2018 fourth quarter. The significant improvement in gross margin was primarily due to higher sales and lower manufacturing overhead expenses as a percentage of sales.

Operating expenses were $3.9 million, essentially unchanged compared to the same period in the prior year.

Net loss for the quarter was $0.1 million, or $(0.00) per share, compared with a net loss of $2.4 million, or $(0.07) per share, in the fiscal 2018 fourth quarter.

Fiscal Year 2019 Financial Summary•

Fiscal 2019 revenues totaled $37.0 million, an increase of 41% when compared with $26.3 million in fiscal 2018.  Domestic revenues increased 76% and international revenues decreased 5% primarily due to government funding issues in two Asia Pacific countries.

Gross profit margin was 49.9%, compared with 48.4% in the prior fiscal year, primarily due to higher sales and lower manufacturing overhead expenses as a percentage of sales.

Operating expenses increased 8%, compared with fiscal 2018, primarily to support strategic business growth initiatives.

Net income of $2.8 million, or $0.08 per diluted share, compared with a net loss of $3.7 million, or $(0.12) per share, in fiscal 2018.

The $6.5 million improvement over the net loss in fiscal 2018 was primarily due to higher revenues and decreased income tax provision. The Company recorded an income tax provision of $572,000 for the year ended September 30, 2019.  In the year ended September 30, 2018, the Company recorded $2.4 million of tax expense due to a reduction of the deferred tax asset resulting from the change to the U.S. corporate income tax rate effective for the calendar year ended December 31, 2018.

Cash and cash equivalents totaled $18.8 million on September 30, 2019, up from $11.1 million on September 30, 2018.

Working capital totaled $24.8 million on September 30, 2019, compared with $21.1 million on September 30, 2018. The increase in working capital was largely the result of net income generated from operations.

On Friday, Genasys Inc. (NASDAQ:GNSS) stock traded volume of 166341 shares during its last trading session as compared to its average volume of 60702 shares over the recent month. GNSS ended its day with the negative stream along the move of -0.87% and closed at the price of $3.42 before opening at $3.48. It has total market capitalization is $112888422. 52week range of the stock remained $ 2.08 – 4.24 while its day lowest price was $3.38 and its hit its day highest price at $3.5.

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