Wed, May 15, 5:13 PM (72 days ago)
Genasys Inc.'s Q2 FY2024 financial results reveal a significant decrease in revenue, primarily driven by a reduction in hardware sales. Total revenue declined by 49% year-over-year to $5.7 million, with hardware sales dropping by $6.4 million due to the completion of a large U.S. Army contract in FY2023. Software revenue increased by $887, reflecting a 123% boost in recurring revenue. Gross profit fell by 56% to $2.2 million, impacted by lower hardware sales and reduced overhead absorption. Operating expenses rose by 10% to $9.2 million, driven by higher compensation, commission, and professional services costs. The net loss widened to $6.9 million from $3.4 million in the prior year, attributable to lower revenue and increased expenses. Cash and cash equivalents stood at $3.5 million, down from $8.7 million at the end of FY2023. The company secured a $15 million term loan in May 2024 to support operations. Future growth is expected from new contracts, including a $75 million emergency notification system for Puerto Rico and continued investment in the Genasys Protect software platform.