Genasys Inc. Q4 FY2024 earnings call

• Fiscal 2024 was disappointing financially but transformational in bookings; international bookings up 86% year-over-year.
• Domestic LRAD systems for law enforcement made a comeback, driven by the acquisition of Evertel and improving law enforcement budgets.
• Software had record bookings up 46% year-over-year, with notable wins like the Oregon EVAC contract and Los Angeles County expanding to the Genasys Protect platform.
• Puerto Rico PREPA project: $75 million project progressing well, with designs approved for first three dam groups, invoicing for deposits on first two groups, and preparing to break ground. Total value of first three approved groups over $35 million.
• AHD CROs program: Initial program appropriations of $20 million secured, actively working with program office on planning and scheduling.

Hardware: In the fourth quarter of fiscal 2024, hardware revenue was $4.6 million, a 52% decrease year-over-year. For the full fiscal year, hardware revenues decreased 61% to $16.7 million compared to fiscal 2023. Software: Fourth quarter software revenue was $2.1 million, a 92% increase year-over-year. For the full fiscal year, software revenue increased 93%, with record bookings up 46% year-over-year. Software contributed significantly to the overall revenue growth, while hardware faced declines. Revenue contribution: Software's full year growth helped offset hardware's decline, but hardware still made up a larger portion in the full year.

• Recurring software revenue growth will likely moderate from triple-digit levels of fiscal 2024 but expect continued improvement throughout the year.
• Backlog includes $8.3 million software ARR and strong hardware bookings, positioning the company better than a year ago.
• Expect revenue from PREPA in the March quarter, with third group invoicing shortly and fourth/fifth groups scheduled out later in the fiscal year.
• Potential RFP for additional hardware and unrelated application later in fiscal 2025.

• Uncertainty in Puerto Rico dam installation process due to multiple owners (private, municipalities, etc.) with varying challenges.
• Federal budget and continuing resolution impacts, though currently no impact on the company.
• Variability in installation timelines for Puerto Rico dams as they involve different owners with distinct requirements.

Q: Scott Searle asked about the timeline for first revenue contribution from PREPA, if March quarter is reasonable, and deposit income on third grouping.

A: Richard Danforth said March quarter is a reasonable expectation, third group will be invoiced shortly, and fourth/fifth groups are scheduled out towards the end of the year.

Q: Ed Woo asked if Genasys is considering potential acquisitions.

A: Richard Danforth said there are no current plans for acquisition, acquisitions are opportunistic.

Q: Vijay Devar asked about PREPA's portion in backlog and plans to increase software sales force.

A: Dennis Klahn said PREPA is a big portion of the $40 million backlog but breakdown not given; Richard Danforth said they do have plans to increase the software sales force with several open roles to fill.