SAN DIEGO - Genasys Inc. (NASDAQ: NASDAQ:GNSS), a company specializing in Protective Communications, has received an order for its LRAD 950NXT systems from Damen Schelde Naval Shipbuilding B.V. for the German Navy’s new F-126 class frigates. The order, which includes an option for two additional frigates, is part of the largest shipbuilding project in German naval history.
The LRAD 950NXT systems are designed to enable long-range communication and scalable escalation of force (EOF) capabilities. These systems will be integrated with Thales Group’s Combat Management System, extending communication ranges up to 3,000 meters for the F-126 frigates.
The initial shipment of the systems is scheduled for this September, with additional shipments planned for fiscal years 2025 and 2026.
According to Richard Danforth, CEO of Genasys, the LRAD 950NXT has rapidly become the leading remotely operated maritime acoustic hailing device since its launch two years ago. It is now employed by six international navies and on several superyachts. Danforth also highlighted the use of LRAD systems for critical infrastructure protection (CIP) globally.
The LRAD systems are utilized by every U.S. Navy surface combatant and by 31 international navies and coast guards for various operations, including search and rescue, ship self-defense, and anti-piracy efforts. The technology features an integrated HD camera, high-intensity searchlight, and full pan & tilt drive, which can be automated when linked with radar or motion sensors.
Genasys has emphasized the durability and reliability of the LRAD 950NXT, which is housed in a rugged enclosure capable of withstanding harsh maritime conditions. The device has passed approximately 40 separate U.S. government tests, including all military specifications for heat, humidity, and shock resistance.
The company, which has been in the business of protecting people and saving lives for over 40 years, serves more than 70 million people in over 100 countries, including over 500 U.S. cities. This order represents a significant milestone for Genasys, reinforcing its position in the field of Protective Communications.
This news is based on a press release statement from Genasys Inc. and does not include any speculative content.
In other recent news, Genasys Inc. has secured new defense orders from the Middle East, totaling over $2.7 million. These orders are part of a larger foreign military sales contract for the deployment of Long Range Acoustic Device systems.
In addition, Genasys has recently reported mixed financial results for its fiscal second quarter of 2024. Despite a challenging quarter, the company anticipates considerable revenue growth in the second half of the fiscal year, primarily driven by software sales and upcoming projects.
Genasys has also announced an expansion of its board with two new members, along with the closure of a $15 million debt financing deal. The company's cash position currently stands at $6.6 million, excluding $3.5 million held as a bid bond for the Puerto Rico dam project. This project is expected to generate nearly $200 million in future revenue.
Still, the company has acknowledged uncertainties surrounding the revenue recognition period for the Puerto Rico project due to contract changes. In other developments, Genasys has initiated a new program with the U.S. Army, which is expected to match previous program revenues.
InvestingPro Insights
In light of Genasys Inc.'s (NASDAQ: GNSS) recent contract with Damen Schelde Naval Shipbuilding B.V., investors may be keen to understand the financial health and market performance of the company. According to the latest data from InvestingPro, Genasys has a market capitalization of $87.86 million.
Despite the potential growth implied by the new order, Genasys has been experiencing significant financial challenges. The company's Price/Earnings (P/E) ratio stands at -3.29, reflecting concerns about its profitability, especially since analysts do not anticipate the company will be profitable this year, as noted in one of the InvestingPro Tips.
Moreover, Genasys has seen a substantial return over the last week, with a 15.88% increase in its price total return, signaling a positive investor response possibly tied to the recent contract news. Still, it is important to consider that analysts expect a sales decline in the current year, and the company's net income is also expected to drop, which could impact future performance. These insights are particularly relevant for investors considering the company's prospects in the context of the new frigate systems order.
Investors looking to delve deeper into the financial metrics and future outlook for Genasys can find additional InvestingPro Tips, including insights on cash flow, debt levels, and revenue growth projections. For those interested, there are currently 9 more InvestingPro Tips available, which can be accessed by visiting https://www.investing.com/pro/GNSS. Additionally, to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, use the coupon code PRONEWS24.
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