The following is a summary of the Genasys, Inc. (GNSS) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Genasys reported a Q2 2024 total revenue of $5.7 million, a 49% reduction from last year, but software revenue increased by 123% to $1.7 million.

• The hardware revenue declined by 61% to $4 million due to a low hardware backlog and delayed approval of the 2024 U.S. DoD budget.

• For the second quarter, Genasys reported an operating loss of $7 million compared to a loss of $3.4 million for the same period in the previous year, and EBITDA was at negative $5.7 million, declining from the previous year's negative $2.3 million.

• The gross profit margin for Q2 was 38%, down by 6%, mainly due to a decrease in hardware revenue and the subsequent reduction in overhead absorption.

Business Progress:

• Genasys' software business is growing, with recurring revenues for Q2 showing a year-on-year increase of 124%.

• The company expanded its board members by two and secured $15 million in debt financing, strengthening its position.

• Genasys expanded its Puerto Rico dam project, expecting to receive up to $75 million and believes that the United States Army's new program will generate at least as much revenue as the previous one ($110 million).

• The growth of their software business is expected to continue, and despite the current delays, the company remains positive about the prospects of both its software and hardware divisions in fiscal 2025.

• Genasys has improved its cash position and anticipates that an increase in revenue will restore the percentages of gross margin in upcoming quarters.

More details: Genasys IR

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