Genasys receives $1M in LRAD orders from Africa and Middle East

SAN DIEGO - Genasys Inc. (NASDAQ:GNSS), a small-cap technology company with a market capitalization of approximately $85 million, announced Tuesday it has secured orders for its Long Range Acoustic Device (LRAD) systems totaling over $1 million from customers in Africa and the Middle East. According to InvestingPro data, analysts anticipate sales growth for the company in the current year, despite recent market challenges.

The company, which specializes in protective communications technology, expects additional LRAD orders during the current fiscal quarter, according to a press release statement. This potential growth comes as the company works to improve its financial position, with InvestingPro data showing trailing twelve-month revenue of $27.8 million.

LRAD systems are designed to provide long-range communication capabilities for border security, law enforcement, and critical infrastructure protection. The technology allows security personnel to communicate clearly over long distances and through background noise.

Richard Danforth, Chief Executive Officer of Genasys, said the systems enable border security and law enforcement agencies to "cover more area with less personnel" and "communicate to individuals and large groups from safe standoff distances."

The company indicated that the orders are related to security challenges in the regions. Peter Ayre, Genasys Vice President of EMEA Business Development, noted that parts of the Middle East are dealing with "large border incursions and populations on the move," while civil unrest remains a concern in Africa.

Genasys describes its LRAD technology as the "global leader and de facto standard of Acoustic Hailing Devices," with deployments in more than 100 countries worldwide.

The company’s Genasys Protect platform incorporates software, systems, and LRAD devices designed for preparedness and response applications for organizations and public safety agencies. While the stock has experienced a significant 39% decline over the past six months, detailed analysis available in the comprehensive Pro Research Report on InvestingPro suggests potential opportunities ahead, with analysts setting price targets significantly above current trading levels.

In other recent news, Genasys Inc. reported a challenging second quarter for fiscal year 2025, with earnings and revenue falling short of analyst expectations. The company posted an earnings per share of -0.14, missing the forecasted -0.12, while revenue was $6.9 million, below the anticipated $8.51 million. In addition to the earnings report, Genasys announced a $2 million order from the U.S. Navy for LRAD maritime systems, which are scheduled for delivery within the current fiscal year. This order involves the replacement of first-generation LRADs with the new LRAD 1000Xi systems.

Furthermore, Genasys has entered into a strategic partnership with samdesk to enhance crisis response capabilities by integrating real-time crisis detection with its protective communication solutions. On the analyst front, Ascendiant Capital lowered its price target for Genasys to $5.50 from $6.00, while maintaining a Buy rating. The firm cited a forward price-to-earnings multiple of 22 times the fiscal year 2027 earnings per share estimate as a factor in their decision. Ascendiant Capital noted that this valuation aligns with Genasys’s estimated long-term earnings growth rate.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.