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SAN DIEGO - Genasys Inc. (NASDAQ:GNSS) has received a $2 million order from the U.S. Navy for LRAD maritime systems, the company announced Tuesday in a press release. The order comes as the company, currently valued at $70.85 million, trades near its 52-week low of $1.54, significantly below its high of $4.04. According to InvestingPro data, analysts anticipate sales growth in the current year.
The follow-on order involves LRAD 1000Xi extended range communication and ship protection systems that will replace first-generation LRADs on Navy vessels. Deliveries are scheduled for completion during the current fiscal year.
According to the company, the systems will be deployed on Navy surface combatants, large amphibious ships, and aircraft carriers. The LRAD 1000Xi is designed to broadcast audible communications up to 3,000 meters in maritime environments.
Richard Danforth, Chief Executive Officer of Genasys, noted that LRADs have been providing Navy ships with extended range communication and escalation of force capabilities for over two decades.
The company stated that the U.S. Military and more than 30 international navies and coast guards currently use LRAD systems for various operations including ship-to-ship communication, establishing vessel exclusion zones, interceptions, search and rescue, and port security.
The LRAD 1000Xi features construction designed for operation in extreme maritime conditions, according to the press release.
Genasys describes itself as a provider of protective communications systems with products deployed in over 100 countries worldwide. The company maintains a gross profit margin of 30.13%, though InvestingPro analysis indicates current overall financial health as weak. For comprehensive insights and additional ProTips on GNSS’s performance and outlook, investors can access the detailed Pro Research Report available on InvestingPro.
In other recent news, Genasys Inc. reported a challenging second quarter for fiscal year 2025, with both earnings and revenue falling short of analyst expectations. The company posted an earnings per share (EPS) of -0.14, missing the forecasted -0.12, and revenue came in at $6.9 million, below the anticipated $8.51 million. Despite these setbacks, Genasys experienced a 21% year-over-year revenue growth, with hardware revenues increasing by 17% and software revenues by 29%. In a strategic move, Genasys announced a partnership with samdesk to integrate real-time crisis detection into its protective communication systems, aiming to enhance threat detection capabilities for emergency managers and security teams.
Ascendiant Capital recently lowered its price target for Genasys to $5.50 from $6.00 while maintaining a Buy rating, citing a forward P/E multiple of 22 times the firm’s fiscal year 2027 earnings per share estimate. The adjustment reflects ongoing evaluations of Genasys’s market performance and growth potential. Additionally, Genasys is optimistic about future quarters, expecting significant revenue recognition in Q3 and Q4 from ongoing projects, including a major initiative in Puerto Rico. The company also anticipates the development of the Crow’s AHD program, which could generate $10-15 million annually. Despite the current challenges, Genasys remains committed to expanding its technology platform and maintaining its leadership in emergency communication systems.
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