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SAN DIEGO - Genasys Inc. (NASDAQ: NASDAQ:GNSS), known for its Protective Communications technology, has entered into a definitive agreement with the Puerto Rico Electric Power Authority (PREPA) to deploy its Emergency Warning System (EWS) across 37 dams in Puerto Rico. This initiative, fully funded by the U.S. Federal Emergency Management Agency (FEMA), aims to protect hundreds of thousands of residents and visitors from potential flood dangers.
The collaboration was marked by a formal signing ceremony earlier today, featuring Genasys CEO Richard Danforth and PREPA Executive Director Josue Colon Ortiz. Genasys anticipates recognizing approximately $75 million in revenue over the project's term.
The Genasys EWS will include a network of sensors to monitor reservoir levels, spillway flows, real-time video feeds, outlet and drainage flow rates, local weather, and seismic activity. The data collected will be integrated with the Genasys ProtectTM software platform, enabling Emergency Managers in seven newly established Emergency Operation Centers (EOCs) to monitor conditions continuously.
In case of an impending emergency, the system is designed to issue multi-channel notifications to inform residents and visitors in the affected areas. Genasys' involvement in Puerto Rico dates back to 2017, working with PREMA, FEMA, PREPA, and the local government to develop and implement emergency communications infrastructure.
In other recent news, Genasys Inc. has reported robust growth and promising future revenue prospects in its fiscal third quarter 2024 earnings call. The company anticipates $75 million in revenue from the Puerto Rico Dam project, a significant boost in software business with recurring revenues and ARR set to double, and a 117% rise in international hardware bookings year-over-year. Genasys also maintains a strong cash position, with $12.7 million in cash and equivalents.
InvestingPro Insights
As Genasys Inc. (NASDAQ: GNSS) reinforces its commitment to public safety through the new agreement with the Puerto Rico Electric Power Authority, financial metrics and market sentiment from InvestingPro offer a snapshot of the company's recent performance. With a market capitalization of $112.38 million, Genasys is navigating a challenging economic environment, as reflected in its trailing twelve-month revenue of $27.97 million, which marks a significant decline of 46.22% from the previous year. This contraction in revenue is echoed in the company's gross profit margin, which stands at 45.59% for the same period.
InvestingPro Tips highlight the company's current financial challenges, including a rapid cash burn and an anticipated decline in sales for the current year. Analysts also expect a drop in net income and do not foresee profitability for Genasys within this fiscal year. However, it's worth noting that Genasys has a sufficient liquidity position, with liquid assets that exceed short-term obligations. Moreover, the company operates with a moderate level of debt, which may provide some financial flexibility in executing its projects.
The recent agreement with PREPA could be a pivotal development for Genasys, potentially impacting future financial results and market performance. Investors interested in the company's detailed financial analysis and additional InvestingPro Tips—of which there are 9 in total for Genasys—can explore further at https://www.investing.com/pro/GNSS.
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