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SAN DIEGO - Genasys Inc. (NASDAQ: GNSS), a $104 million market cap company known for its Protective Communications technology, has secured orders for its Long Range Acoustic Devices (LRADs) aimed at enhancing security at critical infrastructure sites. The orders include installations for oil and gas facilities in Australia and Canada, and for electrical substations operated by a major U.S. utility. According to InvestingPro data, while the company’s revenue declined 34% in the last twelve months, analysts anticipate sales growth in the current year.
The move comes in response to a series of vandalism and attacks on electrical substations across North America, with the U.S. Department of Energy citing at least 175 such instances in 2023. The North American Energy Reliability Corporation has set physical security requirements to counter these threats, which the LRAD 950NXT systems are designed to meet by integrating with existing security frameworks at certain U.S. substations. While the stock currently trades at $2.32, InvestingPro analysts have set price targets ranging from $4.50 to $6.00, suggesting potential upside despite the company’s current unprofitable status.
According to Richard Danforth, CEO of Genasys Inc., the LRAD 950NXT systems address the six critical security actions: Detect, Assess, Communicate, Respond, Delay, and Deter. These systems aim to transform passive security installations into proactive defense mechanisms by broadcasting clear and audible alerts and notifications.
David Schnell, Genasys Vice President of Global Hardware Sales, highlighted that this is the second regional utility in the U.S. to adopt their LRAD systems for substation security. He emphasized the suitability of LRAD 950NXTs for meeting security requirements at the 1,500 CIP-014 electrical substations across the country.
LRAD systems are distinct from traditional security networks, offering an immediate response capability that can alert, warn, and inform with clarity. This technology has been implemented in various critical infrastructure sites worldwide, including dams, nuclear facilities, and data centers.
Genasys Inc. has been in the protective communications industry for over 40 years, providing software and systems designed to prepare for and respond to emergencies, covering a vast demographic across the United States and globally.
The information for this article is based on a press release statement from Genasys Inc. and does not include any speculative or forward-looking statements provided by the company.
In other recent news, Genasys Inc. reported a 59% increase in revenue for the first quarter of 2025, surpassing expectations for earnings per share (EPS) with a reported loss of $0.09 per share against a forecasted loss of $0.16. The company’s revenue was $6.9 million, slightly below the expected $6.99 million. Despite the revenue miss, the company demonstrated strong performance with significant growth in both software and hardware segments, contributing to an improved gross profit margin of 45.8%. Additionally, Genasys anticipates initial revenue recognition from a project involving a Puerto Rico dam in the second quarter, with full supply delivery expected in May, followed by more revenue in June.
Genasys Inc. also announced a strategic partnership with FloodMapp to enhance emergency response capabilities during flood disasters. This collaboration aims to integrate Genasys’ all-hazards preparedness platform with FloodMapp’s advanced technology to improve decision-making speed and evacuation response times. In another development, Northland maintained an Outperform rating for Genasys, reiterating a $6.00 price target, citing the company’s successful deployment in Los Angeles and potential for a CROWS order. Furthermore, Genasys Inc. approved its 2025 Equity Incentive Plan, offering stock options and other stock-based awards to employees and directors, aligning their interests with those of stockholders.
The company’s financial outlook appears to be strengthening with notable developments expected to contribute to its performance throughout the year.
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