SAN DIEGO - Genasys Inc. (NASDAQ: NASDAQ:GNSS), a company specializing in Protective Communications, has secured a new order for its Long Range Acoustic Devices (LRAD) from Singapore Changi Airport, as confirmed today. This order follows a spike in bird strike incidents at airports across the Asia-Pacific region.
Changi Airport, which has been utilizing Genasys' LRAD systems since 2021, is responding to the growing threat that bird strikes pose to aircraft, particularly during critical takeoff and landing phases. The Civil Aviation Authority of Malaysia recently issued a safety alert after noting an increase in such incidents, urging airports to adopt modern technology solutions for bird detection and deterrence.
David Schnell, VP Global Hardware Sales at Genasys, highlighted the company's ongoing efforts to supply airports in the Asia-Pacific and European regions with LRAD systems. These devices, which can be manually operated or integrated with command and control centers, emit directional sounds and predator calls to prevent birds from entering runway control zones.
LRAD systems, which are part of Genasys' broader Protect platform, have been recognized for their effectiveness in wildlife preservation and asset protection. The devices can be programmed with a variety of tones and calls to prevent birds from becoming habituated, with a range of up to 3,000 meters.
The financial impact of bird strikes on aviation is significant, with estimated annual damages of $1.2 billion. Genasys' LRAD technology aims to mitigate this risk by providing a humane and cost-effective solution for airports worldwide.
In other recent news, Genasys Inc. has secured new and follow-on defense orders from the Middle East, totaling over $2.7 million. These orders are for the deployment of Long Range Acoustic Device (LRAD) systems, part of a larger foreign military sales contract.
Additionally, Genasys reported mixed financial results for its fiscal second quarter of 2024, with low hardware bookings and revenue, but anticipates considerable revenue growth in the latter part of the year, driven by software sales and upcoming projects.
The company has also expanded its board with two new members and closed a $15 million debt financing deal. Genasys' cash position is $6.6 million, not including $3.5 million held as a bid bond for the Puerto Rico dam project, expected to generate nearly $200 million in future revenue.
In other developments, Genasys has a new program with the U.S. Army expected to match previous program revenues. However, uncertainties surround the revenue recognition period for the Puerto Rico project due to contract changes.
InvestingPro Insights
In light of Genasys Inc.'s recent order from Singapore Changi Airport, investors are keeping a close eye on the company's financial health and market performance. According to real-time data from InvestingPro, Genasys has a market capitalization of $110.6 million, indicating its size within the industry. Despite the positive news about the order, analysts are cautious, as reflected in the company's negative P/E ratio of -4.02, suggesting that Genasys is currently unprofitable.
InvestingPro Tips reveal that analysts expect a sales decline and a drop in net income for the current year. Additionally, Genasys is not projected to be profitable this year, which aligns with the negative earnings per share (EPS) of -0.62 USD. However, it's noteworthy that the company has seen a strong return over the last month with a price total return of 37.78%, and a significant price uptick over the last six months at 47.62%. This recent performance may reflect investor optimism about the company's strategic initiatives and market opportunities.
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