INVESTOR PRESENTATION FALL 2019 - Confidential and Proprietary - LRAD Corporation
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INVESTOR PRESENTATION
FALL 2019
Confidential and Proprietary Copyright 2019 · Genasys Corporation
DISCLOSURES
Forward-looking Statements looking statements. These risks and Non-GAAP operational metrics
uncertainties are identified and discussed in We include in this presentation Non-GAAP
Except for historical information contained
our filings with the Securities and Exchange operational metrics of bookings and backlog,
herein, the matters discussed are forward-
Commission. These forward-looking which we believe provide helpful information
looking statements within the meaning of
statements are based on information and to investors with respect to evaluating the
Section 21E of the Securities Exchange Act of
management’s Company’s performance. We consider
1934. You should not place undue reliance on
these statements. We base these statements expectations as of the date hereof. Future bookings and backlog as leading indicators of
on particular assumptions that we have made results may differ materially from our current future revenues and use these metrics to
in light of our industry experience, the stage of expectations. For more information regarding support production planning. Bookings is an
product and market development as well as other potential risks and uncertainties, see the internal, operational metric that measures the
our perception of historical trends, current "Risk Factors" section of the Company’s Form total dollar value of customer purchase
market conditions, current economic data, 10-K for the fiscal year ended September 30, orders executed in a period, regardless of the
expected future developments and other 2018. LRAD Corporation disclaims any intent or timing of the related revenue recognition.
factors that we believe are appropriate under obligation to update those forward-looking Backlog is a measure of purchase orders
the circumstances. These statements involve statements, except as otherwise specifically received that have not been shipped, but are
risks and uncertainties that could cause actual stated planned to ship within the next 12 months.
results to differ materially from those
suggested in the forward-
Confidential and Proprietary Copyright 2019 · Genasys Corporation 2
COMPANY OVERVIEW
A Critical Communications Company
Global Leader in Long-Ranged Voice Broadcast Systems and Advanced Public Safety Notification Solutions
Financials The Genasys Advantage
• Genasys™ - Single platform for voice and digital
Name: Genasys Inc. communications
Ticker: GNSS (NASDAQ) • Industry-Leading vocal clarity and intelligibility
• Advanced CCaaS products for Mass Notification,
Headquarters: San Diego, California Public Safety, and Workforce Management
Employees: 83 • Award-winning hardware made in the U.S.
• Multi-layered product offering can be configured to
9 months YTD Revenue: $29.2 million meet any critical communication needs
• Compatible with FEMA IPAWS and other major
Share Price: $3.38 (Oct. 3 2019)
emergency warning platforms
Market Capitalization: $110.17 million (Oct. 3 2019) • Genasys’ LRAD brand systems are in use in 72
countries and in more than 400 U.S. cities, counties
and states
Confidential and Proprietary Copyright 2019 · Genasys Corporation 3BOOKINGS
ANNUAL BOOKINGS | Fiscal Year ANNUAL BACKLOG | Fiscal Year • Bookings have grown at a
compounded annual rate of
40 40
36% since FY 2016
.0 3% • 9-month YTD FY19 bookings
35
36 $36.5 35
totaled $20.9 million
G R
30 CA 30
• As of June 30, 2019, Backlog at
$28.3 .7 2% $10.4 million
6
MILLIONS
MILLIONS
25 25
R 9
AG $23.6 • Fiscal Year U.S. Army Bookings:
20 20 C • FY16 - $1.0 million
• FY17- $6.0 million
15 15
• FY18 - $11.7 million
$14.5 • FY19 YTD - $20.2 million
10 10 $11.9
• As of 27 Aug 2019:
5 5 • Backlog YTD - $28.9
million
0 0
$3.1 • Bookings YTD - $42.7
2016 2017 2018 2016 2017 2018 million
Confidential and Proprietary Copyright 2019 · Genasys Corporation 4REVENUES
ANNUAL REVENUES | Fiscal Year 9 MONTH REVENUES | Fiscal Year • Fiscal Year Revenues
have grown at a 17%
35 35 compounded annual rate
from 2016-2018.
%
30 30 .1 64
R3
• 9-month YTD FY19
% $29.2
7 .05 G Revenues grew 27% to
G R 1
$26.3 CA
CA
25 25
$29.2 million, driven by
domestic markets.
MILLIONS
MILLIONS
$23.0
20 20
$20.3
• 9-month YTD FY19
15
$16.4 15 Operating Income totaled
$3.4 million, 243% higher
$12.8 than 9-month FY18.
10 10
5 5
• EPS $0.02 cents per share
in Q3 FY19 vs. a break even
of $0.00 cents per share in
0 0
2016 2017 2018 2017 2018 2019 Fiscal Q3 FY18
Confidential and Proprietary Copyright 2019 · Genasys Corporation 5Effective Mass
Notification Saves Lives
“Warning and information are just as important
as food and water before, during and after the
occurrence of an emergency situation.”
— Red Cross, World Disaster Report
Confidential and Proprietary Copyright 2019 · Genasys Corporation 6Genasys Platform
Fully Integrated
Communications Suite Long Integrated
Range Solutions
• Combines Hardware & Software Acoustic
Solutions Devices
• Public Safety Notification
• Acoustic Hailing Devices
• Location-based Messaging
CCaas
(Critical Communication as
a Service)
Confidential and Proprietary Copyright 2019 · Genasys Corporation 7Genasys Platform
Long Range
Acoustic Device Long Range Integrated
• 30° focused intelligible voice and alert tone
broadcasts
Acoustic Solutions
• Exceptional, clear voice output to 5,500 meters
Devices
• Prevents misunderstandings, determines intent,
creates large standoff zones, resolves uncertain
situations, saves lives
LRAD systems are in use in 72 countries and in
more than 400 U.S. cities, counties and states
CCaas
(Critical Communication as
LRAD 500X-RE LRAD 500X-MMTAir-to-Ground a Service)
Communication System
LRAD 100X MAG-HS LRAD 450XL
Kit
Confidential and Proprietary Copyright 2019 · Genasys Corporation 8Genasys Platform
CCaaS Solutions
CURRENT PRODUCT OFFERINGS Long Range Integrated
NEWS Acoustic Solutions
SMS-based solution for sending public safety Devices
warnings and notifications to individual cell phones
of affected populations based on geolocation
analysis.
HAZ
A workforce management application and
solution for remotely monitoring employees,
planning tasks, and managing workplace
incidents.
CCaas
GENASYS BENCHMARKS (Critical Communication as
a Service)
Tripled LRAD’s addressable
mass notification market
Achieved country-wide installation
in Australia
Confidential and Proprietary Copyright 2019 · Genasys Corporation 9European Mandate
European Electronic Communications
Code (EECC) effective 2018
EECC Public Warning Systems (PWS) are required in all
EU Member States by June 2022
Contracts to be awarded by June 2022
PWS technology requirements are:
• CELL BROADCASTING
• GEO-LOCATED SMS
6 countries have PWS Genasys competing for PWS
contracts in 25 countries
15 countries receiving European Cohesion Funds
will be early adopters
Genasys is well-positioned to compete and win European
contracts
Confidential and Proprietary Copyright 2019 · Genasys Corporation
10 10Genasys Platform
Integrated Solutions
• LRAD’s Genasys is the only emergency warning system that
broadcasts warning sirens, highly intelligible voice messages Long Range Integrated
and geo-specific mobile alerts
• The mass notification industry’s highest Speech Intelligibility
Acoustic Solutions
rating Devices
• IP-based with industry leading activation and control
features
• Solar powered and satellite connectivity options
• Campus to Country-Wide Systems
CCaas
(Critical Communication as
a Service)
Confidential and Proprietary Copyright 2019 · Genasys Corporation 11BALANCE SHEET
HIGHLIGHTS | 06/30/19 Share Repurchase Program
Cash & Cash Equivalents: $11.3 million • Used $2.2 million to repurchase
788,425 shares during the first half of
Short-Term Mktbl. Sec.: $3.0 million fiscal year 2019.
Long-Term Mktbl. Sec.: $1.5 million • Effective January 1, 2019, the LRAD
Board of Directors authorized a new
Net Debt : $0.0 (net of restricted cash) $5.0 million share buyback program of
which $4.5 million remains.
Working Capital: $23.9 million
• No Shares purchased in Q3FY19
Confidential and Proprietary Copyright 2019 · Genasys Corporation 12OWNERSHIP - PRICE - VOLUME
OWNERSHIP | 06/30/19 52 WEEK STOCK CHART
Stock price vs. Russell 2000
Shares Outstanding (common stock): 32,579,118 Aug 29 2018 - Aug 29 2019
Up 20.4% YoY
COMPANY SHARES OWNED OWNERSHIP
(MILLIONS)
AWM Investment Co. 5.0 15.2%
Special Situations Fund
Wellington Management 3.6 10.9%
Manatuck Capital 3.0 9.2% • Average Daily Trading Volume (3-month) -80,662
Management
1.4 4.3% • 52 Week Range - $2.08 - $4.24
Iroquois Capital
Management 1.3 3.8% • Institutional interest exceeds 53%
Blackrock Institutional Trust 1.2 3.6%
Vanguard Group
Confidential and Proprietary Copyright 2019 · Genasys Corporation 13CONCLUSION
Investment Highlights
Large Market Opportunities Technology
• International: Increasing levels of global security needs • World Leader in Acoustic Hailing Devices
driving LRAD product demand • Only Public Safety system that provides unified Voice and
• Domestic: Improving outlook for Law Enforcement, Border Digital Communications in a single platform
Security and Defense funding • SaaS solutions for Mass Notification, Public Safety and
• U.S. Military: FY 19 Army Orders of $20.2 million - additional Workforce Management
orders anticipated in FY20 and beyond to fulfill program
requirements, $110 million total. Award Winning Products
• Public Safety: Substantial opportunities to replace "siren Government Security News and American Security Today
only" systems with LRAD Genasys systems. Growing demand awarded LRAD products Best Acoustic Hailing Devices and
for new installations from critical infrastructure and industrial Best Mass Notification Systems
facilities
Other Highlights
Value
• Bookings : Fiscal 2018 bookings of $36.5 million, up 29%
• Global Brand Recognition : LRAD is the de facto standard for versus fiscal 2017
Acoustic Hailing Devices
• Backlog : $10.4 million at 6/30/19, up 10% compared to the
• Federal NOL Carryforwards of ~$48.7 million, and Federal same period last year
and State R&D tax credits of $2.1 million and $0.9 million,
• FY18 Acquisition of location-based, mobile mass message
respectively
provider Genasys S.L. triples addressable market in Mass
Notification
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