INVESTOR PRESENTATION - Winter 2020 1 - LRAD Corporation
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INVESTOR PRESENTATION
Winter 2020
Confidential and Proprietary Copyright 2020 • GENASYS INC. 1
DISCLOSURES
Forward-looking Statements and discussed in our filings with the Securities Non-GAAP operational metrics
Except for historical information contained and Exchange Commission. These forward- We include in this presentation Non-GAAP
herein, the matters discussed are forward- looking statements are based on information operational metrics of bookings and backlog,
and management’s expectations as of the which we believe provide helpful information
looking statements within the meaning of
date hereof. Future results may differ to investors with respect to evaluating the
Section 21E of the Securities Exchange Act of
materially from our current expectations. For Company’s performance. We consider
1934. You should not place undue reliance on
more information regarding other potential bookings and backlog as leading indicators of
these statements. We base these statements
on particular assumptions that we have made risks and uncertainties, see the "Risk Factors" future revenues and use these metrics to
in light of our industry experience, the stage of section of the Company’s Form 10-K for the support production planning. Bookings is an
fiscal year ended September 30, 2019. LRAD internal, operational metric that measures the
product and market development as well as
Corporation disclaims any intent or obligation total dollar value of customer purchase
our perception of historical trends, current
to update those forward-looking statements, orders executed in a period, regardless of the
market conditions, current economic data,
except as otherwise specifically stated timing of the related revenue recognition.
expected future developments and other
factors that we believe are appropriate under Backlog is a measure of purchase orders
the circumstances. These statements involve received that have not been shipped but are
risks and uncertainties that could cause actual planned to ship within the next 12 months.
results to differ materially from those
suggested in the forward-looking statements.
These risks and uncertainties are identified
Confidential and Proprietary Copyright 2020 • GENASYS INC. 2
A CRITICAL COMMUNICATIONS COMPANY
Genasys is the Global Leader in Long Range Voice Broadcast Systems and
Advanced Public Safety Mass Notification Solutions
Name: Genasys Inc.
Ticker: GNSS (NASDAQ)
Headquarters: San Diego, CA LONG RANGE MASS
ACOUSTIC NOTIFICATION
Founded: 1980 DEVICES SYSTEMS
Market Cap: $112.3 million (2/11/20)
Markets Public Safety, National Emergency Warning,
Served: Mass Notification, Defense, Law Enforcement,
Critical Infrastructure Protection and others
SOFTWARE SOLUTIONS
CCaaS
Genasys Systems are Deployed by 72 Countries Around the World THE GENASYS PLATFORM
Confidential and Proprietary Copyright 2020 • GENASYS INC. 3
A History of Delivering Critical Communications Confidential and Proprietary Copyright 2020 • GENASYS INC. 4
BOOKINGS
ANNUAL BOOKINGS | Fiscal Year ANNUAL BACKLOG | Fiscal Year
• Bookings have grown at
a compound annual
50 35
45
6.9% $45.9 growth rate of 46.9%
R4 since FY 2016
30
40
G %
CA 6.72 $27.0
9
GR
25
35
$36.5
CA $23.6
MILLIONS
MILLIONS
30
20
• Backlog has grown at a
25 $28.3 97% compound annual
15
growth rate from 2016-
20
2019 and is 14.5% higher
15
10 $11.9 than FY2018
10
$14.5
5
5
0 0
$3.1
2016 2017 2018 2019 2016 2017 2018 2019
Confidential and Proprietary Copyright 2020 • GENASYS INC. 5
REVENUE
ANNUAL REVENUES | Fiscal Year
• Fiscal Year Revenues have
50
grown at a 31.2% compound
annual growth rate from
45
%
R 31.2 2016 - 2019, and are 41%
40
CAG higher than in 2018
35
$37.0
• FY19 Income from operations
MILLIONS
30
totaled $3.1M, 312% higher than
25
FY18. FY19 Pre-tax income totaled
$26.3
20 $3.4M, 345% higher than FY18
$20.3
15
$16.4 • Diluted EPS of $0.08 cents per
10 share in FY19 vs. a loss of $(0.12)
5 cents per share in FY18
0
2016 2017 2018 2019
Confidential and Proprietary Copyright 2020 • GENASYS INC. 6
Effective 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 2020 • GENASYS INC. 7
THE GENASYS PLATFORM
FULLY INTEGRATED COMMUNICATIONS SUITE
• Genasys is the only critical communications
platform that unifies software and hardware to
provide geo-targeted alerts to mobile phones and
audible notifications through local and wide area
speaker systems
• Genasys speaker systems feature the mass LONG RANGE MASS
ACOUSTIC NOTIFICATION
notification industry’s highest Speech Intelligibility DEVICES SYSTEMS
rating and area coverage
• IP-based with more activation and control options
than any other critical communications provider
• Solar powered and satellite connectivity options SOFTWARE SOLUTIONS
CCaaS
• Not reliant on external power or communication
infrastructure
Confidential and Proprietary Copyright 2020 • GENASYS INC. 8
INTEGRATED SOLUTIONS
PUBLIC SAFETY MASS NOTIFICATION
Genasys systems broadcast warning sirens, voice messages, and geo-targeted mobile
alerts. Satellite connectivity and battery backup allow Genasys systems to continue
GEO-TARGETED MOBILE ALERTS
operating when telecom and power grids go down.
NOTIFICATIONS SENT TO SPEAKERS AND MOBILE
PHONES THROUGH TCP/IP, SATELLITE, WIFI,
GPRS/GSM, FIBER, RADIO
BROADCAST WARNING SIRENS AND VOICE MESSAGES
NOTIFICATIONS CAN BE ACTIVATED THROUGH
GENASYS SOFTWARE AND/OR MOBILE APP
INCOMING ALERTS FROM: NOAA, PACIFIC DISASTER CENTER, IPAWS
Confidential and Proprietary Copyright 2020 • GENASYS INC. 9
LONG RANGE ACOUSTIC HAILING DEVICES
THE WORLD LEADER IN AHD SYSTEMS
& TECHNOLOGY
Unlike conventional loudspeakers, bullhorns and vehicle PA systems that disperse sound in
all directions, LRAD’s driver and wave guide technologies focus sound in a 30º beam while
projecting it great distances with exceptional intelligibility.
Conventional LRAD®
Loudspeaker Proprietary audio technology
Sound disperses focuses sound in front of the
in all directions device and significantly
reduces audio levels behind
the device and in surrounding
areas
Prevent Misunderstandings › Resolve Uncertain Situations › Save Lives
Confidential and Proprietary Copyright 2020 • GENASYS INC. 10CCAAS SOFTWARE SOLUTIONS
MOBILE MASS NOTIFICATION SOFTWARE
CURRENT PRODUCT OFFERINGS
NEWS
SMS-based solution for sending public safety
warnings and notifications to the mobile phones of
at-risk populations based on geolocation analysis.
HAZ
A workforce management application and
solution for remotely monitoring employees,
planning tasks, and managing workplace
incidents.
GENASYS BENCHMARKS
Tripled LRAD’s addressable
mass notification market
Achieved country-wide installation
in Australia
Confidential and Proprietary Copyright 2020 • GENASYS INC. 11MAJOR BUSINESS OPPORTUNITY
EUROPEAN MANDATE
European Electronic Communications
Code (EECC) Article 110 approved in 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 2020 • GENASYS INC. 12
12FINANCIALS
BALANCE SHEET
HIGHLIGHTS | 12/31/19 Share Repurchase Program
Cash & Cash Equivalents: $17.1 million • Used $2.2 million to repurchase
788,425 shares during fiscal year 2019.
Short-Term Mktbl. Sec.: $4.2 million
• Effective January 1, 2019, the
Long-Term Mktbl. Sec.: $0.946 million Company’s Board of Directors
authorized a new $5.0 million share
Net Debt : $0.0 (net of restricted cash) buyback program, of which $4.5
million remains.
Working Capital: $25.8 million
• No Shares purchased in Q1 FY20
Confidential and Proprietary Copyright 2020 • GENASYS INC. 13INVESTORS
OWNERSHIP • PRICE • VOLUME
OWNERSHIP | 12/31/19 52 WEEK STOCK CHART
Shares Outstanding (common stock): 33,033,330 Stock price vs. Russell 2000 (*stock price as of 2/03/20)
COMPANY SHARES OWNED OWNERSHIP
(MILLIONS) Up 48% YoY
AWM Investment Co. 4.8 14.8%
Wellington 3.5 10.7%
Management
Manatuck Capital 3.0 9.2%
Management
Iroquois Capital 1.4 4.3%
Management • Average Daily Trading Volume (3-month) -63,184
• 52 Week Range - $2.08 - $4.24
Vanguard Group 1.3 4.0%
• Institutional interest exceeds 53%
Blackrock Institutional 1.2 3.8%
Trust
Confidential and Proprietary Copyright 2020 • GENASYS INC. 14INVESTMENT 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 and Digital Communications in a single platform
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 Genasys PSMN systems. Growing awarded LRAD products Best Acoustic Hailing Devices and
demand for new installations from critical infrastructure and Best Mass Notification Systems
industrial facilities
Other Highlights
Value
• Bookings : Fiscal 2019 bookings of $45.9 million, up 26%
• Global Brand Recognition : LRAD is the de facto standard for versus fiscal 2018
Acoustic Hailing Devices
• Backlog : $27.0 million at 9/30/19, up 14% compared to the
• Federal NOL Carryforwards of ~$44.4 million, and Federal same period last year
and State R&D tax credits of $2.3 million and $0.8 million,
• Cash Provided by Operating Activities: $9.9M for FY19, up
respectively
$8.6M or 687% compared to FY18
Confidential and Proprietary Copyright 2020 • GENASYS INC. 15You can also read
