GNSS - Earnings call transcript Q1 2018

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Operator

Good day, ladies and gentlemen and welcome to the First Quarter 2018 Financial Results Conference Call. [Operator Instructions]. At this time, it is my pleasure to turn the floor over to Brian Harvey. Sir, the floor is yours.

Brian Harvey

Thank you, Jane. welcome conference Corporation's call. and XXXX first everyone results financial afternoon, to fiscal LRAD quarter Good I'm for LRAD. Harvey, Brian Director of Investor Relations

we the But before our statements made I recap Other LRAD's Mr. provide during statements. management this open Chief On questions. Klahn financial will this will just during me based results. Dennis remind this call I to Mr. call, business; fiscal over turn are forward-looking with LRAD's statements with current our on that an to first today's Klahn, would XXXX a opportunity than a call that the afternoon moment, then Financial our call statements Richard update Danforth Dennis, expectations. the you are CEO, are take this and afterward, make call course as will open of on Danforth. of In the like forward-looking to Officer; to call will facts, to historical quarter

During to or subject forecast views materially today. this performance. the plans, expectations, and are future statements discuss outlook may from These forward-looking and results call, could for uncertainties, expressed actual differ Company's risks the we

potential now Risk I Dennis year-ended Company's regarding those stated. over to statements, uncertainties, information turn more or to CFO, LRAD intent of obligation specifically XX, to Form LRAD except to Klahn. otherwise Dennis? would the update Corporation forward-looking and For XXXX. the refer Factors XX-K please September for risks as fiscal the section like the call disclaims any

Dennis Klahn

the XXX,XXX in year, with million the fiscal a cost of of the XXXX. primarily fiscal for would of over salary XXXX operations. million equivalents XX% With higher a million expense Operating million the decrease fiscal X.X hired from the this to to or balance that quarter. and or at or first XXX% XXXX quarter was XXXX good assets share the X.X results first the related XX.X or the million from U.S. payments. of for reduction $X the Federal to this an and $X.X quarter Working of million in afternoon the to to employees the in of first new to related past In quarter at the the due with and the due the year a XX of quarter higher Thank turn and quarter first Income JOBS ERP net increase quarter compared expenses reported to million XX.X the recorded results on strong compared the first operating fiscal and Rate be million passage everyone and at prior September pretax product $X.XX to cash cash December incentive call. sheet quarter computer capital XXXX. prior non-cash cash to increased company company quarter to expenses quarter XX.X development million per like higher September compared in by during XX, XX, cuts equivalents from XX.X% fiscal of cash a call a XX.X and short XXXX of expenses. tax generated term system, which revenues associated million of in $X.X income $X.XX of increase profit you, million I at in implementation year. we the tax December Corporate deferred net due of to the due which primarily timing XX.X% XXXX reduced LRAD's of $X the first $X.X X.X tax tax $X.X of and marketable quarter of company income in expense quarter primarily million charge The result the the loss the a loss Tax to a were Gross Brian year XX, $X.X million continues with strong, revenues million net primarily increased $X.X for Act to fiscal The income as million this in of year loss $X reported the The million first year Richard. a prior in of throughout securities share. first opened per strong of for

Richard Danforth

the Thank Bill. up QX increased XX% notification to everybody call. mass our million XXXX America quarter on included sales in times. the first with in fiscal notification XX% DoD Bookings Force income issued as increased revenues increased our lines. opened to to XXX%. our National Corps $X approved fiscal included oil our strong has mass the Guard in award you, announcing of program. Dennis lower bookings. LRAD dependent and tax compared and Air of and net deferred corporate Army $XX three geographic to enactment multi-year in years. all booking. increases order million an which million recorded a the product U.S. Army, up RFP from and regions all fiscal notification XXXX Gross security. mass in XXXX. In X.X the over X.X revenues. afternoon in course and Appropriations directional a non-cash and from maritime rate grew reported we orders Any Asia orders U.S. were in were almost larger notification the XX% quarter follow-on XXX% notification good quarter follow-on bookings XX North is remeasurements and year expect we of accessory federal order on releases from our competitive and second profit the fiscal for QX was last Of the the up over and XXX% Revenues release Army, Air increased region higher In XXXX were to months, Directional Defense press products the of a up asset In tax were last the and revenues company. Southeast note mass XXX% gas 'XX were of XXXX the the Marine to U.S. systems XXX%, bookings trailing a and to excluding Force our and fiscal the We was recent a Last to fiscal best AHD for XXXX quarterly related of last FY nearly operating The sales income border

we in of their experienced Genesis with long management vast recurring locates phones and from growing area notification advanced revenues its the are any The of we and month and Genesis nationwide working the notification base segment a compete announced to and development all of systems. alert. industry. and enables recipient solid software acquisition a within customer in news solution in software Genesis networks local support contracts acquisition fastest now Regarding of large selected for LRAD growing mobile individuals distributive incorporating cellular the The geo solutions that integrates last team a group team, the closed people term with mass millions and to with mass broadcast

LRAD's with services mass fiscal is distributed the the we the solutions notification phone attention with notification managers fully the robust the substantial targeted that push being $XX.X for recipient affected fiscal mobile emergency Genesis as situation buy to combined most carrying LRAD's and safety alerts, where that intelligible in as a of tracks commanding With are messaging LRAD's booking instructions rapidly developed systems and business. grow service [ph] see XXXX and advanced start world's It's opportunities public technology. back notification year local over or comprehensive addressable and remaining those that LRAD only successful on area. phones for domestic mass to infrastructure sirens trend for broadcast Q&A. warnings over The the year provides industry's revenue mass emergency X/Xrds news international in interest use and During voice in and backlog driving puts year turn-key for concerns mass With of mass turn safety public a Growing Brian The in growth. messaging the notifications event will regional living national and are to significantly phone cellular voice it in a areas I of emergency customers. to to to integrate mobile notification integrated the solutions a company million terrific scalable. position audible trying for from solutions population a capability mass can mobile

Brian Harvey

the Thank possible on operator between callers you, as be Richard. We Jane up with the as the to to minimal open please instruct up we like would questions. time questions. conference soon now there how with up caller. with lag queue each queue Jane, callers will to that so questions their to call encourage

Operator

Instructions]. [Operator

state question first question. Please comes Our your [indiscernible]. from

Unidentified Analyst

your organic M&A going the acquisitions see do Genesis. you doing Congratulations and business where on been wrap could you growth acquisition the favourable of potentially view you up to acquisitions versus some Do how forward? market

Richard Danforth

and and company on Both were company out helps organic pursue are completely is that acquisition it. what it's acquiring our successful believe and Genesis is it existing we focused another economics to we If at our on. will there complementary this there then business. the We work market us position

Unidentified Analyst

in growth in on market sustainable driving if the terms you large growth rate of then what that be that kind mass do you will have growth tremendous of just is you Great. think think And and given notification, opportunities?

Richard Danforth

measured can whole you in a has CAGR. bit billions The high market of distributed so. notification digit dollars. double it mass hope CAGR. digit argue a recipient the of a mass Certainly notification service has but is double market The this that business side notification The

and I I position So Genesis we're LRAD in said earlier. software perspective perspective terrific from with hardware think a a as

Operator

Partners. question question. from Walrus your comes Scott from next state Billeadeau Our Please

Scott Billeadeau

you was responded that it RFP audibles, matter about give of for the at is know RFP maybe let? on of what update on has this us Couple Is it a then there going I just of a the you've ask one, things, an I the with little to out point. status coming out, budget there, waiting just

Richard Danforth

year. to We a competitive [indiscernible] this RFP expect fiscal release

is of 'XX - which not have. As we to is the Bill to any proof do Defense be to contract award going I said Appropriation earlier subject an FY this

Scott Billeadeau

Okay.

kind right alt, are In are now any delete-- kind is control are terms of a just from replacement is or just business do of that it - sense your they of the

Richard Danforth

for LRAD in Army The had. have year U.S. of No. we ever - fact last largest order the ordered last their fourth year quarter

of demand place the still is there overall a vagaries of out know. but it play not it's and it favorable government Bill, there in reasonably offices the of be in So RFP now defense Appropriations lot now looks again, in award the issued as FY is is to Defense can product you 'XX but dependent the federal right that the our the for that's subject for will the place budget the approved the Army budget as for contract there, on any program product politics

Scott Billeadeau

Yes. and and you maybe pick will idea of see Great. who's with in secondly there been of you these a for that have on of separate what a those worked in us how someone doing or terms acquisition terms hardware maybe or the you future? the solution look piecemeal they both side Genesis what distributed can And you little procure, it's to give how very guys and from then fulfil they much in certainly think know that the you change of that you Genesis in is they past see how

Richard Danforth

a of speak hardware a of has most has approached either to the software distributed will notification in Genesis marketplace, LRAD desire I basis out marketplace approached have system. from only. for there's stated at requirement industrial from historically LRAD mass call a especially a the pursuits market the a basis our and first generally or Genesis,

LRAD the integrated years customer systems distributor party third become the Over prime some of responsible the has couple integration. the in effectively that for into to requires past cases

software the event. I Genesis well a more and one a command control hardware very very, of LRAD or system a recipient way and significant the think significant combined the distributed interest than population covers that LRAD to to software, warn provide and Genesis for the

Scott Billeadeau

main or are that there missing from else deployed now the there the gets two marketplace would in incremental things them or that got those both is be you now solution think you've nice. And an that usually is anything thing

Richard Danforth

faster ends. happen thing thing ways, world, same opportunity, a up it's a in group never technologies the there and you fact XX even up the I requirements new I and think good software us. all time in happens pop the might the we and new think new the staying our that our products year in released from hardware a that's so hardware for LRAD it development and applications, software know with that's revenue and perspective advancing capabilities new Last

Genesis and now think and take terrific a development to I company both good that a it's So robust of in poised market LRAD piece position. and software hardware it's engineering with

Scott Billeadeau

one just so month and it is kind kind of backlog XX.X wondering you the XX or through? current question I six to months then mentioned And million run or think is that of think take you know last burn, would long just that I that

Richard Danforth

It current year. that's fiscal was addressable XX.X and at million, our all

Operator

next your Summit question. Please Our Brokerage. state question from comes from [indiscernible]

Unidentified Analyst

on question announcements you you me then your by order XX, for December December million a scheduled bookings you announced to on and million. tell XX scheduled recognition, $XXX,XXX a XX up XX, orders Can $X delivery I've revenue November XX and happened? that's back announced X at what the you scheduled December for dollar million for delivery basis announced September September looking or X.X on delivery the of by order $X.XXX

Richard Danforth

the was move million, quarter award did our So from quarter. U.S. I the incorporated $X referenced of right. the change it's out large you've that course of the addressable believe significant but a order revenue backlog for Subsequent that there order to was $X and of same that pushed award the Army out million

Dennis Klahn

was last order And the current indicated that to had call addressed it also. of We quarter. we on the conference going to into ship actually that some that was David going

Unidentified Analyst

you how the I it's can mean a But other mean - give much the one's ship, two? I pretty actually still miss, other big me did

Richard Danforth

they was to million. quarterly yes, I are know I $X.X believe our QX Well will in what revenue have specifically but

Dennis Klahn

of $X shipped million end order that part part that at announced of in September. of the And that September

Unidentified Analyst

Okay, keep expected people a are even Why that's difference. I tell mind. will in ship when you to huge

Richard Danforth

we on something conference It is call. it's last David discussed the and

Unidentified Analyst

Thank articulated I into very take - you thoroughly. liable will you. consideration well, that more I know you're that you not articulated that

Richard Danforth

Thank you.

Operator

question. our Gordan your from [ph]. question last Lloyd comes And Please state

Unidentified Analyst

customers, you now? I in see people and by growth you sales coming where from the coming great inside knowing that a where questions, do in see they year are year your Few different with we're the working this for mean do region?

Richard Danforth

DoD revenue might Pacific DoD for last certainly year it's is It and the especially big of about U.S. very both talked Asia strong us Air deal even this a all bookings back. the was is largest but revenue continues running in and they already QX piece Obviously the answer in revenue a a caveats to largest be but fiscal in domestic in bookings U.S. think we that the so I robust areas both U.S. that today the represent were of long Lloyd back U.S. Guard and it army bit to U.S. be the The the QX for piece now and Force, in National Army, came bookings has our right region revenue. the the our us largest region The be Asia Pacific will and will the year. U.S.

Unidentified Analyst

few what ago? Genesis acquisition of your is Since weeks Okay.

Richard Danforth

week yes. Second of think, January I

Unidentified Analyst

that soon. do Genesis? there positive been with pretty has anybody business it's indications from any we But Well

Richard Danforth

interest had in four to the have and base, at have That try sales market. customers just I'm address mention is the two going customer mass never quoting last working team our now. three of U.S. We to lot notification there requested to and that our but in weeks a or the demonstrations is is not

opportunity great for a LRAD. So for it provides

Unidentified Analyst

of I these How some is was the front. Japan probably can from core coming anticipate many which are military core this core customers or a types upon of - depend you a we How business think customer I year? ours, core mean many can customer orders is

Richard Danforth

of from at bookings look told let our in of came customers, $XX about just XX million I customers. million XX QX at new you me our that the think new of remarks end from million bookings yes, I My came

to that's side grow going to mass business. of continue think I especially continue we as notification the the

Unidentified Analyst

working our the products we million business we a where is bucket notification for I these we from drop where group it an in with of active It's potential the or $X expect countries, Indonesia a guess active mass if can for get always be there any order the military so a with with just are of them. of countries from whether example. and

Richard Danforth

Pacific years Yes. they Australia provide U.S. to prior as in The and region bookings Singapore, Vietnam, is I'll revenue having than had back year than Asia continued Indonesia, and year whole finished go stronger now more a the to was again well. strong ago and it very last

They them. on business of of foundation they group you steady pretty out customers, a count China. can Japan, solid of are dollars necessarily have We out not huge are but coming

Unidentified Analyst

[indiscernible], are the Great. both how LRAD Also companies many have company the and it self? the the the the Genesis to for or software hardware and when that comes there other

Richard Danforth

I is that to believe the none. answer

Unidentified Analyst

Good.

Richard Danforth

it's too. think good I

Operator

Instructions]. your Please state have [Operator We do Billeadeau from Scott Walrus Partners. question. from question another

Scott Billeadeau

different and is than bring Asia-Pac went if go right, of U.S. Just I distribution and notification did and of mechanism and should what's Genesis terms me versus just remember a follow-up to how that up mass is they then differently could say or kind maybe based speed disynergy guys on me market to a you how to the the the I can of you distribution ex-U.S. or market? in a audible to in there does synergy remind terms

Richard Danforth

network that's to the direct So around sales force a market LRAD goes a the with and distribution world.

LRAD a network has growth the very have all and doubled the as the Spanish their of a replacements is through and the fiscal it's as around country an last selling is LRAD. growth early job marketing sales stellar speaking personnel, Diego year there Australia speaking of talked in fact the distribution the in in staff and sales region exception outside people will for force. its direct where in coming the well. San Over at appropriate their sales of of Genesis world distribution exercise generally with The distribution direct seen of of done we I was world their thin countries, as in not Genesis. to America the change begin the force about training Genesis channels into in the North products the but seen rest April and well

the channels been of has great. overlap sale and distribution software whereas So product company, a of by there's be Genesis sales is greatly it's LRAD no a Genesis, brings. distribution enhanced the can as company Genesis that LRAD hardware

Operator

question question. Please [indiscernible]. next comes state Our your from

Unidentified Analyst

that as be participate just that that of other I notification you'd we somewhere had is competitors that during mass were in. that the question on know of of segment revenue, far the XX% call that was as capture about that we the based whole million annual you know so as far If and participate as Genesis as XXX overall we My to we billion so that's then a we believe must you XX% business maybe business our is where which segment we in case as or do far indicated of rank around the business? at $X where about

Richard Danforth

there for newest its hardware with I are United customer to base, several today. started have products perspective into Europe because get LRAD the than this There is LRAD successful company that's the a a was companies the long in time only. been From XXXX better in established mass notification and audible the systems been the supplier has marketplace out that mass here around States companies base the speaker notification in in well in space. and it are believe LRAD market. that

can LRAD's quality systems decision the me to that you've be behalf. the is on what If notification and our on hear decision you they we of products say listened if and will demonstrate always made would mass before made

the of other As an from but what notification there factors quality you is and is award know LRAD does terrific. perspective a mass frequently decision hardware

were were million. Now year X.X years bookings X.X in X.X were sales ago two last 'XX, FY ago, million. two our years our Last booking million,

to So the sales in coming. get starting solve demonstrate and is and we're out direction to that are it curve I and starting the think product we're right the

Operator

[ph]. Michael from question. next Murali your question comes state Please Our

Unidentified Analyst

anticipated that I'm all company huge and is hardware. Yes, I've capacity, ship been in capacity amounts about current the huge view of demand, about I news. we in has hope long the very prepared demand? increase the a manufacturing excited time demand, has stockholder to to question meet the can meet enough My of manufacturing the

Richard Danforth

we that capacity demand address increase in signed a lease building. to a in larger increase and for Well have

In fact it's size twice think I from manufacturing floor a perspective. about the

summer. expect to We make this that sometime move

Unidentified Analyst

see. I

Okay. And expense is the on be expense going that? that what the to huge to a effect do side about

Richard Danforth

comment always that with moving, moving models. Dennis - the is is I associated with there think expenses our on expense economic can associated Well in

Operator

your from Gordon We have question. Please [ph]. our Lloyd state next question

Unidentified Analyst

that Okay, the guys anticipate in will quarter XX.X The can we we're shipped what backlog more. million a have, in couple now? currently be we

Richard Danforth

but We X.X closed 'XX we don't in XX.X in give with guidance collect backlog million million Lloyd and did we FY QX.

to So are those give we're guidance the going but not facts.

Unidentified Analyst

And we still have XX.X million, a backlog correct? of

Richard Danforth

correct. That's

Unidentified Analyst

in Also is that? there on be is to of manager a Who going for driving Genesis? sales charge sales

Richard Danforth

line oversees So is lead force the in in Madrid our dotted notification that in a notification Diego. perspective mass Genesis there's overseeing Company build-up and for The gentleman total. the that engineering working San group sales runs of also sales a the Genesis. manager group mass to and the is from sales Madrid growth engineering in The of operation international CEO here

Operator

state Hurst comes [ph]. next Our question. question from Please Adolf your

Unidentified Analyst

you address the Well of Yes. product. from one the questions is availability of didn't

it's force in of also us So not you the size that you real going your up little set I bit can and what's you can have tell sales to and at point? said past a think issue, the to about this you be move address you

Richard Danforth

Yes, question? rephrase can first you the

Unidentified Analyst

product to or an out, an be going to not getting to into it facility availability Well when ship is you issue move going your new be your that's of issue?

Dennis Klahn

let that. part this are the a of so area and impact people or moving we're I the Richard it we sales two - won't work the mile of Most address only And side all. it's will in supply away at

Richard Danforth

really that's is XX LRAD. It's people sales the marketing Genesis said distribution as both selling that and and be the channel direct force approximately around I world force large sales channels think. I and distribution the will direct Our and

Unidentified Analyst

was a ago? Is substantially year above what that it

Richard Danforth

Well last XX% a we a year think people I five Yes. in increase. the sales added so direct it's and have half

Operator

one Willard [ph]. And question question. we last have Please state Tom from your

Unidentified Analyst

stuff or last Just a heard the so campuses couple question. around year over general my a couple of of maybe years quick thing, is I've questions the college on there but that still the and sort is first some pursue

Richard Danforth

and is where there both distributor the recipient an application that's well. the and Sure also LRAD systems very coexist

Unidentified Analyst

then financed? radar [indiscernible] or And you about, company, that it [indiscernible] actually airports company for [indiscernible] government what couple that avoidance a a technology of market did guys back sort or thing, to years bought is from of few -

Richard Danforth

Yes a not oil radar into of [ph] devices. as in birds for for LRAD from of and development integrated there talking been of aware and is. about, the largest tailing The keeping bird operations. the consequence UIR away we I'm deterrents has you the are specifically country have application the Canada

Italy, States We off, sold though yet large hold airports United no to overseas mainly do we in sale States legislation expected last in Tom, wasn't it country would taken We seems but hasn't military. make sold a last in Lebanon, it's a have taken of to in reasonable to had it everybody year sense the there's the but not the that one whereas the United way. to have it way several year to

Unidentified Analyst

bits out it. it and about there, pieces selling it pushing hear I Right.

Richard Danforth

one these to Right, and days I'm breakthrough a sure. market and of we'll demonstrate have and we continue

Unidentified Analyst

during but This approached know year and hasn't up I are I the to - be in mean has last in if don't back days you grew of anyone be on was there I so know might when bird with before remember bird I sort to everywhere probably pursue. I - calls actually thing would starting this brought be speakers and don't kids that if mosques I the to ever they for used calls the overseas day, loudly their blaring

Richard Danforth

we to a program Arabia we opportunity in opportunities years pursue happen for mosque two year, Middle but but it East mosques We Saudi appropriate. ago it pursued those a the last and pursue maybe where wasn't did continue didn't in

Richard Danforth

Tom I wrap Thank guess you, with will we Jane and that up. it

I'd hours in for Corporations participating issued we in January fiscal quarter LRAD on thank the to available release. four through everyone press replay So be call. a will Thank financial our results XXXX you like There approximately same XXth conference link everybody. first

Operator

conclude teleconference. We today's participation. This you. thank for your you does Thank

your You at lines have and a this day. time may disconnect great

Genasys (GNSS) 8 Feb 182018 Q1 Earnings call transcript