Genasys Inc. (NASDAQ:GNSS) Q3 2023 Earnings Call Transcript

Richard Danforth: No, I’d say it’s quite the opposite. It’s not smaller deals, it’s larger deals. I mentioned a whole state, and I mentioned the state of Florida. Those are both significantly sized deals. Yes, the cycle time, that is always frustratingly long, Logan, particularly with the state and local governments. I haven’t seen a change in that dynamic but it takes longer than anybody would like from time of contract win to contract award, can sometimes take months.

Unidentified Analyst: Thank you. That’s helpful. And then could you guys give any updates on the Aramco deployment or any like customer feedback you’ve received so far?

Richard Danforth: Up and running, and extraordinarily happy customer base. We have begun the discussion with them about expansion inside of Aramco in Saudi Arabia and other countries.

Operator: [Operator Instructions] And we’ll take our next question from Lloyd Horton from Unique Investments. Please go ahead, Lloyd.

Unidentified Analyst: Hey guys. Hello. Nice to get on with you again. I got a few questions. I’m just curious, the disaster in Hawaii, [Technical Difficulty] benefited them and how?

Richard Danforth: Yes. I mean I should quantify that, Lloyd. I’m not an expert on what exactly is happening in Maui. Obviously, I’ve seen the same news reports you have. Our platform would have made a difference. And that’s about all I can say, without getting into the details of what’s actually going on — happening on the ground.

Unidentified Analyst: Okay. In the past, you’ve had some corporate wins, whether BMW, et cetera, et cetera. Any more of those come through or expecting any?

Richard Danforth: Yes. We have, as I mentioned in my remarks, a growing pipeline that includes both enterprise and state and local governments.

Unidentified Analyst: Okay. You say there was a — we won a state contract or full state?

Richard Danforth: That’s correct.

Unidentified Analyst: Can you say what state it is?

Richard Danforth: Can’t yet. We’ve been awarded the contract and waiting for the administration of that contract at that state capital.

Unidentified Analyst: Oh, you can’t mention it yet?

Richard Danforth: Not yet.

Unidentified Analyst: Is it sizable?

Richard Danforth: It is.

Unidentified Analyst: Well, that’s good news. Nice to hear. Also, is it East Coast city, is that also a secret?

Richard Danforth: Yes. We can’t talk about it, but we have won it. And we’re up and live and hopefully here shortly, you can be more open about it.

Unidentified Analyst: Are those numbers in our revenue in this past quarter?

Richard Danforth: No.

Unidentified Analyst: That’s good news, too.

Richard Danforth: They will began to show up in fiscal Q4.

Unidentified Analyst: Okay. Also, did you mention backlog yet?

Richard Danforth: I have not.

Unidentified Analyst: Do we have a backlog?

Richard Danforth: Dennis?

Dennis Klahn: Yes. I mean, so the backlog — 12-month backlog at September 30 is $10.3 million.

Richard Danforth: The total?

Dennis Klahn: And total backlog is $19.9 million, so $20 million.

Unidentified Analyst: How’s that compared to the past?

Dennis Klahn: So, 10 months or 12 months or rather a year ago was $30 million. So, that difference is – we talked about the $25 million in pipeline of in particular 4 orders that has just been pushed out, that makes up the delta there.

Unidentified Analyst: The $25 million — I’m a little confused with that. Could you go into a little bit what that means, the $25 million has been pushed out?

Richard Danforth: I’ll take that, Dennis. Yes, there’s 4 opportunities, 2 of which are the majority of the dollars that were in our pipeline in our forecast to be awarded and then generate revenue this fiscal year. They have slipped, slipped out of fiscal ‘23 to ‘24, so they’re not in backlog yet. But we — as Dennis mentioned, we expect to book those in our fiscal 2024, increasing our backlog, reflective of that $25 million.