Genasys Q3 Revenue Misses by 63% as Supply Chain Delays Bite
GNSS is trading near its 52-week low of $1.4 (8.6% above the low).
Summary
Genasys reported fiscal Q3 revenue of $7.30 million, a 63% miss versus the $19.57 million consensus, and an adjusted EBITDA loss of $3.10 million versus expectations of $2.37 million profit. The company blamed supply chain constraints on the CROWS II Technical Refresh program and delayed customer payments on the Puerto Rico Dams project. This follows the July 30 pre-announcement that already flagged revenue of $7.0–$7.5 million and an EBITDA loss of up to $3.3 million, so the miss was largely expected. However, the detailed financials show a net loss of $4.68 million and an operating loss of $4.04 million, underscoring the severity of the quarter. Management expects a strong fiscal Q4 as supply chain issues ease and reiterated a record year of revenue and profitability, but with the stock at $1.52 and a market cap under $80 million, liquidity remains a major concern given the high-interest debt on the balance sheet.
At the time of this announcement, GNSS was trading at $1.52 on NASDAQ in the Technology sector, with a market capitalization of approximately $77.9M. The 52-week trading range was $1.40 to $2.70. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.