Genasys Inc.

Good day, ladies and gentlemen, and welcome to today's Genesis Financial First Quarter 2020 Conference Call. All lines are in listen-only mode. It is my pleasure now to turn the floor over to Sasha Kalera. Sir, the floor is yours.

Thank you. Thank you, Dagmar. Good afternoon, everyone. Welcome to Genesis Fiscal First Quarter 2021 Financial Results Conference Call. I'm Satya Chilada, Investor Relations for Genesys. With me on the call today are Richard Danforth, Chief Executive Officer, and Dennis Klom, Chief Financial Officer of Genesys. Before we begin, I would like to take this opportunity to remind you that during the course of this call, management will make forward-looking statements. Other than the statements of historical facts, statements made during this call that are forward-looking statements are based on current expectations. During this call, we may discuss company's plans, expectations, outlook, or forecast for future performance. These forward-looking statements are subject to a number of risks and uncertainties, including the consequences of COVID-19 outbreak and other risks and uncertainties. many of which involve factors or circumstances that are beyond the company's control. These forward-looking statements are based on information and management expectations as of today. Future results may differ materially from our current expectations. For more information regarding potential risks and uncertainties, please refer to the risk factors section of the company's Form 10-K for the fiscal year ended September 1st. Genesis disclaims any intent or obligation to update those forward-looking statements except as otherwise specifically stated. We may also discuss non-GAAP operational metrics of bookings and backlog, which we believe provide helpful information to investors with respect to evaluating the company's performance. We consider bookings and backlog leading indicators of future revenues and use these metrics to support production planning. Bookings is an internal operational metric that measures the total dollar value of the customer purchase orders executed in a given period, regardless of the timing of the related revenue recognition. Backlog is a measure of purchase orders received that are scheduled to ship in the next 12 months. Finally, A replay of this call will be available in approximately four hours through the investor relations page on our website. At this time, it's my pleasure to turn over the floor to Genesis CFO, Dennis Klon. Dennis?

Thank you, Satya, and welcome, everyone. I will open today's call with a recap of the fiscal first quarter 2021 financial results. Richard will then provide an update on the business. Afterward, we will open the call for questions. Revenues for the first quarter of fiscal 2021 were $8 million, down from $8.8 million in the prior year quarter due to the delayed shipment of an order because the customer-required payment had not yet been received prior to the quarter end. Had the payment been made on time, revenue would have been essentially in line with Q1 of the prior year. The delayed payment was subsequently received and the order shipped in early January. Gross profit was $3.7 million, or 46.1% of revenue. Gross profit decreased from the first quarter in fiscal 2020 due to lower hardware shipments, a 95% increase in software engineering personnel over last year from the recent addition of Amica Mobile and additional employees to support the Australia, European Union, and enterprise software initiatives, and additional engineering charges resulting from a more precise process to charge engineering expenses to cost of sales. Excluding this additional cost, gross profit as a percentage of sales would have been 51% compared with 52.4% in the prior year. Operating expenses were $4.4 million, an increase from $3.9 million in the same period a year ago. The growth was largely due to a 50% increase in sales and marketing personnel over the prior year period to support future revenue growth opportunities. Net loss for the quarter was $600,000, or two cents per share, compared with net income of $600,000, or two cents per share, in the first quarter of fiscal 2020. The change was due primarily to the lower revenue and increased engineering, sales, and marketing expenses. We generated $1.3 million in cash from operating activities in spite of the lower revenue and increased operating expenses. Our balance sheet remains strong. Cash, cash equivalents, and marketable securities totaled $27.5 million on December 31, 2020, down from $31.4 million on September 30, 2020, principally due to the acquisition of AmicaMobile. Working capital totaled 25.6 million on December 31, 2020, compared to 29.8 million on September 30, 2020. With that, I'd like to turn the call over to Richard.