Genasys Inc.

Ladies and gentlemen, thank you for your patience. Please remain on the line. Your conference call will begin momentarily. Thank you. Thank you. Good day, ladies and gentlemen, and welcome to the Genesis Inc. Fiscal Third Quarter 2021 Conference Call. All lines have been placed on a listen-only mode, and the floor will be open for questions and comments following the presentation. If you should require assistance throughout the conference, please press star zero on your telephone keypad to reach a live operator. At this time, it is my pleasure to turn the floor over to your host, Kim Rogers, Investor Relations for Genesys. Ma'am, the floor is yours.

Thank you, Dagma. Good afternoon, everyone, and welcome to the Genesys Incorporated Fiscal Third Quarter 2021 Financial Results Conference Call. I'm Kim Rogers with Hayden IR. the investor relations firm for Genesis. With me on the call today are Richard Danforth, Chief Executive Officer, and Dennis Klon, Chief Financial Officer of Genesis. Before we begin, I'd like to take this opportunity to remind you that during the course of this call, management will make forward-looking statements. Other than statements of historical facts, statements made during this call call that are forward-looking statements are based on our current expectations. During this call, we may discuss the company's plans, expectations, outlook, or forecast for future performance. These forward-looking statements are subject to a number of risks and uncertainties, including, without limitation, the business impact of health crises or outbreaks of diseases such as epidemics or pandemics and how they may affect our supply chain, 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's 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 30, 2020. Genesis disclaims any intent or obligation to update those forward-looking statements except as otherwise specifically stated. We may also discuss the 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 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 the call over to Genesis Chief Executive Officer Richard Danforth.

Thank you, Kim, and welcome, everybody. Go ahead, Richard. I will open today's call with an update on the business. Following my opening remarks, Dennis will provide a recap of the fiscal third quarter and nine-month 2021 financial results. Following my closing remarks, we will open the call for questions. Robust revenues and bookings and the acquisition of fast-growing emergency management and public safety software provider Zonehaven highlighted a very strong fiscal third quarter. Fiscal third quarter bookings were a record $44.3 million, the largest fiscal quarter in the company's history. For the first nine months of fiscal 2021, we have booked $59.8 million, exceeding any prior fiscal year total. Addressable 12-month backlog at June 30, 2021 was $37.7 million, a 43% increase over the same period last year. Total fiscal year backlog at June 30, 2021 was $49.7 million. The company continues to generate operating cash. Over our prior two fiscal years, we generated $18 million in positive operating cash. And in our third quarter, we added another $8 million to that. On calls earlier this year, I said we expected record fiscal 2021 bookings, backlog, and revenue. Through our third quarter, We've achieved record bookings and are in a strong position to achieve record fiscal year backlog and revenue, and another year of record revenue in fiscal 2022. In our first quarter, we acquired Amica Mobile, and in June, we completed the acquisition of Zonehaven. Both acquisitions are serving as a catalyst to produce significant GEM enterprise software and integrated mass notification systems, hardware, and software business opportunities. Zone Haven Software as a Service empowers public safety agencies with essential evacuation and repopulation management tools that help protect the people they serve. Zone Haven provides planning, training, drills, alerting, and a comprehensive Know Your Zone community outreach program to bridge the gap between first responders and the public. By continuing to offer Zone Haven software as is, and integrating it with the GEM enterprise software, and as a layer in our integrated mass notification system, Genesis will have three key competitive advantages for securing local, regional, and national emergency management and warning contracts. Our combined systems and solutions are expected to increase software sales, grow recurring revenues, and enhance profit margins. As discussed on our last call, European Union public warning system RFPs are increasing. Earlier this month, France selected a French company to implement its public warning system. The country of Estonia made an award. Although Genesis was rated number one technically, we were second in price, and the award went to the lowest price bidder. The dynamics of each country's decision-making process are varied and complex. The timeline for contracts awards has taken longer than originally anticipated, mainly due to ongoing COVID-related issues in the EU. Our business development and engineering teams in Europe are participating European Union government customers and 18 mobile network operators. Multi-channel, flexible, and customizable Genesis News features industry-leading location-based SMS, and advanced cell broadcast technology, all engineered, built, and supported by Genesys' European-based team. With more than 180 million Genesys-powered mobile alerts sent and delivered to Australians endangered by disasters over the last eight years, we are confident in competing for and winning EU and other countries' public warning system awards. Last quarter, we completed and commissioned a citywide Genesys integrated mass notification early warning system for Laguna Beach, California. Featuring solar power and satellite connectivity, our industry-leading voice acoustic arrays continue to operate when power and telecommunication infrastructure fails or is turned off by utilities, public safety power shutoffs, or PSPS events. GEM software enables multiple activation and warning options to deliver geospecific emergency alerts and lifesaving notification via SMS, voice calls, emails, desktop alerts, social media, common alert protocol, the US's iPods, and more. In addition to other large integrated mass notification system projects expected to be finalized and announced this year, The combination of Zone Haven evacuation management software and Genesys emergency management software is rapidly filling up business pipeline for integrated systems with opportunities from California and the Western United States. The ongoing regional drought, wind, hot weather, tinder dry conditions, lightning strikes, and human carelessness have created a perfect storm for megafires capable of creating their own weather. In these conditions, wildfires are capable of moving at 100 yards per second or more. Because of the increasing speed intensity of wildfires, local firefighters' roles are shifting towards better coordination with law enforcement on planning, training, and alerting to successfully manage evacuations and help protect and keep people safe. As the only provider of public safety warning systems, that unifies sensor inputs, evacuation management, and multi-channel alerting solutions, we anticipate substantial U.S. and international growth in our integrated mass notification systems and zone haven segments in fiscal 2022 and beyond. Our Genesys Enterprise software business is gaining momentum throughout North America. We continue to enhance our software feature sets to meet customers' needs and continue to grow our internal software sales teams and adding U.S. and international software resellers. The expansion of our software services contract with a global automaker to its facilities outside North America is close to being finalized. GEM Enterprise software service contracts with other major corporations are also expected this fiscal and calendar year. U.S. and international government opportunities with cities, counties, and departments are part of a robust and growing GEM enterprise business pipeline. In addition to the large Army program record and mobile mass notification system orders received last quarter, we completed the phase one of the U.S. Navy SBIR research and development project announced last December. The project is focusing on developing next-generation technologies to make acoustic devices smaller, lighter, and louder. Our phase two proposal has been submitted and we anticipate an award decision this calendar year. New and follow on US and international defense business is expected this year and in fiscal 2022. With that, I'll turn the call over to Dennis.