Genasys Inc.

Good day, ladies and gentlemen, and welcome to the Genesis, Inc. Fiscal Third Quarter 2022 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 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 Genesis. Ma'am, the floor is yours.

Thank you, Karen. Good afternoon, everyone, and welcome to the Genesis Incorporated Fiscal Third Quarter 2022 Financial Results Conference Call. I'm Kim Rogers with Hayden IR, the investor relations firm for Genesis. With me on the call are Richard Danforth, Chief Executive Officer, and Dennis Klon, Chief Financial Officer of Genesis. During today's call, management will make forward-looking statements regarding the company's plans, expectations, outlook, and the future financial performance that involve certain risks and uncertainties. The company's results may differ materially from the projections described in these forward-looking statements. Factors that may cause such differences and other potential risks and uncertainties can be found in the risk factor section of the company's form 10-K for the fiscal year ended September 30th, 2021. Other than statements of historical facts, forward-looking statements made on this call are based only on information and management's expectations as of today. We explicitly disclaim any intent or obligation to update those forward-looking statements, except as otherwise specifically stated. We will also discuss non-GAAP financial measures and other operational metrics including adjusted EBITDA, bookings, and backlog, which we believe provide helpful information to investors with respect to evaluating the company's performance. For reconciliation of adjusted EBITDA to GAAP financial metrics, please see the table in the press release issued by the company at the close of the market today. 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 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 the company's 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. We had another terrific quarter with strong Q3 revenues leading to nine-month record revenues. Our operating activities generated more than $2.5 million in cash, further strengthening our balance sheet with the capital to fund our growth investments. Bookings for the quarter were nearly $20 million. growing our backlog $6 million to a total of $30 million exiting Q3, keeping us on track for our revenue expectations for the year. Now, our bookings remain strong, more than $20 million for the quarter. Fiscal year law enforcement and public safety bookings are already at a record level for the third consecutive year. Genesis Software Services will use numerous times to deliver flash flood warnings and evacuation notices. during the eastern Australian floods in April, and in late June and early July during the New South Wales floods that displaced more than 85,000 people. First responders and emergency management agencies deployed Genesis software evacuation resources during 12 wildfires in June alone in Northern California. During these fires, more than 250,000 new user new users access the Genesis Zone Haven community website for real-time evacuation alerts and repopulation notification. During the ongoing McKinney Fire near the California-Oregon border, the performance of the Zone Haven Aware platform has been exceptional. Users have access to site more than 400,000 times for updated fire evacuation and repopulation information. Many California counties made Zone Haven a key element in their 2022 emergency preparedness campaigns, encouraging residents to memorize their zone numbers and bookmark the Zone Haven community website for faster access to vital information throughout wildfires and other public safety threats. For the second time this year, Laguna Beach emergency personnel activated the city's Genesis integrated mass notification system. to alert residents and broadcast evacuation warnings during the May 11th coastal fire. The coastal fire burned just south of Laguna Beach, destroying 20 homes and damaging 12 others in neighboring Laguna Niguel. Two weeks after the coastal fire, the Laguna Beach City Council discussed the further expansions of the city's outdoor warning systems. Berkeley, California selected the first five installation sites for the city's Genesis Emergency Warning Network that was announced earlier this year. 10 additional sites will also be selected for the system that will alert residents to fires, earthquakes, tsunamis, and other life safety hazards by broadcasting audible, hyperlocal warnings and notification. Under a contract with Alameda County, Berkeley first responders and residents have access to the Zone Haven evacuation resources. Nine-month revenues for mass notification hardware integrated with GEMS software increased 425% to $8.4 million, compared to $1.6 million in the first nine months of fiscal 2021. We received new SaaS contracts from cities, counties, universities, and enterprise software customers in 12 states, which include our first contracts in Colorado, Georgia, Indiana, Oklahoma, Oregon, and New York. Genesys has replaced competitive software service in most all of our SaaS contracts to date. Genesis software and integrated mass notification systems are now helping safeguard millions of people in several countries and 20 states. SAS revenue has nearly doubled year over year, and SAS bookings in the first nine months increased 27% over the same period last year, reflecting the growing momentum of our GEM and Zonehaven solution. GEM and Zonehaven are providing excellent cross-selling and upselling opportunities as we expand our critical communication and public safety resources in North America and throughout the world. Last year, we made the strategic decision to invest globally in our SaaS critical communication platform in response to the large and growing opportunity to help keep people safe in a world that is becoming increasingly dangerous. We continue to add personnel and other resources essential to executing our SaaS growth strategy. As we announced last week, the hiring of 25-year software veteran Dennis Walsh as our Chief Revenue Officer is one of these important resources. Dennis' experience building and running successful SaaS technology companies makes him the ideal choice to serve as our CRO and lead our sales and marketing team. He has built and led high-performing sales, marketing, and support organizations, spearheaded sales for new SaaS business applications to many worldwide corporations, and significantly increased revenues for companies in which he served. We welcome Dennis and his extensive global experience driving software revenue growth. It's also important to note that the growth investments we are making continue to be funded by our operating activities, providing us the capital to fund our initiatives in the current economic environment. At an investor conference in June, I shared an updated long-term model for Genesis. We expect the revenue drivers for the next few years will be, one, a macro backdrop that is increasing the need for critical communications, two, a growing pipeline for higher margin software opportunities. Three, the Zone Haven Greenfield opportunity in the United States and internationally. And four, the synergies of our software solutions and our hardware systems. In addition to these drivers, this week's announcements of a commercial security order from a global enterprise company is one of several business opportunities we're working in this sector. Government and enterprises are acutely aware of the escalating security risk to employees, citizens, critical infrastructure facilities. Additional commercial and critical infrastructure security orders are expected this quarter and next fiscal year. After a 425% increase in year-over-year revenues for the first nine months, the outlook for our GEM integrated mass notification system is extremely positive. Beyond installations currently underway in the City of Berkeley, Southern Marin County, Puerto Rico, Japan, and other locations, multiple IM&S projects are in the pipeline, with several anticipated to close in coming quarters. As reflected by our recent partnership with the Boston Red Sox, SAS orders and pipeline growth are expected to accelerate to the end of the fiscal year and beyond. We are continuing to replace competitors' offerings by providing superior, comprehensive, life-saving services for governments, commercial enterprise, and other entities. Based on our $30 million quarter-end backlog and supported by a rapidly growing business pipeline, we are well-positioned for a sixth year of revenue growth. With that, I'll now turn it over to Dennis, and he'll detail the fiscal third quarter and nine months' financial results. Dennis?