Genasys Inc.

Ladies and gentlemen, thank you for your patience. Please remain on the line as we wait for the earnings released across the wire for Genesis. We appreciate your patience. Please remain on the line as we wait for the earnings released across the wire. Thank you. Thank you. Ladies and gentlemen, thank you again for your patience. Please remain on the line. We are waiting for the earnings released across the wire for Genesis. Thank you for your patience. Please remain on the line. We're just waiting for the earnings released across the wire. Thank you. you Ladies and gentlemen, again, we thank you for your patience. As we're just awaiting the earnings released across the wire, it should be momentarily now. Thanks again for your patience. Thank you. So, Thank you. Good day ladies and gentlemen and welcome to the Genesis fiscal first quarter 2024 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, Brian Alger, SVP of Investor Relations and Corporate Development. Welcome, Brian. The floor is yours.

Thank you, Karen. Good afternoon, everyone. Welcome to Genesys' first quarter fiscal 2024 financial results conference call. I'm Brian Alger, SVP of Investor Relations and Corporate Development for Genesys. Today's earnings release is available up on our corporate website and in the investor section, and it should be crossing the wires any moment now. There's been a delay with our filing service, and we apologize for the delay in this call. But for those of you looking for the numbers and looking for our commentary, you can find it on the website right now, or it should, as I said, cross the wires here shortly. With me on today's call is Richard Danforth, our CEO, and Dennis Klon, the company's CFO. During today's call, management will make forward-looking statements regarding the company's plans, expectations, outlook, and 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 might cause such differences and other potential risks and uncertainties can be found in the risk factors section of the company's Form 10-K for the fiscal year ended September 30, 2023. Other than statements of historical facts, forward-looking statements made on this call are based only on the information and management's expectations as of today, February 13, 2024. 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 the operational metrics, including adjusted EBITDA, bookings, backlog, and adjusted net loss, 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 closing market today. As I said, it should be coming across any moment. 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 the company's website. Now, at this time, it's my pleasure to turn the call over to Genesis' CEO, Richard Danforth.

Richard? Thank you, Brian, and welcome, everyone. The strategic vision of Genesys Protect is being realized. Yesterday's announcement describing the integrated use of Genesys' cloud-based software and hardware for 37 dams in Puerto Rico is only the most recent example of our differentiated approach to protective communications. To recap, Genesys has been selected through a competitive solicitation to engineer, procure, and install a comprehensive emergency warning system for 37 dams on the island of Puerto Rico. Genesis had the highest score, beating the competition in all evaluation categories. This project has been fully funded by FEMA and is expected to generate $60 to $70 million of revenue for Genesis. More than $50 million of hardware revenue is expected to be installed over the planned 18-month project line. Importantly, all of the sensors, data streams, and communication channels will be managed with the Genesis Protect software. In addition to approximately $1.9 million for a three-year software license, it is expected that we will also provide hardware maintenance services that could generate between $3 and $10 million, depending on the length of the maintenance agreement. Our investments in developing the Genesis Protect software drove the selection for the Puerto Rico project. As a result, not only will we generate recurring revenues, but we will also be delivering more than a full years of incremental hardware revenue for this project. The selection of Genesys Protect's platform, including both hardware and software for the Puerto Rico Dam Emergency Warning System, is yet another example of the differentiation of our approach to protective communication. Already in fiscal 2024, we have been selected for a multi-year engagement with Los Angeles County, a county with more residents than most states in the union. The Department of Corrections for the entire state of Utah. And most significantly, the project I just outlined for the island of Puerto Rico. Our engagements are getting larger, but they're also becoming more comprehensive as the advantages of our platform approach became more evident. Our transition to a more balanced hardware software company is well underway. Our software business continues to gain momentum and build scale. Synergies from the acquisition of Evertel are beginning to be realized, and as a result, ARR for our Connect business grew nearly 18% sequentially in the first quarter as part of Genesys Protect. Similarly, we are getting significant leverage from our partnership with Ladris, which provides our traffic AI solution. Recurring software revenue grew 85% year over year. Total realized ARR exiting the fiscal first quarter was 5 million, and we expect to exit our second fiscal quarter with nearly 7 million of ARR. Coming into this year, we had exceptionally low hardware backlog, and as we communicated in early December, we expected financial results to be heavily weighed towards the second half of the fiscal year. Though quarterly revenues were substantially lower than prior year, Hardware bookings were in line with first quarter historical averages and up nearly 90% versus the prior year's quarter. Dennis will provide more detail on the hardware revenues momentarily. As we look out over the remainder of our fiscal 2024, we see a growing need for protective communications in communities, enterprises, and critical infrastructure across the globe. Too many events, including natural disasters, civil unrest, and geopolitical tension, require a more complete solution to protect the various constituents. Mass notification messages and 60-year-old sirens are not adequate. More is expected and, frankly, deserved. Internationally, we are finally beginning to see our hardware business recover, and we are also seeing new and growing interest for our software solutions as well. Recent wins and the continuing deal activity and pipeline expansion give us greater confidence in our second half of 24 and our fiscal 2025 outlook. Unchanged from our outlook in December, we are confident that the software revenues for fiscal 2024 will at least double over fiscal 2023. We continue to see a very back-end loaded year for our hardware business. Though there remains near-term uncertainty around the timing of the US federal budget approval, Recent bookings and the Puerto Rico selection bolster our confidence in approaching fiscal 2022 levels of hardware revenue, despite the exceptional low performance in the first quarter. Based on our assumptions that the US federal budget is approved in the March timeframe, we expect to be profitable on our adjusted EBITDA basis in the second half of 2024. On a full year, we continue to expect to report a negative adjusted EBITDA, though improved quite a bit from fiscal 2023. Now I will turn the call over to Dennis to go through the financials and outlook in greater detail. Dennis?