Genasys Inc.

Good afternoon.

Welcome to Genesys' fiscal 2024 fourth quarter and four-year financial results conference call. I am Brian Houcher, SEP, Investor Relations, and Corporate Development for Genesys. Working on the call today are Richard Danforth, our CEO, and Dennis Kahn, 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 describing these forward-looking statements. Factors that might cause these 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 30th, 2023. Other than statements of historical facts, forward-looking statements made on this call are based solely on the information and management's expectations as of today, December 9th, 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 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 measures, please see the table in the press release issued by the company at the closed 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 the related revenue recognition. Backlog is a measure of purchase orders received that are scheduled to ship within 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 Genesys' CEO, Richard Danforth.

Richard? Thank you, Brian, and welcome, everyone. As Dennis will detail shortly, from a financial results standpoint, fiscal 2024 was extremely disappointing. While our software results tracked largely in line with our expectations, weak hardware revenues in the fourth quarter and throughout the year and the resulting losses were well below target. That said, fiscal 2024 proved to be a transformational year from a bookings perspective. Though the Puerto Rico contract was the largest factor by far, I am more encouraged by the breadth of our bookings recovery. As many of you know, Genesis International Business eroded nearly completely during COVID. And while we had hoped that it would rebound in fiscal 2023, it wasn't until fiscal 2024 that the international bookings rebounded. International bookings were up 86% year over year, and although they were not quite back to the pre-COVID levels, the rebound came from all regions, and we are well on our way to restoring that portion of our business. Whether it is with European naval customers, African and Middle Eastern militaries, or our traditional APAC customers, each region is contributing to the international growth. This morning's announcement with the Indian Navy is the most recent example of the recovery in the international hardware bookings. Domestically, LRAT systems for law enforcement made a noticeable comeback. The acquisition of EverTel and the improving budget environment for law enforcement drove the improvements year over year. From large metropolitan police departments to small college campuses, our LRAT systems continue to deliver the best-in-class mobile communication solution. Critical infrastructure protection projects like the Hoover Dam, the Port of Houston, and the Alabama Kshuta Tribe are testament to the diverse applications for our LRAT and acoustics equipment. As we add marquee customer sites, our pipeline of new opportunities continues to expand with both public and private sector customers. On the software front, we had a record bookings that were up 46% year over year. with notable wins coming late in our fiscal year. The largest single deal of the year was our statewide EVAC contract with the Oregon Office of Resilience and Emergency Management. Notably, Los Angeles County's addition of Alert to the existing EVAC functionality now utilizes the complete Tennis' Protect platform, making it our largest software customer both on an ARR and a total contract value basis. These two customers are illustrative of two different sales motions that we are replicating across the country. In both cases, we were selected because of the demonstrated uniqueness and value provided by EVAC. In Los Angeles, the most populous county in the United States, EVAC was initially deployed in the urban interface areas, and then coverage was expanded to include the whole county. Rapidly following that implementation, Los Angeles County is moving to implement a work with the intent of bringing all 80-plus communities in the county onto a single communication platform. In Oregon, the initial Genesis EVAC sales were made a year ago in a couple of fire-prone counties. Then, shortly after the Heine tragedy, the state emergency managers took notice and a statewide solution was constructed. Like Los Angeles County, we are actively discussing additional ways for us to enable emergency managers and first responders and Oregon to move to more efficiently respond and protect their constituents. Whether it is starting with a large county and working down to the cities, or with a handful of small counties and expanding towards a statewide engagement, Genesis EVAC is driving a proven sales cycle for Genesis Protect. Our software success has not just been on the West Coast. Significant progress is being made in Arizona, Utah, Colorado, Texas, and, of course, Hawaii. Looking further east, we are making inroads with winds in Florida, North Carolina, New Hampshire, and Massachusetts. This, of course, is in addition to the largest Hennessy's protect wind to date, Puerto Rico. I am pleased to report that the $75 million project with the Puerto Rico Electric Power Authority, PREPA, is progressing well. Since signing the contract with PREPA in August, boat buddies have moved quickly. As many of you know, the 37 dam projects have been divided into seven different groups, each with its own EOC. Each group is unique both in terms of the number of dams, but also the terrain and instrumentation required. The contract specifies after each group design approval, Genesis receives 60% of the sale value of that group. This deposit will allow us to procure all the necessary work in progress inventory, and deliver the components to the island for installation. Each dam within a group will go through an acceptance process that will enable invoicing for the remaining 40% payment on a dam by dam basis. This of course is how the cash will flow, but revenue will be recognized on a percentage of completion basis as is typical with projects of this scope and size. Where we stand today is our designs have been approved on the first three groups of dams. We have invoiced PREPA for the deposits on the first two groups, and after receiving the first deposit checks, we have begun placing orders for materials, staffing up local resources, and are preparing to break ground. The total value of the first three approved groups is just over $35 million. It is our intention to install the emergency warning systems as quickly as possible. Until we get a couple dams under our belt, however, it is impossible to predict exactly how long that will take. Regardless of the exact timing, Puerto Rico is serving as a tremendous example of the power of Genesis Protect as a complete system that combines planning and event management with unified communications including our acoustic systems that operate on power and traditional communication networks failed. Puerto Rico is not unique in its case and we are pursuing similar opportunities both domestically and abroad. Before I turn the call over to Dennis to discuss the financials, I want to provide an update on the AHD CROWS program record. As we have discussed in the past, the AHD CROWS requirement has existed for several years. In fiscal 2024, adding LRES to existing CROWS system was finally funded with an initial program appropriations totaling $20 million. We are actively working with the program office on detailed planning and scheduling We will keep you all apprised of progress as it occurs. Now, I will turn the call over to Dennis to go through the financials and outlook in greater detail.