Q3 2021 Genasys Inc Earnings Call
Ladies and gentlemen, and thank you for your patience. Please remain online you conference call will.
Will begin momentarily. Thank you.
[music].
Good day, ladies and gentlemen, and welcome each of the.
And welcome for the tender and.
The fiscal third quarter 2021 conference call.
All of mine have been placed on a listen only mode and the floor will be opened for questions income and following the presentation.
If you if you should require assistance.
The other conference. Please press star zero on your telephone keypad to reach a lot of 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 Jasmine.
Good afternoon, everyone and welcome to the Genesis.
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 <unk>, 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 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 crisis, our outbreaks of diseases.
He uses such as epidemics 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 managements 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 32020.
Genesis disclaims any.
Current or obligation to update those forward looking statements and 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.
And we consider of bookings and backlog, leading indicators of future revenues and use these metrics to support production plan book.
Bookings is and 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.
And the new recognition bad.
Backlog is a measure of purchase orders received that are scheduled to ship and the next 12 months.
Finally, a replay of this call will be available and approximately 4 hours through the Investor Relations page on our website at.
At this time, it's my pleasure.
Or to turn the call over to Genesis, Chief Executive Officer, Richard band for it.
Thank you gentlemen, hanging from everybody.
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 9 month 2020.
<unk> financial results for.
Following my closing remarks, we will open the call for questions.
Robust revenues and bookings and the acquisition of fast growing and emergency management and public safety software provider Zone Haven highlighted a very strong fiscal third quarter.
Fiscal third.
Third quarter bookings were a record $44.3 million the.
<unk> fiscal quarter and the Companys history.
For the first 9 months of fiscal 2021.
We have booked $59.8 million exceeding any prior fiscal year total of.
Addressable 12 month backlog.
At June 32021 was $37.7 million, a 43% increase over the same period last year.
Total fiscal year backlog at June 32021 was $49.7 million.
The company continues to generate operating cash over our prior.
The 2 fiscal years, we generated $18 million and positive operating cash.
And and 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 for.
The third quarter, we've achieved record bookings.
<unk> and <unk> and a strong position to achieve record fiscal year backlog and revenue and.
And another year of record revenue in fiscal 2020.2.
And our first quarter, we acquired America mobile and in June we completed the acquisition of Zone Haven.
Both acquisitions of serving as the catalyst.
<unk> to produce significant Jim enterprise software and integrated mass notification systems hardware and software business opportunities.
So and Haven and software as a service and powers public safety agencies with the central evacuation and re population management tools that help protect the people they serve.
So and Haven provides planning training drills alerting and a comprehensive no Euro zone community outreach program to bridge the gap between first responders and the public.
By continuing to offer zone have and software as is <unk>.
And integrating it with the Gem enterprise software.
And as a layer and our integrated mass notification system Genesis will have 3 key competitive advantages for securing local regional and national emergency management and worn and contracts.
Our combined systems and solutions are expected to increase software sales grow recurring revenues and enhance the profit.
Margins.
As discussed on our last call the European Union public warning system Rfps are increasing.
Earlier this month of France selected a French company to implement its public warning system the.
And the country of Estonia made and award although Genesis was rated number 1 technically we were second half.
Price and the award went to the lowest price bidder.
The night, the dynamics of each country's decision, making process of varied and complex.
And the timeline for contracts awards has taken longer than originally anticipated mainly due to ongoing COVID-19 related issues in the EU.
Our.
<unk> development and engineering teams in Europe of participant.
European Union government customers and 18 mobile network operators.
Multichannel flexible and customizable Genesis news features industry, leading location based SMS and advanced cell broadcast technique.
Our busy all engineered built and supported by Genesis European based team.
With more than 180 million Genesis powered mobile alerts sent and delivered to Australia and day to it by disasters over the last 8 years, we are confident and competing for and winning EU and other countries.
Technology public warning system Awards.
Last quarter, we competed completed and commissioned a citywide Genesis integrated mass notification and early warning system for.
Laguna Beach, California feature.
Featuring solar power and satellite connectivity, our industry, leading voice acoustic arrays continued to operate.
<unk> point power and tell the telecommunications infrastructure fails or was turned off by utilities.
The public safety power shutoff, the PSP events.
Jim software enables multiple activation and warning options to deliver geo specific emergency alerts and lifesaving notification.
The SME.
And as voice calls and emails desktop of alerts social media.
The common alert protocol and the U S as I pause and more.
In addition to other large integrated mass notification system projects expected to be finalized and announced this year.
The combination of the zone Haven evacuation.
<unk> software and Genesis Emergency management software is rapidly filling up business pipeline for integrated systems with opportunities from California, and the Western Union and the United States the.
The ongoing regional drought wind hot weather tend to dry conditions lightning strikes and human.
And manage this have created a perfect storm for Mega fires capable of creating their own weather and.
And these conditions wildfires are capable of moving at 100 yards per second or more.
Because of the increasing speed and intensity of wildfires local firefighters rolls is shifting towards.
The <unk> coordination with law enforcement on planning training and alerting to successfully manage evacuations and help protect and keep people safe.
And as the only provider of public safety warning systems that unifies sensor inputs evacuation management and multi.
It's better for multichannel of alerting solutions, we anticipate substantial U S and international growth and our integrated mass notification systems and zone Haven segments and fiscal 'twenty to 'twenty 2 and beyond.
Genesis Enterprise software business is gaining momentum throughout North America we.
We continued 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 automaker towards facilities outside North America is close to being finalized.
<unk>, Jim 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 of record.
And Matt mobile mass notification system orders received last quarter, we completed the phase 1 of the U S. Navy Spi, our 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 II proposal has been submitted and we anticipate and award decision this calendar year.
New and follow on U S and international Defense business. It is expected this year and in fiscal 2020.2.
With that I'll turn the call over to Dennis.
Thank you Richard.
And revenues for fiscal 'twenty, and 'twenty, 1 third quarter, while $12.6 million up 6% from the prior year quarter.
And as compared to the same prior year period, <unk> revenue was $11.4 million up 9% software revenue was 752000 upward of 102%.
And the IMS revenue was 455000 down 60%.
The increase and software revenue was primarily from professional services and new software contracts and the sale of the software license.
Gross profit margin was 53% this quarter compared with 54, 1% and the third quarter.
<unk> of fiscal 2020.
Gross profit as a percentage of revenue was lower and the fiscal 2021 third quarter due to a 61% increase and engineering personnel primarily software related.
Higher software expenses were due to the recent additions of a mix of mobile to our Canadian subsidiary Genesis communication.
The case and Canada and.
And zone Haven, and additional employees and the resources for the Australia, EU and Jim Enterprise software initiatives to support future revenue growth.
Operating expenses were $6.2 million up from $4.5 million and the same period a year ago.
Largely.
Due to a 76% increase and sales and marketing personnel to support future revenue growth opportunities, including opening sales offices, and Singapore, the United Arab Emirates, and Puerto Rico.
Net income for the quarter was <unk> $3 million or a penny per share of decrease from $1.5 million.
And the fiscal 2023rd quarter.
The decrease was largely due to the increased selling general and administrative expenses offsetting the higher revenue and gross profit and the third quarter of fiscal year 2021.
For the first 9 months of fiscal 2021 revenues were $32 million up.
Up 10% from $29 million and the same period last year.
Gross profit margin was 49, 2% compared with 52% and the first 9 months of fiscal 2020.
Gross profit as a percentage of revenue was lower compared to the prior year period, primarily due to a 64%.
<unk> increase and the engineering personnel over last year to support the Australia, EU and enterprise software initiatives.
Operating expenses for the year to date were $15.3 million up from $12.1 million and the same period last year.
Largely due to 60% increase and sales and marketing personnel.
And over the prior year to support future business and revenue growth opportunities.
Net loss for the first 9 months was.
100 point of $1 million or breakeven per diluted share compared with net income of $2.4 million or <unk> <unk> per diluted share and the 9 months of fiscal 2000.
20 <unk>.
This decrease was primarily due to the hybrid operating expenses, partially offset for the higher gross profit and the current year period.
Our balance sheet remains strong cash cash equivalents and marketable marketable securities totaled $22.8 million on June 32021.
Compared with $31.4 million on September 32020.
Working capital totaled $17.8 million on June 30, compared with $29.8 million on September 30 of 2020.
The decrease in working capital was primarily due to the use of cash to complete the amigo.
Income mobile asset purchase and zone Haven acquisition, and the first and third quarters of fiscal year 2021, respectively, offset by a larger amount of customer deposits.
With that I'll turn the call back over to Richard.
Thank you Dennis.
With 2 synergistic software acquisition.
<unk> <unk>.
Opening and staffing sales offices, and the Asia Pacific and Middle East and augmenting our global software sales and engineering teams for.
2021 continues to be a transformative year for the company and adding important elements to accelerate business and revenue growth and maximize shareholder.
<unk>.
Increasing emergency warning enterprise and public safety needs of driving demand for our full suite of hardware systems and software solutions.
Genesis has unified multichannel platform is uniquely positioned to capitalize on rapid growth and the critical communications.
<unk> and mass notification markets.
Based on our record fiscal year of bookings and robust backlog and business pipeline Genesis is strongly positioned to achieve record fiscal year backlog and revenue and another year of record revenue in fiscal 2022.
I'll now turn it back to the operator for Q&A.
And I. Thank you. The floor is now open for question and if you do have a question. Please press star 1 on your telephone keypad at this time questions will be taken in the order of day, where we see if at any time of your question has been answered you cannot and will get that from the queue by pressing 1 again, ladies and gentlemen, if you do have a question. Please.
Star 1 on the telephone keypad at this time, please hold while we poll for questions.
Okay.
Okay. Our first question comes from Mike Latimore with capital market. Please state your question.
Hi, guys. This.
Preston on for Mike could.
Could you just gave me and update on the day.
Sales are the pipeline out of Singapore and UAE offices.
More gourmet and odd on the enterprises for bus business and does the reason.
Well the the <unk>.
Pac region still has largely impacted with the COVID-19 related shutdowns across most of the countries and the APAC region with that said the significant system opportunities and multiple countries that we're prosecuting that include both integrated systems and software only solutions.
And in the Middle East Office UAE.
Similarly, its not shut down and that part of the world was not shut down as much as the APAC region is.
But we have opportunities that we're prosecuting across most of the middle Eastern countries, we have new opportunities and Africa and we're prosecuting.
The eastern European countries out of that office as well the.
The specific numbers by office for a region I don't have in front of me, but we can provide those at a later date.
Okay, and how much was the software of total booking in the quarter.
And.
And I have the booking of the other revenue area.
And of the bookings and the revenue was 752000.
Year to date software revenue is about $2.1 million, which is more than we've had.
And any total year and the last 3 years.
Alright, and the like as you're doing given the specific guidance.
But could you leak.
So the Q2 revenue be higher than the 3 revenue.
Could you repeat the question.
Yes, like as you're doing and give the specific guidance.
Should forgo revenue we are higher than the revenue.
And what I've said is.
And that our fiscal 2021 revenue will be yet another record year. So last year, we did $43 million and <unk> and.
Total year revenue.
At $30 million to $32 million and revenue through Q3.
So just to match last.
Last year's total we would have to do the $11 million.
And as I said, we will do more than that notwithstanding supply chain and other related issues, but we still expect to do record revenues in Q4 record total year revenues.
With the addition of Q4.
Alright, thank you.
Our next question comes from Martin Yang with Oppenheimer. Please state your question.
Hi, Good evening. Thanks for taking my question. My first question is about maybe your.
Near term outlook for the share of software revenues.
And you expect the 2 when do you expect it to achieve and maybe 10% of total.
For software and is that the question, yes, yeah for sulfur sulfur.
Oh I buy my expectation was certainly will be exceeding 10% next year.
Got it.
And the follow up all of that is as you expand the sales force.
The operating structure to support.
The organization.
And is.
Achieving breakeven for software.
Part of the midterm on near term priorities.
Sure Oh as we as the software business grows it reaches to a point, where it will be covering its own cost and then from as you know and beyond that it has and will provide a very high gross margin for the company.
Were still and the and the early stages of that but I expect again next year to emerge.
And that position.
2 of very favorable position for the company.
Got it and last question from me can you maybe provide us with more compact zone on when and what kind of revenue level would you be able to operating software business.
Profitably.
I don't think.
We have provided that information publicly.
Well, we'll work on that and get something out publicly to answer that.
Great. Thank you.
Youre welcome.
Our next question comes from and work with Sandy and <unk>.
Capital. Please state your question.
Yes congratulation.
Just on the quarter in terms of the supply chain and any chip issues shortages of transportation issues shortages have debt impact of your business at all of any delays.
Sure, we've had delays and required to redesign to the 2 commodities that are.
<unk> the 1 of the supply chain.
We have having said that we have met.
All of our revenue forecast for internal forecast, albeit.
And that we put forward more than a year ago, and we expect Q4 to 2.
The exactly where we had planned at the base so the engineering.
Our avail of him and the operations team has been.
Looking together to solve the supply change price.
The challenges be it by redesign.
By the brewery.
Fundamentally by redesign when we needed to do that.
Great.
Generic like it Hasnt really and package that much. If you guys were able to still meet your targets.
We have of underneath the covers though and so there's a lot of people working and make sure it doesn't impact us and they've been successful and I fully expect that they will continue to be very successful.
Great and then my last question is daunting.
So some of you you mentioned, France and its Tony here.
Do you see.
Do you still feel as confident as you do now with the <unk>.
Opportunities there than.
And then you did prior to I guess these 2 countries announcing there are contracts.
I do in fact.
The state.
And I feel more confident.
I have mentioned for more than a year that there will be cases, where there'll be a home field advantage and I think that's what we experienced in France.
Estonia, very small country with not that many people of $1 million of so people that live there.
Disappointing to lose but coming and number 1 tenant.
And the equally against people that have been in the business for a very long time.
And was reassuring and.
And the validation of our strategy on a simple low price wins.
We're probably not going to win that and somebody else well, but not all countries are going to put award criteria based on price.
Nut based simply on price.
There are several of as I mentioned in my remarks, there's 11 government the.
And our Rfps out now there's 18 mobile network, operator, Rfps out now.
The large countries and small countries and that mix and I believe when we speak next quarter that number will be larger.
Technically I expect the additional award announcements.
And our fiscal Q4, and then again and our fiscal Q1 and beyond.
Great. Thank you languished guys. Good luck.
Thank you.
Our next question comes from Richard Newton with reversal of investments.
Larger for your question.
Thank you for taking my question, Hi, Richard Hi, Dennis.
My question concerns for the Zone Haven acquisition and.
And you're thinking of the ROI involved given the price paid for the company.
In terms of stock and cash.
You mentioned that this isn't primarily a financial based acquisition.
How are you thinking in terms of.
The return on investment and over what period of time what percentage.
The return given the number of new shares you issued and the short term dilution to your pre existing shareholders.
A couple of comments 1.
Zone Haven, as a startup company and it's been a business for 2 years. So if you try to.
Wanted to a multiple on revenue or multiple on earnings.
The just won't work.
I will say that.
Our expectation on a on a 12 month look ahead, our fiscal 2022.
I believe our multiple will be in the fourth.
Doomed I expect the explosive growth from zone Haven, and the pipeline is robust and I and we're beginning to see it.
And what is that expectation that multiple.
The primary.
Determinant of.
Arriving and an acquisition.
For range.
It was the.
Certainly weighed into it but it was the people and it was the customer base part of the due diligence we met with the users.
Of the software product.
And the users of the Zelle, it's the the best the sales force there is for this product line.
If you look at just the fires in northern California. This fire season.
Uh huh.
About 16 of those and we're early in the season are using zone Haven software, that's up from single digits a year ago.
So it will continue.
And so I believe as I said explosively.
And if we waited for another year of revenue for Zone Haven.
We would be paying a multiple that was in excess of I believe we valued it at on a go forward basis.
For the next 12 months.
Many of them okay.
So and what opportunities do you see zone Haven presenting for.
For your software.
The business say in.
And Europe, Australia, APAC and other parts of the U S.
Several answers that question. So as I mentioned in my remarks zone have and will continue to be sold as is.
A version of the Zone Haven with the gym Enterprise software will also be offered and it will be offered as a as a layer and the integrated system platform that Genesis sales.
Zone Haven has not reached outside of northern California.
We have the expansion plans outside of the U S. Australia is a great opportunity for zone Haven, the Genesis of software already knows where all of the phones are layering in the evacuation software from the zone Haier and.
To me is a no brainer.
We have opportunities throughout the United States Asia, the APAC region and in the Middle East.
So our part of our expansion from a.
Sales and marketing effort.
Was it the at least in part to expand vault Zone Haven, and Jim both hardware and software.
And as I said in my remarks, I believe this year was a transformative year for that and we should start reaping the awards and our fiscal 2022.
Okay.
Thanks, Richard for that.
And added background on that.
Youre welcome.
Okay.
Our next question comes from mile wait and see.
And with UBS. Please state your question.
Yes, hi, there Richard.
Couple of questions first of all the.
The Great Britain.
Contracts were awarded to the competitor.
Are those did you actively compete.
And if so what do you think why do you think that they went the other way.
Number 1.
And second you mentioned that when he came in the second and price.
Is it for that.
And.
There is enough value added and our pricing to justify.
Net debt.
Justify it.
And to justify.
Where we are versus of.
Stony and actually ended up buying and finally last question is.
Where are we on stock buybacks.
Last question first we have an active program, but we're not using it.
The 5 relative to the to the.
U K.
The UK of requirement for mass notification is almost a decade old.
And they they have had and by the way they are not part of the EU. So they were never part of my comments regarding the U.
Sure.
With the pandemic debt that occur.
There was an urgency that they felt to get a system in place and they did buy a cell broadcast system for <unk> and <unk> only for.
Part of the supply chain that had been working of that country since 2010, which did not include Genesis.
<unk> in terms of the of second question on Estonia, and the price the way the each country as I mentioned in my remarks, each component country comes out with.
And some case simple some case very complex evaluation criteria and the case of Estonia.
Price was weighed as I recall, 85%.
And.
And and.
And technically it was weighed 15%.
So it's.
And balance so if it were a 50.50 I would agree with your comments and <unk>.
$85.15.
It's almost impossible to do.
Got it.
Thank you.
Youre welcome.
Our next question comes from Michael Marelli. Please state your question.
Ooh and Ah.
I'm a long time the stockholder in fact, I think I've been the.
Some of them and the company for 20 years, and no 86 years old and I'm getting to the point where.
The all seeing from Cains comes in and the long run where all of did.
And I'm, saying that because and in the last.
Several of quarters.
And you've been saying, yeah, we were investing and this and that and everything else for future growth future growth.
And my question is at what.
And what point do you stop.
The spending goes all of this money and.
And the start turning it into profit.
Well first we have been profitable for the past 3 years, we've generated.
The 20.
$4 million and $25 million and operating cash.
Stated that even despite the significant investment that we planned.
Planned for and our fiscal 2020, 1 that we would also be profitable and cash flow positive. Despite the investments.
Those investments are at least and part responsible for.
For a $60 million of booking through 9 months.
Our prior full year booking record was 46 and a half I think were substantially higher than that and we have a full quarter to go. So we will enter our fiscal 'twenty 'twenty 2 excuse me Michael with the backlog.
That will support again, another record year of revenue for our fiscal 2022.
So our top line from revenue has been growing at a.
Just under a 30% CAGR for the last for years.
And with the lower the delivered operating income net income and lots of cash while investing.
Around the world and and engineering and marketing.
That's the company.
I appreciate all of that.
All of that and of course.
I've been sticking with you for such a long time.
All of them.
And I'm still looking for you know the the reported.
The net operating profit still and Linda SKU and even compared to the.
Rice.
And.
I guess the.
And maybe I should we.
The reform the question to say when are we going to see earning.
The earnings.
And which are you know the only reason why the stockholders by.
Stocks because of you know the earnings are going to go up.
Our earnings have gone up every year as I said for the last 3 fiscal years.
No.
So [laughter] alright.
It seems to me I'm waiting and waiting and waiting and the.
I don't have that much more time to wait.
Thanks.
And my question really.
Okay.
Okay.
And what question comes from Lloyd Korten with unique investments.
Right.
Thanks, guys. Thank you for taking my call.
And I have a few questions.
Well in the.
The rfps, the euro zone and have them be incorporated into those.
Not.
And naturally.
And so theres no requirement for that yet Lloyd, but that's clearly an up sell opportunity, particularly in the countries, where we will put the SMS system, and whereas I mentioned like Australia, where.
All of the location of all of the phones is known.
Integrating the zone.
And if and software and that platform.
As I said is of no brainer, because you already have the location of all the people.
And it wouldn't be of all of the phones excuse me.
And then take it wouldn't be advantageous and upsell.
We have this which nobody else has.
And it will certainly be part of our proposals but.
Haven of going into the pricing.
Okay.
And.
And the rest of Europe.
There are multiple carriers and each country is that correct.
Yes.
And are we negotiated with.
And it won't be carriers of with the government of what.
It depends it.
It depends on the structure of the RFP and some cases like the country of Us Estonia.
The government ran the whole thing.
As I recall, there were 3 individual carriers.
Visual and Estonia, and then the front and for the government. So they were 1 RFP to cover for.
The activities.
And other countries that would be for Rfps.
And you feel it's more advantageous for us to have.
Separate rfps there.
The country.
Uh huh.
Hi, Joe.
And it gives you a better opportunity to win.
You may have a better relationship with 1 of the network carriers and other you may have a better of partner and our country.
The only have a strong position in Spain.
And we certainly don't.
And you feel like there's a good profitability and we'll get something out of that country being debt, where there already and another capacity and you kind of remember.
I think it's going to be a fair and open RFP process.
Okay.
And the last call you were going to release.
And and FCC something on the cost of.
And the acquisition and never saw that come through.
There was an 8-K that was filed debt.
The.
Disclosed I believe I'm pretty sure of that had disclosed the the purchase price and in addition, the it's a a good size footnote in the 10-Q that will be filed today or the first thing in the morning.
What was that purchase price.
It was $24.2 million.
I'm, sorry say it again.
$24.2 million.
That was for which acquisition.
For Zone Haven.
$24 million.
Dollars and cash stock or what.
Yeah.
Yes, both cash and stock 50.50.
Okay.
Uh huh.
Okay.
And.
And all of our S. P S.
As you stated we're the only ones that have the physical speaker system and addition to the software.
And with.
How important is the that's going to be or how much interest of these countries showing because we have that and our competitive dozens of.
I believe.
You are correct.
And I would say and the North America enterprise market and it isn't a significant difference.
Our debt the automobile manufacturer that we mentioned and the last quarter.
We we expect to be.
The awarded contracts to boot to put acoustic devices, both inside the factories and outside the factories here shortly.
And there's more of that to come from the enterprise side.
Side for sure and the National Emergency warning systems.
Again, it's in our proposals and it's not part of the requirement, but its an upsell opportunity and and kind of and counties and cities like Laguna Beach.
We're the only ones that do that so Laguna beach has acoustic devices and software.
We announced the Riverside County, all software win.
We expect additional opportunities and Riverside and lots of other counties.
And California and beyond.
And it's the whole package Lloyd it's the it's the hardware the software its the sensors.
It's the command and control software.
Well it just seems that it's a selling opportunity.
And in an emergency.
Not everybody has the cell phone on them.
Out of his die they don't have reception and I would think that the debt.
The ecosystem with the critical for a lot of people out there.
Your assessment is correct.
You know it just seems like.
We have something nobody else has.
Also there was the announcement of the college debt.
We did their contract with you guys.
Okay, Cambridge of something what was the college slab.
You didn't college and and Canada.
Uh huh.
Are we working with other colleges and were getting anywhere.
Of the colleges and this country or any country.
Sure, where we're and several colleges and califf, I'm, sorry, and Canada and.
And in the United States for and several colleges.
Up and down the east coast.
Oh, I didn't know and they've been announced or just been.
They're they're announced from we're allowed to announce them frequently we're prohibited from doing that.
Okay.
Gotcha I think.
I think that completes the thank you for your time and look forward to continued growth and nice announcements. Thank you.
Okay. Our next question comes from Steve.
Steve and Wagner with integrity.
For your question.
Hey, Richard Hayne, Dennis and I'll come aboard Kim.
Obviously, the bookings are fantastic.
Little bit curious as to and I was really expecting a much larger actual record our revenue recognition for the quarter.
Such as my my own personal view of were there any headwinds there I mean did.
You know delays I mean.
It goes I've talked about delays Covid shutdowns I mean, do you think that contributed to any of that.
No.
As I said, Steve all of revenue in Q4, and 2.3 excuse me.
It was white right, where we expected it to be.
Understood, Okay, and I remember.
And when we came into this fiscal year was $16.6 million and backlog.
And.
We have converted that backlog plus.
Plus another $18 million of book and Bill.
And we still have the fourth quarter ahead of us.
It should.
Fantastic should be another fantastic year.
And you know the just kind of the bleeds into my next question and you know prior I think the last call and then and and the another call that you and I had you talked about getting achieving this is before zone Haven.
Achieving a.
$100 million and revenue.
It should be 50 split between software and hardware and the next 3 to 5 years. So if you do the math from today and just look at the trailing 12 months $45 million.
And you do that math on the CAGR going forward on 3 years, that's close to a 30% CAGR on 5 years, that's and 18% CAGR.
So Tom I feel personally like those numbers should be communicated a little bit better and I would encourage.
Those analysts that may be on this call to think about that I mean, they've heard you make that statement.
And yet when you look at some of their.
You know estimates.
You're talking single digit numbers.
So that's just more of an editorial comment and you don't need the reply to that but I would like to follow that up with the quick question that was before the zone havens.
Acquisition now we've made that acquisition, you very confidently and I think appropriately have.
Indicated that we should expect.
Powerful.
Revenue growth from this and I couldn't agree more.
It's a theme and product that is time is done and we come but it's now.
What would you say to us on this call right now in terms of what that 100 million dollar revenue number should be should it be now.
Closer to 3 years.
Would it be earlier than that and what are your thoughts.
Uh huh.
As you pointed out Steve Ive said before of multiple times that the company would be $100 million and 3 to 5 years.
The Zone Haven acquisition will get us there closer to 3 of them.
Yeah.
The first thing.
So I think I'm right.
So here, we are appointing Joe was the big deal Yeah, Yeah. So if we kind of company growing at 30% CAGR.
And that's remarkable and I would just wonder.
When that news is going to get out there in terms of you know.
And 5 potential and that little alone.
And it's on significant radars.
And and create you know what has been a lackluster ins.
Institutional interest and our company over the last couple of years.
I mean, our institutional ownership has declined and.
And the last 2 years.
I'm not an institution.
We more than doubled our shares to over 4 million.
And yet I've noticed and see and these other folks that have been in the story for so many years just lose interest.
There is still good shareholders and their loyal shareholders and we're appreciative of it but can you know you've got an opportunity here a massive.
Growth opportunity here with the wonderful growth story and I.
Hopefully we can get in front.
Of more of these kinds of funds microcap very small cap.
That are able to buy now.
And the and that don't need to wait for well, we need to see more software revenue, we need to see more.
And this or that because I think we're there.
From that standpoint.
And the other question that I have is regarding Europe and I. Appreciate your comments earlier and I know that you alluded to some delays.
1 of the things that you mentioned and the last call was that there would be more than 1 ex.
Patient of the new.
All for Genesis in the second quarter, and obviously, we wouldn't expect it to be announced and the second quarter, but sometime.
Sometime in the following quarter.
Where are we there.
Are you still confident with regard to that is that of has that been accomplished or are you able to comment at all on that.
Only the only the 2 that have been announced Steve.
France and the stoner.
Okay fair enough, but you from my remarks my remarks.
The pointed towards.
We're highly confident and our position and the E U.
Understood and you should be I mean.
Again, it's just a fantastic opportunity and product that we have the offer.
Again, as you said, if the waiting and Estonia would've been different in terms of importance. We clearly would have won that.
But they are who they are and they have their own parameters and that's just the way it goes.
And <unk>.
Moving on to another question that I.
I had the obviously 2 gigantic wins for us and the face of competition versus our larger competitor of effect and seeding our largest competitor and.
BMW of North America.
I know that you had anticipated or were preparing.
Other proposals for them.
And other locations.
Throughout the world.
Can you give us an update on that.
Sure I mentioned that in my remarks, we expect our contract for our North American and I'm, sorry of Latin American country.
We expect the third contract from another of Latin American country.
And where we were working a European country for the same.
The company.
Fair enough fair enough.
And the on Zone Haven, and by the way I completely love that acquisition and completely agree that now is the time to do it waiting a year would it be a lot more expensive maybe even prohibited.
So congratulations on that I think that's the fantastic investment and our future.
And 1 that's going to pay significant dividends.
And again, maybe this is just and editorial thing to think about but I think it would be very helpful.
If you guys were able to somehow find your way too.
And give us.
Guidance on what you think that is going to do.
From a projected dollar amount.
Appreciate the the.
Comments regarding explosive growth.
None of us out here really knows what that means and I think it would help.
If we did no.
A little bit more detail on that and that's just the just is this the comment so with that thank you guys.
And I appreciate your hard work and we look forward to the fantastic rest of the year in fiscal 2022.
Thank you.
Yeah.
And it looks like that was our final question.
Yeah.
Thank you we regularly discuss our business at Investor events. During the year you are invited to join US for these events. Thank.
Thank you for participating in today's call. We look forward to speaking with you again later this year when we reported fiscal year 2021 results.
Thank you this concludes.
Today's conference call. Thank you for your participation you may disconnect. Your lines at this time and have a great day.
Yeah.
Yeah.
Yeah.
Okay.
Uh huh.