Shares of Genasys Inc (NASDAQ:GNSS) rose 2.2% on Thursday after the company disclosed a $2.0 million follow-on order from one of the nation’s largest utility companies for its LRAD family of systems.
The contract expands on a recent deployment of LRAD 950NXT systems at one of the utility’s major substations. Under the new order, additional substations will receive LRAD equipment to provide remotely operated critical infrastructure monitoring and protection.
The company said the LRAD 950XTs will be integrated with the substation’s existing physical security architecture, including multi-sensor perimeter intrusion detection supplied by iEnet, the systems integrator on the project. According to Genasys, the combined solution is intended to meet the North American Electric Reliability Corporation’s physical security requirements to detect, assess, communicate, respond, delay, and deter threats to transmission and distribution assets.
Genasys’ chief executive, Richard Danforth, indicated the firm expects additional orders from this utility and from other operators. He cited rising interest from operators of dams, nuclear facilities, data centers, and other critical infrastructure sites in the enhanced surveillance and initial response capabilities offered by the 950NXT.
The company highlights that the remotely operated LRAD 950NXTs help reduce false alarms and the need for in-person security responses while establishing extended standoff zones around perimeters. When the LRAD units are connected to sensors, Genasys says they can deliver automated surveillance functions together with first response actions tailored for critical infrastructure protection.
The announcement follows the initial installation at the major substation and represents a continuation of the utility’s rollout of integrated perimeter security measures. The order size was disclosed as $2.0 million and is described by Genasys as a follow-on purchase from the same large utility customer.
Key points
- Genasys received a $2.0 million follow-on order for LRAD systems from one of the country’s largest utilities.
- The LRAD 950XTs will integrate with existing multi-sensor perimeter intrusion detection from integration partner iEnet to meet NERC physical security standards.
- Demand for the 950NXT’s surveillance and first response capabilities is cited from utilities and other critical infrastructure sectors such as dams, nuclear facilities, and data centers.
Risks and uncertainties
- Future order flow is described as expected by management but not guaranteed; the company says it anticipates additional orders from this utility and others.
- Effectiveness of system integration depends on successful deployment with existing physical security systems and sensor partners like iEnet.
- Adoption by critical infrastructure operators may vary by site type and requirements; the company notes interest from several sectors but does not quantify future contracts.