Genasys Inc. provided an update on May 19, 2025, regarding its $75 million contract to supply the Puerto Rico Electric Power Authority (PREPA) with an Emergency Warning System (EWS). The project, which covers 37 dams, has been divided into seven groups, with the first three groups, valued at over $36 million, having their designs approved.
The company reported that a partial deposit for the third group of dams was received on May 16, 2025, with the remainder expected within weeks. Initial construction on the island of Puerto Rico began in early April, and shipments for the first three groups are expected to commence in May, with all materials slated for delivery to Puerto Rico in the company's fiscal fourth quarter.
Genasys clarified that revenue recognition for the project will follow a percentage-of-completion method. Initial revenues from hardware and instrumentation delivery will be recognized on a cost, or zero-margin, basis. Subsequent revenues, reflecting profits on both equipment and implementation, will be accrued as installation and implementation are completed, with the vast majority of revenues for the first three groups expected in the September quarter.
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