LRAD rallies as voice broadcast system company says Asia-Pacific shipment delay resolved soon

LRAD Corp (NASDAQ:LRAD) shares rallied Friday, a day after reporting that it expected the resolution of government funding problems in an Asia-Pacific country that delayed shipments and resulted in revenue trailing its expectations.

The San Diego-based supplier of voice broadcast systems and mass notification systems used by the police and military said Thursday in a press release that revenue for the fiscal year ended September 30 increased 29% to $26.3 million from $20.3 million a year earlier.

Shares climbed 9% to $2.48 in Friday’s Nasdaq trading.

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The revenue came up short of the company’s expectations when $4.7 million worth of scheduled September shipments were delayed because of unexpected government funding problems primarily in one Asia-Pacific country, according to LRAD.

“We expect the government funding issues will be resolved and the orders to ship in the second and third fiscal quarters of 2019,” CEO Richard Danforth said in a statement.

Earlier in December, the company announced a $1.1 million follow-on acoustic hailing device order from the US Air Force.

The company reported a net loss of $3.7 million, or $0.12 per share, for fiscal 2018, compared with a net loss of $877,000, or $0.03 per share, in fiscal 2017.

The net loss was higher mainly because of a previously announced $2.4 million non-cash income tax expense related to a reduction in the value of the company’s deferred-tax asset after the tax reductions signed by President Donald Trump.

The company said the board recently authorized a new share repurchase program under which it may repurchase up to $5 million of its outstanding shares of common stock through 2020. The new program will take effect when the current repurchase program expires.

Contact Dennis Fitzgerald at [email protected]

Story by ProactiveInvestors