Analysts Bullish on LRAD’s Government Contracts

Stephen L Kanaval |

Long Range Acoustic Devices are invaluable for communication in public safety situations and security zones. The products LRAD® Corporation manufactures are used in 200 U.S. cities and in multiple locations around the world.

LRAD (LRAD) just recently received a $1.1 million order from a Southeast Asian country for its One Voice Mass Notification System. The company will also include in that order its portable systems which can be mounted on vehicles, helicopters, or high ground to improve long range mass communication.

The delivery to the unnamed Southeast Asian country will be delivered this year. As border defense projects around the world increase, other governments could makes similar purchases from LRAD. Its acoustic products are a very useful and safe deterrent due to the companies focused sound beam technology.

The San Diego-based company continues to improve its highly intelligible long range voice capabilities. Recently, the company has received orders from the Hoover Dam, numerous orders for Coast Guard vessels, and a soon to be built wing at a Latin American prison for perimeter security. LRAD is in a business that fluctuates heavily from quarter to quarter based on their orders.2016 could be a big year for them because their U.S. Navy contract will soon pull orders from the U.S. Army pulling from a $48 million budget. The company is also working on an Escalation of Force Kit that could be very useful as countries worldwide look to find safe ways to control protests and disperse crowds.

The LRAD products also have tremendous commercial potential especially at airports. The Beijing Airport recently was sold mobile LRAD 100 units to keep birds away from the runways.

On a most recent conference call President CEO Thomas R. Brown talked about inroads the company has made in Washington D.C. and about the prospect of using LRAD systems at the border:

Shares are trading up 3.39% at the time of this article. Many analysts are bullish on this stock right now and it sounds like if LRAD can milk their government contracts, this stock could flourish.


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