THE
WOODLANDS, Texas, June 10,
2025 /PRNewswire/ -- MIND Technology, Inc. (NASDAQ:
MIND) ("MIND" or the "Company") today announced financial results
for its fiscal 2026 first quarter ended April 30, 2025.
Revenues for the first quarter of fiscal 2026 were approximately
$7.9 million compared to $15.0 million for the fourth quarter of fiscal
2025 and $9.7 million for the first
quarter of fiscal 2025.
The Company reported an operating loss of approximately
$658,000 for the first quarter of
fiscal 2026 compared to operating income of $2.8 million for the fourth quarter of
fiscal 2025 and $730,000 for the
first quarter of fiscal 2025. Net loss for the first quarter of
fiscal 2026 amounted to $970,000
compared to net income of $2.0
million for the fourth quarter of fiscal 2025 and
$954,000 for the first quarter of
fiscal 2025. Net loss attributable to common stockholders was
$970,000, or a loss of $0.12 per share for the first quarter of fiscal
2026 compared to net income attributable to common stockholders of
$2.0 million, or $0.25 per share for the fourth quarter of fiscal
2025 and $7,000, or less than
$0.01 per share for the first quarter
of fiscal 2025.
Adjusted EBITDA from continuing operations for the first quarter
of fiscal 2026 was a loss of approximately $179,000 compared to income of $3.0 million for the fourth quarter of fiscal
2025 and $1.5 million for the first
quarter of fiscal 2025. Adjusted EBITDA from continuing
operations, which is a non-GAAP measure, is defined and reconciled
to reported net income (loss) from continuing operations and cash
used in operating activities in the accompanying financial tables.
These are the most directly comparable financial measures
calculated and presented in accordance with United States generally accepted accounting
principles, or GAAP.
The backlog of Marine Technology Products as of April 30, 2025 related to our Seamap segment was
approximately $21.1 million compared
to $16.2 million at January 31, 2025 and $31
million at April 30, 2024.
Rob Capps, MIND's President and
Chief Executive Officer, stated, "As expected, MIND's results for
the first quarter were down sequentially after a record fourth
quarter. This revenue decline was further driven by approximately
$5.5 million of orders that, while
completed, were not shipped prior to quarter end because either the
delivery of third-party components was delayed, or the customers
were unable to arrange delivery. We now expect to deliver these
orders in the second quarter. Despite these delays, cash flow from
operations grew again during the quarter to approximately
$4.1 million, resulting in a
quarter-end cash balance of approximately $9.2 million. This is an indication of our
much-improved liquidity.
"Variability in customer delivery requirements is nothing new
for us. We have taken meaningful strides in optimizing our
operations, which enables us to control what we can control. Our
backlog, pipeline of business and the general market tailwinds give
us solid footing to deliver another year of strong financial
results in fiscal 2026. As we have said in the past, order flow is
often uneven. We believe recent uncertainty in the global economic
climate has caused some delays in purchase commitments. However, in
recent weeks new opportunities have presented themselves which
gives us added confidence in this fiscal year and beyond. We are
confident that our long-term positive trajectory remains
intact.
"We normally see increased general and administrative costs in
the first quarter of our fiscal year. This normal seasonality
was exacerbated by non-recurring costs related to a reorganization
of our U.K. operations and third-party analysis of our income tax
position following last year's preferred stock conversion.
This analysis supported our position that our U.S. tax attributes,
including tax loss carryforwards, have not been impaired due to the
preferred stock conversion into common stock.
"Looking forward, I continue to be encouraged by the
opportunities that lay ahead. We are still a small company, which
comes with inherent challenges. However, the strength of our
balance sheet has made MIND more resilient, financially flexible,
and has opened the door for us to pursue value-enhancing, strategic
opportunities as we strive for growth. Our focus continues to be on
positioning MIND to achieve its full potential," concluded
Capps.
CONFERENCE CALL
Management has scheduled a conference call for Wednesday, June 11, 2025 at 9:00 a.m. Eastern Time (8:00 a.m. Central Time) to discuss the Company's
fiscal 2026 first quarter results. To access the call, please
dial (412) 902-0030 and ask for the MIND Technology call at least
10 minutes prior to the start time. Investors may also listen
to the conference live on the MIND Technology website,
http://mind-technology.com, by logging onto the site and clicking
"Investor Relations". A telephonic replay of the conference
call will be available through June 18,
2025, and may be accessed by calling (201) 612-7415 and
using passcode 13753958#. A webcast archive will also be
available at http://mind-technology.com shortly after the call and
will be accessible for approximately 90 days. For more
information, please contact Dennard
Lascar Investor Relations by email at
MIND@dennardlascar.com.
ABOUT MIND TECHNOLOGY
MIND Technology, Inc. provides technology to the oceanographic,
hydrographic, defense, seismic and security industries.
Headquartered in The Woodlands,
Texas, MIND has a global presence with key operating
locations in the United States,
Singapore, Malaysia, and the United Kingdom. Its Seamap unit designs,
manufactures and sells specialized, high performance, marine
exploration and survey equipment.
Forward-looking Statements
Certain statements and information in this press release
concerning results for the quarter ended April 30, 2025 may constitute
"forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. All statements
contained in this press release other than statements of historical
fact, including statements regarding our future results of
operations and financial position, our business strategy and plans,
and our objectives for future operations, are forward-looking
statements. The words "believe," "expect,"
"anticipate," "plan," "intend,"
"should," "would," "could" or other similar
expressions are intended to identify forward-looking statements,
which are generally not historical in nature. These
forward-looking statements are based on our current expectations
and beliefs concerning future developments and their potential
effect on us. While management believes that these
forward-looking statements are reasonable as and when made, there
can be no assurance that future developments affecting us will be
those that we anticipate. All comments concerning our
expectations for future revenues and operating results are based on
our forecasts of our existing operations and do not include the
potential impact of any future acquisitions or
dispositions. Our forward-looking statements involve
significant risks and uncertainties (some of which are beyond our
control) and assumptions that could cause actual results to differ
materially from our historical experience and our present
expectations or projections. These risks and uncertainties include,
without limitation, reductions in our customers' capital
budgets, our own capital budget, limitations on the availability of
capital or higher costs of capital, and volatility in commodity
prices for oil and natural gas.
For additional information regarding known material factors
that could cause our actual results to differ from our projected
results, please see our filings with the SEC, including our Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K.
Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date
hereof. We undertake no obligation to publicly update
or revise any forward-looking statements after the date they are
made, unless required by law, whether as a result of new
information, future events or otherwise. All forward-looking
statements included in this press release are expressly qualified
in their entirety by the cautionary statements contained or
referred to herein.
Non-GAAP Financial Measures
Certain statements and information in this press release
contain non-GAAP financial measures. Generally, a non-GAAP
financial measure is a numerical measure of a company's
performance, financial position, or cash flows that either excludes
or includes amounts that are not normally excluded or included in
the most directly comparable measure calculated and presented in
accordance with United States
generally accepted accounting principles, or GAAP.
Company management believes that these non-GAAP financial
measures, when considered together with the GAAP financial
measures, provide information that is useful to investors in
understanding period-over-period operating results separate and
apart from items that may, or could, have a disproportionately
positive or negative impact on results in any particular period.
Company management also believes that these non-GAAP financial
measures enhance the ability of investors to analyze the Company's
business trends and to understand the Company's performance. In
addition, the Company may utilize non-GAAP financial measures as
guides in its forecasting, budgeting, and long-term planning
processes and to measure operating performance for some management
compensation purposes. Any analysis of non-GAAP financial measures
should be used only in conjunction with results presented in
accordance with GAAP. Reconciliation of Backlog, which
is a non-GAAP financial measure, is not included in this press
release due to the inherent difficulty and impracticality of
quantifying certain amounts that would be required to calculate the
most directly comparable GAAP financial measures.
-Tables to Follow-
|
MIND TECHNOLOGY,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(in thousands,
except per share data)
(unaudited)
|
|
|
|
April 30,
2025
|
|
|
January 31,
2025
|
|
|
ASSETS
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
9,172
|
|
|
$
|
5,336
|
|
|
Accounts receivable,
net of allowance for credit losses of $332 at each of April 30,
2025
and
January 31, 2025
|
|
|
7,779
|
|
|
|
11,817
|
|
|
Inventories,
net
|
|
|
13,447
|
|
|
|
13,745
|
|
|
Prepaid expenses and
other current assets
|
|
|
1,310
|
|
|
|
1,217
|
|
|
Total current
assets
|
|
|
31,708
|
|
|
|
32,115
|
|
|
Property and equipment,
net
|
|
|
1,048
|
|
|
|
890
|
|
|
Operating lease
right-of-use assets
|
|
|
1,221
|
|
|
|
1,320
|
|
|
Intangible assets,
net
|
|
|
2,162
|
|
|
|
2,308
|
|
|
Deferred tax
asset
|
|
|
87
|
|
|
|
87
|
|
|
Total
assets
|
|
$
|
36,226
|
|
|
$
|
36,720
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
2,011
|
|
|
$
|
2,558
|
|
|
Deferred
revenue
|
|
|
514
|
|
|
|
189
|
|
|
Customer
deposits
|
|
|
1,807
|
|
|
|
1,603
|
|
|
Accrued expenses and
other current liabilities
|
|
|
1,358
|
|
|
|
1,245
|
|
|
Income taxes
payable
|
|
|
2,681
|
|
|
|
2,473
|
|
|
Operating lease
liabilities - current
|
|
|
570
|
|
|
|
577
|
|
|
Total current
liabilities
|
|
|
8,941
|
|
|
|
8,645
|
|
|
Operating lease
liabilities - non-current
|
|
|
651
|
|
|
|
743
|
|
|
Total
liabilities
|
|
|
9,592
|
|
|
|
9,388
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
Common stock, $0.01
par value; 40,000 shares authorized; 7,969 shares issued
and
outstanding at April 30, 2025 and January 31, 2025
|
|
|
80
|
|
|
|
80
|
|
|
Additional paid-in
capital
|
|
|
135,938
|
|
|
|
135,666
|
|
|
Accumulated
deficit
|
|
|
(109,418)
|
|
|
|
(108,448)
|
|
|
Accumulated other
comprehensive gain
|
|
|
34
|
|
|
|
34
|
|
|
Total stockholders'
equity
|
|
|
26,634
|
|
|
|
27,332
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
36,226
|
|
|
$
|
36,720
|
|
|
MIND TECHNOLOGY,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands,
except per share data)
(unaudited)
|
|
|
|
For the Three Months
Ended April 30,
|
|
|
|
2025
|
|
|
2024
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Sales of marine
technology products
|
|
$
|
7,902
|
|
|
$
|
9,678
|
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
|
Sales of marine
technology products
|
|
|
4,571
|
|
|
|
5,460
|
|
|
Gross
profit
|
|
|
3,331
|
|
|
|
4,218
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
3,384
|
|
|
|
2,759
|
|
|
Research and
development
|
|
|
380
|
|
|
|
462
|
|
|
Depreciation and
amortization
|
|
|
225
|
|
|
|
267
|
|
|
Total operating
expenses
|
|
|
3,989
|
|
|
|
3,488
|
|
|
Operating income
(loss)
|
|
|
(658)
|
|
|
|
730
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
Other, net
|
|
|
(18)
|
|
|
|
469
|
|
|
Total other income
(expense)
|
|
|
(18)
|
|
|
|
469
|
|
|
Income (loss) before
income taxes
|
|
|
(676)
|
|
|
|
1,199
|
|
|
Provision for income
taxes
|
|
|
(294)
|
|
|
|
(245)
|
|
|
Net income
(loss)
|
|
$
|
(970)
|
|
|
$
|
954
|
|
|
Preferred stock
dividends - undeclared
|
|
|
—
|
|
|
|
(947)
|
|
|
Net income (loss)
attributable to common stockholders
|
|
$
|
(970)
|
|
|
$
|
7
|
|
|
Net loss per common
share - Basic and diluted
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(0.12)
|
|
|
$
|
—
|
|
|
Shares used in
computing net income (loss) per common share:
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
7,969
|
|
|
|
1,406
|
|
|
MIND TECHNOLOGY,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in
thousands)
(unaudited)
|
|
|
|
For the Three Months
Ended April 30,
|
|
|
|
2025
|
|
|
2024
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(970)
|
|
|
$
|
954
|
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
225
|
|
|
|
267
|
|
|
Stock-based
compensation
|
|
|
272
|
|
|
|
48
|
|
|
Provision for
inventory obsolescence
|
|
|
15
|
|
|
|
23
|
|
|
Gross profit from sale
of other equipment
|
|
|
—
|
|
|
|
(457)
|
|
|
Changes in:
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
3,969
|
|
|
|
(2,837)
|
|
|
Unbilled
revenue
|
|
|
16
|
|
|
|
(10)
|
|
|
Inventories
|
|
|
282
|
|
|
|
(2,812)
|
|
|
Prepaid expenses and
other current and long-term assets
|
|
|
(92)
|
|
|
|
100
|
|
|
Income taxes
receivable and payable
|
|
|
208
|
|
|
|
(186)
|
|
|
Accounts payable,
accrued expenses and other current liabilities
|
|
|
(386)
|
|
|
|
277
|
|
|
Deferred revenue and
customer deposits
|
|
|
529
|
|
|
|
(120)
|
|
|
Net cash provided by
(used in) operating activities
|
|
|
4,068
|
|
|
|
(4,753)
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(237)
|
|
|
|
(66)
|
|
|
Sale of other
equipment
|
|
|
—
|
|
|
|
457
|
|
|
Net cash (used in)
provided by investing activities
|
|
|
(237)
|
|
|
|
391
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
Net cash provided by
financing activities
|
|
|
—
|
|
|
|
—
|
|
|
Effect of changes in
foreign exchange rates on cash and cash equivalents
|
|
|
5
|
|
|
|
(3)
|
|
|
Net change in cash
and cash equivalents
|
|
|
3,836
|
|
|
|
(4,365)
|
|
|
Cash and cash
equivalents, beginning of period
|
|
|
5,336
|
|
|
|
5,289
|
|
|
Cash and cash
equivalents, end of period
|
|
$
|
9,172
|
|
|
$
|
924
|
|
|
MIND TECHNOLOGY,
INC.
Reconciliation of
Net Income (Loss) and Net Cash Used in Operating
Activities to EBITDA and
Adjusted EBITDA from
Continuing Operations
(in
thousands)
(unaudited)
|
|
|
|
For the Three Months
Ended April 30,
|
|
|
|
2025
|
|
|
2024
|
|
|
Reconciliation of
Net income (loss) to EBITDA and Adjusted EBITDA
|
|
(in
thousands)
|
|
|
Net income
(loss)
|
|
$
|
(970)
|
|
|
$
|
954
|
|
|
Depreciation and
amortization
|
|
|
225
|
|
|
|
267
|
|
|
Provision for income
taxes
|
|
|
294
|
|
|
|
245
|
|
|
EBITDA (1)
|
|
|
(451)
|
|
|
|
1,466
|
|
|
Stock-based
compensation
|
|
|
272
|
|
|
|
48
|
|
|
Adjusted EBITDA
(1)
|
|
$
|
(179)
|
|
|
$
|
1,514
|
|
|
Reconciliation of
Net Cash Provided by (Used in) Operating Activities to
EBITDA
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
|
$
|
4,068
|
|
|
$
|
(4,753)
|
|
|
Stock-based
compensation
|
|
|
(272)
|
|
|
|
(48)
|
|
|
Provision for inventory
obsolescence
|
|
|
(15)
|
|
|
|
(23)
|
|
|
Changes in accounts
receivable (current and long-term)
|
|
|
(3,985)
|
|
|
|
2,847
|
|
|
Taxes paid, net of
refunds
|
|
|
80
|
|
|
|
430
|
|
|
Gross profit from sale
of other equipment
|
|
|
—
|
|
|
|
457
|
|
|
Changes in
inventory
|
|
|
(282)
|
|
|
|
2,812
|
|
|
Changes in accounts
payable, accrued expenses and other current liabilities and
deferred revenue
|
|
|
(143)
|
|
|
|
(157)
|
|
|
Changes in prepaid
expenses and other current and long-term assets
|
|
|
92
|
|
|
|
(100)
|
|
|
Other
|
|
|
6
|
|
|
|
1
|
|
|
EBITDA (1)
|
|
$
|
(451)
|
|
|
$
|
1,466
|
|
|
|
|
|
1.
|
EBITDA and Adjusted
EBITDA are non-GAAP financial measures. EBITDA is defined as net
income before (a) interest income and interest expense, (b)
provision for (or benefit from) income taxes and (c) depreciation
and amortization. Adjusted EBITDA excludes non-cash foreign
exchange gains and losses, stock-based compensation, impairment of
intangible assets and other non-cash tax related items. We
consider EBITDA and Adjusted EBITDA to be important indicators for
the performance of our business, but not measures of performance or
liquidity calculated in accordance with GAAP. We have included
these non-GAAP financial measures because management utilizes this
information for assessing our performance and liquidity, and as
indicators of our ability to make capital expenditures, service
debt and finance working capital requirements and we believe that
EBITDA and Adjusted EBITDA are measurements that are commonly used
by analysts and some investors in evaluating the performance and
liquidity of companies such as us. In particular, we believe that
it is useful to our analysts and investors to understand this
relationship because it excludes transactions not related to our
core cash operating activities. We believe that excluding these
transactions allows investors to meaningfully trend and analyze the
performance of our core cash operations. EBITDA and Adjusted EBITDA
are not measures of financial performance or liquidity under GAAP
and should not be considered in isolation or as alternatives to
cash flow from operating activities or as alternatives to net
income as indicators of operating performance or any other measures
of performance derived in accordance with GAAP. In evaluating our
performance as measured by EBITDA, management recognizes and
considers the limitations of this measurement. EBITDA and Adjusted
EBITDA do not reflect our obligations for the payment of income
taxes, interest expense or other obligations such as capital
expenditures. Accordingly, EBITDA and Adjusted EBITDA are only two
of the measurements that management utilizes. Other companies in
our industry may calculate EBITDA or Adjusted EBITDA differently
than we do and EBITDA and Adjusted EBITDA may not be comparable
with similarly titled measures reported by other
companies.
|
|
Contacts:
|
Rob Capps, President
& CEO
|
|
MIND Technology,
Inc.
|
|
281-353-4475
|
|
|
|
Ken Dennard / Zach
Vaughan
|
|
Dennard Lascar Investor
Relations
|
|
713-529-6600
|
|
MIND@dennardlascar.com
|
View original
content:https://www.prnewswire.com/news-releases/mind-technology-inc-reports-fiscal-2026-first-quarter-results-302477968.html
SOURCE MIND Technology, Inc.
