MIND Technology (MIND) 12 Sep 242025 Q2 Earnings call transcript

Greetings. Welcome to MIND Technology's Fiscal 2025 Second Quarter Earnings Conference Call. [Operator Instructions]. Please note this conference is being recorded. I will now turn the conference over to Zach Vaughan. you. Thank

begin. may You

Rob Good Financial Second welcome We Quarter joining Vice me of operator. Officer; Chief Technology Mark and appreciate the Fiscal you Cox, are With today. XXXX Earnings and us President morning, you, and to Executive Chief and President MIND all Capps, Officer. Thank Conference Call.

I the call a cover. to items turn over have Before few to Rob, I

only therefore, a via replay XX, replay available in access was of If by as of instant call, via Information as advised Information listen you're you to XX. transcript would Investor yesterday's be today, days like provided a on listening September reported time it the the Thursday, at the accurate time-sensitive any for longer XXXX, to be to release. XX of replay company's webcast no September to or information going call will of recorded may section and the mind-technology.com until earnings of how that today's speaks on this Relations reading. replay website or

results is let the Reform begin, These future known the statements disclosed expressed its in to and actual with performance time SEC, predict by its from on for uncertainties to the contents unable of the may or please any regarding press our company expectations are by include year we statements. of in certain or performance on covered many factors, as the start the implied within statements future by control, differ morning time the company's ended this from yesterday. statements. These include and may Securities January forward-looking note remind during those release or XXXX. XXXX. which this unknown incorporated risks, the other to And we issued Before to company uncertainties report XX, of results XX-K that including cause risk call forward-looking call, materially the refer and call our or you Form management constitute are also statements Private the filings factors annual current and management's meaning that Act statements me of by this these Litigation that statement Furthermore, made risks please based forward-looking in conference

Now I would the over call like to Rob to turn Capps.

Thanks, Zach, today. joining you for thanks of all Okay. and us

I First to welcome new of stockholders. of want all our common all,

With stock common new the a conversion our MIND substantial of last now into common group of preferred has stock week, stockholders.

environment new MIND will is Mark I'll to structure a For quarter in positive me, and capital update our of from were highlights line This our wrap detailed more second opportunities. Today, provide on then with company. outlook. MIND a we've on our in discuss return encouraging with most financials. if the important quarter. some things you, new the several made not I'll our demonstrated business results provide some delivered fronts. about and expectations further remarks And progress with that MIND the

further improve and operations generated helped the manage liquidity. cash positive efficiently We operate flow to quarter, from continue We in actively which costs.

positioned long-term belief results has to well remain momentum profitability. growth. and to to ability is and periods the our another both profitability Our positioned deliver maintain generated MIND on achieve of that and We adjusted for execute and enabled build and recent EBITDA near in future positive we've quarter favorable periods, we strategically MIND in

and quarter a not stock all the of preferred stock second results, did important development. stock conversion was directly our and impact it While preferred resulting common the proposal approval very of the

for X with On touch this third Mark outstanding been more strong shares the have quarter of but million now the preferred on retired. not conversion, of been of the backlog million. quarter. We have concerned we know approximately been will which stock, $XX conversion, of you while there all you'll shares stock, see with have undeclared announcements I approximately some that in issued orders common a new X.X accrued entered third accounting about associated million dividends, outstanding, have that the recently.

Although it's activity not year, in the flow The uncommon summer. sporadic, during order order sequentially. often to the positives down backlog is quarter the especially the see at of end the throughout was

at receive. are We orders However, And and XX% than more was last they not in don't $X more historical every backlog. reported high million subsequent standards. those are believe been announce July that we than the year, we XX which or time each imminent. it are than to by Currently, higher there the quite is and in have received same order included

well we favorable future orders. financial that, results. is have orders and backlog well that believe received and our of of we bode in the prospects pending backlog an opportunities are Beyond for active We many this excess pursuing of robust pipeline

of As requirements. delivery is circumstances orders to challenges, always number the subject customer case, of the due or to any timing is unforeseen durability certain

acquire relationships, environment, partner and will high-quality as value customer MIND focus, BuoyLink are systems controllers, to SeaLink streamer continue all source GunLink narrowed I'm ever-increasing and orders these Technology choice companies versatile number our have contributing the positioning for across lines. We product that of partnerships Products. confident capabilities looking of systems cement backlog. Marine strong our macro strong favorable pending Our to a to and currently the

were Products million. the XXXX Technology of $XX quarter fiscal second revenues Marine Our for

Our flow, demonstrates and we execution ability both and to grow emphasis on customer tailwinds the sequentially the strength favorable engagement macro efficiency. put order revenue and year-over-year in and

quarters. important and a to of combat could and improved, improve issues are are we've them in to periods. to These these future inventory some our business, will and future. To almost challenges in simply months still upcoming challenges, with are we built continue component chain much that results of again the mention impact varying degrees new accommodate always steps encounter recent in the certainly to supply also while take they orders. pending which our us enhanced structure, cost to has recent in We profitability It's

our the therefore, backlog Additionally, and, give us procurement as we've orders processes does margins. visibility better improve ability expected of and and better our manage to noted, magnitude

for is the advantageous to market continue current MIND. We believe environment that

opportunity where markets remain months. in we and come RFQs summer the key inquiries loaded as Our an we seeing customer uptick out are of with

Technology that systems SeaLink growing address to In our demand good high-resolution this. I'm give the streamer continues suite now and approach operating us advantage ultra evolving the Marine example streamlined of seeing within products differentiated customers. to develop will focused a addition to our are and of of our implement we're sales and best-in-class more products, regarding and to ways to of the competitive inquiries new confident technologies meet suite a team continue innovative to and industry. our our adapt needs Recent the

and activities, look for as own for both repair the to continue products Our products, third-party as promising our well future. develop

customer see technology of are has our We Recent AI further promising through prospects. software in hope a suite Oceans. been for and continue traction find this to believe Spectral there with the software future. number our positive, applications collaboration for for agreement this We feedback General to we

Now in detail. through second Mark you more I'll walk results let the quarter a financial bit

amounts have as Rob, that to Klein, I good operations several been of including the They our that here results discontinued calls, the do treated from and that. prior not yesterday operations the comparative only everyone include with period to past Thanks, continuing reflect ongoing include Consistent with data, related are been those results prior to morning, Accordingly, period sale reported remind would have operations we restated Klein. today, business. like and and discussing everyone.

from about the ago. Rob XX% period million which $XX mentioned earlier, revenues in Products Marine quarter was Technology As in million from approximately year up the same sales totaled $X.X a

the believe quarters. robust positions the our demand for we're underlying to strength and the well high-level revenue sustained in all significant backlog coming key markets continue We driving seeing customer in our us

year XX% profit increased million compared approximately XX% to when for year. second margin, production XXXX quarter manufacturing efficiencies approximately XX% which increases business. overhead which resulted profit gross quarter was was activity of Margins greater quarter This $X.X also the in stemmed quarter, benefited were the also same increased in Second compared margin up implemented Gross the as a to approximately that the well from the throughout last was that absorption. price as greater when ago. approximately improvement from

of for was of down last million sequentially quarter year. were flat and quarter second million and the XXXX Our $X.X in second $X.X administrative which general expenses from slightly the fiscal

also we continue We as sale of reductions expect streamline to quarter additional in administrative expenses costs general third the in overhead the following and Klein.

moment. costs accounting touch to into sale administrative and incremental most As our Klein we've mentioned and has attributable not the resulting for common should notably some expenses previous conversion do to to that stock costs, and of I'll corporate allowed calls, general note related preferred third-party the on of costs the on include Klein. I in streamline of that preferred the related thereby a stock proposal stock. our to us reduce support operations

sequentially quarter Our streamer second income the for million research both towards system compared quarter the of in AI second approximately $XXX,XXX period. expense and of quarter second of continued and was our loss down directed Spectral the and an development development fiscal software of for $X.X next-generation compared our to suite. Operating operating XXXX. the are the was $XXX,XXX. largely costs to prior These development was year This

of $X.X Our was income $XXX,XXX, of adjusted the in $XXX,XXX quarter the EBITDA fiscal the in adjusted second approximately for of an ago. Net quarter net second second of compared a from the which million to improvement XXXX. quarter loss loss was year EBITDA $XXX,XXX approximately million second quarter $X.X was an

of hope momentum future As building Rob have achieved mentioned, another period. on and we're to we in profitability, the continue pleased to this quarter

capital of hand. As on million we of of and cash July million had XXXX, working approximately XX, $X.X $XX.X

the executing MIND's to backlog during requirements inventory expected, quarter, impacted operational to be orders. and a of related acquiring As liquidity continued on by

second debt However, generate from and MIND in as The of $X operations sheet free. the cash of flow strong today, we remains remains million balance approximately did quarter.

value. clean the conversion to MIND which flexibility has preferred and capital after from month, this maintains enhance structure stockholder a Additionally, stock now good earlier

our As conversion preferred stock in quarter of Rob is transaction. the the this reflect not second financials, reflected results. In quarter the will third we mentioned,

value million common record stock, transaction the million, costs. costs excess will stock eliminated. current approval the less in described currently as to shares carrying fees approximately The preferred the the value at the of be expect new associated of associated the preferred legal statement stockholders and value be of will to This new The credited with approximately retained proposal. common to issuance to of of over We the $XX stock recorded such which be then the solicitation was stock of X.X the common provided treatment market stock, of directly the we proxy the preferred earnings. estimate value of carrying

pass to some now over comments. for Rob it I'll concluding back

lines. line. We build XXXX. and opportunities developed a product our tailwinds the costs and to that. Seamap level for lean interest fully higher orders. margins our strong to that to valuable expect continues and We the relationships operating approach sustained MIND Mark. new operations positive demand our to customer a and We've across continue periods, strong impact our and enhance to fiscal structure in we've positive other Thanks, Seamap customer our continue bottom revenue by and that remain recent positively benefit unit this significant and from improve to seeing maintain encouraged in throughout have adjusted market. results. enabled profitability And momentum notable continue Okay. manage reflects to generated achieve We're EBITDA drive initiatives focused backlog streamlined partnerships and and our We us

work of our the a penetrate meet of to Our direct and reflective of is to and to continue needs adapt our lines. received a evolving industries significant team that of and demand pending product Marine variety has the done continually customers. the develop technology this adoption our Technology prospects I markets. our other pipeline and correlation our to Products We orders believe market are of and believe

on the deliver believe and with While MIND results coming quarters. the improved we're capitalize poised additional to in results pleased quarter, our second from is opportunities we

different past. requirements. As occur have bound remind from in delivery could everyone I'd to revenue circumstances future and are they usual, challenges fluctuations at like the this result And from simple customer at of the quarter-to-quarter in number or unforeseen times as revenue variation any some to that in point

beyond. belief development flexibility in to in trend of general and our opinion, is provides these common opportunities. of XXXX We maintain deal conversion another continue a the to sustainably The of higher level stock that important revenue stock pursuing great will my be one the that, preferred throughout of remainder fiscal

results be Looking challenges for forward year. of compared to any expect second somewhat of fiscal circumstances, and the the half unforeseen improved to unexpected first or barring we half XXXX the the

and confidence macro Our quarters, current customer profitable higher anticipate give year backlog visibility, continued the will continue MIND. coming which us for revenue in another to see strong culminating and positive we adjusted healthy that in engagement, favorable we tailwinds EBITDA

We a of operator, capitalizing a for very and positive forward. With value structure. on we favorable call can as differentiated capital clean products, have to environment these and market to stockholder debt-free the we questions. increase now look move suite a forward market-leading We now open factors that,

[Operator with Instructions] Bauer Tyson KC Our first Capital. question is from

Congratulations, gentlemen.

Thanks, Tyson.

A be outlook add think stressful now somewhat a but about all we've softened your you're will cap comments XX%. of kind less backlog for on focus, that XX%, structure. from go We I Obviously, lot involved so to the of a that. XX%, XX% another X%, got

your maintaining you're backlog. So

timing level quarters at unique improvement forward? other second $XX-plus You million couple mentioned that we next sustained we results. Do we've be that that maybe kind go now benchmark as than with an of as of issues, some forth at revenue in look you going should the where in half hit

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understanding have on the order given falls particular quarter. to next impact from week an when a one Just that a could

we and have as would one up not quarter. $XX if though just I So an a million -- if wake don't million shocked there's panicking be day $X be quarter,

Right.

think that was quarter financial impressive the one you in I your of XX.X%. gross posted the more margin metrics of

XX.X%, I operating lighter from kind that a any think at Is through combination? that's that take is that basis Or a little that's I on mainly that day. revenue which about that or just had I'll pricing the ahead the of over points of -- coming leverage? schedule, you XXX

helps going leverage that. something of that it's about pleased mix a into rationally. operating really to an that that things trying can But are Product we've been the we and there hope and so lot, able on, we're impact, Certainly, we more a buy continue combination. all Yes, That's to are calculus. has forward. very focus sorts go

continue? SO also we or being you sustainable that see widening as

of sustainable. that sort a Again, a done wouldn't at be thing improving what all. that products say I we've if just good quarter, given dip a impact discount think level. we concern would more happen, Again, a the quarter-to-quarter. what margins job couple saw cause I points, hundred structures quarter of the gross during of But of at can

flow I from another up think financial metric impressive million cash being here operations quarter. the is in $X

you that is the had Given little to that item. be increase net work Are $X working a that while your it's that we we've in a of sustained positive numbers inventory, on going then a outlook had bit million been second Or kind to line for a and expected half? your inventory? down of what is capital

expect we some hope Again, buy down receivables trying turn starting we work would with down have we down that. bit, you the general, therefore, from to in need next be But would future I see months, Yes. to we to inventory that we'd be cash shipped. work in and able order cases, we're expect to deliver collecting that week a in and X to flow bit. a impact. And an aggressive some bit. of as work the that that maybe in prebought Having that have things big day a the I can us that a get that, to quite said don't to

You go get big ahead and orders. those

Exactly.

have would Diluted million is with now count, reporting much you far options which the as think quarter around anything roughly X in positive EPS wouldn't a very conversion, give shares, we be purposes I share the money. or $X.XX. should GAAP else as have that you

is work million fairly number X with? that to diluted a So good

There's Yes. nothing the point. this Yes, at money it in is.

number. should good that So be a

share? post are of. the conversion? my retained talked million what was What at your $XX notes. your book know look I I rid the about looking trying value getting you quickly to per earnings book of you preferred on back And and value go does Net-net, like

Gosh, Tyson evening. in front will just hate of me, do off-the-cuff. I I don't something the this have XX-Q so to out be number

off want their it don't of can values. don't me, do pretty that. have on and everybody to of get misstate math so in front I can But I think own close that I

of talking your business things know about and outside products services. of actual I'm lot a I

addition One which of preference those of of a market in key on based of you things, the preferred accumulated value and got valuation go seen what just alone? did accumulate XX%, and dividends, away in getting you rid value that the included which adjustment getting a market a to to numbers marketplace those million, was continue $XX you little before your will conversion. surprised Are all of to haven't an value the just rid you're the liquidation not we

that's about buying not the Obviously, been recently, that There's unload in to think to the some are people demand preferred arbitrage not kind instead. common buy intended Frankly, the of who be bought natural in really the people you will there immediately. place. who been preferred

I that now. we're right of some think So seeing selling pressure

I in off take weeks. itself. think continue we of stock And and itself to will work I as So care the would expect that price days the maybe perform, to coming

I'm concerned So that. about not

Okay. Yes, their assume, as on on those posted traction, a equal. basis, what would you're giving you being converted the all other see non-votes we what work no I things should as some an through pro positive of outlook we votes, shares, given preferred forma and

I hope so. so. expect would I

great somebody but will for sure some job, thanks have guys. questions business I'm right. lot, else All you, and a

Investment Our Instructions] [Operator Ross from Taylor Partners. question is next with ARS

easy And people got for Thank it get it some was an done. thing also I'll to It you had done you I your echo and perseverance. me congratulations. telling get thank Tyson's and done. not wouldn't

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million. $XX About

is, about talked business. on G&A quarter the Second kind expect a rate basis? G&A see of forward, going annually either should What rightsizing the as pulling you or run we you're down to

So point we're but where we're at see like drastically, that think down $XXX,XXX a so, just starting $X.X at we're to headcounts I some things million this little a quarter. places. or to bit, in I not bit, would tweak a just

that kind maybe maybe rough the off sense, $X.X and some look but are those make $X.X annualized numbers, obviously. million at you million that, So level of take

million your to that's that And be should $X.X million Okay. that works million hold should number that number revenues, as out down grow confident able $XX a to you you that that and -- around you're something annualized range? $XX annually towards

so, Yes, I yes. think

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per Yes. money It's real share.

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of half to get time before preferred year we that that should there one the add back we the first the base in was uniquely that backing Is dividend? out level anything be

in I past. that -- that of seasonality unusual. some G&A talked Again, some don't there's the we've in nothing about think really costs, our costs,

out ordinary. nothing So the of

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we're you going shareholders. create into clean this creates and easier the on it Will actually look earnings, -- being come to a does have also the me. value. sentence you and forgive Is that will a you went meaningful be where realized? this better color MIND. X balance where, creating -- obviously, the that opinion, capital some see stockholder value school, is much structure. for to to more sheet, a how this go up important the stage situation comment setting step value. public a simplifies And, in is is, made I an sentences. my last It our for It's You set had common first But which appropriately left people million to we the one strategically number all was situation the it problem same to roughly little be is that but very past, level In think acceptable the now with holders, we're $XX will value for for of holders, all the up the that at going the preferred found in MIND boat.

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next with is Sam from question Our Schwartz Management. Kaliber

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question-and-answer our of turn to the I session. closing end the reached like back management remarks. conference for have over We to would

for to quarter of very forward. Thanks learn about weeks. to taking and I thanks few end you you us Thank would this at kind we're visiting forward Okay. the today joining and our in everybody we to We going stand where where much. much. of a morning very like third time look

Thank conference. today's you. conclude will This

disconnect you You this your lines participation. thank may your and at time, for