MIND Technology(US:MIND)2019-09-05 20:29Revenue Performance - Marine Technology Products segment revenue increased to $6,745,000 for the three months ended July 31, 2019, compared to $6,012,000 in the same period of 2018, representing a growth of 12.2%[75] - Total revenues for the six months ended July 31, 2019, reached $18,755,000, up from $15,963,000 in 2018, indicating a year-over-year increase of 17.6%[75] - Revenues for the three months ended July 31, 2019 were approximately $8.9 million, compared to approximately $8.4 million for the same period in 2018, reflecting a year-over-year increase of about 6%[91] - For the six months ended July 31, 2019, revenues totaled approximately $18.8 million, an increase of approximately 17.5% compared to $16.0 million for the same period in 2018[91] - Revenues from international customers for the six months ended July 31, 2019 were approximately $15.2 million, representing 81% of consolidated revenues, compared to $13.4 million or 84% in the same period of 2018[89] Segment Performance - Gross profit for the Marine Technology Products segment was $2,836,000 for the three months ended July 31, 2019, compared to $2,661,000 in 2018, reflecting a 6.6% increase[75] - The Equipment Leasing segment reported revenues of $2,175,000 for the three months ended July 31, 2019, down from $2,473,000 in 2018, a decline of 12.1%[75] - The gross profit margin for Marine Technology Products was 42% for the six months ended July 31, 2019, consistent with the prior year[92] Operational Improvements - Adjusted EBITDA for the three months ended July 31, 2019, was $(952,000), an improvement from $(1,114,000) in the same period of 2018[76] - The operating loss for the three months ended July 31, 2019 was approximately $3.1 million, an improvement from an operating loss of approximately $4.6 million for the same period in 2018[91] - General and administrative expenses decreased to approximately $4.8 million for the three months ended July 31, 2019, down from $5.5 million for the same period in 2018, a reduction of about 12.7%[98] Future Growth Prospects - The SeaLink product line, introduced in fiscal 2019, is expected to increase revenues, although it did not significantly contribute in fiscal 2019 due to initial costs[82] - Klein's new MA-X technology is projected to enhance survey efficiency by 40% and improve image quality, potentially boosting demand for sonar products[84] - The company anticipates that the production facility in Malaysia will operate near capacity for the remainder of fiscal 2020, with plans to explore capacity expansion[82] - The company expects to deliver initial orders of new sonar technology in the third quarter of fiscal 2020, with ongoing opportunities in both commercial and military sectors[86] Financial Position - As of July 31, 2019, working capital was approximately $26.8 million, a decrease from $28.8 million at January 31, 2019, including cash and cash equivalents of approximately $7.6 million[102] - The company currently has no interest-bearing bank debt on its balance sheet as of July 31, 2019[115] Cash Flow and Investments - Net cash used in operating activities decreased to approximately $3.5 million for the first six months of fiscal 2020, compared to $5.8 million in the same period of fiscal 2019, reflecting improved earnings and changes in working capital[103] - Cash provided by investing activities increased to $622,000 in the first six months of fiscal 2020, compared to a cash outflow of $2.1 million in the same period of the prior year[104] - Proceeds from the sale of lease pool equipment totaled approximately $1.2 million in the first six months of fiscal 2020, down from $2.8 million in the same period of fiscal 2019[105] - Net cash provided by financing activities was approximately $1.0 million in the first six months of fiscal 2020, compared to $4.7 million in the prior year, with $2.0 million from sales of Preferred Stock[107] Foreign Currency Impact - A 10% increase in the U.S. dollar against foreign currencies would result in a loss of approximately $140,000 in the value of foreign currency deposits[113] - Approximately 5% of the company's net assets as of July 31, 2019, were impacted by changes in foreign currencies in relation to the U.S. dollar[114] - As of July 31, 2019, the company had approximately $4.9 million in deposits in foreign banks, which could be distributed to the U.S. without adverse tax consequences[109] Tax Provision - The tax provision for the six months ended July 31, 2019 was approximately $103,000, a decrease from approximately $522,000 for the same period in 2018[100]