MIND Technology(US:MIND)2025-12-11 21:16Financial Performance - Revenues for the three months ended October 31, 2025, were approximately $9.7 million, a decrease from $12.1 million for the same period in 2024, while revenues for the nine months ended October 31, 2025, were approximately $31.2 million compared to $31.8 million in 2024[88]. - Operating income for the three months ended October 31, 2025, was approximately $774,000, down from $1.9 million in the same period of 2024, and for the nine months ended October 31, 2025, it was approximately $2.8 million compared to $4.0 million in 2024[88]. - Gross profit margin for the three months ended October 31, 2025, increased to 47% from 45% in the same period of 2024, and for the nine months, it remained at 47% compared to 45% in 2024[90]. - The company anticipates generating net income for fiscal 2026, following positive Adjusted EBITDA for fiscal 2024 and fiscal 2025[97]. Order Backlog and Future Expectations - As of October 31, 2025, the backlog of firm orders was approximately $7.2 million, down from $16.9 million as of January 31, 2025, but additional orders totaling approximately $9.5 million were received after this date[79]. - The company expects revenue in the fourth quarter of fiscal 2026 to improve compared to the third quarter of fiscal 2026, driven by increased activity and backlog[80]. - The company is pursuing new product initiatives and significant project opportunities that could positively impact future financial results, particularly in fiscal 2027[80]. Cash Flow and Capital - For the nine months ended October 31, 2025, the company generated net cash provided by operating activities of approximately $5.9 million, compared to cash used in operating activities of approximately $1.4 million for the same period in 2024[99][104]. - As of October 31, 2025, the company had working capital of approximately $36.0 million, including cash and cash equivalents of approximately $19.4 million, an increase from working capital of approximately $23.5 million and cash equivalents of approximately $5.3 million as of January 31, 2025[98][103]. - The company raised approximately $10.8 million in new capital through the sale of common stock, significantly increasing liquidity[82]. - Net cash provided by financing activities for the nine months ended October 31, 2025, was approximately $10.8 million, primarily from sales of common stock under the ATM program[106]. - The company initiated an at-the-market (ATM) offering program in September 2025, allowing for gross proceeds of up to $25.0 million, and has generated net proceeds of approximately $10.8 million from the issuance of approximately 1.0 million shares of common stock[100]. Expenses and Investments - Research and development costs for the three and nine months ended October 31, 2025, were approximately $506,000 and $1.2 million, respectively, compared to $562,000 and $1.4 million in the same periods of 2024[92]. - General and administrative expenses for the three and nine months ended October 31, 2025, were approximately $3.0 million and $10.0 million, respectively, compared to $2.8 million and $8.3 million in 2024, primarily due to higher stock-based compensation[91]. - The company’s facility in Huntsville, Texas underwent an expansion, which is expected to lead to increased revenue following the resumption of repair and production operations[78]. Tax and Foreign Operations - The income tax expense for the three months ended October 31, 2025, was approximately $716,000 on pre-tax income of approximately $778,000, compared to an income tax expense of approximately $396,000 on pre-tax income of approximately $1.7 million for the same period in 2024[95]. - As of October 31, 2025, the company had deposits in foreign banks totaling approximately $4.9 million, which could be distributed to the United States without adverse tax consequences[108]. - The company has determined that undistributed earnings of foreign subsidiaries are not deemed indefinitely reinvested outside of the United States as of October 31, 2025[107]. - The company does not currently hold or issue foreign exchange contracts or other derivative instruments to hedge currency exposure, which includes approximately $566,000 in cash and cash equivalents denominated in foreign currencies[113]. - The company has no off-balance sheet arrangements as of October 31, 2025[109].