Financial Data and Key Metrics Changes - MIND Technology reported third-quarter revenues of $9.7 million, slightly down from the previous quarter but still profitable, indicating consistent execution and cost structure optimization [12][14] - Gross profit for the quarter was $4.5 million, resulting in a gross profit margin of 47%, an improvement from 45% year-over-year, primarily due to a favorable product mix [14][17] - Net income decreased to $62,000 compared to $1.3 million in the same quarter last year, influenced by a higher effective tax rate due to discrete tax expense items [17][18] Business Line Data and Key Metrics Changes - The aftermarket business accounted for approximately 64% of total revenues in the first nine months of the fiscal year, providing a stable and recurring revenue stream [11][12] - The backlog of firm orders as of October 31, 2025, was approximately $7.2 million, down from $12.8 million as of July 31, 2025, but new orders totaling about $9.5 million were received after the quarter ended [7][10] Market Data and Key Metrics Changes - Customers across various industries are adopting a wait-and-see approach to larger system orders due to geopolitical and economic uncertainties, although the long-term outlook for the seismic exploration industry remains positive [8][19] - The company maintains a solid pipeline of potential orders, primarily from its three main product lines: GunLink source controllers, BuoyLink positioning systems, and SeaLink streamer systems [10][19] Company Strategy and Development Direction - MIND Technology aims to capitalize on growth opportunities by investing in the development of next-generation marine technology products and expanding its product offerings [13][20] - The company is exploring mergers and acquisitions, organic growth opportunities, and strategic alliances to enhance stockholder value and expand its scale [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving improved results in the fourth quarter despite current market uncertainties, viewing the recent lull in order activity as temporary [6][19] - The long-term pipeline of opportunities is considered very positive, with expectations for a clearer outlook for fiscal 2027 in the next call [20][24] Other Important Information - The company raised approximately $11 million through share issuance via its ATM program, enhancing its liquidity and flexibility for future opportunities [18][22] - MIND Technology maintains a clean, debt-free balance sheet with significant working capital of approximately $35.8 million, including $19.4 million in cash [17][18] Q&A Session Summary Question: Confidence in fiscal Q4 and order turnaround - Management confirmed that recent orders were anticipated and in process, contributing to confidence for Q4 results [28][29] Question: Gross margin improvement and system sales contribution - The improvement in gross margin was attributed to fixed cost absorption rather than pricing strategies on large systems [30][31] Question: Geopolitical risks and customer interest - Management noted a mix of new and existing customers showing interest, indicating a positive outlook despite geopolitical risks [32] Question: ATM program and capital deployment - The ATM program was utilized to strengthen working capital, with no specific event targeted for financing [33][34] Question: Future revenue growth and scaling opportunities - Management indicated that growth could come from new product offerings or market expansions, not solely through M&A [36][38] Question: GWL collaboration details - The collaboration is focused on product line expansion rather than aftermarket servicing [42][43] Question: U.S. revenue generation and tax asset utilization - The company aims to increase U.S. revenue to leverage tax loss carryforwards, with potential annual contributions of $3-10 million [60] Question: Maintenance work as a revenue driver - Maintenance work is expected to grow as the installed base increases, contributing to recurring revenue [61][62] Question: Operating profit margin expectations - Management anticipates improvements in operating profit margins as top-line revenue increases, despite recent stock-based compensation impacts [63][64]