Financial Data and Key Metrics Changes - MIND Technology reported product revenues of $13.6 million for the second quarter of fiscal 2026, representing a 35% increase compared to the same period last year [13] - Gross profit for the second quarter was $6.8 million, resulting in a gross profit margin of 50%, which improved both sequentially and year-over-year due to a favorable product mix [13] - Operating income increased by approximately 86% to $2.7 million compared to $1.4 million in the same quarter a year ago [16] - Net income for the second quarter was approximately $1.9 million, up from $798,000 in the same quarter last year [16] - Working capital as of July 31, 2025, was approximately $25.1 million, including $7.8 million in cash [16] Business Line Data and Key Metrics Changes - The aftermarket business accounted for about 68% of total revenues in the first six months of the fiscal year, contributing significantly to improved financial results [9] - The company’s backlog of firm orders decreased to approximately $12.8 million as of July 31, 2025, down from $21.1 million as of April 30, 2025 [6] Market Data and Key Metrics Changes - General market conditions within the marine technology space remain good, although some customers are adopting a wait-and-see approach due to macroeconomic uncertainties [11] - The company noted a slowdown in U.S. activity for offshore wind projects, contributing to cautiousness in the market [38] Company Strategy and Development Direction - MIND Technology is focused on enhancing stockholder value through strategic positioning, financial flexibility, and expanding product offerings [18] - The company plans to continue investing in the development of next-generation marine technology products to meet evolving customer needs [12] - The expansion of the manufacturing and repair facility in Huntsville, Texas, aims to support increased aftermarket activity and new product development [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the balance of fiscal 2026, citing a solid existing backlog and a strong pipeline of pending orders [22] - Despite current uncertainties, management believes long-term market dynamics within the marine technology industry remain favorable [11] - The company anticipates achieving positive adjusted EBITDA and profitability in each of the remaining quarters of fiscal 2026 [22] Other Important Information - MIND Technology has established an at-the-market (ATM) program and a stock buyback program to enhance stockholder value [20] - The company is looking for acquisition opportunities that are additive to its current operations and have a lower risk profile [43] Q&A Session Summary Question: Clarification on parts and services revenue - Management indicated that parts and services revenue for the quarter was approximately $7 million, with no catch-up from Huntsville [27][28] Question: Variance in backlog - Management clarified that there were no cancellations, and some aftermarket business will be included in the backlog, contributing to the variance [31][32] Question: Acquisition strategy - Management is focused on acquisitions that are additive to current operations, ideally involving products or small divisions of other companies [43][44] Question: Opportunities from Huntsville expansion - Management believes the Huntsville expansion could add around 10% or more to annual revenues, including repair work for third-party products [50][51] Question: Future growth expectations - Management indicated that growth rates may be in the high single digits to low double digits, but cautioned about potential fluctuations due to order timing [54][55]