Core Insights - Moving iMage Technologies, Inc. (MITQ) shares have declined 6.4% since the earnings report for the quarter ended December 31, 2025, underperforming the S&P 500 index's 1.5% decline during the same period [1] - The stock has fallen 16.2% over the past month compared to a 1.9% drop in the broader market, indicating a cautious investor sentiment despite improvements in quarterly performance [1] Financial Performance - For Q2 fiscal 2026, MITQ reported a net loss of $0.04 per share, an improvement from a loss of $0.05 per share in the same quarter last year [2] - Revenues increased by 10% year over year to $3.8 million from $3.4 million, while gross profit rose 24% to $1.2 million, with gross margin expanding to 30.7% from 27.2% [2] - Operating loss narrowed to $0.4 million from $0.6 million in the prior-year quarter, and net loss also narrowed to $0.4 million from $0.5 million [3] Key Business Metrics - MITQ ended the quarter with approximately $4.5 million in working capital, including net cash of $3.9 million and no debt [4] - Cash decreased from $5.7 million at June 30, 2025, to $3.9 million at December 31, 2025, primarily due to a $1.5 million cash outlay for the DCS loudspeaker line acquisition and increased inventory levels [4] - Inventory rose to $3.1 million at quarter-end from $2.1 million at June 30, 2025 [4] Operating Expenses - Operating expenses increased by 5.1% year over year to $1.6 million, mainly due to higher legal expenses [5] - Despite the rise in expenses, improved gross profit helped narrow operating losses, although operating cash flow showed a net use of $1.8 million for the six months ended December 31, 2025, compared to positive cash flow of $0.04 million in the prior-year period [5] Management Commentary - The Chairman and CEO described the second quarter as productive, highlighting a 10% revenue growth during a typically slower period for exhibitors [6] - There is cautious optimism about a rebound in domestic box office receipts in calendar 2026, driven by continued demand for immersive and premium large-format cinema experiences [6] Strategic Developments - The acquisition of the DCS loudspeaker line for $1.5 million is expected to enhance MITQ's proprietary product offerings and expand its international footprint [7][12] - The company has signed distribution agreements with over 25 cinema equipment dealers across various regions, promoting DCS in more than 50 countries [7] Factors Influencing Performance - Revenue growth was supported by steady order flow for parts, replacement products, and higher-margin proprietary offerings during a typically slower exhibition period [8] - Gross margin expansion was attributed to a higher percentage of product revenues and operational execution, while operating expenses were pressured by elevated legal costs [8] Guidance - Management anticipates third-quarter fiscal 2026 revenues of approximately $3 million, reflecting customary seasonality and initial ramp-up in DCS-related sales [11] - Gross margin percentage is expected to return to prior-year lower levels according to management commentary [11]

Financial Data and Key Metrics Changes - The company's Q2 2026 revenue increased by 10% to $3.3 million compared to Q2 2025 [4][13] - Gross profit dollars rose by 24% to $1.16 million, with an improved gross margin of 30.7%, up from 27.2% in Q2 2025 [13] - Operating loss improved to negative $408,000 from negative $561,000 in the same period last year [14] - Net loss improved to negative $388,000, or negative $0.04 per share, compared to a net loss of negative $527,000, or negative $0.05 per share in Q2 last year [14][15] - Working capital at the close of Q2 2026 was $4.46 million, down from $4.59 million in Q2 2025 [16] Business Line Data and Key Metrics Changes - The acquisition of the DCS loudspeaker line is expected to significantly contribute to the business, expanding proprietary product lines and enhancing market reach [8][10] - Initial sales activity for the DCS product line has confirmed market interest, with total sales and pending sales backlogs of $400,000 expected to be recorded in Q3 2026 [11] Market Data and Key Metrics Changes - The company is positioned to meet the ongoing need for modernization in cinema infrastructure, which is critical for improving operational efficiency and customer experience [12] - The DCS acquisition is expected to enhance the company's presence in both domestic and international markets, where it has had limited penetration previously [11] Company Strategy and Development Direction - The company remains cautiously optimistic about future cinema infrastructure spending, particularly for new laser projection systems and immersive audio technologies [5] - The strategic acquisition of DCS is seen as a prudent investment that will create long-term value for shareholders [8] - The focus is on disciplined execution, balance sheet strength, and seamless integration of the DCS acquisition to unlock operating leverage and support sustainable growth [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals supporting cinema technology investments, despite potential delays in large projects during the summer and holiday seasons [5] - The company is encouraged by the progress made during the quarter, including solid revenue growth and the successful acquisition of DCS [12] Other Important Information - The company has established warehouses in California, the Netherlands, and China to support global operations [10] - Distribution relationships have been signed with over 25 cinema equipment dealers across various regions, promoting DCS in over 50 countries [10] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without any inquiries from participants [18]

Moving Image Technologies (NYSEAM:MITQ) Q2 2026 Earnings call February 12, 2026 11:00 AM ET Company ParticipantsBill Greene - CFOChris Eddy - Investor RelationsFrancois Godfrey - VP of Business Development.Phil Rafnson - CEOOperatorGood morning, everyone, and welcome to the Moving iMage Technologies Fiscal 2026 second quarter conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistan ...

Financial Data and Key Metrics Changes - The company's Q2 2026 revenue increased by 10% to $3.3 million compared to Q2 2025 [13] - Gross profit dollars rose by 24% to $1.16 million, with an improved gross margin of 30.7%, up from 27.2% in Q2 2025 [13] - Operating loss improved to negative $408,000 from negative $561,000 in the same period last year [14] - Net loss improved to negative $388,000, or negative $0.04 per share, compared to a net loss of negative $527,000, or negative $0.05 per share in Q2 last year [14] - Working capital at the close of Q2 2026 was $4.46 million, down from $4.59 million in Q2 2025 [15] - Net cash at the end of Q2 2026 was $3.9 million, compared to $5.3 million at Q2 2025 [16] Business Line Data and Key Metrics Changes - The acquisition of the DCS loudspeaker line is expected to significantly contribute to the business, expanding proprietary product lines and market reach [7][8] - Initial sales activity for the DCS product line has confirmed market interest, with total sales and pending sales backlogs of $400,000 expected to be recorded in Q3 2026 [11] Market Data and Key Metrics Changes - The company is positioned to meet the ongoing need for modernization in cinema infrastructure, which is critical for improving operational efficiency and customer experience [12] - The DCS acquisition is expected to enhance the company's presence in both domestic and international markets, where it has had limited penetration previously [11] Company Strategy and Development Direction - The company remains cautiously optimistic about future cinema infrastructure spending, particularly for new laser projection systems and immersive audio technologies [5] - The strategic acquisition of DCS is seen as a prudent use of cash that will create long-term value for shareholders [8] - The focus is on disciplined execution, balance sheet strength, and seamless integration of the DCS acquisition to unlock operating leverage and support sustainable growth [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals supporting cinema technology investments, despite potential delays in large projects during certain seasonal windows [5] - The company is encouraged by the progress made during the quarter, including solid revenue growth and the successful acquisition of DCS [12] Other Important Information - The company has established warehouses in California, the Netherlands, and China to support global business operations [10] - Distribution relationships have been signed with over 25 established cinema equipment dealers across various regions [10] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without any inquiries from participants [18]

Core Insights - Moving iMage Technologies (MiT) has acquired the Digital Cinema Speaker Series (DCS) loudspeaker product line from QSC, enhancing its position in the global cinema market [1][2][3] - The DCS line is recognized for its high-quality audio performance and has a strong legacy in the cinema industry, making it a strategic addition to MiT's offerings [2][5][8] Company Overview - MiT is a provider of advanced out-of-home entertainment technology and services, focusing on cinemas, Esports, stadiums, and arenas [1][12] - The acquisition was funded through MiT's solid balance sheet, and the transaction closed on October 31, 2025 [3] Product Details - The DCS product line includes three series: SC Series (screen channel loudspeakers), SR Series (surround speakers), and SB Series (low-frequency effects speakers) [7][8] - The acquisition includes access to designs, trademarks, and other intellectual property necessary for manufacturing, as well as inventory management [3][4] Market Position - The DCS line has gained significant global market share since its introduction in 2004, becoming a standard in modern cinema sound [2][5] - MiT aims to leverage the DCS brand to expand its customer base and enhance its value proposition in North America and globally [8]

Financial Data and Key Metrics Changes - Q4 2025 revenue declined 7.3% to $5.88 million compared to $6.35 million in Q4 2024 due to reduced customer project activity [14] - Gross profit dollars decreased to $1.2 million in Q4 2025 from $1.43 million in Q4 2024, with a gross margin of 20.4% versus 22.5% in Q4 2024 [14] - Fiscal year 2025 revenue declined 9.9% to $18.15 million from $20.14 million in 2024, with an improved gross margin percentage of 25.2% compared to 23.3% in 2024 [15][16] - Net loss for 2025 was $948,000 or minus $0.10 per share, improving from a net loss of $1.372 million or minus $0.13 per share in 2024 [16] Business Line Data and Key Metrics Changes - The company reported a solid sequential improvement in Q4 2025 revenue from Q3 2025, which was $3.57 million [11] - The company is focused on converting identified market opportunities into revenue, particularly in cinema technology upgrades and special projects [6][7] Market Data and Key Metrics Changes - The domestic box office saw a substantial rebound in the June quarter, generating approximately $2.6 billion in revenue, a 37% increase year-over-year [5] - The total domestic revenue for 2025 is expected to reach approximately $9.4 billion, supported by major year-end releases [5] Company Strategy and Development Direction - The company aims to reduce exposure to business cycles in the cinema equipment industry and seeks to build a more predictable and recurring revenue base [6][7] - The marketing plan focuses on building brand visibility and driving qualified sales leads through key industry trade shows [8] - The company is actively identifying and evaluating complementary products or services to expand its geographical reach and enhance long-term growth [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about new business opportunities driven by box office strength and customer demand for technology upgrades [4][5] - The company is navigating macroeconomic headwinds and expects a modest rebound in box office performance, which may delay technology refreshes and investments [11][12] - Management emphasized ongoing cost management and cash preservation to ensure sufficient resources for future growth [12] Other Important Information - The company recorded a Q4 2025 operating loss of $187,000, an improvement from a loss of $462,000 in Q4 2024 [15] - The net cash position grew to $5.7 million at the close of 2025, with no long-term debt [16][17] Q&A Session Summary Question: What is the size of the funnel of new opportunities compared to the beginning of the year? - The funnel of new opportunities continues to grow and evolve, with a positive outlook as customer activity increases [20][21] Question: Update on LEA professional power amplifiers? - The company remains optimistic about LEA professional power amplifiers, which are undergoing a lengthy testing process before being operationally approved [22] Question: Status on bids for large sports venues? - The company is still actively bidding on various projects related to large sports venues [23] Question: Details on the recurring revenue base? - The recurring revenue base consists of operational items dependent on the customer base, with expectations for growth as the customer base expands [25] Question: Are margins on recurring revenue above or below corporate average? - Margins on recurring revenue are generally in the middle, providing a predictable revenue and margin stream [26][28] Question: Opportunities outside the U.S.? - The company is exploring opportunities outside the U.S. but cannot provide specific timing for revenue generation from these efforts [29][30]

Financial Data and Key Metrics Changes - Q4 2025 revenue declined 7.3% to $5.88 million compared to $6.35 million in Q4 2024 due to reduced customer project activity [13] - Gross profit decreased to $1.2 million in Q4 2025 from $1.43 million in Q4 2024, with a gross margin of 20.4% versus 22.5% in Q4 2024 [13] - Fiscal year 2025 revenue declined 9.9% to $18.15 million from $20.14 million in 2024, with an improved gross margin percentage of 25.2% compared to 23.3% in 2024 [15] - The company recorded a net loss of $948,000 or minus $0.10 per share in 2025, improving from a net loss of $1.372 million or minus $0.13 per share in 2024 [15] Business Line Data and Key Metrics Changes - The company experienced a solid sequential improvement in Q4 2025 revenue from $3.57 million in Q3 2025 [10] - Operating expenses were reduced by 26.5% to $1.39 million in Q4 2025 compared to $1.89 million in Q4 2024, achieved through headcount reduction and efficiency improvements [14] Market Data and Key Metrics Changes - The domestic box office revenue saw a 37% increase year-over-year, reaching approximately $2.6 billion in the June quarter, indicating a rebound in consumer demand [4] - The total domestic revenue for 2025 is expected to be approximately $9.4 billion, supported by major year-end releases [4] Company Strategy and Development Direction - The company aims to reduce exposure to business cycles in the cinema equipment industry and seeks to build a more predictable and recurring revenue base [5] - There is a focus on expanding international channels and evaluating complementary products or services to enhance business scope and geographical reach [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about new business opportunities driven by box office strength and customer commitment to upgrading theater technologies [3][5] - The company anticipates that revenue in the second half of 2026 will be stronger than in the first half, with an expected revenue of approximately $4.9 million in Q1 2026 [16] Other Important Information - The company has grown its net cash position to $5.7 million at the close of 2025, with no long-term debt [15] - The company is actively pursuing opportunities outside the U.S. but has not provided specific timelines for revenue generation from these efforts [28][29] Q&A Session Summary Question: Size of the funnel of new opportunities compared to the beginning of the year - The funnel of new opportunities continues to grow and evolve, with a positive outlook as customer activity increases [20] Question: Update on LEA professional power amplifiers - Management remains optimistic about LEA amplifiers, noting that the sales process involves lengthy testing before operational approval [21] Question: Status of bids for large sports venues - The company is still actively bidding on various projects related to large sports venues [22] Question: Details on annual recurring revenue base - The recurring revenue base of $8 to $9 million consists of operational items and is expected to grow as the customer base expands [24] Question: Margins on recurring revenue - Margins on recurring revenue are customer-specific and product-specific, generally aligning with the corporate average [25] Question: Opportunities outside the U.S. - The company is exploring both partnerships and potential employee placements outside the U.S. but has not provided specific timelines for revenue generation [27][29]