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]

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 last year [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 - The marine technology market remains favorable, although some customers are adopting a cautious approach, leading to delays in purchase commitments [11] - The company continues to maintain a strong market position in its product lines, with a dominant position in some cases [8] 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 invest 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 the fiscal year, citing a solid existing backlog and pipeline of pending orders [19] - Despite macroeconomic uncertainties, the long-term market dynamics within the marine technology industry remain favorable [11] - The company expects to achieve positive adjusted EBITDA and profitability in each of the remaining quarters of fiscal 2026 [22] Other Important Information - The company has established an at-the-market (ATM) program and a stock buyback program to enhance stockholder value [20] - Management indicated that the current market conditions have caused some caution among customers regarding capital expenditure commitments [37] 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, but noted that this figure is indicative of a trend rather than a guaranteed run rate [28][29] Question: Variance in backlog - Management clarified that there were no cancellations, and the difference in backlog was attributed to fluctuations in aftermarket business and timing of orders [32][33] Question: Acquisition strategy - Management stated that they are looking for acquisitions that are additive to their current operations, focusing on lower-risk opportunities that align with their existing customer base [44][45] Question: Opportunities from Huntsville expansion - Management believes that the Huntsville expansion could add around 10% or more to annual revenues, as it allows for repairs and manufacturing for third parties [51][52] Question: Future growth expectations - Management expressed cautious optimism for growth in the second half of the year, suggesting a potential high single-digit growth rate, but noted that timing of orders could impact this [56]

Financial Data and Key Metrics Changes - MIND Technology reported product revenues of $13.6 million for Q2 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 [13] - Operating income increased by approximately 86% to $2.7 million compared to $1.4 million in the same quarter last year [15] - Net income for the quarter was approximately $1.9 million, up from $798,000 in the same quarter last year [15] - Working capital as of July 31, 2025, was approximately $25.1 million, including $7.8 million in cash [15] 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 continues to see strength in all key markets, which supports confidence for solid results in the second half of fiscal 2026 [13] Company Strategy and Development Direction - MIND Technology is strategically positioned for growth and profitability, focusing on enhancing stockholder value through operational efficiency and technological innovation [17] - The company plans to continue investing in the development of next-generation marine technology products to meet evolving customer needs [12] - MIND is evaluating opportunities for acquisitions that are additive to its current operations, focusing on lower-risk profiles [43] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the balance of the fiscal year, citing a solid existing backlog and pipeline of pending orders [20] - Despite current market uncertainties, management believes long-term market dynamics within the marine technology industry remain favorable [11] - The company expects to achieve positive adjusted EBITDA and profitability in each of the remaining quarters of fiscal 2026 [21] Other Important Information - The company has established an at-the-market (ATM) program and a stock buyback program to enhance stockholder value [19] - The expansion of the manufacturing and repair facility in Huntsville, Texas, is expected to support increased aftermarket activity and new product development [10] Q&A Session Summary Question: Clarification on parts and services revenue - Management indicated that parts and services revenue was approximately $7 million for the quarter, but noted fluctuations in future quarters [27][28] Question: Backlog variance explanation - Management clarified that there were no cancellations, and some aftermarket business will be included in the backlog, contributing to the variance [31] Question: Expectations for fiscal 2026 compared to fiscal 2025 - Management stated that fiscal 2026 results are expected to be similar to fiscal 2025, with a more consistent growth rate anticipated [32][34] Question: Market caution and customer commitments - Management acknowledged cautiousness in the marketplace, particularly regarding CapEx commitments, affecting backlog levels [35] Question: Acquisition strategy and parameters - Management emphasized a focus on additive acquisitions that align with current operations and customer base, avoiding large step-out acquisitions [43][44] Question: Opportunities from Huntsville expansion - Management believes the Huntsville expansion could add around 10% or more to annual revenues, with potential for repairing third-party products and expanding capacity [50][51]