Wed, Jun 11, 8:17 PM (32 days ago)
**MIND Technology, Inc. (MIND) Q1 2026 Financial Summary** **Financial Health & Performance:** - **Revenue:** $7.9 million (down from $9.7 million in Q1 2025) due to delayed orders and facility expansion. - **Gross Profit Margin:** 42% (down from 44% in Q1 2025) due to lower revenue absorption of fixed costs. - **Operating Loss:** $658,000 (compared to income of $730,000 in Q1 2025) due to decreased revenue and increased SG&A expenses. - **Net Loss:** $970,000 (compared to income of $7 in Q1 2025) due to income tax expense of $294,000 on a pre-tax loss of $676,000. - **Cash Flow:** Positive operating cash flow of $4.1 million, mainly due to collections on accounts receivable. **Key Metrics & Trends:** - **Backlog:** $21.1 million (up from $16.9 million in Q4 2025), indicating potential revenue growth. - **Working Capital:** $22.8 million (down from $23.5 million in Q4 2025), with cash and cash equivalents of $9.2 million. - **Liquidity:** No credit facility; relies on cash on hand, operations, and potential financing. - **Future Operations:** Expects revenue consistency in FY 2026, despite Q1 decline, with risks including customer delivery issues and production delays. **Uncertainties & Future Impact:** - **Revenue Fluctuations:** Due to order timing, delivery schedules, and customer acceptance. - **Cost Management:** Variable costs (raw materials, personnel) and potential headcount reductions if needed. - **Growth Initiatives:** Expanding product offerings, adapting technology for new applications, and exploring additional capital sources. - **Market Risks:** Inflation, supply chain disruptions, geopolitical events, and cybersecurity threats. **Segment Performance (Seamap Marine Products):** - **Revenue:** $7.9 million (down from $9.7 million in Q1 2025). - **Operating Income:** $1.1 million (down from $2.1 million in Q1 2025). - **Capital Expenditures:** $211,000 (up from $64,000 in Q1 2025) due to facility expansion. **Conclusion:** MIND Technology, Inc. faced revenue and profit declines in Q1 2026 due to delayed orders and facility expansion. However, the company maintains a strong backlog, positive cash flow, and is pursuing growth initiatives. Management is focused on cost management and exploring additional capital sources to support future operations.