10-Q - MIND TECHNOLOGY, INC (0000926423) (Filer)

Thu, Sep 12, 8:16 PM (99 days ago)

For the quarter ended July 31, 2024, Mind Technology, Inc. reported revenues of approximately $10,036,000, a 33% increase from $7,561,000 in the same period last year. The gross profit margin improved to 48%, up from 39%, driven by better pricing and production efficiencies. Operating income was $1,430,000, contrasting with a loss of $767,000 in Q2 2023. The company generated net income of $798,000 compared to a net loss of $1,494,000 in the prior year. Cash flow from operations was negative at $3,695,000, primarily due to increases in accounts receivable and inventory. As of July 31, 2024, working capital stood at $20.3 million, with cash and equivalents of $1.9 million, down from $5.3 million at the previous quarter end. The sale of the Klein subsidiary provided $11.5 million in cash, enhancing liquidity. Looking ahead, the company expects revenue growth in fiscal 2025, supported by a backlog of $26.2 million in orders. However, risks include potential delays in order fulfillment and supply chain disruptions. The recent conversion of preferred stock into common shares eliminates dividend obligations, potentially improving cash flow.