MIND Technology reported revenue of approximately $5.6 million for its fiscal 2027 second quarter ended July 31, compared with $9.7 million in the prior quarter and $13.6 million in the comparable prior-year period.
The marine technology company reported an operating loss of approximately $1.8 million, compared with operating income of $14,000 in the first quarter and $2.7 million in the year-earlier quarter.
Net loss was approximately $1.7 million, or $0.19 per share, compared with a $411,000 loss in the preceding quarter and net income of $1.9 million, or $0.24 per share, a year earlier.
Adjusted EBITDA was a loss of approximately $949,000 compared with positive adjusted EBITDA of $811,000 in the first quarter and $3.1 million in the prior-year quarter.
MIND’s Seamap marine technology backlog declined to approximately $4.8 million as of July 31 from $7.6 million at the end of April and $12.8 million a year earlier.
Management said market uncertainty continues to affect new-system ordering, although MIND’s aftermarket business has provided a more stable recurring revenue base. Aftermarket products and services accounted for approximately 87% of second-quarter revenue.
MIND said discussions with customers about several larger potential projects have been encouraging, although timing remains uncertain and is partly dependent on developments in the Middle East. The company continues to view the longer-term outlook for marine exploration and survey activity favorably.
MIND ended the quarter debt-free with $15.8 million in cash. Management said that balance-sheet position gives it flexibility to consider new product lines, acquisitions, or share repurchases.
KEY QUOTES:
“Our second quarter results continue to reflect ongoing market softness, offset to some extent by the resilience of our after-market business. In recent quarters, we have been candid about how macro uncertainty has limited our near-term visibility. This is impacting order flow and affecting our overall results. However, we continue to benefit from the foundation that our after-market business provides. During the second quarter, this component of our business contributed approximately 87% of total revenue, giving us a durable base when new system orders are difficult to time. This allows us to stay patient and opportunistic rather than reactive. We are operating in a challenging environment. We are all frustrated by the lull in order activity and its impact on our results. However, recent conversations with customers have been encouraging and reinforce our conviction in the long-term fundamentals driving activity across our industry. We continue to believe the outlook within the marine exploration and survey market is favorable, supported by the need for energy security and the replenishment of lost production. In several cases, customers have indicated a desire to move forward with sizable projects, although the timing of those projects remains uncertain and largely dependent on a resolution to the conflict in the Middle East. While it is difficult to predict how quickly those discussions will translate into firm orders, demand has not gone away, and our confidence in the longer-term direction of the market is unchanged. MIND is debt-free, ended the quarter with $15.8 million in cash, and maintains an after-market business generating substantial recurring revenue. That combination gives us the flexibility to navigate near-term challenges and act quickly and efficiently when opportunities arise. We are focused on putting capital where it earns the greatest return, whether that means adding product lines, pursuing a larger, more transformative transaction to enhance our scale, or repurchasing our own shares in response to market dislocation. We are using this period to strengthen our competitive positioning, and I am confident in the direction we are headed.”
Rob Capps, President and Chief Executive Officer of MIND Technology
