Mind Technology reports Q2 EPS (18c), one estimate (14c)

Reports 2Q revenue $8.80M,oneestimate $9.2M…Adjusted EBITDA from continuing operations for the second quarter of fiscal 2024 was a loss of $687K compared to an adjusted EBITDA loss of approximately $1M in the second quarter of fiscal 2023. Adjusted EBITDA from continuing operations, which is a non-GAAP measure, is defined and reconciled to reported net income from continuing operations and cash used in operating activities in the accompanying financial tables. These are the most directly comparable financial measures calculated and presented in accordance with United States generally accepted accounting principles. The backlog of Marine Technology Products as of July 31 related to our Seamap segment was approximately $17M compared to $14M at July 31, 2022. Rob Capps, MIND‘s President and Chief Executive Officer, stated, “We were pleased with our second quarter results, with revenues coming in slightly higher than the second quarter of last year. Although our revenues declined sequentially, they were in line with our expectations. As we have mentioned previously, our revenues often fluctuate due to timing of orders delivered among other factors that are out of our control, but we are confident that the robust customer interest, favorable market conditions, increased order flow and growing backlog will translate to higher levels of revenue in the back half of the year. “Subsequent to the end of the second quarter, we completed the sale of our Klein Marine Systems unit to General Oceans for cash consideration of $11.5 million, enabling us to monetize an underperforming segment of our business and reallocate that capital to grow and further develop our Seamap unit, which contributed roughly 86% of second quarter revenue. In addition to streamlining the Company to focus on our high performance Seamap technologies, we were able to use a portion of the proceeds from the sale to repay the high-cost debt that we incurred earlier this year, making MIND debt free once again. While we have divested our Klein unit, we are excited to be able to continue working with Klein and General Oceans in regard to our Spectral Ai software suite and are optimistic that this arrangement will deliver us growing and recurring royalty income.