MIND Technology Reports Revenue Growth to $12.1 Million in Latest Quarter

MIND Technology, Inc. reported significant financial improvements in its latest quarterly filing, with revenues for the three months ending October 31, 2024, reaching approximately $12.1 million, a substantial increase from $5.0 million in the same period last year. For the nine-month period, revenues also rose to $31.8 million from $23.1 million year-over-year. The company achieved an operating income of $1.9 million for the quarter, compared to an operating loss of $1.5 million in the prior year, reflecting a positive shift in profitability driven by increased demand in the marine technology sector.

The company’s financial performance was bolstered by a notable reduction in operating expenses, which fell to $3.5 million for the quarter from $3.7 million a year earlier. This decrease was attributed to lower selling, general, and administrative costs, as well as reduced research and development expenditures. MIND Technology's gross profit margin remained stable at 45% for both the current and prior year quarter, indicating effective cost management despite the increase in sales volume.

Strategically, MIND Technology completed the sale of its subsidiary, Klein Marine Systems, on August 21, 2023, for $11.5 million, which has allowed the company to streamline operations and improve liquidity. The sale has also enabled the company to focus on its remaining segment, Seamap, which specializes in seismic exploration and survey equipment. Following the sale, MIND Technology has reported a backlog of firm orders totaling approximately $26.2 million as of October 31, 2024, which is expected to contribute to future revenue growth.

Operationally, MIND Technology has seen a rise in customer engagement, with approximately 60% of revenues in the latest quarter derived from new system sales and the remainder from aftermarket activities. The company has also made significant strides in geographic expansion, with notable sales growth in Europe and the Middle East. As of October 31, 2024, the company had 7,969,421 shares of common stock outstanding, following the conversion of all preferred stock into common stock in September 2024, which eliminated obligations for preferred stock dividends.

Looking ahead, MIND Technology anticipates continued revenue growth in fiscal 2025, driven by a strong pipeline of pending orders and ongoing demand in the marine exploration market. However, the company acknowledges potential risks, including supply chain disruptions and order cancellations, which could impact future performance. Management remains focused on cost control and operational efficiency to navigate these challenges while pursuing opportunities for product innovation and market expansion.