2nd Quarter (Q2) results released for Advanced Marine Survey Tech Serving Both Military & Civilian Clients Worldwide: MIND Technology, Inc. (NASDAQ: MIND)
– High Performance Marine Sonar and Seismic Equipment.
– Operating Locations the US, Singapore, Malaysia and the UK.
– Recent New Orders Totaling $4.1 Million, Increasing Backlog.
– Goal to Generate Annual Revenues of $140 Million with an EBITDA Margin of Over 20% Within the Next Five Years.
MIND Technology, Inc. (NASDAQ: MIND) provides technology to the oceanographic, hydrographic, defense, seismic and security industries. Headquartered in The Woodlands, Texas, MIND has a global presence with key operating locations in the United States, Singapore, Malaysia and the United Kingdom. The MIND worldwide Marine Technology Products segment, which includes its Seamap and Klein Marine Systems units, designs, manufactures and sells specialized, high performance, marine sonar and seismic equipment.
MIND announced financial results for its fiscal 2022 second quarter ended July 31, 2021.
Revenues from Marine Technology Products sales for the second quarter of fiscal 2022 were $6.8 million compared to $4.2 million in the first quarter of fiscal 2022 and $5.1 million in the second quarter of fiscal 2021.
The Company reported a net loss from continuing operations for the second quarter of fiscal 2022 of approximately $2.7 million compared to a net loss of $3.7 million in the first quarter of fiscal 2022 and a net loss of $1.9 million in the second quarter of fiscal 2021. Second quarter of fiscal 2022 net loss from continuing operations attributable to common shareholders was $(0.25) per share compared to the first quarter of fiscal 2022 net loss per share of $(0.31) and a net loss of $(0.20) per share in the second quarter of fiscal 2021.
Adjusted EBITDA from continuing operations for the second quarter of fiscal 2022 was a loss of approximately $1.8 million compared to a loss of $3.0 million in the first quarter of fiscal 2022 and a loss of $1.5 in the second quarter of fiscal 2021. Adjusted EBITDA from continuing operations, which is a non-GAAP measure, is defined and reconciled to reported net loss from continuing operations and cash provided by 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.
Backlog of Marine Technology Products as of July 31, 2021, was approximately $11.7 million compared to $11.0 million at April 30, 2021 and $7.6 million at July 31, 2020.
Rob Capps, MIND’s President and Chief Executive Officer, stated, “We saw notable improvement in the second quarter, with our results being primarily top-line driven. Total revenues increased 62% sequentially and were approximately 34% higher than the same period last year, and we expect to see further improvement during the remainder of this year as we complete our scheduled and expected orders. Inquiry and bidding activity continues to increase, including for our sonar products for use in military applications. As noted above, our backlog remains solid, roughly even with the first quarter backlog. Essentially all orders are expected to be delivered in the current fiscal year.
“We continue to experience effects of the global supply chain disruptions that began earlier this year. Although this has not been a significant issue for us so far, we are beginning to experience shortages or extended lead times for some components and materials, as well as increased costs in some cases. As we discussed last quarter, we are taking steps to mitigate the supply chain issues and are prepared for future challenges, should they arise.
“Subsequent to the end of the second quarter, we reached an agreement for the sale of a significant portion of our remaining land leasing assets which we expect will provide over $4.0 million of additional liquidity. We expect to generate further liquidity through the sale of remaining equipment and collection of certain outstanding obligations. Our balance sheet remains strong with zero debt, and we are actively managing our expenses.
“Our long-term picture remains positive as we are progressing with our strategic initiatives to expand our product offerings to meet the increasing needs of the maritime market which will underpin our future growth. Some of these efforts include providing sensor packages to the growing USV and AUV markets developing cost-effective solutions for the anti-submarine and maritime security markets. Also, we are proceeding with the development of new synthetic aperture sonar systems under our partnership with a European defense contractor. We expect that these efforts will enable us to achieve our long-term goal of generating annual revenues of $140 million with an EBITDA margin of over 20% within the next five years.
“As we move into the second half of this year, we believe the positive trend for order flow will continue for the next two quarters and beyond fiscal 2022. While we do not know the magnitude or duration of the global supply chain issues and related challenges, we plan to continue to execute on our strategic initiatives. We believe these initiatives well-position the Company to become a leading provider of innovative marine technology and products,” concluded Capps.
The specific applications for MIND Technology include:
– Marine Seismic
– Construction Survey
– Renewable Energy Survey
– Search & Recovery
– Hydrographic Survey
– Mine Counter Measures (MCM)
– Anti-Submarine Warfare (ASW)
– Waterside Security (WSS)
MIND has a global presence and, along with its predecessor companies, has been in business for more than 50 years.
Klein sonar products are considered by many to be the “gold standard” in sidescan sonar, having introduced commercially viable sidescan sonar in 1963.
Seamap seismic exploration systems offers an extensive range of marine seismic products based on leading edge engineering design, development and production.
MIND offers 24/7 worldwide support for all product lines.
For more information on MIND Technology, Inc. (NASDAQ: MIND) visit: http://www.mind-technology.com
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