MIND Technology (MIND) reported fiscal second-quarter results Wednesday that missed analyst estimates across the top and bottom line, sending shares down nearly 9% to close at $3.825.
Revenue came in at $5.62 million, well below the $8.10 million consensus, a shortfall of roughly 31%. The company posted an adjusted loss per share of $0.1303, missing the forecast for a $0.06 loss by about 117%. Gross profit was $2.1 million on a 37% margin. The company recorded an operating loss of $1.8 million, a steep reversal from $2.7 million in operating income a year earlier.
Adjusted EBITDA swung to a $949,000 loss from a $3.1 million profit in the year-ago period. Net loss came in at $1.7 million versus net income of $1.9 million last year. General and administrative expenses totaled $3.3 million, while research and development spending was $470,000.
On the balance sheet, MIND reported a debt-free position with $15.8 million in cash as of July 31, down from $19 million at the start of the fiscal year. Working capital stood at $36.7 million, and the current ratio was 5.2.
Backlog declined sharply to $4.8 million as of July 31 from $7.6 million at the end of the first quarter and $12.8 million a year earlier. CEO Rob Capps attributed the weakness partly to the conflict with Iran, noting that projects in the Middle East have been delayed and some customer spending decisions pushed back. He described the broader environment as marked by caution in capital budgets and supply-chain and cash-flow interruptions tied to the war.
Capps said the company has continued investing in technology rather than retreating during the slowdown, pointing to early traction in passive array technology for maritime security. He cautioned that any recovery in system orders would more likely come in a trickle than a sudden burst, though he did not rule out meaningful orders in the second half of the year. Management stated the pipeline of potential orders remains several times larger than the current backlog, including specific significant projects worth $10 million or more each.
Looking ahead, management said it is focusing on building backlog for fiscal 2028, evaluating potential transformative mergers and acquisitions and tuck-in acquisitions, managing public-company costs estimated at $2 million to $3 million annually, and addressing production costs and R&D timing to reduce cash burn.
The stock closed at $3.825 after falling 8.93%, following a previous close of $4.20. The 52-week range stands between $3.63 and $14.50.
