MIND Technology, Inc. reported significant financial improvements in its latest 10-Q filing for the quarter ending July 31, 2024. The company, which operates through its subsidiary Seamap, focuses on products for the seismic, hydrographic, and offshore industries.

For the three months ended July 31, 2024, MIND Technology generated revenues of $10.0 million, a notable increase from $7.6 million in the same period of 2023. For the six-month period, revenues rose to $19.7 million from $18.2 million year-over-year. The increase in revenue is attributed to the timing of order shipments and improved gross profit margins, with gross profit for the quarter reaching $4.8 million, up from $2.9 million in the prior year. The gross profit margin improved to 48% from 39% for the same quarter.

Operating income also saw a turnaround, with the company reporting an operating income of $1.4 million for the three months ended July 31, 2024, compared to an operating loss of $767,000 in the same period of 2023. For the six months, operating income was $2.2 million, reversing a loss of $348,000 from the previous year. Net income from continuing operations for the quarter was $798,000, compared to a loss of $1.5 million in the prior year, while net income for the six months was $1.8 million, compared to a loss of $1.7 million.

The company’s financial position showed a decrease in cash and cash equivalents, which fell to $1.9 million as of July 31, 2024, down from $5.3 million at the end of January 2024. Total current assets increased to $32.6 million, up from $28.3 million, while total liabilities rose to $12.4 million from $10.3 million. The company’s working capital improved to approximately $20.3 million.

Strategically, MIND Technology completed the sale of its subsidiary Klein Marine Systems, Inc. on August 21, 2023, for $11.5 million, which included a gain of approximately $2.3 million. This sale has allowed the company to focus solely on its Seamap segment. Following the sale, the company repaid all outstanding loans and terminated its loan agreement.

As of July 31, 2024, MIND Technology reported a backlog of orders amounting to approximately $26.2 million, down from $38.4 million at the end of January 2024, but up from $17.0 million a year earlier. The company anticipates that revenue for fiscal 2025 will exceed that of fiscal 2024, with a positive outlook for the second half of the year.