MIND Technology, Inc.

Greetings and welcome to the Mind Technology fourth quarter 2022 conference call. At this time, all participants are on a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Zach Vaughn with Denard Laskar Investor Relations. Thank you, Mr. Vaughn. Please go ahead.

Thank you, Operator. Good morning, and welcome to the Mine Technology Fiscal 2022 Fourth Quarter Conference Call. We appreciate all of you joining us today. With me are Rob Capps, President and Chief Executive Officer, and Mark Cox, Vice President and Chief Financial Officer. Before I turn the call over to Rob, I have a few items to cover. If you would like to listen to a replay of today's call, it will be available for 90 days via webcast by going to the Investor Relations section of the company's website at mine-technology.com or via a recorded instant replay until April 28th. Information on how to access the replay was provided in yesterday's earnings release. Information reported on this call speaks only as of today, Thursday, April 21st, 2022, and therefore, you are advised that time-sensitive information may no longer be accurate as of the time of any replay listening or transcript reading. Before we begin, let me remind you that certain statements made by management during this call may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and include known and unknown risks, uncertainties, and other factors, many of which the company is unable to predict or control. It may cause the company's actual future results or performance to materially differ. from any future results or performance expressed or implied by those statements. These risks and uncertainties include the risk factors disclosed by the company from time to time in its filings with the SEC, including in its annual report on Form 10-K for the year ended January 31st, 2022. Furthermore, as we start this call, please also refer to the statement regarding forward-looking statements incorporated in our press release issued yesterday And please note that the contents of our conference call this morning are covered by these statements. Now I'd like to turn the call over to Rob Capps. Rob?

Okay, thanks, Zach. So I'd like to begin by first making some observations on the market environment before Mark discusses the financials in detail. I'll then wrap things up with some final remarks. Consistent with the past several quarters, we continue to see increased levels of customer interest across nearly all of our markets. We think there are a couple of factors driving this. First, the drag of the global pandemic is abating. We're able to travel, see customers, and attend trade shows. As of earlier this month, for the first time in two years, we can travel by land between our Singapore and Malaysia facilities. These are important developments. Secondly, the general trends within our primary markets are positive. With oil prices about $100 per barrel, pricing environment within the energy industry is creating optimism and demand from our customers in that space. Events in Europe and the general global geopolitical situation highlight the need for maritime security technology and are driving demand for certain of our products. The move towards renewable energy sources, particularly offshore wind farms, is driving activity for our customers in the marine survey space. Our announcement of new orders last week which we'll talk more about in a bit, is good evidence of these trends and increased activity. Now looking at our full year results, consolidated revenues were up approximately $1.9 million year over year. However, our fourth quarter revenue was not what we expected. We had orders of both CMF and a client that had been completed, but due to logistical challenges, our customers could not accept delivery. We had certain other orders that we expected to complete and deliver in the quarter, but we're unable to do so due to supply chain issues. As disappointing as these results are, I think it's important to note that each of these issues are ones of timing, not lost opportunities. To be sure, there will be other challenges in the future, but we see the general level of activity increasing. Our backlog of orders as of January 31st, 2022 was $13.1 million, but subsequent to our fiscal year end, We received firm orders of approximately 5.8 million and have responded to requests for quotes, or RFQs, that specify our products of approximately 4.5 million. Therefore, our firm and highly confident orders today total approximately 23.5 million. This is the highest book of business since our transformation away from the legacy equipment leasing business, and that's not the end of it. We are pursuing other opportunities and are confident we will be successful on many. We are encouraged by the level of interest we are receiving from our customers and the engagement across our commercial and military market gives us optimism that we can translate to further orders. Our strategy to develop innovative technology and to find new applications for existing technology remains intact. We recently introduced our Spectral AI Automatic Target Recognition or ATR technology. This development has, in our opinion, been very well received by our customers and can differentiate our sonar products. Our synthetic aperture sonar, or SAS, development project is progressing. While initial deliveries have been delayed from our original expectations due in large part to component supply issues, we continue to believe this will be an important contributor in the future. Applications for unmanned platforms is another area of focus for us. Our integrated sonar system for unmanned underwater vehicles that we call MACO is an example of that. We also see our passive sonar arrays as an ideal application for unmanned surface vehicles. Now, despite these visions for the future, we enter fiscal 2023 with a focus on near-term results. We are concentrating our efforts in areas where we see immediate demand, such as our multi-beam sonar systems, higher-capability single-beam systems, and seismic exploration systems. That being said, we continue looking to control cost in this challenging environment. Now, I'll let Mark walk you through our fourth quarter and forward financial results in more detail before I'll make a few summarizing comments. Mark?