MIND Technology, Inc.

Greetings and welcome to the Mind Technology fourth quarter 2023 conference call. At this time, all participants are in 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, Ken Denard.

Thank you. You may begin. Thank you, operator. Good morning, everyone, and welcome to the MIND Technology Fiscal 2023 Fourth Quarter Earnings 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 housekeeping items to cover. If you'd like to listen to a replay of today's call, it'll be available for 90 days via webcast by going to the Investor Relations section of the company's website at mind-technology.com, mind-technology.com, or via recorded telephonically an instant replay feature until April 27th. Information on how to access the replay feature was provided in yesterday's earnings release. Information reported on this call speaks only as of today, Thursday, April 20th, 2023, 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 current expectations and include known and unknown risks, uncertainties, and other factors, many of which the company is unable to predict or control, that 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 on its annual report, Form 10-K, for the year ended January 31, 2023. 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 contents of our conference call this morning are covered by those statements. And now, with all that behind me, I'd like to turn the call over to Rob Capps. Rob. Okay. Thanks, Ken.

As we did last quarter, we have prepared an updated presentation covering our discussion this morning, and we've posted it to our website. I invite you to refer to that at your leisure. Now today, I'll begin by discussing our fourth quarter 2023 results, as well as our current view of market conditions. Mark will then provide a more detailed update on our financials. I'll then wrap things up with some remarks about our outlook. We're very pleased with our fourth quarter results. As expected, we saw significant improvement in almost all financial metrics. Revenues were up 230% year-over-year and 154% sequentially. More importantly, We produced positive net income and adjusted EBITDA, something we've not done since we transformed the company. As anticipated, we executed on a backlog, which resulted in significant top-line revenue of $12.4 million. Despite the significant increase in revenues, we maintained and even increased our backlog. As of January 31st, Our backlog of firm orders stood at 20.7 million, compared to 13.1 million at the end of fiscal 2022, and 19.9 million at the end of last quarter. We think this bodes well for fiscal 2024 and indicates favorable trends. In fact, since year end, we have booked significant new business, including more than $7 million in new orders we announced earlier this week. We're also pursuing a number of other orders and are confident we'll be successful on many, if not most. We are encouraged by the favorable macroeconomic trends, coupled with the strong customer engagement and order activity. We believe that the current market environment is advantageous for MIND. We continue to see substantial tailwinds in each of our three key markets, exploration, defense, and survey. And our team continues to find innovative ways to adapt our products to meet the evolving needs of our customers. This sustained customer demand interest that we've seen across all of our end markets continues to underpin the growth of our book of business, which is evident by our current backlog. Now, I know that our liquidity position has been a concern for many of you, especially in light of the working capital demands that come with increases in business. Since January 31st, I think we've made some significant progress in that regard. As previously reported, We entered into a $3.75 million secured financing arrangement back in February to assist with the execution of our growing backlog of business. We were adamant about securing a form of financing that didn't contain extensive restrictions, such as financial covenants or limitations on use of proceeds. and we didn't want the financing to create dilution to our equity holders. Additionally, we've seen the benefit from the increases in revenues in the fourth quarter, and that has continued into the first quarter to a large degree. Cash flow from this activity has contributed to improvements in our liquidity. Now, I'll let Mark walk you through the fourth quarter and full your financial results in a bit more detail. Mark?