MIND Technology, Inc.

Greetings. Welcome to Mind Technology fourth quarter and year-end 2025 earnings conference call. At this time, all participants are in a listen-only mode. A 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, Investor Relations. Thank you, sir. You may begin.

Thank you, operator. Good morning, and welcome to the MIND Technology Fiscal 2025 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've got a few housekeeping items to run through. If you'd like to listen to a replay of today's call, it'll be available Approximately 90 days via by webcast, going to the investor relations section of the company's website, and that's mind-technology.com, or via a recorded telephonic instant replay until April 30th. Information on how to access the replay features was provided in yesterday's earnings release. Information reported on this call speaks only as of today, Wednesday, April 23rd, 2025. And therefore, you're 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 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 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 its annual report on Form 10-K for the year ended January 31, 2025. 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. And now with that behind me, I'd like to turn the call over to Rob Capps. Rob.

Okay, thanks, Ken, and thank all of you for joining us today. Today, I'll discuss some highlights from the quarter and fiscal 2025. Mark will then provide a more detailed update on our financials. I'll return to wrap things up with some remarks about our outlook. As expected, mine delivered very strong fourth quarter results that contributed to a record fiscal 2025. Our business continues to perform at a high level, and I'm pleased with our consistent execution and operational efficiency. Our renewed focus, encouraging business environment, and pipeline of opportunities are delivering improved year-over-year results. We're optimistic for continued success in future periods. Our cash flow from operations, again, grew during the quarter, which is an indication of our improved liquidity. We're pleased to have generated a fifth consecutive quarter of profitable results. This is a trend we expect to continue. There will undoubtedly be quarterly revenue fluctuations going forward. We will also undoubtedly experience a quarter of lower revenue than we've seen recently. However, the transformation that MIND has undergone has established a more resilient business. We have greater order visibility, a strong demand environment, and our balance sheet and capital structure are much improved. As a result, we believe MIND remains strategically positioned for growth, improved financial results, and continued profitability in coming periods. We enter fiscal 2026 with a backlog of approximately $16 million. Although backlog was down a bit at year end, this is to be expected at times as we execute and make substantial deliveries like we did during the fourth quarter. However, as we had mentioned before, there were a number of highly confident orders pending at year end. Accordingly, we've received approximately 15.9 million of orders subsequent to year end that further support our backlog. These orders and others that we expect to receive in the coming weeks and months bode well for continued strong financial performance as we progress through fiscal 2026. As a reminder, new orders don't always arrive at a constant rate throughout the year, and order flow is often sporadic. Beyond our backlog, we have an active pipeline of pending and highly confident orders and prospects that are well in excess of our backlog received orders. This backlog and pipeline confidence for strong and sustainable financial results in coming periods. Three meaningful contributors to our backlog and improved financial results are our gun link source controllers, VUI link positioning systems, and C-link streamer systems. As a whole, Our CMAP business enjoys a strong market position in each of its products, even a dominant position in some cases. We currently have a number of other pending orders across these product lines, and I'm confident that the favorable market dynamics and our focus will prove to be a recipe for success in generating many more orders in the future. Another component that has meaningfully contributed to our improved financial results is our aftermarket business. Roughly 40% of our revenue comes from this aftermarket activity. As our installed base of CMAP products continues to expand, with it comes the chance for aftermarket opportunities, such as spare parts, repairs, and support services. As a reminder, our products are deployed in a very harsh environment, and damage is common, often inevitable. This is good for MIND, since customers will require more from us than just their initial purchase. As I've done in the past, I must remind you that the timing of specific orders is subject to variability due to any number of challenges, unforeseen circumstances, or just customer delivery requirements. Optimizing our supply chain to drive revenue improvements continues to be an area of focus. Our improved order visibility has been instrumental in managing lead times on components and meeting delivery requirements of our customers. While our efforts initially led to an increase in inventories, we have been able to draw down our inventory balances in recent quarters. I turn it to our results. Marine technology product revenues for the fourth quarter and full fiscal year of 2025 were $15 million and $46.9 million, respectively. Both periods represented meaningful growth for our business and enabled us to set records for nearly all key financial metrics. We continue to capitalize on macro tailwinds and customer engagement to simulate order flow and generate improved results. We've deliberately worked to improve our execution, efficiency, and cost structure. We expect these efforts to deliver consistent profitability in future quarters. General market conditions within the marine technology space continue to be strong. We see a number of opportunities and continue to field inquiries and respond to requests for quotations. Our team continues to develop new and innovative ways to adapt and implement our technologies to meet the evolving needs of our customers. Our recent C-Link streamer system sales are a good example of this. As a result, we are making additional investments to further develop and advance the next generation of our ultra-high resolution C-Link streamer systems. I'm confident that our differentiated approach and best-in-class suite of products will continue to give us the competitive advantage to address the demand we see within the marine technology industry. Now, I'll let Mark walk you through the fourth quarter and full year financial results in a bit more detail.