MIND Technology, Inc.

Greetings. Welcome to Mind Technology's second quarter 2026 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, Zach Vaughan. Thank you, Mr. Vaughan. You may begin. Thank you.

Thank you, Operator. Good morning and welcome to Mind Technologies Fiscal 2026 Second 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 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, mind-technology.com or via a recorded instant replay until September 17th. Information on how to access the replay was provided in yesterday's earnings release. Information reported on this call speaks only as of today, Wednesday, September 10th, 2025, 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, that may cause the company's actual future financial 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, 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. Now, I'd like to turn the call over to Rob Capps.

Rob Capps Thank you, Zach, and thank you all for joining us today. Today, I'll discuss some highlights from the quarter. Mark will then provide a more detailed update on our financials, and I'll return to wrap things up with some remarks about our outlook. Line delivered strong results for the second quarter that were in line with our expectations. We were able to get back on track and return our profitability after certain delivery delays in the first quarter. We generated increased second quarter CMAP revenues driven by system sales and the growing contributions from our aftermarket activities, which I'll touch on in more detail shortly. Our business continues to operate efficiently, and our execution is generating resilient results. Despite some economic uncertainty, we are finding ways to capitalize on pockets of demand, and our near-term visibility bodes well for the balance of this fiscal year. Mine remains strategically positioned for growth, favorable financial results, and continued profitability in coming periods. Our backlog of firm orders as of July 31, 2025, was approximately $12.8 million. compared to 21.1 million as of April 30, 2025, and approximately 26 million as of July 31, 2024. Now, I'll remind you that it's not uncommon to see pauses in order activity throughout the year, especially during the summer months, and more specifically, our second quarter. Therefore, this lower sequential backlog is not unexpected after the substantial deliveries we made this quarter. Let me also remind you that for an order to be included in our backlog, We must have a purchase order or signed contract in hand. There are a number of pending orders in various stages that we are highly confident in. Let me give you a little color on that. There are two orders in particular, totaling about $10 million that we believe are imminent. We've been in almost constant contact with this customer, finalizing technical specifications, which is necessary before the formal purchase orders are issued. These orders are not in our backlog, but we are highly confident that they will be received soon. Our pipeline of potential orders remains strong. We believe we will continue to convert these into firm orders. Within our backlog, our orders reminds three main product lines, Finlink Source Controllers, Vuelink Positioning Systems, and C-Link Streamer Systems. All three of these product lines provide the foundation for our business and will continue to drive our financial results going forward. As a whole, our CMAP business continues to enjoy a strong market position in each of its products even a dominant position in some cases. As I mentioned earlier, another component that has meaningfully contributed to our improved financial results is our aftermarket business. This consists of spare parts, repairs, service, and other support activities. Contribution as a percentage of revenue fluctuates from quarter to quarter based on product mix and the timing of larger system deliveries. However, in the first six months of this fiscal year, aftermarket revenue accounted for about 68% of our total revenues. I'm pleased that our aftermarket activity has continued to meaningfully support revenue. Additionally, this often carries higher margins since these orders normally do not attract discounts and find a full system order. As our installed base of semi-products continues to expand, with it comes the prospect for increased aftermarket activity. To address this growing aftermarket opportunity, and as I highlighted last quarter, We recently expanded our manufacturing and repair facility in Huntsville, Texas. This expansion provides us with additional floor space and other enhancements that will allow our mine maritime acoustics unit to efficiently take on significantly larger manufacturing and product repair projects from that location. This increased capacity will be used to further support our existing CMAP products, newly developed products, and services to third parties. I'll turn it to our results. Marine Technology product revenues for the second quarter of fiscal 2026 were 13.6 million. This was a healthy improvement from the same quarter last year. And despite the noise from the first quarter, we remain on track to achieve our fiscal 2026 goals. I'll touch on our outlook in a moment, but I'm pleased with our ability to navigate uncertainty within the market to generate favorable results. We will continue to capitalize on opportunity as it presents itself to stimulate order flow and generate improved returns in future periods. Although we are pleased with our results for the second quarter and maintain our near-term optimism, the current market and global economic environment remain impacted by various macro uncertainties that are limiting visibility into next year. General market conditions within the marine technology space continue to be good. However, at this stage, some customers are taking a more wait-and-see approach. This has caused some delays in purchase commitments. Despite this limited visibility, we remain encouraged by the favorable long-term market dynamics within the marine technology industry and expect customers to firm up their Helder 2026 plans in the coming months. I continue to believe that we have a differentiated approach and best-in-class suite of products that will give us a competitive advantage. To maintain this competitive edge, we will continue making additional investments to further develop and advance our next generation of marine technology products to meet the evolving needs of our customers. Now, I'll let Mark walk you through our second quarter financial results in a bit more detail.