MIND Technology, Inc.

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 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.

Okay, thanks, Zach, and thank all of you 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. In my results in the third quarter, we're in line with our expectations. Although CMAP revenues moderated slightly from the strong second quarter, We believe we are positioned for a positive finish to fiscal 2026. We're also pleased to deliver another quarter of profitable results. We believe this demonstrates our consistent execution and the benefits of our cost structure optimization and production efficiencies. Our business continues to generate resilient results in an uncertain market, and we're finding ways to capitalize on pockets of demand. This bodes well for the balance of this fiscal year. The growing contributions from our aftermarket activities are also providing a stable and recurring revenue stream that is supporting our overall results. Now, this component of our business has become increasingly important. I'll touch on this in more detail shortly. Overall, mine remains positioned for growth, favorable financial results, and profitability in coming periods. Our backlog of firm orders as of October 31, 2025, was approximately 7.2 million. compared to $12.8 million as of July 31st, 2025, and approximately $26.2 million as of October 31st, 2024. However, subsequent to the end of the quarter, we received some long-anticipated orders totaling about $9.5 million. We expect these new orders to have a positive impact on our fourth quarter results. While it's not uncommon to see pauses in order activity throughout the year, we are finding that many customers, regardless of industry or end use, are taking a wait-and-see approach to larger system orders. Based on discussions with customers and industry commentary, we believe the long-term outlook in the seismic exploration industry is quite bullish. We think the recent lull in order activity is a temporary reaction to geopolitical and economic uncertainty. I think most industry observers would agree that the long-term outlook for marine exploration is very positive and an uptick in activity is inevitable. Now, 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. Our pipeline of potential orders remains solid. While some customers are delaying their commitments until they have a better visibility of geopolitical and economic factors, we believe we will continue to convert these opportunities into firm orders. Our backlog and pipeline of potential orders consists primarily of our three main product lines, GENLINK Source Controllers, moving positioning systems and sealing streamer systems. However, our backlog also contains some aftermarket orders. Together, these serve as a foundation for our business. As a whole, our cement business continues to enjoy strong market position, even a dominant position in some cases. We've worked hard to carve out a niche within the marine technology industry and have established strong relationships with our customers. We also pride ourselves in finding innovative ways to capture demand. As I mentioned earlier, our aftermarket business continues to serve as a meaningful contributor to our results. This aftermarket activity consists of spare parts, repairs, service, and other support activities. Now, while this activity is influenced to some degree by the general activity level within the industry, it is more recurring in nature than orders for new systems. Additionally, expenditures for aftermarket activity are generally operating costs as opposed to capital expenditures. Therefore, they come from a different budget bucket for our customers. As I noted, customers may be delaying their purchase decisions for new orders and systems. However, their existing equipment will need maintenance. Products that are currently deployed will need repair and service to keep operating. And mine has established itself as a company that can do this quickly, efficiently, and reliably. The contribution of this activity as a percentage of revenue fluctuates from quarter to quarter, based on product metrics and the timing of larger system deliveries. However, in the first time months of this fiscal year, aftermarket revenues accounted for about 64% of our total revenues. Margins for this business also tend to be better than larger system sales that might attract discounts. As our installed base of cement products continues to expand, with it comes the prospect for increased aftermarket activity. We continue to ramp up activity at our newly expanded Hessville facility. The additional floor space at this facility enables us to efficiently take on significantly larger manufacturing and product repair projects. This increased capacity will be used to further support our existing SEMA products, newly developed products, and services to third parties. Now turning to our results. Marine Technology product revenues for the third quarter of fiscal 2026 for $9.7 million. Although revenue was down slightly sequentially, we continue to be profitable and 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 resilient results. We will continue to capitalize on opportunity as it presents itself and stimulate order flow and generate sustainable results in future periods. I continue to believe that we have a differentiated approach and best-in-class switch of products that will give us competitive advantage. To maintain this 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, at this point, I'll let Mark walk you through our third quarter financial results in a bit more detail.

Thanks, Rob, and good morning, everyone. Revenues from marine technology product sales totaled $9.7 million for the quarter. Our existing backlog, contributions from our aftermarket business, and current visibility give us confidence that we will achieve improved results in the fourth quarter. Although customer decision-making has slowed, as Rob mentioned earlier, overall interest and engagement remains positive. Third quarter gross profit was $4.5 million. This represents a gross profit margin of 47% for the quarter compared to 45% for the same quarter a year ago. The year-over-year margin improvement was primarily attributable to product mix, which included a greater portion of spare parts and other aftermarket activity. We also continue to benefit from our cost structure optimization, which includes greater production efficiencies. and we expect these efforts to help maintain favorable gross profit and margins in future quarters. Our general and administrative expenses were approximately $3 million for the third quarter of fiscal 2026. This was down sequentially, but up slightly compared to the same quarter a year ago, with a year-over-year increase primarily due to higher stock-based compensations. The research and development expense for the third quarter was $506,000, which was down slightly compared to the same quarter a year ago. Consistent with prior periods, these costs were largely directed toward the development and enhancement of our streamer systems and source controller offerings. Operating income for the third quarter was approximately $774,000 when compared to operating income of $1.9 million. in the same quarter a year ago. Third quarter adjusted EBITDA was approximately 1.3 million compared to adjusted EBITDA of 2 million in the third quarter of fiscal 2025. Net income for the third quarter was 62,000 compared to net income of 1.3 million in the same quarter a year ago. Our effective tax rate for the third quarter increased significantly both sequentially and year over year due to a combination of discrete tax expense items, primarily return to provision adjustments recorded by our Singapore entity, and the mix of net income generated in jurisdictions in which we record tax expense, mainly Singapore, and net losses incurred in jurisdictions in which we do not recognize a tax benefit due to valuation allowances on our deferred tax assets, mainly the U.S. and the United Kingdom. The impact of discrete tax items and unbenefited net losses on our effective tax rate is greater when our pre-tax income is lower. As of October 31st, 2025, we had significant working capital of approximately $35.8 million, including $19.4 million of cash on hand. Approximately $11 million of our cash at quarter end was provided by share issuances through our ATM program during the quarter. The company continues to maintain a clean, debt-free balance sheet with a simplified capital structure. We continue to believe our solid footing and flexibility will help us enhance stockholder value in future periods. I'll now pass it back over to Rob for some concluding comments.