MIND Technology, Inc.

Greetings, and welcome to the MIND Technology First Quarter 2027 Earnings 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, Investor Relations. Thank you, sir. You may begin.

Thank you, operator. Good morning and welcome to the MIND Technology Fiscal 2027 First 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'd like to listen to a replay of today's call, it'll be available via 90 days via webcast by going to the investor relations section of the company's website at mine-technology.com or via instant replay feature until June 18th. Information on how to access the replay was provided in yesterday's earnings release. Information on this call speaks only as of today, Thursday, June 11th, 2026, and therefore you are advised The 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 results or performance to materially differ from any future results or performance expressed or implied by these 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 where the year ended January 31st, 2026, Furthermore, as we start this call, please 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 that behind me, I'd like to turn the call over to Rob Katz. Rob.

Okay, thanks, Ken, and thank you all for joining us today. It's only been eight weeks since we last talked, and not much has fundamentally changed. There's not been a sea change in the market or our business. Much of what I say today will sound pretty familiar. Our results for the first quarter were essentially in line with our expectations, and once again, reflected positive adjusted EBITDA. During the quarter, we were able to deliver the remaining orders that slipped past our fiscal year end. As usual, I'll touch on our results for the first quarter and provide an update on the current market environment. Mark will then provide a more detailed review of our financials, and I'll return to wrap things up with some remarks about our outlook. I think the near-term market can best be described as uncertain with less visibility than normal. There's a great deal of uncertainty in the world in terms of economics, politics, and security. As you'd expect, this causes companies and governments to be cautious in committing to exploration and survey projects. As a result, our customers are reluctant to commit to equipment purchases, most notably larger system orders. Current conflict in the Middle East and the changing perceptions of its resolution exacerbate this uncertainty. The longer-term outlook, however, is much more positive and there are definite signs of recovery. I'll talk more about this later. Now, our backlog of firm orders as of April 30, 2026 was approximately $7.6 million, compared to $13.9 million as of January 31, 2026, and $21 million as of April 30, 2025. As expected, we delivered certain orders that were unable to ship prior to the end of fiscal 2026. This, coupled with the protracted customer decision making, contributed to the backlog decline. Additionally, as we approach the summer months, I want to remind you that in a normal environment, new orders don't always arrive at a constant rate throughout the year. Variance in order flow is commonplace and not a cause for concern. Macro uncertainty has magnified these policies as customers iron out their operational plans. However, we maintain our belief that long-term outlook in the marine exploration and survey industry is very positive, and uptick in activity is inevitable. I thought of our backlog, which is defined as orders for which we have a purchase order or signed contract in hand. Pipeline of potential orders remains solid, but several times greater than our firm backlog. We are continuing to pursue certain significant projects, a few of which total $10 million or more each. Some of these opportunities involve new vessels for governmental organizations and require successful bidders to provide security bonds, something we are now capable of doing. We've taken actions in recent months to strengthen our positioning and make ourselves more competitive bidders. This provides us with optimism as we work to convert these opportunities into firm orders in coming periods. Now turning to our results, marine technology product revenues for the first quarter, fiscal 2027, for approximately $9.7 million. Revenue was flat sequentially and improved from last year's first quarter. We once again produced positive adjusted EBITDA of approximately $800,000 compared to $1.1 million in the fourth quarter and a loss of $179,000 in last year's first quarter. Our aftermarket activities are providing a stable and recurring revenue stream that is supporting our overall results. This component of our business is becoming increasingly important and represented about 50% of our revenues in the first quarter. As a reminder, this aftermarket activity consists of spare parts, repairs, service, and other support activities. While this business is influenced to some degree by the general activity level within the industry, it is more recurring in nature than orders for new systems. Customers might be slow to purchase new systems, but their existing equipment will need maintenance to keep operating. This benefits mine, since expenditures for aftermarket activity are generally operating costs as opposed to capital expenditures. As our installed base of CMAP products continues to expand, with it comes the prospect for increased aftermarket activity. I'm pleased with the resilience of our results in the face of widespread uncertainty, and our aftermarket activity continues to be an important contributor to our consistency. I firmly believe MIND is well positioned to capitalize on opportunities in future periods to stimulate order flow and generate sustainable results. Now, I'll let Mark walk you through our first quarter financial results in a bit more detail.