Earnings call transcript: Moving iMage Technologies Q3 2025 shows reduced losses

Moving iMage Technologies (MITQ) reported its third-quarter fiscal year 2025 results, revealing a significant reduction in operating and net losses, alongside a decline in revenue. The company’s stock price rose by 5.17% following the announcement, reflecting investor optimism about its improved financial health and strategic focus on innovation and market positioning. According to InvestingPro analysis, MITQ is currently trading below its Fair Value, with a "FAIR" overall financial health score of 2.34 out of 5.

Key Takeaways

• Revenue decreased by 8.2% year-over-year, totaling $3.57 million.
• Operating loss reduced significantly from $649,000 to $270,000.
• Net loss decreased by more than half to $240,000, or $0.02 per share.
• Stock price increased by 5.17% following the earnings release.
• Strong cash position with $5.37 million and no long-term debt.

Company Performance

Moving iMage Technologies demonstrated resilience in Q3 FY2025 despite a challenging environment, with revenue declining by 8.2% compared to the previous year. Nevertheless, the company managed to reduce its operating loss significantly, showcasing effective cost management and operational efficiency. The ongoing focus on cinema technology upgrades and strategic projects has helped mitigate the impact of lower revenues.

Financial Highlights

• Revenue: $3.57 million, down 8.2% year-over-year.
• Operating loss: $270,000, down from $649,000.
• Gross margin: Increased by 57% to $1.06 million.
• Net loss: $240,000, or $0.02 per share.
• Cash position: $5.37 million with no long-term debt.
• Working capital: Exceeds $4.4 million.

Market Reaction

Following the earnings announcement, Moving iMage Technologies’ stock price rose by 5.17%, reflecting a positive investor response to the company’s reduced losses and strong cash position. The stock’s performance is notable given its 52-week range, with a high of $1.55 and a low of $0.43. With a price-to-book ratio of 1.15x and a current ratio of 2.21x, InvestingPro data indicates the company maintains strong liquidity while trading at relatively modest valuations, suggesting potential investor confidence in the company’s strategic direction and financial management.

Outlook & Guidance

Looking ahead, Moving iMage Technologies projects Q4 FY2025 revenue of approximately $5.2 million. The company remains focused on profitability and cash management while exploring merger and acquisition opportunities. Plans for technology upgrades across exhibition industries are expected to support future growth.

Executive Commentary

Francois Godfrey, President and COO, emphasized the company’s focus on long-term revenue opportunities and positioning for future growth. "We are taking the right steps to position the company for future growth and profitability," he stated. CFO Bill Green highlighted the company’s strong financial position, noting, "Our working capital continues to exceed $4.4 million, which puts us in a very strong position to fund our operations through fiscal 2026 and beyond."

Risks and Challenges

• Continued revenue decline could impact future profitability.
• Market saturation in cinema technology may limit growth opportunities.
• Macroeconomic pressures could affect consumer spending in entertainment.
• Competition from other technology providers in the cinema industry.
• Potential delays in project execution or technology upgrades.

Moving iMage Technologies’ third-quarter results highlight a strategic focus on reducing losses and maintaining a strong financial position, with positive investor sentiment reflected in the stock’s performance. As the company navigates the cinema technology landscape, it remains committed to innovation and capturing market share in the exhibition technology sector.

Full transcript - Moving iMage Technologies Inc (MITQ) Q3 2025:

Conference Operator: Good morning, everyone, and welcome to the Moving Image Technologies Fiscal twenty twenty five Third Quarter Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. I will now turn the call over to Chris Eddy, Investor Relations, to begin.

Thank you, operator, and good morning to everyone joining today’s call. With me today are Francois Godfrey, President and COO, with an industry overview and business update and CFO, Bill Green, to cover some financial highlights. Following management’s prepared remarks, we will open the call to investor questions. Today’s conference is being recorded and an audio replay and written transcript will be posted to the Investors section of the Moving Image website in the next few days. As a reminder, except for historical company’s results 2020 but there can be no assurances that expected or anticipated results or events will actually take place.

Actual future results could differ materially from those statements. Further information on the company’s risk factors is contained in the company’s quarterly and annual reports filed with the SEC. I will now turn the call over to the Moving Image President, Francois Godfrey.

Francois Godfrey, President and COO, Moving Image Technologies: Thanks, Chris, and thank you all for your interest in our company. Today’s press release touches on some economic industry headwinds that are impacting revenue in the second half of our fiscal year, but the longer term outlook for moving image remains very encouraging. While we are seeing some customer project delays, our team’s operational and financial discipline enable us to deliver improved bottom line results and to preserve our cash position in the third quarter. Analysts project the twenty twenty five calendar year domestic box office to rise 9% to approximately 9,700,000,000.0 as the film industry continues to build momentum from past production disruptions and consumers demonstrate enthusiasm for vibrant out of home content experiences. A few recent films have greatly outperformed box office expectations including Sinners and a Minecraft movie with wide audience appeal that should continue to have legs.

The summer blockbuster season is anchored by powerful proven franchises, Mission Impossible, Jurassic World, and a solid base of other titles. Consumer enthusiasm for the moviegoing experience is a key driver of our growth trajectory as exhibitors turn to moving image to refurbish legacy projectors, servers, audio equipment, lighting, and other elements with cutting edge technology that keeps audiences attuned and eager to return, while also delivering operational efficiencies to the exhibitor. Our team remains focused on the development of longer term revenue opportunities. At the same time, we work to deliver the highest levels of expertise, products, and service to our current customer projects. Unfortunately, our business is being impacted by economic and other uncertainties causing many of our customers to slow their decision making on needed cinema infrastructure investments as well as delays in the start times and pace of already approved projects.

It’s important to note that we have not lost any business from this customer hesitancy. In fact, we have won and completed some great projects from both new and long term customers. However, some projects within our approved contracted and development pipeline have been delayed as customers evaluate the impact of changing government policies on their businesses as well as anticipated consumer spending trends. Our Q3 ’twenty five revenue of $3,570,000 was impacted by these factors, which have also caused us to reduce our Q4 twenty twenty five revenue outlook as several expected projects have slipped into our next fiscal year starting July 1. Our q three twenty twenty five revenue included a projection and AV integration at the UCSB Pollock Theater and a complete projection, sound, and screen system build out for Frick’s Brewhouse’s Albuquerque Tramway location, their second location in New Mexico.

Our nationwide ability and strong reputation have kept us at the forefront of conversations with all manner of multiplex operators, independent exhibitors, and an expanded base of specialty entertainment venues. Our base of recurring revenue stemming from proprietary products such as pedestals, dimmers, and LED lighting continue to strengthen. Ongoing customer dialogues, including those at CinemaCon last month, reinforce our belief in the ability of MITQ to capture additional market share from new and existing customers for preeminent exhibition technology products and services. Exhibition customers are moving cautiously given the current economic uncertainties, but clearly recognize our experience and value proposition across our array of products and services. There really is no room for mistakes or missed timelines when it comes to the complexity of cinema build outs or technology refreshes.

Our ability to manage remodels, new construction, and complete FF and E packages is a key differentiator. Our twenty plus year track record in delivering these complex projects on time and on budget continues to be a critical factor in winning new business. Selling additional products to our existing customer base is a key part of our plan to increase revenue at the same time we cultivate new relationships. Given our deep understanding of customers’ current needs, we are well positioned to recommend complementary products beyond sound systems and projectors that align with their operational goals. This approach not only drives sales, but also enhances our value as a trusted partner.

The combination of these revenue strategies along with our operating cost discipline should enable us to make progress on our profitability goals. Consumers look to cinema today for a high quality immersive visual and sound experience, and we are proud to play a key role in this modern equipment ecosystem. We’re taking the right steps to position the company for future growth and profitability while also managing cash to maintain a sound financial runway that can withstand business headwinds or volatility as well as to ramp up new product development investments and consider complementary m and a opportunities. As always, we appreciate your trust and investment in our ability to help incorporate the next year of technology upgrades across the exhibition industries and other venues that can benefit from our product offering. Now I’ll turn the call over to Bill Green, our CFO, for some Q3 financial highlights.

Conference Operator: Thanks, Francois. We published our Q3 financial statements in our press release this morning and expect to file our Form 10 Q by the end of business this afternoon. As we have discussed, Q3 twenty twenty five revenue declined 8.2% to $3,571,000 However, we were able to meaningfully reduce our operating loss to $270,000 from $649,000 due to a substantial improvement in our gross margin percentage. Gross margin dollars increased 57% to $1,063,000 in Q3 twenty twenty five versus $676,000 in Q3 twenty twenty four. The improvement reflected a focus on higher margin opportunities in the current period due to the absence of lower margin cinema facility equipment revenue that impacted a year ago period and the benefit of higher margin caddy product sales in Q3 twenty twenty five.

We were able to hold the Q3 twenty twenty five operating expenses essentially flat at $1,333,000 compared to $1,325,000 in Q3 twenty twenty four for headcount and other cost reductions put in place a few quarters ago, and that should put us in a stronger position going forward. We continue to achieve savings in payroll and public company compliance costs that were offset somewhat by bad debt and rent increases. We do have some ideas on additional expense reduction initiatives, but expect the current pace of operating expense to be a reasonable estimate for the next few quarters. Our Q3 twenty twenty five operating loss improved to $270,000 loss versus $649,000 loss in Q3 ’twenty four, principally due to the gross margin percentage increase. We also turned our Q3 twenty twenty five net loss by more than half to 240 k loss to or $02 per share versus 601 k loss or $06 per share in Q3 twenty twenty four.

Importantly, we were able to keep our net cash position steady at $5,370,000 or approximately $0.54 per common share, and we had no long term debt at the close of the Q3 period. Our working capital continues to exceed $4,400,000 which puts us in a very strong position to fund our operations through fiscal twenty twenty six and beyond. Turning to the fourth quarter outlook and with roughly half of the period still to come, we currently anticipate revenue of approximately $5,200,000 in Q4 twenty twenty five. This includes a CADI product sale for an NFL installation to further strengthen our presence in the professional sports market. Our stadium and arena construction and remodel segment remains robust.

Finally, we expect solid progress in the reduction of our net loss on a sequential and on a year over year basis. With that overview, operator, we are ready to begin the Q and A session. Thank you. We will now be conducting a question and answer session. A confirmation tone will indicate your line is in the question queue.

You may press 2 to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the three star keys. And it appears there are no questions. Therefore, we thank you very much. This does conclude today’s teleconference.

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