THE WOODLANDS, Texas - MIND Technology, Inc. (NASDAQ:MIND), a provider of technology solutions for various maritime sectors, has announced the deferral of its quarterly cash dividend for its 9.00% Series A Cumulative Preferred Stock. The decision affects the second quarter of the fiscal year ending January 31, 2025. This marks the eighth consecutive quarter that the dividend has been postponed.
The cumulative nature of the dividend means that while payments can be deferred, they continue to accrue and are expected to be paid in the future. During this deferral period, the company is not allowed to issue dividends or distributions on its common stock, nor can it redeem any common stock shares.
As a result of the continued deferral, holders of the Series A Preferred Stock now have the right to appoint two directors to MIND Technology's Board. This right is in accordance with the provisions set forth in the Certificate of Designations, Preferences, and Rights of the Series A Cumulative Preferred Stock.
MIND Technology operates globally, with significant locations in the United States, Singapore, Malaysia, and the United Kingdom. Its Seamap unit specializes in the design, manufacture, and sale of high-performance marine seismic equipment, catering to the oceanographic, hydrographic, defense, seismic, and security industries.
This news is based on a press release statement from MIND Technology, Inc.
In other recent news, MIND Technology has reported significant financial advancements, marking a return to profitability for the first time in a decade. The fiscal 2024 fourth quarter saw a surge in the company's Marine Technology product revenues by 51% to $13.4 million, contributing to the highest annual revenue ever recorded by MIND's Seamap business at $36.5 million.
Looking forward, MIND Technology's backlog for fiscal 2025 is robust, standing at over $38 million. This indicates continued order momentum and a promising outlook for future financial performance. The company's success is attributed to a strategic shift towards its Seamap operations, strong partnerships, and growing market demand for its product lines.
MIND Technology also announced the sale of Klein, utilizing the proceeds to eliminate high-cost debt, thus becoming debt-free. Furthermore, the company's AI software, Spectral Ai, is gaining traction in survey applications by global navies.
However, no dividends will be declared as the company plans to use liquidity and capital to fund growth and backlog execution. A meeting to discuss the conversion of preferred stock to common stock has been postponed. Despite anticipated fluctuations in quarterly revenue, MIND expects to sustain higher-level revenue in fiscal 2025 and beyond.
InvestingPro Insights
MIND Technology, Inc. (NASDAQ:MIND) has been navigating challenging waters, as reflected in their recent decision to defer the quarterly cash dividend for their Series A Cumulative Preferred Stock. Investors looking deeper into the company's financial health can turn to InvestingPro for a more granulated analysis. Here are some key insights:
InvestingPro Data shows that MIND Technology has a market capitalization of $5.76 million and is currently trading at a price close to its 52-week low. The company's revenue growth over the last twelve months as of Q1 2025 stands at 34.19%, which indicates some operational traction despite broader market challenges. However, the quarterly revenue growth shows a contraction of -8.67%, suggesting recent headwinds in sales performance.
Two notable InvestingPro Tips for MIND Technology highlight that the company has been quickly burning through cash and is not profitable over the last twelve months. Additionally, while MIND Technology operates with a moderate level of debt, its valuation implies a poor free cash flow yield, which could be a concern for investors looking for sustainable growth and profitability.
For investors considering a deeper dive into MIND Technology's financials, InvestingPro offers a comprehensive suite of additional tips. There are 9 more InvestingPro Tips available that could provide valuable perspectives on the company's financial health and future outlook. To access these insights, visit https://www.investing.com/pro/MIND and remember to use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
With the next earnings date set for September 10, 2024, stakeholders and potential investors will be keenly watching for signs of turnaround or further challenges ahead for MIND Technology.
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