Moving iMage Technologies Announces First Quarter Fiscal 2023 Results

Rhea-AI Summary

Moving iMage Technologies (MITQ) reported a strong first fiscal quarter for 2023, with revenue increasing by 68.5% to $5.9 million from $3.5 million in the previous year. Operating income improved significantly, reaching break-even, while gross margin expanded by 580 basis points to 26.6%. The company also reduced its net loss significantly, from ($0.6 million) to ($0.1 million). Looking ahead, MITQ expects a revenue range of $22.0 - $23.5 million for the fiscal year, reflecting a 20 - 31% growth compared to last year's $18.4 million.

Positive

• Revenue increased by 68.5% to $5.9 million.
• Operating income turned around to break-even, compared to a $0.5 million loss.
• Gross margin improved by 580 basis points to 26.6%.
• EPS improved by 83% to ($0.01) from ($0.06).
• Fiscal 2023 revenue guidance of $22.0 - $23.5 million indicates a 20 - 31% growth.

Negative

• Despite growth, net loss of $0.1 million is still present.
• Revenue drop expected in Q2 due to seasonal factors.

Revenue growth of 69% to $5.9 Million

Operating income growth of 109%; EPS growth of 83%

FOUNTAIN VALLEY, Calif.--(BUSINESS WIRE)-- Moving iMage Technologies, Inc. (NYSE AMERICAN: MITQ), (“MiT”), a leading digital cinema technology company, today announced results for its first fiscal quarter ended September 30, 2022.

“We started the year out on solid footing with strong revenue growth, roughly improving to break-even on a net income and EPS basis,” said Phil Rafnson, chairman and chief executive officer. “During the quarter, we signed a major movie theater chain for our emerging CineQC quality control SaaS platform and saw strong sales of our USL ADA compliance products as well. We have also been building our eSports product pipeline in conjunction with our partner SNDBX.”

Fiscal First Quarter 2023 Highlights (compared to the first quarter fiscal 2022)

• Revenue increased 68.5% to $5.9 million compared to $3.5 million;
• Gross margin expanded by 580 basis points to 26.6%;
• Operating income of $0.0 million compared to an operating loss of ($0.5) million;
• Net loss and diluted loss per share of ($0.1) million and ($0.01) compared to ($0.6) million and ($0.06), respectively.

Select Financial Metrics: Fiscal 2023 versus Fiscal 2022 as of 9/30/2022*
(in millions, except for Loss per Share and percentages)	1Q23	1Q22	Change
Total Revenue	$5.9	$3.5	68.5%
Gross Profit	$1.6	$0.7	115.9%
Gross Margin	26.6%	20.8%
Operating Income (Loss)	$0.0	($0.5)	108.9%
Operating Margin	0.8%	-15.5%
Net Loss	($0.1)	($0.6)	83.5%
Diluted Loss Per Share	($0.01)	($0.06)	83.3%

Fiscal 2023 Commentary and Guidance

		Fiscal 2023 Guidance		Fiscal 2022 Actuals		Change
Revenue		$22.0 - $23.5 Million		$18.4 Million		20 - 31%
EPS		$0.04 - $0.08		($0.13)		$0.17 - 0.21
Diluted Shares Outstanding		10.9 million		10.6 million		0.3 million

“We started 2023 on a high note and have a strong pipeline of opportunities for the remainder of the year. In our second quarter, we expect to see a traditional dropoff in revenue relative to the first quarter due to seasonality over the holidays, where we see three potential blockbusters being released this calendar year leading into a strong lineup for calendar 2023.

“Additionally, we continue to move forward with the sales process for our newer, high-margin products like CineQC and our eSports offering. In fact, we have a strong pipeline of potential opportunities from theater operators/owners that want to host SNDBX’s eSports leagues, which we are optimistic will turn into initial orders in the coming months. Given the early stages of both products, which will have a small impact on our financial results during the first half of the year, we are maintaining the guidance we provided last quarter until we report our second quarter earnings, at which time we’ll have better visibility,” concluded Rafnson.

Earnings Conference Call and Webcast Information

Management will host a conference call and webcast to review the Company’s results and forward expectations. Investors can submit questions ahead of time to brian@haydenir.com or ask questions through the webcast portal in real-time.

Toll Free: 1-877-407-4018
Toll/International: 1-201-689-8471
Webcast Date/Time: Tuesday, November 15, 2022, 11:00 AM ET
Webcast Location: https://viavid.webcasts.com/starthere.jsp?ei=1582601&tp_key=ae97d6bd91

Replay
Toll Free: 1-844-512-2921
Toll/International: 1-412-317-6671
Replay Pin Number: 13734423
Replay Start: Tuesday, November 15, 2022, 2:00 PM ET
Replay Expiry: Tuesday, November 29, 2022, 11:59 PM ET

About Moving iMage Technologies
Moving iMage Technologies is a leading manufacturer and integrator of purpose-built technology solutions and equipment to support a wide variety of entertainment applications, with a focus on motion picture exhibitions, sports venues and eSports. MiT offers a wide range of products and services, including custom engineering, systems design, integration and installation, enterprise software solution, digital cinema, A/V integration, as well as customized solutions for emerging entertainment technology. MiT’s Caddy Products division designs and sells proprietary cup-holder and other seating-based products and lighting systems for theaters and stadiums. For more information, visit www.movingimagetech.com.

Forward-Looking Statements
All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,” “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks and should be consulted along with this release. To the extent permitted under applicable law, we assume no obligation to update any forward-looking statements.

MOVING IMAGE TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands except share and per share amounts)
		September 30,				June 30,
		2022				2022
		(unaudited)
Assets
Current Assets:
Cash and cash equivalents		$	2,294			$	2,340
Marketable securities			4,234				4,363
Accounts receivable, net			1,750				1,762
Inventories			4,920				4,033
Prepaid expenses and other			439				864
Total Current Assets			13,637				13,362
Long-Term Assets:
Marketable securities			315				325
Right-of-use asset			604				—
Property, plant and equipment, net			22				22
Intangibles, net			815				839
Goodwill			287				287
Other assets			16				16
Total Long-Term Assets			2,059				1,489
Total Assets		$	15,696			$	14,851
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable		$	3,179			$	1,583
Accrued expenses			530				655
Customer deposits			1,846				3,158
Lease liability – current			258				—
Unearned warranty revenue			46				18
Total Current Liabilities			5,859				5,414
Long-Term Liabilities:
Lease liability – non-current			364				—
Deferred rent			—				22
Total Long-Term Liabilities			364				22
Total Liabilities			6,223				5,436
Stockholders’ Equity
Common stock, $0.00001 par value, 100,000,000 shares authorized, 10,958,398 and 10,828,398 shares issued and outstanding at September 30, 2022 and June 30, 2022, respectively			—				—
Additional paid-in capital			12,653				12,500
Accumulated deficit			(3,180	)			(3,085	)
Total Stockholders’ Equity			9,473				9,415
Total Liabilities and Stockholders’ Equity		$	15,696			$	14,851

MOVING IMAGE TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except share and per share amounts)
		Three Months				Three Months
		Ended				Ended
		September 30,				September 30,
		2022				2021
Net sales		$	5,852			$	3,474
Cost of goods sold			4,293				2,752
Gross profit			1,559				722
Operating expenses:
Research and development			66				54
Selling and marketing			610				544
General and administrative			835				663
Total operating expenses			1,511				1,261
Operating income (loss)			48				(539	)
Other (income) expenses:
Unrealized loss on investments			140				—
Realized loss on investments			23				—
Interest and other income			(20	)			—
Interest expense			—				38
Total other (income) expense			143				38
Net loss		$	(95	)		$	(577	)
Weighted average shares outstanding: basic and diluted			10,928,724				10,254,686
Net loss per common share basic and diluted		$	(0.01	)		$	(0.06	)

MOVING IMAGE TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
		Three Months Ended				Three Months Ended
		September 30,				September 30,
		2022				2021
Cash flows from operating activities:
Net loss		$	(95	)		$	(577	)
Adjustments to reconcile net loss to net cash used in operating activities:
Provision for (reversal of) doubtful accounts			3				(90	)
Depreciation expense			2				13
Amortization expense			24				24
Unrealized loss on investments			140				—
Realized loss on investments			23				—
Cash expended in excess of rent expense			(5	)			—
Stock compensation expense			—				56
Changes in operating assets and liabilities
Accounts receivable			9				(354	)
Inventories			(887	)			(377	)
Prepaid expenses and other			425				(547	)
Accounts payable			1,597				(70	)
Accrued expenses			28				(217	)
Unearned warranty revenue			28				—
Customer deposits			(1,312	)			1,370
Net cash used in operating activities			(20	)			(769	)
Cash flows from investing activities
Sale of marketable securities			493				—
Purchases of marketable securities			(517	)			—
Purchases of property, plant and equipment			(2	)			—
Net cash used in investing activities			(26	)			—
Cash flows from financing activities
Net Proceeds from initial public offering			—				12,360
Payments on line of credit			—				(590	)
Payments on notes payable			—				(1,241	)
Net cash provided by financing activities			—				10,529
Net increase (decrease) in cash and cash equivalents			(46	)			9,760
Cash and cash equivalents, beginning of the period			2,340				1,270
Cash and cash equivalents, end of the period		$	2,294			$	11,030
Non-cash investing and financing activities:
Reclassification of IPO related costs from other assets to equity		$	—			$	1,116
Accrued expenses settled by issuance of common stock		$	153				—
Right-of-use asset recorded upon adoption of ASC 842		$	681			$	—
Cash paid during the period:
Interest		$	—			$	38
Income taxes		$	—			$	—

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20221115005418/en/

Brian Siegel, IRC, MBA

Senior Managing Director, Hayden IR

(346) 396-8696

Brian@haydenir.com

Source: Moving iMage Technologies, Inc.

FAQ

What were the revenue results for MITQ in Q1 2023?

MITQ reported revenue of $5.9 million for Q1 2023, a 68.5% increase from $3.5 million in Q1 2022.

What is MITQ's EPS for the first fiscal quarter of 2023?

MITQ's earnings per share (EPS) for Q1 2023 was ($0.01), improving from ($0.06) in Q1 2022.

What is the guidance for MITQ's revenue in fiscal 2023?

MITQ forecasts revenue between $22.0 million and $23.5 million for fiscal 2023, reflecting a 20-31% growth over the previous year.

What are the key highlights from MITQ's Q1 2023 earnings call?

Key highlights include a significant increase in revenue, improvement in gross margin, and a positive outlook for future product sales.