Moving iMage Technologies (MiT) Returns to Revenue Growth and Narrows Losses

Rhea-AI Summary

Moving iMage Technologies (MITQ) reported improved financial results for Q2 FY2025. Revenue increased to $3,441,000 from $3,265,000 year-over-year, while gross profit rose to $936,000 with a margin of 27.2%. The company narrowed its operating loss to ($561,000) from ($830,000), and net loss improved to ($527,000) or ($0.05) per share compared to ($794,000) or ($0.07) per share.

The company benefited from a strengthening cinema industry, securing multiple orders for laser projectors and Dolby Atmos audio solutions for premium large format auditoriums. The 2024 holiday box office showed a 40% surge over the previous year. As of December 31, 2024, MITQ maintained a cash position of $5,316,000.

Management expects customer spending to continue improving throughout 2025, focusing on driving consistent revenue growth and achieving profitability in their core business.

Positive

• Revenue increased by 5.4% year-over-year to $3,441,000
• Gross profit improved to $936,000 with margin expansion to 27.2%
• Operating loss reduced by 32.4% to ($561,000)
• Net loss per share improved from ($0.07) to ($0.05)
• Strong cash position of $5,316,000

Negative

• Company still operating at a loss of ($561,000)
• Q2 traditionally represents seasonally weakest quarter

Insights

Financial Analyst

The Q2 FY2025 results reveal a strategic inflection point for Moving iMage Technologies, marked by revenue growth and margin expansion despite Q2 traditionally being their weakest quarter. The 27.2% gross margin represents a significant improvement, indicating enhanced operational efficiency and pricing power in their core cinema technology business.

The reduction in operating losses by 32.4% demonstrates effective cost management while maintaining growth initiatives. With $5.32 million in cash reserves against a market cap of approximately $7.2 million, the company maintains substantial financial flexibility to fund its growth strategy without immediate capital needs.

The cinema industry's technology refresh cycle, particularly the transition to laser projectors and Dolby Atmos systems, presents a compelling revenue catalyst. Premium Large Format (PLF) auditorium upgrades typically command higher margins and represent recurring revenue opportunities through maintenance and upgrades. The 40% surge in holiday box office revenues suggests theater operators have improved cash flows to fund these technological investments.

However, investors should monitor several key metrics:

• The pace of technology adoption among theater chains and conversion rates from sales pipeline to orders
• Working capital management as growth accelerates
• Competitive positioning in the PLF and immersive audio segments
• Progress toward operational break-even, which appears achievable given the current trajectory of margin improvements and cost controls

The company's focus on marketing while maintaining cost discipline suggests a balanced approach to capturing market share during the industry's recovery phase. The emphasis on core business profitability before expanding into new growth initiatives demonstrates prudent management and could lead to more sustainable long-term value creation.

Improved industry environment and technology refresh cycle drove year-over-year revenue growth for MiT

Higher gross margin and cost reductions led to improvement in net loss

Customer spending expected to continue to improve throughout 2025

Fountain Valley, California--(Newsfile Corp. - February 13, 2025) - Moving iMage Technologies, Inc. (NYSE American: MITQ), ("MiT"), $MITQ, a leading technology and services company for cinema, Esports, stadiums, arenas and other out-of-home entertainment venues, today announced results for its second quarter ended December 31, 2024.

Phil Rafnson, Chairman and Chief Executive Officer of MiT commented:

"Industry trends indicate a strengthening cinema industry spending environment, which we believe is still in the early stages of a broader recovery. Theaters are not only rebounding but starting to invest in the future, and our solutions continue to play a key role in their modernization efforts. While fiscal Q2 is traditionally our seasonally weakest quarter, we benefited from a return to revenue growth, expanded gross margins and, combined with the cost reductions we implemented at the beginning of the fiscal year, we improved our net loss year-over-year. Notably, we secured multiple orders tied to the ongoing technology refresh cycle, particularly for laser projectors and advanced sound solutions like Dolby Atmos immersive audio for premium large format (PLF) auditoriums. These investments signal growing confidence among theater owners who are prioritizing premium technology upgrades to enhance the moviegoing experience and drive long-term audience engagement."

Fiscal 2025 Commentary

Francois Godfrey, President and Chief Operating Officer of MiT commented:

"The 2024 holiday box office was encouraging with a more than 40% surge over the previous year, and we look forward to the possibility of improved demand for our offerings beginning as early as the end of our fiscal year. To ensure we are positioned to capture as much as this spend as possible when the time comes, we are increasing our marketing activities to ensure the industry fully understands the breadth of our capabilities, while keeping our costs in check. Our near-term priority remains driving to higher, more consistent revenue growth and attaining profitability in our core business, creating a strong foundation for investing in our planned growth initiatives that we believe have the potential to drive higher levels of future growth."

Second Quarter Highlights - in $1,000s except for EPS (Fiscal 2025 versus Fiscal 2024)

• Revenue increased to $3,441 compared to $3,265;

• Gross Profit increased to $936 compared to $759; Gross Margin increased to 27.2%;

• Operating Loss improved to ($561) compared to ($830);

• Net loss and Loss per Share (EPS) improved to ($527) and ($0.05) compared to ($794) and ($0.07), respectively;

• As of December 31, 2024, the Company held cash of $5,316.

Dial-in and Webcast Information
Date/Time: Thursday, February 13, 2025 at 11:00 a.m. Eastern Time
Toll-Free: 1-877-407-4018
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Telephone Replay
Replay Dial-In: 1-844-512-2921 or 1-412-317-6671
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Telephone Replays will be made available after conference end time.

About Moving iMage Technologies

Moving iMage Technologies (NYSE American: MITQ) is a leading provider of technology, products, and services for the Motion Picture Exhibition industry, with expanding ventures into live entertainment venues and Esports. We design and manufacture a wide range of proprietary products in-house, including developing potentially disruptive SaaS and subscription-based solutions. Committed to excellence and innovation, Moving iMage Technologies aims to revolutionize the out of home entertainment experience with cutting-edge technology and superior service. 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.

Contact:
Brian Siegel, IRC, MBA
Vice President, Investor Relations and Strategic Communications for MiT
Senior Managing Director, Hayden IR
(346) 396-8696
Brian@haydenir.com

MOVING IMAGE TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands except share and per share amounts)

			December 31, 2024				June 30, 2024
			(unaudited)
Assets
Current Assets:
Cash		$	5,316			$	5,278
Accounts receivable, net			749				1,048
Inventories, net			2,121				3,117
Prepaid expenses and other			202				470
Total Current Assets			8,388				9,913
Long-Term Assets:
Right-of-use asset			1,206				144
Property and equipment, net			21				28
Intangibles, net			393				422
Other assets			23				16
Total Long-Term Assets			1,643				610
Total Assets		$	10,031			$	10,523
Liabilities And Stockholders' Equity
Current Liabilities:
Accounts payable		$	1,642			$	2,261
Accrued expenses			406				320
Customer refunds			423				399
Customer deposits			1,057				1,651
Lease liability-current			206				151
Unearned warranty revenue			65				31
Total Current Liabilities			3,799				4,813
Long-Term Liabilities:
Lease liability-non-current			1,037				-
Total Long-Term Liabilities			1,037				-
Total Liabilities			4,836				4,813
Stockholders' Equity
Common stock, $0.00001 par value, 100,000,000 shares authorized, 9,896,850 and 9,896,850 shares issued and outstanding at December 31, 2024 and June 30, 2024, respectively			-				-
Additional paid-in capital			12,003				11,965
Accumulated deficit			(6,808	)			(6,255	)
Total Stockholders' Equity			5,195				5,710
Total Liabilities and Stockholders' Equity		$	10,031			$	10,523

 

MOVING IMAGE TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except share and per share amounts)
(unaudited)

			3 Months Ended December 31,							6 Months Ended December 31,
			2024			2023				2024			2023
Net sales		$	3,441		$	3,265			$	8,693		$	9,900
Cost of goods sold			2,505			2,506				6,386			7,322
Gross profit			936			759				2,307			2,578
Operating expenses:
Research and development			47			72				109			139
Selling and marketing			462			628				991			1,170
General and administrative			988			889				1,836			1,716
Total operating expenses			1,497			1,589				2,936			3,025
Operating (loss)			(561	)		(830	)			(629	)		(447	)
Other income (expense)
Interest and other income, net			34			36				77			92
Total other income			34			36				77			92
Net (loss)		$	(527	)	$	(794	)		$	(552	)	$	(355	)
Weighted average shares outstanding: basic and diluted			9,896,850			10,655,686				9,896,850			10,670,732
Net (loss) income per common share basic and diluted		$	(0.05	)	$	(0.07	)		$	(0.06	)	$	(0.03	)

 

MOVING IMAGE TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

			Six Months Ended December 31,
			2024				2023
Cash flows from operating activities:
Net (loss)			($552	)			($355	)
Adjustments to reconcile net (loss) to net cash provided by (used in) operating activities:
Provision for credit losses			19				4
Inventory reserve			163				384
Depreciation expense			7				5
Amortization expense			29				29
Right-of-use amortization			133				133
Stock option compensation expense			37				10
Changes in operating assets and liabilities
Accounts receivable			280				(237	)
Inventories			833				(424	)
Prepaid expenses and other			260				(503	)
Accounts payable			(619	)			(315	)
Accrued expenses and customer refunds			111				64
Unearned warranty revenue			34				14
Customer deposits			(594	)			(38	)
Lease liabilities			(103	)			(135	)
Net cash provided by (used in) operating activities			38				(1,364	)
Cash flows from investing activities
Purchases of property and equipment			-				(12	)
Net cash (used in) financing activities			-				(12	)
Cash flows from financing activities
Stock Buyback			-				(101	)
Net cash (used in) investing activities			-				(101	)
Net increase (decrease) in cash			38				(1,477	)
Cash, beginning of the period			5,278				6,616
Cash, end of the period		$	5,316			$	5,139
Non-cash investing and financing activities:
Right-of-use assets from new lease			($207	)			-
Right-of-use assets from lease modification			($988	)			-

 

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/240720

FAQ

What was MITQ's revenue growth in Q2 FY2025?

MITQ's revenue grew to $3,441,000 in Q2 FY2025, compared to $3,265,000 in the same period last year, representing a 5.4% increase.

How much did MITQ reduce its net loss in Q2 FY2025?

MITQ reduced its net loss to ($527,000) in Q2 FY2025 from ($794,000) in Q2 FY2024, an improvement of approximately 33.6%.

What is MITQ's current cash position as of December 31, 2024?

MITQ reported a cash position of $5,316,000 as of December 31, 2024.

What was MITQ's gross margin percentage in Q2 FY2025?

MITQ's gross margin increased to 27.2% in Q2 FY2025.

What new technology orders did MITQ secure in Q2 FY2025?

MITQ secured multiple orders for laser projectors and Dolby Atmos immersive audio solutions for premium large format (PLF) auditoriums.

How much did the holiday box office improve in 2024 according to MITQ?

According to MITQ, the 2024 holiday box office showed a more than 40% surge compared to the previous year.