MIND Technology (NASDAQ:MIND) released first-quarter financial results and hosted an earnings call on Thursday. Read the complete transcript below.
This transcript is brought to you by Benzinga APIs. For real-time access to our entire catalog, please visit https://www.benzinga.com/apis/ for a consultation.
Access the full call at https://app.webinar.net/PXdBDMeDQ6r
Summary
Mind Technology, Inc. reported first-quarter fiscal 2027 revenues of approximately $9.7 million, reflecting flat sequential performance but improvement from the previous year. The company achieved positive adjusted EBITDA of $800,000.
The backlog of firm orders decreased to $7.6 million, due to delayed orders and macroeconomic uncertainty, but the long-term outlook for marine exploration and survey industry remains positive.
Management highlighted an increased focus on aftermarket activities, contributing significantly to recurring revenues, and expressed optimism about future order flow, despite near-term market uncertainties.
The company maintains a strong cash position of $17.7 million and a debt-free balance sheet, enabling flexibility to pursue strategic opportunities, including potential mergers, acquisitions, or organic growth initiatives.
Management is considering strategic options to enhance shareholder value, including stock buybacks, but emphasizes a disciplined approach to capital allocation and risk management.
Full Transcript
OPERATOR
Greetings and welcome to Mind Technology Inc 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 0 on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ken Denard, Vice President, Investor Relations, Investor Relations.
Thank you sir. You may begin. Thank you, operator.
Ken Denard (Investor Relations)
Good morning and welcome to the Mind Technology Inc 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 for 90 days, via webcast, by going to the Investor Relations section of the company's website at mind-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 11, 2026 and therefore you are advised that 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 10K for the year ended January 31, 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 Capps.
Rob Capps (President and Chief Executive Officer)
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 business, but 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.
Now, 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. 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 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 pauses as customers iron out their operational plans.
However, we maintain our belief that the long term outlook in the marine exploration and survey industry is very positive and an uptick in activity is inevitable. Outside 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 and 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 were 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 has become increasingly important and represented about 50% of our revenues in the first quarter.
As a reminder, this aftermarket activity consists of spare parts, repair, 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 cost as opposed to capital expenditures.
As our installed base of C-MAP products continues to expand, with it comes a 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 Technology Inc 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.
Mark Cox (Vice President and Chief Financial Officer)
Thanks Rob and good morning everyone. Revenues from marine technology product sales totaled approximately 9.7 million for the quarter. As Rob mentioned, our first quarter results benefited from approximately 4 million of orders that slipped out of fiscal 2026. We also continue to see strong aftermarket activity that provides a solid foundation of recurring revenue. This activity supports our overall results and serves as a buffer in times of reduced large system order volume.
First quarter gross profit was approximately 4.1 million. This represents a gross profit margin of 42% for the quarter which was in line with the same period a year ago. The sustained margin strength was supported by product mix reflects a greater contribution of spare parts and other aftermarket activity that generate favorable margins. We expect our cost structure optimization efforts and greater production efficiencies to help us maintain favorable margins in future periods.
Our general and administrative expenses were approximately 3.5 million for the first quarter fiscal 2027. This was up both sequentially and when compared to the same quarter a year ago. Sequential and year over year increases are primarily due to higher incentive compensation and stock-based compensation with the latter being a non cash odd. Our research and development expense for the first quarter was approximately 310,000 which was down both sequentially and compared to the first quarter of fiscal 2026.
Consistent with prior periods, these costs were largely directed toward the development and enhancement of our streamer systems and source controller offerings. Operating income for the first quarter was approximately 14,000 compared to an operating loss of approximately 658,000 in the first quarter of fiscal 2026. First quarter adjusted EBITDA was approximately 811,000 compared to an adjusted EBITDA loss of 179,000 in the same quarter a year ago.
Net loss for the first quarter was approximately approximately 411,000 after income tax expense of 476,000. As a reminder, our income tax expense results primarily from our operations in Singapore. As of April 30, 2026, we had significant working capital of approximately 37.8 million, including 17.7 million of cash on hand. The company continues to maintain a clean, debt free balance sheet with a simplified capital structure. We expect our solid foundation, significant liquidity and operational flexibility will allow us to pursue opportunities in the coming quarters to enhance stockholder value.
I'll now pass it back over to Rob for some concluding comments.
Rob Capps (President and Chief Executive Officer)
Thanks Mark. As I mentioned at the outset, macro uncertainty and geopolitical turbulence are causing customers to delay order commitments regardless of industry or end use. This is challenging our near term visibility and it is likely we will see some softness in our results. However, there are signs of recovery and the longer term outlook continues to be very positive. Conflict in the Middle East has served as a sobering reMind Technology Incer of how important energy security is for countries around the world.
As some have speculated, the straight of Hormuz blockade triggered what may be the largest oil supply shock in history. We believe this bodes well for additional orders in future periods. Its geopolitical instability and long term supply concerns will drive exploration activity in other parts of the world. There is an immediate need to replenish lost production and secure reliable energy supplies. Another near term dynamic that has the potential to drive incremental activity is the rapid increase in oil prices.
This goes somewhat hand in hand with the need for energy security, but we find that customers are often more motivated to launch large programs when the economics are compelling. While we anticipate our customers ramping operations in the coming months to capture the benefits of an attractive pricing backdrop, we haven't yet seen the orders associated with this activity. Some of our customers have reported increasing backlogs, which is a very positive sign.
We also note that several industry commentators are predicting a resurgence next generation and survey activity, something that we're monitoring very closely. The Underlying dynamics within the marine technology industry remain intact and our long term pipeline of opportunities continues to be very positive. Our prospects are plentiful and there are emerging opportunities to capitalize on new areas of focus within the market. Uncertainty has clouded visibility for the past several months, but we remain well positioned for the future.
I'm confident that any near term softness will dissipate in the coming months as markets stabilize and volatility becomes less severe As a result of our efforts in recent years, Mind Technology Inc is nimble and operating efficiently. This positions us to more readily weather the storms that have historically challenged our business. Rather than sit idly by as customers hit pause, we've continued to innovate and expand our capabilities to address new opportunities.
This gives us a competitive edge to capture orders and meet evolving needs in coming months. Our customers are constantly looking to get ahead of the curve, operate more efficiently and solve new problems, and they want to partner with suppliers to do the same. Now, turning to our outlook, current visibility continues to indicate that our results for fiscal 2027 to be down when compared to fiscal 2026. Despite this view, we believe this will still be a positive year for mine.
As I noted on our last call, it will be difficult to replicate the system order volume that we've enjoyed over the past two years. Given our recent customer discussions and the prevailing uncertainty. However, we expect to be cash flow positive for the year even with lower revenue, and our growing aftermarket business will provide us with a substantial stream of recurring revenue to buoy our results. Further, we have meaningful cash on hand to make strategic moves and position the business for the future.
As we previously discussed, we continue to be aware of the challenges and limitations of being a small public company. Although we are uniquely positioned with a simple capital structure and a debt free balance sheet, there is a need to add scale and enhance stockholder value. We are actively pursuing opportunities. There are a few different ways we can achieve the desired scale. We can execute identified organic growth opportunities. We can acquire assets or businesses that are similar to our existing business, or we can combine with other organizations.
We continue to identify and evaluate such opportunities. Fortunately, we have ample liquidity to carry out a transaction should the right opportunity arise. However, we will not jeopardize the immense progress that we made at mine to chase an opportunity that doesn't fit what we do. Preserving and enhancing stockholder value will always be our primary focus. While we are motivated, we intend to be very disciplined in our approach to capital allocation, weighing the expected return with the cost of capital.
Outside of strategic mergers and acquisitions, our capital allocation framework consists of investments in organic growth, such as expanding existing product lines and strategic alliances with NFT partners. Each of these represents a tool we can use to generate our strengthened returns. We can draw on any one of these or a combination thereof as market conditions permit and the return on investment meets our threshold for value creation. In summary, we have a differentiated approach, best in class suite of products, and a unique aftermarket business that will continue to support our financial results for years to come.
We are focused on innovating, expanding our capabilities, adding scale, and partnering with customers that appreciate our technology. As these customers prepare for increased activity, we plan to be ready to meet that demand. We have taken meaningful steps to strengthen the company, establishing a resilient platform on a solid foundation. Going forward, we will keep building on that foundation, improving our standing within the market and sharpening our competitive advantage, all of which we believe will propel mine into the next phase of growth.
Our liquidity will prove advantageous as we expand, and we intend to deploy this capital strategically to pursue new attractive opportunities, meet the revolving needs of our customers. As we execute these priorities, our focus remains as it always has, on driving sustainable long term value for our stockholders. And with that operator, I think we can open the call up for some questions.
OPERATOR
Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press Star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press Star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please, while we poll for questions. Thank you. Our first question comes from the line of Tyson Bauer with KC Capital. Please proceed with your question.
Tyson Bauer (Equity Analyst)
Good morning, gentlemen. Tyson, you ended with liquidity, so let's talk about liquidity. You had an increase of 4 million on accounts receivable since the end of January to April. And given the pause button that you described for expectation for fiscal Q2, should we anticipate that your cash balance should be above $20 million by the time we have the next earnings call?
Rob Capps (President and Chief Executive Officer)
I'm not going to predict an exact amount, but I would expect us to start to convert receivables and inventory into cash. So I would expect us to generate cash for the year. So where it hits, I'm not going to predict, but conceptually you're in the right direction there. Okay, but we're in a solid position of more than $2 a share in cash by the Time we get to in this quarter. Yep, I think it's fair to say. I mean working capital, what's 37 million? And that's a solid working capital number
Tyson Bauer (Equity Analyst)
which is yeah, $4. And you got a $5 stock price. Your SGA was up 250,000 year over year, primarily just due to incentive comp. Is all of that will that.
Rob Capps (President and Chief Executive Officer)
Yeah, primarily timing that actually if you look year over year that the overall amount's not going to be that different but, but just a matter of where it hit in the period is the bigger factor.
Tyson Bauer (Equity Analyst)
Okay, so should we expect SGA ongoing level to recede or are we going to maintain this level?
Rob Capps (President and Chief Executive Officer)
I think we'll see it come down some. Typically the first quarter has been higher just because of year end activities, you know, audits, things like that. So I'd expect it to see that coming down a bit. Okay.
Tyson Bauer (Equity Analyst)
Are you willing to at least in general describe the composition of Your backlog, the 7.6. Any large orders or systems within that or are they all fairly small? And any timing or scheduled shipments?
Rob Capps (President and Chief Executive Officer)
It's a variety of things. There's no huge systems in there at this point. So it's mostly, you know, smaller things, you know, some, some new orders, some new system activity, but you know, some of the smaller size as well as, you know, aftermarket activity. You know, timing, you know, I think we'll see most of that certainly this year. I can't tell you off top of my head if it's sold next quarter. Some next. But you know, obviously we have lots of book, book and build business as well. So there's, there's lots going on there. So it's just, it's a, it's a next bag.
Tyson Bauer (Equity Analyst)
So we walk into this fiscal second quarter with approximately 5 million recurring, some minor add ons to there. We don't have the one system that landed in Q1, so Q2 should be your low point, knock on wood. Revenue wise for this fiscal year.
Rob Capps (President and Chief Executive Officer)
That's probably right. I mean that can change and we still have, you know, six weeks to go and lots of things can happen but that's probably right.
Tyson Bauer (Equity Analyst)
And when do we get to a point of backlog order recognition where if we don't start to see that materialize, that could have an impact on the second half of this fiscal year where we start slipping quarters to the right of the calendar?
Rob Capps (President and Chief Executive Officer)
Yeah, it's hard to say Tyson. It kind of depends on the nature of the order. Some things, you know, we can, we have enough visibility, we can start building before we have the order in hand. We've done some of that in the past. You know, some things, you know, turn more quickly than others. It just depends what the orders are. So I think, I don't think we hit that situation until much later in the year. Probably not until we get into the fourth quarter, frankly, or going into the fourth quarter.
Tyson Bauer (Equity Analyst)
Okay. When we talk about, obviously you talk about pipeline projects you can build ahead even though you don't have the project in hand per se. A couple 10 million each. Are there any timelines to those comments or catalyst events that allows those to be realized? Like is there a budgetary, government budgetary passage or certain testing that needs to be completed by X Data or an rfp? Any color on that side of it with the pipeline of projects?
Rob Capps (President and Chief Executive Officer)
Sure. The short answer is no. There's really no governmental deadlines, things of that nature. No hurdles we have to get over from a testing or demonstration standpoint. It's more just going through the process. These are larger projects which involve more than just our equipment. So they move at their own pace sometimes and sometimes we're not the. We're sometimes like the tail being wagged sometimes given the size of our kit compared to the overall project.
So it's just a matter of these things going through their process.
Tyson Bauer (Equity Analyst)
Okay, and are you then teamed up with tier one suppliers, especially on military side or government contracts, so you're the secondary contractor.
Rob Capps (President and Chief Executive Officer)
So there's not an easy answer to that. We are certainly partnered with others for other parts of the kit, but typically we are dealing directly with the principal, if you will, and not going through an integrator or another integrator. We typically are the integrator for these projects as it relates to our equipment.
Tyson Bauer (Equity Analyst)
So you somewhat control your own destiny in that regard.
Rob Capps (President and Chief Executive Officer)
Yeah, yeah, in that regard, yes. But again, these are larger projects, so there are other aspects to it that can have impact on schedule.
Tyson Bauer (Equity Analyst)
A lot of comments about the Middle East. You do do a lot of business with European contractors. A lot of activity in Asia and some of these are non petroleum or non gas type end use or surveying and exploration, whether scientific, hydrographic, deep sea mining, renewable offshore, not in the US now, but in other places. Why is that slowed down? It doesn't seem like that should have a lot to do with the Strait of Hormuz and those things that if China wants to do deep sea mapping or we're doing deep mineral exploration off the east coast of Africa and those areas, they seem to be independent of what's going on in the Middle East. So why Are we not seeing more activity in those regards?
Rob Capps (President and Chief Executive Officer)
Well, I think we are seeing activity there is the short answer. But there is marginal activity in the Middle east area that's being impacted. But I think the overall uncertainty politically and economically is causing people to be cautious in committing exploration dollars or, or capital dollars anywhere in the world. You don't know what the energy pricing environment is going to be. You don't know what the security environment is going to be. So I think that just causes overall uncertainty and therefore overall caution all over the world, not just as it relates directly to the Middle East. Okay.
Tyson Bauer (Equity Analyst)
And typically in this timeframe, we see some activity coming out of some of your bigger customers in Europe, so especially Scandinavia. Is that still percolating and still there? Just not realized. But you do expect something before the end of the year or what's the status of some of those bigger customers that have been repeat customers in years past?
Rob Capps (President and Chief Executive Officer)
Well, I think they've been cautious as everyone else has been in making commitments this year in the last several months. I think they are very encouraged about what they're seeing in the future. I don't see that they're quite ready to pull the trigger on things and start to expand capacity, but that's something we hope to see. So I think, as my remark said, people have been cautious given the uncertainty, but they all, I believe, are feeling fairly optimistic about the future based on what they're seeing from their customers and what they're seeing from their backlogs.
Tyson Bauer (Equity Analyst)
Okay, and last question for me is what are you hoping to accomplish or to see to show your shareholders before the next earnings call, after Q2 is over, and hopefully realize some of the stuff in your outlook that you're providing for the second half of the year. What are some things that shareholders can be watching for?
Rob Capps (President and Chief Executive Officer)
Sure. I mean, obviously, you know, we start to see order flow will be important, but, you know, I want to cautious everyone. You know, timing is uncertain, and just because we don't get the order, you know, by a certain date doesn't mean things are fundamentally different. But I think looking for order flow and we continue to look for opportunities to expand our offerings. So that's something we are very actively pursuing right now. So those are the sort of things that we're looking at. But again, timing is uncertain in lots of these things. All right, thank you, gentlemen. Bet.
OPERATOR
Our next question comes from the line of Ross Taylor with Ars Investment Partners. Please proceed with your question.
Ross Taylor (Equity Analyst)
Thank you. Ross, on these new areas, these, you know, $10 million plus potential contracts, what are the End markets that are being served.
Rob Capps (President and Chief Executive Officer)
Typically these are quasi governmental agencies who are building vessels or equipping vessels for a variety of scientific and exploration purposes. So it's not directly energy related necessarily, although there's an aspect of that. But there are all sorts of other things they look to do. You know, deep sea mining, hydrographic survey work, things of that nature.
Ross Taylor (Equity Analyst)
But the customers are generally governments, not corporations for these big contracts.
Rob Capps (President and Chief Executive Officer)
Yeah, at least quasi governmental. That's correct. Okay.
Ross Taylor (Equity Analyst)
And obviously how many of them are ex us outside the US I'd say All of them are. And how many do you have, do you think? Is it two, is it four?
Rob Capps (President and Chief Executive Officer)
It's a small handful. I don't want to be too specific for some competitive reasons, but it's a small handful.
Ross Taylor (Equity Analyst)
Okay. And you said, obviously you indicated that would be some draw on the balance sheet or the working capital side because of the need to secure, provide security for these deals. How much is that going to end up being? If you have a 10, if you have a $10 million deal, how much do you have to put up from your side to or. Cause you're basically going to, I assume, buy some form of bond on that?
Rob Capps (President and Chief Executive Officer)
That's correct. We put that facility in place with HSBC recently so we can do it in that manner. We don't have to post cash collateral at that point. But it varies based on the contract. But you were talking about a couple million bucks maybe.
Ross Taylor (Equity Analyst)
Okay. Okay. So if you have two, three, four of these, obviously it will, you know, it will. Would we see that as an impact on cash or would not be. Would it be an impact? Not be.
Rob Capps (President and Chief Executive Officer)
An impact should not be an impact on cash. Not during this new facility. It should not be.
Ross Taylor (Equity Analyst)
Yeah. Okay, so in looking at this situation, it does seem a little odd in many ways. I mean, the Chinese have aggressively been mapping pretty much everything inside every island chain they can find off their shores. It would seem that the US and our allies need to do the same. So hopefully this will get going. When you see this, what kind of have you built inventory at this stage? Is there inventory on the balance sheet for any of these potential deals?
Rob Capps (President and Chief Executive Officer)
To some degree, yes, but not a great deal. I mean, we haven't been building a large system to specifically, but there are components that we tend to tend to stock because some of these components are also part of our aftermarket business. So things we sell a spare parts, you know, we also are parts of this new build. So we can kind of pursue both at the same time. But it's not as though we've built a large system that's sitting on the shelf. So there is some lead time involved.
Ross Taylor (Equity Analyst)
Okay. And you expanded your facility, I think physically, certainly down in what, Texas. How is demand for that at this stage?
Rob Capps (President and Chief Executive Officer)
That is starting to ramp up. So that's, we're starting to see improved results there, you know, improved activity and we think that will continue to increase. So we're pretty optimistic about that. You know, it's not going to be, you know, 30 million bucks a year, but it's, it can be meaningful for us.
Ross Taylor (Equity Analyst)
Okay. And with that, as you see that move forward, would that change right now, the five, five and a half million per quarter you're doing on kind of maintenance and repair, should we expect to see that? You know, because that I, I think of that as a base and this new additional capacity being on top of that, is that a correct way to see that?
Rob Capps (President and Chief Executive Officer)
That's a good way to see that. That's exactly right. That should be fairly recurring and fairly predictable. That's why we're encouraged by that.
Ross Taylor (Equity Analyst)
Okay, so we, what we can see is in here is that as we push forward, even if you're not getting new orders, that you, you should see the maintenance and repair part of your business move forward, grow.
Rob Capps (President and Chief Executive Officer)
That's correct.
Ross Taylor (Equity Analyst)
Okay. You talked a lot about the various and sundry options you have to scale up the company. What kind of financial hurdles benchmarks are you having in place for making that decision? Are you, you know, is it something that needs to be, you know, additive to earnings, additive to free cash flow? EBITDA needs to have a 20%, 15, whatever. I mean, have you actually laid down, you talked about having a discipline with it. Have you laid down metrics and if so, what are some of those metrics?
Rob Capps (President and Chief Executive Officer)
Yeah, I don't want to get too specific at this point, but we certainly, anything we do, we want to be accretive, without a doubt. And there's some then non financial metrics that we want to look at as well, which really involve risk around a transaction. Want to make sure something we understand that can manage well. So just because we see something that, you know, on a spreadsheet, has some great metrics, great returns, that doesn't mean there's not risk involved in that. So that's the other aspect we're trying to evaluate in these various opportunities.
Ross Taylor (Equity Analyst)
Okay, and when you're looking at where, what do you feel mine's core competency is and therefore what, when you're looking at these deals, how are you seeing the reach of them.
Rob Capps (President and Chief Executive Officer)
Sure. So obviously we had some specific project products, rather sorry. That are some unique technology that we can add other things to. So the ability to, in a very economic way, add additional products, additional capability is a strength of ours. We have ability to build things very effectively and very efficiently through our facilities, both here in the US and in Asia. And I think that gives us an advantage in taking in other additional products that perhaps we can build more efficiently and therefore garner more margin. So I think that's our two. Our core competencies, and we do have some unique technology that we think we can build from as well. So I think those are the. The key aspects of us.
Ross Taylor (Equity Analyst)
Okay. And I would be remiss if I didn't note that you issued stock at 11 and currently your stock is selling, you know, in the. Basically at $5. At some point in there, it would be strike me as it'd be hard to ignore the fact that you have a chance to actually buy back some of what you issued to reduce the dilution and still leave a fair amount of cash on the balance sheet.
Rob Capps (President and Chief Executive Officer)
Yeah, that's true. As we've said before, you know, we put that in place to give this opportunity. And if that's, you know, we think, if we think that's the best use of our capital at a certain point in time, that's what we'll do. But obviously I'm not going to predict or indicate what our indicate, you know, what our intentions are, but that is an option for us.
Ross Taylor (Equity Analyst)
Okay. And just generally, when you're looking at going back to your potential order book, how many of these are kind of new prospects or new uses, and how many of them are, as Tyson was referring to, kind of repeat buyers?
Rob Capps (President and Chief Executive Officer)
I'm thinking through they are accommodation. I'm pausing because I'm thinking through the list. There certainly are some new customers in this list as well as some repeat customers who are expanding capacity. Okay.
Ross Taylor (Equity Analyst)
Well, it's obviously we're in a period of struggle, but as Tyson noted that your current working Capital at about $4 a share puts very little value on the business. Hopefully we'll be able to get some of this stuff turned around in the near future and get some value reattached to it. Okay, thank you very much. Good luck.
OPERATOR
Our next question comes from the line of Howard Root with Fairhold Capital. Please proceed with your question.
Howard Root (Equity Analyst)
Good morning and thanks for taking my call.
Rob Capps (President and Chief Executive Officer)
Good, Howard.
Howard Root (Equity Analyst)
So a quick question on the income taxes. The 476,000 seemed like a huge number. I understand it's international, but is that an aberration. Is there a way of getting that down or what's the cause of that?
Rob Capps (President and Chief Executive Officer)
Well, we are profitable overseas, in Singapore primarily. So we pay taxes in Singapore. We have losses in the US that we can't apply against that. So basically you have taxable income that's not sheltered by an untaxable losses, if you will. So that's the reason for that. There are some things that we are doing to try to mitigate that, but fundamentally, as long as we're making money there and not making money here, we're going to see that sort of aberration. Now, one thing we are doing is trying to generate more income in the US through our repair activities in our Texas facility.
And that will help reduce the appearance of that because we will start to generate taxable income in the US which we'll be able to shelter from our existing loss carryforwards.
Howard Root (Equity Analyst)
Wow. That's. I mean, obviously there's a lot of ways to shelter that when it's a controlled subsidiary. You shouldn't be having that much income in a subsidiary when the parent isn't making that much. But is there any action to kind of minimize that? Because that is a huge number based on last quarter, is that going to
Rob Capps (President and Chief Executive Officer)
continue at that level? So there are limitations on what you can do. Your transfer pricing rules bring all the countries. So there are some limitations as to how aggressive you can be, but that's something we look at on a continuous basis.
Howard Root (Equity Analyst)
But do we figure that's a going number? I mean, if we do the same number as revenue next quarter, it's going to be the same amount of income taxes?
Rob Capps (President and Chief Executive Officer)
Well, how that's. It's hard to predict because it depends exactly what revenue hits in a particular quarter. So that can certainly could be a bit more, it could be a bit less. It just, it can vary because you're kind of on the margin right now. So a small change can have a big percentage impact.
Howard Root (Equity Analyst)
Okay, so on backlog in prior quarters, you gave us an update if there were any material contracts since the quarter end. So has there been any new material orders added to the backlog since April 30?
Rob Capps (President and Chief Executive Officer)
Not material or we would have said so. No. You know, a lot longer. Nothing large. Right. So is the backlog, can you give us any update on the backlog at the end of May or to, you know, in the end of last week from that $7.6 million level? Yeah, I really don't want to get into that. But again, if we have a significant change in Backlog, we'll announce that. But other than that, I don't want to get too specific.
Howard Root (Equity Analyst)
And then the stock repurchase plan, obviously you haven't filed your 10Q and I would request that you do that at the same time you do your press release going forward so we can get all the details to be able to ask these questions. But I'm assuming that you have not purchased any shares under the stock repurchase plan to date?
Rob Capps (President and Chief Executive Officer)
That's correct.
Howard Root (Equity Analyst)
Okay, so my last question then. And kind of got. Last question. I got to this. I mean, the $40 million net tangible book value and really the working capital primarily from, well, actually primarily from really well, timing. The ATM stock sale, 440 a share per share, $4.40. That leaves only at today's price, basically 50 or 60 cents per share of residual value on the market value. Is the company looking at the opposite? Because you're talking about maximizing stockholder value, as in you guys acquiring something else. Why isn't it the maximizing stockholder value, either buying your stock or having someone buying this and giving us the value for this business, rather than basically one quarter of price to sales ratio.
Rob Capps (President and Chief Executive Officer)
That's an option. That certainly is an option that we're looking at, and that's the reason we put the buyback program in place, so we'd have that option Again, I don't want to telegraph what our intentions are, what we may or may not do, because it's a function of other factors as well, but that is certainly an option for us.
Howard Root (Equity Analyst)
Okay, so then finally, at what point in time in the future do we look at this?
Rob Capps (President and Chief Executive Officer)
This isn't working. We need to do something different. More of an aggressive change. Is it end of this year? I think there's. We've got a long Runway there. I think there's enough progress and enough opportunity. I think we've got a long way to go on that.
Howard Root (Equity Analyst)
Okay, well, thanks for taking the questions.
OPERATOR
Thank you. This concludes our question and answer session. I would now like to turn the floor back over to Mr. Capps for closing comments.
Rob Capps (President and Chief Executive Officer)
Okay, thanks everyone for joining us this morning. I look forward to talking to you again in a few weeks, few months after our second quarter results. Thanks,
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.
Login to comment