Moving iMage Technologies Q1 2027 Earnings Results & Report

Moving iMage Technologies EPS Results

• Actual EPS: $0.02
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Moving iMage Technologies Revenue Results

• Actual Revenue: $6.09 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Moving iMage Technologies (NYSEAMERICAN:MITQ) (NYSE American: MITQ) provides technology, equipment and services for cinemas and other entertainment venues. The company helps customers design, build, upgrade and operate auditoriums through a combination of products, systems integration and technical support.

Its offerings include digital cinema projection and audio systems, screens, media servers, cinema management and automation solutions, seating, concession equipment and related theater infrastructure. Moving iMage Technologies also provides installation, engineering, maintenance and other professional services, including customized solutions for new construction and auditorium renovations.

The company serves movie theater exhibitors, venue operators and related entertainment businesses, primarily in the United States. Moving iMage Technologies was established in 2003 and is headquartered in California. Its leadership includes Jeffrey “Joe” Delgado, who serves as chief executive officer and has been associated with the company’s development in the cinema technology industry.

Moving iMage Technologies Q1 2027 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: First-quarter revenue rose 9.2% to $6.09 million, boosted by two customer projects pulled forward and DCS loudspeaker sales. Management cautioned that project timing can cause significant quarter-to-quarter variability.
• Negative Sentiment: Gross margin fell to 24.1% from 30%, reflecting a less favorable product mix and higher transportation and input costs. Net income was $181,000, down from $509,000 a year earlier.
• Positive Sentiment: MiT expects approximately $5.4 million in fiscal Q2 revenue, supported by a turnkey upgrade at a 16-screen theater. Management also cited a favorable outlook for project activity ahead of the holiday film season, while noting that customer budgets and project timing remain uncertain.
• Positive Sentiment: Since acquiring DCS, MiT has generated $1.3 million in sales across more than 20 countries, with an order backlog of about $459,000. Management said customer interest is strong, though integration, manufacturing, logistics, and rebuilding customer trust remain ongoing challenges.

Presentation

[Operator]

Greetings, and Welcome to the Moving iMage Technologies first quarter 2027 earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press star ,on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Chris Eddy with Investor Relations. Please go ahead.

[Chris Eddy, Investor Relations at Moving iMage Technologies]

Thank you, operator, and thank you all for joining today's call. MiT President Francois Godfrey will provide a business overview, and CFO Bart Bedard will discuss some financial highlights, after which 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 information, the matters discussed on this call are forward-looking statements that involve several risks and uncertainties. Words like believe, expect, and anticipate mean that these are our best estimates as of this writing, but that there can be no assurances that expected or anticipated results or events will take place. Actual future results could differ materially from those statements.

[Chris Eddy, Investor Relations at Moving iMage Technologies]

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 MiT President Francois Godfrey.

[Francois Godfrey, President at Moving iMage Technologies]

Thanks, Chris, and thank you all for your interest in Moving iMage Technologies. We are pleased with our first quarter performance, as it benefited from some of the positive underlying dynamics within the exhibition industry, including two customer projects which were accelerated into the period. As a result, our first quarter revenue rose by 9.2% to $6.1 million, benefiting from DCS loudspeaker sales and increased customer project activity in preparation for the critical holiday feature film release window. The accelerated project timelines caused our Q1 performance to exceed our earlier outlook. Of course, the timing of small and large projects can easily shift a few quarters as customers move implementations forward or back to meet internal operating or financial goals or priorities, creating potential variability in our quarter-over-quarter results. Importantly, we were able to generate positive net income for the quarter.

[Francois Godfrey, President at Moving iMage Technologies]

While we don't want to overemphasize the significance of a single reporting period, I do want to highlight the skill and dedication of our team to serving customers while maintaining a disciplined approach to operating efficiency. As we pursue new avenues of growth potential, we remain firmly focused on building a sustainable business model with the potential to generate profitable growth. As I alluded, we remain encouraged by the industry backdrop and solid box office performances, which are traditionally the strongest indicators for capital investments in new or upgraded cinema technology. Movie industry analysts continue to express optimism about the film slate over the next 12 months, supported by renewed customer enthusiasm for the theatrical experience. We believe this provides exhibitors with greater confidence in the long-term prospects of their business while also providing needed cash flow to fund new equipment and auditorium upgrades.

[Francois Godfrey, President at Moving iMage Technologies]

We believe our expanded product portfolio, including PLF and immersive audio solutions, positions us well to participate in these opportunities as exhibitors evaluate their capital investment priorities for the coming year. As exhibitors seek to maximize attendance, premium large-format auditoriums and immersive audio solutions remain a key pathway to differentiate their venues and enhance the moviegoing experience. Given the technical complexity and scope of such projects, they remain important revenue opportunities for MiT. I am pleased to report that we are seeing a more robust level of activity in our industry, and we are engaged in discussions surrounding several potential projects that could contribute to our business in calendar 2027. These conversations include some meaningful potential opportunities for LEA Professional amplifiers, an industry-leading product line we began working with four years ago and is continuing to gain long-term operational acceptance.

[Francois Godfrey, President at Moving iMage Technologies]

The addition of the DCS loudspeaker line to our business has helped build interest by enabling us to offer a comprehensive audio solution. Having referenced DCS, let me provide an update on the acquisition, which we closed early in the second quarter of last fiscal year. Overall, we are very pleased with how things are going, though there have been some challenges in incorporating the DCS operations into MiT and ramping up our manufacturing and global logistics. As we expected, customer interest is very strong, both with legacy DCS customers around the world and with new prospects. However, it does take time to rebuild the rapport with each customer and to build trust and credibility about our commitment to the quality and service they expect. Our team is progressing well in this regard in a financially disciplined manner.

[Francois Godfrey, President at Moving iMage Technologies]

The net result is that we continue to see great value in expanding our base of proprietary products to provide us entry and competitive advantage in the marketplace. It takes time to establish ourselves with this product, but since closing the acquisition about a year ago, our team has generated total sales of $1.3 million from over 20 countries, approaching the $1.5 million in total consideration paid in the purchase. As is typical in the cinema exhibition industry, customer capital spending activity slows substantially during the November and December holiday season. This upgrade pause allows exhibitors to maximize their revenue opportunity while they also work internally to complete budgeting and planning for theater upgrade priorities for the year ahead.

[Francois Godfrey, President at Moving iMage Technologies]

We look forward to customers releasing their budget plans in the new calendar year so we can work to secure some of their projects and build that outlook into our public outlook for investors. At this point, we have a favorable outlook for project activity leading up to the holiday film release season. Finally, as we have discussed previously, MiT continues to evaluate the merits of potential business combinations or other strategic transactions that we believe could enhance our competitive position, growth potential, and financial results for our shareholders. Now, I'll turn the call over to our CFO, Bart Bedard, to review the financial highlights.

[Bart Bedard, CFO at Moving iMage Technologies]

We published our financial statements in this morning's press release and expect to file a Form 10-Q later today. Now I'll briefly walk through our financial results. MiT's Q1 2027 revenue increased 9.2% to $6.09 million, compared with $5.58 million in Q1 of 2026. The increase was principally attributable to two customers who accelerated the timing of projects by one quarter into Q1 of 2027, putting our results well ahead of our prior outlook. This is a very clear example of how the timing of larger customer projects can have on our quarter results and comparisons to other periods. Our Q1 2027 results also benefited from $429,000 of DCS loudspeaker sales, including a large shipment to a customer in Sri Lanka, compared to $400,000 in DCS revenue in Q4 of 2026, and no revenue in the year-ago period prior to the purchase of DCS.

[Bart Bedard, CFO at Moving iMage Technologies]

Our DCS order backlog is approximately $459,000 today, and we are pleased with the pace of reception and inquiry by customers for the DCS line one year following the acquisition. Gross margin percentage in Q1 of 2027 decreased to 24.1% compared to 30% in Q1 of 2026, reflecting lower sales of high-margin cinema accessories products and increased costs. Higher global transportation and input costs, particularly in international markets, also contributed to margin pressure during the quarter, increasing the cost of delivering products and equipment to customers. Our Q1 2027 gross profit was $1.47 million compared with $1.67 million in the prior year period, with the decrease attributed to the lower gross margin. Q1 2027 operating expense declined to $1.3 million from $1.32 million in Q1 2026, as MiT continued to benefit from certain cost initiatives put in place the past several quarters.

[Bart Bedard, CFO at Moving iMage Technologies]

Q1 of 2027 net income was $181,000, or $0.02 per share, compared with net income of $509,000, or $0.05 per share, in Q1 of 2026. The decrease was due to the lower gross profit, as well as $128,000 of income from the extinguishment of payables that was recorded in Q1 of 2026. Turning to our balance sheet, we had working capital of $4.24 million at the close of Q1 2027, compared to $4.04 million in Q1 of 2026. MiT has no long-term debt. We closed Q1 2026 with net cash of $5.69 million and approximately $0.55 per common share, compared to net cash of $3.19 million in Q4 of 2026. The sequential increase reflects the management of the timing of accounts payable payments, as well as $1 million in customer deposits collected against future work.

[Bart Bedard, CFO at Moving iMage Technologies]

Turning to our revenue outlook, MiT currently anticipates revenue of approximately $5.4 million in our fiscal 2027 second quarter ending December 31, supported by the delivery of a turnkey upgrade of a 16-screen theater complex. In summary, achieving positive net income this quarter is an encouraging milestone that reflects our solid customer engagement and the progress we have made in aligning our expense structure with the business. Our priority remains to build on this foundation through disciplined execution, profitable growth, and the conversion of our customer pipeline into revenue-generating projects. With that overview, operator, we are ready to begin the Q&A session.

[Operator]

Thank you. We'll 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 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. As a reminder, if you'd like to ask a question, please press star one. Thank you. There are no questions at this time. I would like to hand the floor back over to management for any closing remarks. At this time, we are concluding today's conference. You may disconnect your lines, and we thank you again for your participation.

Participants

Executives

• Chris Eddy, Investor Relations
• Francois Godfrey, President
• Bart Bedard, CFO