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MiT's Earnings Break Even in Q1 Amid Revenue and Demand Struggles
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Shares of Moving iMage Technologies, Inc. (MITQ - Free Report) have declined 6.7% since the company reported its earnings for the quarter ended Sept. 30, 2024. This compares to the S&P 500 index’s 2% decline over the same time frame. Over the past month, the stock has fallen 4.2% versus the S&P 500’s 0.6% growth.
For the first fiscal quarter of 2025, MiT posted break-even earnings per share compared to earnings of 4 cents per share recorded in the prior-year quarter.
MiT reported total revenues of $5.3 million, reflecting a 20.8% decline from $6.6 million in the same period last year.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Moving iMage Technologies, Inc. Price, Consensus and EPS Surprise
Gross profit also dropped 24.6% to $1.4 million from $1.8 million, with gross margins decreasing slightly to 26.1% from 27.4%.
Operating income swung from $0.4 million last year to a loss of $0.1 million this quarter. The deterioration in profitability reflects lower revenues and continued challenges in recovering post-COVID momentum.
Operating expenses, including R&D and selling, marketing, and administrative costs, increased marginally to $1.44 million from $1.43 million in the previous year. Despite the challenging revenue environment, the company continued to invest in product innovation, as evidenced by its steady R&D spending of $0.1 million.
Net income dropped to a break-even level compared to $0.4 million in the prior year, indicating a significant year-over-year downturn.
Key Business Metrics
As of Sept. 30, 2024, MiT held $5.2 million in cash, a slight decrease from $5.3 million at the end of fiscal year ended June 30, 2024.
Inventories fell to $2.6 million from $3.1 million in the previous quarter.
Receivables marginally declined to $1.03 million from $1.05 million, signaling consistent collection efforts despite weaker sales.
Management Commentary
CEO Phil Rafnson expressed optimism about the industry's resurgence, fueled by a strong summer box office and technological upgrades in theaters. He noted that key customers, including AMC and Cinemark, are increasing their investments in premium offerings such as immersive audio systems and laser projection upgrades. However, management acknowledged that while industry conditions are improving, recovery from post-pandemic disruptions and Hollywood strikes is ongoing.
Factors Influencing Results
MiT’s revenue decline reflects challenges in the broader cinema and entertainment sectors, despite improving market sentiment. The Hollywood strikes earlier this year impacted demand for MiT’s products. While the strikes are now resolved, the lag in order placement and fulfillment is evident in the quarterly performance.
The company is positioning itself to capitalize on an expected increase in industry investments in 2025, supported by its portfolio of high-end proprietary solutions. Additionally, MiT is pursuing internal initiatives to introduce recurring revenue streams, which could drive long-term growth and margin expansion.
Outlook
Management anticipates a stronger second half of fiscal 2025, driven by improved customer budget allocations and a robust pipeline of film releases. The holiday season, traditionally slower for the company, could provide a favorable comparison due to last year’s disruptions.
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MiT's Earnings Break Even in Q1 Amid Revenue and Demand Struggles
Shares of Moving iMage Technologies, Inc. (MITQ - Free Report) have declined 6.7% since the company reported its earnings for the quarter ended Sept. 30, 2024. This compares to the S&P 500 index’s 2% decline over the same time frame. Over the past month, the stock has fallen 4.2% versus the S&P 500’s 0.6% growth.
For the first fiscal quarter of 2025, MiT posted break-even earnings per share compared to earnings of 4 cents per share recorded in the prior-year quarter.
MiT reported total revenues of $5.3 million, reflecting a 20.8% decline from $6.6 million in the same period last year.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Moving iMage Technologies, Inc. Price, Consensus and EPS Surprise
Moving iMage Technologies, Inc. price-consensus-eps-surprise-chart | Moving iMage Technologies, Inc. Quote
Gross profit also dropped 24.6% to $1.4 million from $1.8 million, with gross margins decreasing slightly to 26.1% from 27.4%.
Operating income swung from $0.4 million last year to a loss of $0.1 million this quarter. The deterioration in profitability reflects lower revenues and continued challenges in recovering post-COVID momentum.
Operating expenses, including R&D and selling, marketing, and administrative costs, increased marginally to $1.44 million from $1.43 million in the previous year. Despite the challenging revenue environment, the company continued to invest in product innovation, as evidenced by its steady R&D spending of $0.1 million.
Net income dropped to a break-even level compared to $0.4 million in the prior year, indicating a significant year-over-year downturn.
Key Business Metrics
As of Sept. 30, 2024, MiT held $5.2 million in cash, a slight decrease from $5.3 million at the end of fiscal year ended June 30, 2024.
Inventories fell to $2.6 million from $3.1 million in the previous quarter.
Receivables marginally declined to $1.03 million from $1.05 million, signaling consistent collection efforts despite weaker sales.
Management Commentary
CEO Phil Rafnson expressed optimism about the industry's resurgence, fueled by a strong summer box office and technological upgrades in theaters. He noted that key customers, including AMC and Cinemark, are increasing their investments in premium offerings such as immersive audio systems and laser projection upgrades. However, management acknowledged that while industry conditions are improving, recovery from post-pandemic disruptions and Hollywood strikes is ongoing.
Factors Influencing Results
MiT’s revenue decline reflects challenges in the broader cinema and entertainment sectors, despite improving market sentiment. The Hollywood strikes earlier this year impacted demand for MiT’s products. While the strikes are now resolved, the lag in order placement and fulfillment is evident in the quarterly performance.
The company is positioning itself to capitalize on an expected increase in industry investments in 2025, supported by its portfolio of high-end proprietary solutions. Additionally, MiT is pursuing internal initiatives to introduce recurring revenue streams, which could drive long-term growth and margin expansion.
Outlook
Management anticipates a stronger second half of fiscal 2025, driven by improved customer budget allocations and a robust pipeline of film releases. The holiday season, traditionally slower for the company, could provide a favorable comparison due to last year’s disruptions.