Moving iMage Technologies, Inc. MITQ incurred a GAAP net loss of 4 cents per share in the fourth quarter of fiscal 2024, narrowing from a loss of 12 cents per share in the same quarter of 2023.
Revenues grew 10% year over year to $6.3 million from $5.8 million in the fourth quarter of fiscal 2023, driven by a recovery in cinema-related demand despite broader industry disruptions.
MiT’s fiscal fourth quarter financial results highlight the company’s ability to recover despite external challenges, particularly the disruptions caused by the entertainment industry strikes. The company benefited from rising demand for cinema technologies as the industry saw a resurgence in blockbuster films and a shift toward premium theater experiences.
MiT also made strategic moves to position itself for growth, including testing its new technologies at top cinema chains. These efforts, combined with the cinema industry’s broader upgrade cycle, could lead to significant revenue opportunities, as MiT's technology is central to the industry's ongoing investments in projection and audio systems.
Moving iMage Technologies, Inc. Price, Consensus and EPS Surprise
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Business Metrics
Gross Profit and Margins
Gross profit for the fourth quarter of fiscal 2024 was $1.4 million, marking a 2.3% increase from the fourth quarter of fiscal 2023. However, the gross margin contracted slightly to 22.5%, down from 24.2% in the prior-year period. This reduction in margin reflects higher costs likely tied to supply chain constraints or increased production costs.
Operating Loss and Operating Margin
Operating loss narrowed significantly to $0.5 million from $1.4 million in the prior-year quarter, driven by the revenue increase and tighter cost control. The operating margin came in at a negative figure of 7.3% in the fourth quarter of fiscal 2024, while the prior-year quarter witnessed the metric at a negative figure of 23.5%.
Net Loss and Non-GAAP Metrics
GAAP net loss for the fourth quarter of fiscal 2024 was $0.4 million, narrowing from the $1.3 million loss in the fourth quarter of fiscal 2023. On a non-GAAP basis, the company incurred a net loss of $0.4 million for the quarter, wider than the $0.2 million in the same period last year.
Balance Sheet Position (As of June 30, 2024)
MiT reported a cash balance of $5.3 million, down from $6.6 million at the end of fiscal 2023.
Total assets stood at $10.5 million at the close of fiscal 2024 compared to $13.3 million a year earlier.
Current lease liability came in at $0.2 million, down from $0.3 million in fiscal 2023.
Stockholders’ equity was $5.7 million, down from $7.6 million in fiscal 2023.
Operating Cash Flows
Net cash used in operating activities amounted to $0.8 million in fiscal 2024, while fiscal 2023 witnessed $0.3 million of net cash provided by operations.
Share Repurchase Update
The company bought back over 758,000 shares in fiscal 2024. This reflects management’s confidence in the company’s long-term prospects, with a clear belief that the stock remains undervalued.
Fiscal 2024 Update
MiT’s revenues were slightly down by 0.3%, totaling $20.1 million compared to $20.2 million in fiscal 2023.
Gross profit decreased by 11.8% to $4.7 million, with the gross margin for fiscal 2024 at 23.3%, down from 26.3% in fiscal 2023.
The operating loss narrowed to $1.6 million from $2 million in fiscal 2023, with the operating margin coming in at a negative figure of 7.7%, signaling more efficient operations despite headwinds in earlier quarters.
GAAP net loss was $1.4 million, narrower from $1.8 million in fiscal 2023, while the non-GAAP loss widened to $1.4 million from $0.7 million. The increase in non-GAAP losses reflects adjustments for stock compensation and other non-recurring items.
Management Guidance
Management expressed optimism about the future of the cinema and entertainment industries, projecting strong growth opportunities over the next three years. The cinema industry is undergoing a major upgrade cycle, with tens of thousands of projectors needing replacement or refurbishment. MiT is well-positioned to capture a share of this market, with potential sales from a single medium-sized customer alone estimated at $15-$25 million over four years.
In addition, the company sees further growth potential from cinemas expanding into live events, Esports, and corporate rentals, markets that require MiT’s versatile high-performance equipment.
Management also highlighted the importance of premiumization within theaters, with major chains committing billions of dollars to upgrades, which should directly benefit MiT’s revenue and margin performance in the coming years.
Other Developments
It continued to make significant strides in developing new products and services aimed at enhancing the movie-going experience. The company’s key innovations, such as MiTranslator and E-Caddy, are expected to drive future growth through high-margin, recurring revenue streams. These products are currently progressing toward commercialization, with testing ongoing at several major theater circuits.
The company is also benefiting from strategic moves within the broader industry, such as Sony Pictures' acquisition of Alamo Drafthouse, which underscores the positive outlook for theatrical releases and the potential for MiT to expand its presence in premium cinema technologies.
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