Moving iMage Technologies faces revenue drop amid project delays

Moving iMage Technologies, a company based in Fountain Valley, California, reported its third quarter financial results for the period ending March 31, 2025. The company's revenue declined by 8.2%, from $3.890 million in Q3 2024 to $3.571 million in the same quarter of 2025. This decline was attributed to customer delays in the start of several projects, which are now anticipated to commence in the fourth quarter of 2025 or in fiscal year 2026. Despite these delays, gross profits showed an improvement, rising to $1.063 million compared to $676,000 in Q3 2024, due to a strategic focus on higher margin project opportunities and reduced lower margin sales from cinema facilities equipment, along with lower inventory reserves from the previous year. Additionally, the net loss for the quarter improved to $240,000, or $0.02 per share, compared to a loss of $601,000, or $0.06 per share, in the previous year. Phil Rafnson, the Chairman and CEO, emphasized the company's focus on building its project pipeline, controlling overhead, and pursuing higher-margin opportunities despite current economic uncertainties that hinder customer spending decisions. The management also outlined expectations for a revenue bounce back in Q4 2025, projecting approximately $5.2 million in revenue from larger projects that have been deferred into FY 2026. This effort aims not only to stabilize the business but to ensure a path towards positive cash flow and profitability. At CinemaCon, held in late April, the company gained new relationships and opportunities that could positively impact their upcoming projects. Notably, they secured a significant $9 million contract for a projector technology refresh over three years for a long-term exhibition customer. Overall, despite the financial downturn in Q3, Moving iMage Technologies has built a recurring annual revenue stream of $8 million to $9 million and is optimistic about various projects lined up for FY 2026, highlighting their dedication to improving service and products both now and in the long term. Moving forward, Rafnson expressed confidence in the potential growth in the cinema industry with upgrades to newer cinema systems expected to deliver better image quality and reduced total cost of ownership. The company continues to navigate challenges while strategically positioning itself for future opportunities and focusing on financial discipline to achieve its targets and safeguard its cash reserves.