MIND Technology 2027財年第二季法說會：在手訂單下滑

重點總覽

• 2027 財年第二季海洋科技產品營收約為 560 萬美元，其中售後市場業務約占總營收的 87%。
• 毛利約為 210 萬美元，毛利率為 37%。管理層表示，儘管售後市場銷售通常具備較高毛利率，但營收偏低削弱了固定成本的吸收能力。
• MIND Technology 報告淨虧損約 170 萬美元，相較之下，2026 財年第二季淨利為 190 萬美元。調整後 EBITDA 由正 310 萬美元轉為虧損約 94.9 萬美元。
• 截至 2026 年 7 月 31 日，確定在手訂單從 2026 年 4 月 30 日的 760 萬美元及前一年同期的 1,280 萬美元降至約 480 萬美元。
• 管理層預期 2027 財年的業績將低於 2026 財年，並指出訂單轉換疲軟可能會在未來一到兩個季度繼續對業績造成壓力。
• 公司在本季度結束時擁有 1,580 萬美元現金、3,670 萬美元營運資金且無債務。其潛在訂單管線規模仍數倍於確定在手訂單，其中包括單筆價值達 1,000 萬美元或以上的專案。

核心財務數據

業務與營運表現

售後市場銷售（包括零組件、維修、服務與支援）貢獻了第二季的大部分營收。管理層將該業務歸類為比新系統訂單更具經常性的業務，因為即使資本支出延遲，客戶仍必須維護已安裝的設備。

由於地緣政治與大宗商品價格的不確定性導致客戶推遲下單，新系統需求持續受限。中東專案的中斷也導致部分客戶的新合約簽署、專案啟動及付款延遲。

管理層表示，潛在訂單管線規模仍數倍於確定在手訂單。MIND Technology 正爭取多個大型機會，包括單筆價值達 1,000 萬美元或以上的專案。其中部分專案主要取決於政府機構預算與採購週期，而非中東局勢。

該公司繼續投資用於海上安全應用的被動陣列技術，並升級其震源控制器與拖曳震測纜產品。管理層表示，其在海上安全領域已取得初步進展，同時也在爭取非能源專案，特別是在東南亞地區。

管理層展望

管理層預期 2027 財年的業績將低於 2026 財年，原因是客戶意向未能以預期速度轉化為確定訂單。當前的市況可能在未來一到兩個季度繼續對業績造成壓力，但具體復甦時間點很大程度上取決於中東局勢的發展。

公司預計被延遲的專案將逐漸恢復，而非出現訂單爆發式激增。管理層亦指出，潛在管道中的部分機會仍有可能在 2027 財年內交付，但隨著財年推進，這種可能性正逐漸降低。

若營收回升至較正常水準，在成本優化與生產效率提升的支援下，管理層預期毛利率將會增強。此外，管理層也預計本財年底的現金餘額將顯著高於本季末水準，前提是順利收回一筆延期支付的客戶應收帳款。

風險與關注焦點

• 隨著現有訂單執行且新系統決策延遲，確定在手訂單已大幅下降。
• 中東局勢動盪導致專案中斷、簽約延遲，並影響了客戶的現金流與付款時間。
• 油價高企尚未引發確定訂單，因為客戶更加關注價格的持續性與專案的確定性。
• 營收偏低削弱了固定成本的吸收能力，並對毛利率造成壓力。
• 受預算與採購週期的影響，政府資助專案的推進速度可能較慢。
• 管理層正在審視生產與研發成本（特別是與人員相關的費用），同時努力避免損及長期成長前景。

分析師問答環節亮點

管理層表示，中東局勢可能會影響戰略交易與股票回購之間的資本配置，但並未承諾選擇任何特定途徑。第二財季未回購任何普通股，部分原因是封閉期及持有未公開重大消息限制了市場操作。

公司對併購、企業合併以及規模較小的相鄰業務交易持開放態度。管理層表示，任何轉型交易都應在不損害 MIND Technology 資產負債表改善成果的前提下，擴大規模並提升營收、獲利與現金流的穩定性。

管理層估計上市公司的年度維護成本約為 200 萬至 300 萬美元。管理層指出，目前正主要評估在生產與研發方面的進一步營運成本調降措施，而大部分可調整的一般及管理費用削減已執行完畢。

關於流動性，管理層表示當前現金餘額高於 2026 年 7 月 31 日報告的 1,580 萬美元，但並非顯著增加。公司預期延遲收回的帳款將在財年底前帶來更實質的成長。

法說會完整逐字稿

完整財報電話會議逐字稿

管理層陳述

Operator

Welcome to the MIND Technology Second Quarter Fiscal 2027 Earnings Conference Call. Please note this conference is being recorded.

[Operator Instructions]

Zach Vaughan

Thank you, Operator. Good morning and welcome to the MIND Technology Fiscal 2027 Second Quarter Earnings Conference Call. We appreciate all of you joining us today. With me are Robert Capps, President and Chief Executive Officer, and Mark Cox, Vice President and Chief Financial Officer. Before I turn the call over to Robert, I have a few items to cover. If you would like to listen to a replay of today's call, it will 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 a recorded instant replay until September 16. Information on how to access the replay was provided in yesterday's earnings release. The information reported on this call speaks only as of today, Wednesday, September 9, 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 those statements. These risks and uncertainties include the risk factors disclosed by the company from time to time in its filings with the SEC, including in its Annual Report on Form 10-K for the year ended January 31, 2026. Furthermore, as we start this call, please also 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.

Robert Capps

Now, I'd like to turn the call over to Robert Capps. Okay, thanks, Zach, and thank you all for joining us today. As usual, I'll touch on the results for the second 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 with some remarks about our outlook. Our second quarter results reflect the ongoing market softness, offset to some extent by the resilience of our aftermarket business. Order flow continues to be constrained, and customers are maintaining their wait-and-see approach amid a very unsettled geopolitical and commodity price environment. Our results reflect this. Despite these headwinds, our aftermarket business continues to provide a recurring stream of revenue.

That gives us a durable base through a period when new system orders are difficult to predict. This allows us to remain patient and opportunistic rather than reactive. Last quarter, I laid out two dynamics in the broader energy landscape with the potential to drive increased activity and order flow. There's a growing need for energy security following a significant supply disruption, and a favorable oil pricing backdrop is expected to support a resurgence in exploration activity. We believe both dynamics remain intact, but they have yet to result in firm orders. The [war with Iran] has had a significant impact on our recent results. Certain ongoing projects in the Middle East have been temporarily interrupted. Additionally, and perhaps more importantly, the award and commencement of additional projects in the region have been delayed.

These factors have caused customers to delay spending plans. They also, in some cases, have interrupted our customers' anticipated cash flow, in turn cause certain customers to delay payments to us. We are confident these amounts will be received, just not within the timeframes we originally anticipated. We continue to believe energy independence is top of mind for governments and operators alike, and there's a real need to replenish lost production and secure reliable supply. We expect that to drive exploration investment over time. However, at the present, the stops and starts at the [war with Iran] have created such volatility within the energy markets that customers are hesitant to commit to project timing. While oil prices remain elevated relative to historical standards, it's the durability of these prices, not the level, that drives investment decisions.

The futures market does not expect today's prices to last. What matters more to our customers and to their customers is certainty. into the conflict would remove much of that uncertainty impacting projects today. We would then expect these programs to move forward. We see a resolution to the war as good for our business. Now, our backlog of firm orders as of July 31, 2026, was approximately $4.8 million compared to $7.6 million as of April 30, 2026, and $12.8 million as of July 31, 2025. Protracted customer decision-making regarding new system orders and the execution of our existing backlog during the quarter were the drivers of the decline. As our backlog continues to illustrate, there is considerable variability in the pace and timing of new orders.

This has been magnified by the ongoing macro uncertainty. I'll remind you that even in a normal market, new orders don't always arrive at a constant rate throughout the year. Importantly, we continue to view these as temporary pauses as customers iron out their operational plans and evaluate market conditions. Despite the near-term softness, the longer-term outlook for the marine exploration and the survey industry, and more specifically our business, remains very positive in our opinion. We've begun to see early signs of recovery and feel that an uptick in activity is inevitable. I'll talk a bit more about this later. Outside of our backlog, which is defined as orders for which we have a purchased order or a signed contract in hand, the pipeline of potential orders remains solid and is several times greater than our firm backlog.

We are continuing to pursue certain significant projects, including some worth $10 million or more each. We have 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. Turning to our results, marine technology product revenues for the second quarter of fiscal 2027 were approximately $5.6 million. The majority of this revenue, roughly 87%, came from aftermarket activity consisting of spare parts, repairs, service, and other support activities. We've talked at length in recent quarters about this component of our business and its critical role within our overall results. This has become increasingly important as system orders have slowed.

While the aftermarket business is influenced 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 MIND Technology, Inc. since expenditures for aftermarket activity are generally operating costs as opposed to capital expenditures. As our installed base of Seamap products expands, so does the potential for increased aftermarket activity. The second quarter was a difficult one, and our results reflect that. Our aftermarket activity held up and continued to generate meaningful revenue at a time when system orders were effectively on hold. This allows us to manage through a period of disruption and position the company for when activity improves. I remain confident in the opportunities ahead of us, and I believe it is just a matter of time until order flow returns.

Now, I'll let Mark walk you through our second quarter financial results in a bit more detail. Thanks, Rob, and good morning, everyone.

Mark Cox

Revenues for marine technology product sales totaled approximately $5.6 million for the quarter. As Rob mentioned, our second quarter results continued to be impacted by general market softness and our customers taking a more cautious approach to the decision-making process. Despite these headwinds, we are benefiting from 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. Second quarter gross profit was approximately $2.1 million. This represents a gross profit margin of 37% for the quarter. Although a significant portion of our second quarter revenue came from aftermarket activity, which typically generates higher margins than larger system orders.

Lower overall revenue in the quarter resulted in less fixed cost absorption impacting our gross margin. As revenue returns to more normalized levels, we expect our cost optimization efforts and improved production efficiencies to support stronger margins. Our general and administrative expenses were approximately $3.3 million for the second quarter of fiscal 2027. This was down both sequentially and when compared to the same quarter a year ago. Our research and development expense for the second quarter was approximately $407,000, which was up sequentially and compared to the second quarter of fiscal 2026. This increase was due to the timing of cost recognition for component purchases. Consistent with prior periods, these costs were largely directed toward the development and enhancement of our streamer systems and source controller offerings.

Operating loss for the second quarter of fiscal 2027 was approximately $1.8 million compared to operating income of approximately $2.7 million in the second quarter of fiscal 2026. The second quarter Adjusted EBITDA loss was approximately $949,000 compared to Adjusted EBITDA of $3.1 million in the same quarter a year ago. Net loss for the second quarter was approximately $1.7 million compared to net income of $1.9 million in the second quarter of fiscal 2026. As of July 31, 2026, we had working capital of approximately $36.7 million, including $15.8 million of cash on hand. This compares to approximately $19 million of cash at the beginning of the fiscal year. I would caution against reading that change as a reflection of our cash burn rate. Movement in cash reflects the timing of receivable collections as much as it does operating performance.

As Rob mentioned a moment ago, collections in the first half of fiscal 2027 were slower than we anticipated due to circumstances impacting certain of our customers' markets. For a more accurate measure of our operating performance, we would point to our Adjusted EBITDA. The company continues to maintain a clean debt-free balance sheet with a simplified capital structure. We also maintain operational flexibility to pursue strategic opportunities should they arise. I'll now pass it back over to Rob for some concluding comments. Okay, thanks, Mark.

Robert Capps

We are operating in a challenging macro environment, and our customer's wait-and-see approach reflects that. Customers continue to delay order commitments regardless of industry or end use, which limits our visibility, and will likely pressure results for another quarter or two. Much of that timing depends on conditions in the Middle East, which remain unsettled. We're not going to predict when that will change. However, I want to emphasize that we believe demand has not gone away. Although the timing remains uncertain, customers are actively evaluating several sizable projects, which we view as an encouraging sign for future activity.

As conditions stabilize, we expect customers will reactivate their capital programs, and we're positioning the business to respond quickly when they do. Customer interest and engagement remain solid, but they're not converting into firm orders at the rate we expected at this point in the year. As a result, our expectations are that our fiscal 2027 results will be below fiscal 2026. Despite this view, two things give us confidence in our ability to manage through this period. Our aftermarket business provides a steady stream of recurring revenue that supports our results, and we have meaningful working capital, including cash on hand. This gives us the flexibility to invest in the business and act on opportunities as they arise. Our conviction regarding the longer-term prospects has not changed.

The underlying dynamics within the marine technology industry remain intact, and we are seeing opportunities to capitalize on new areas of focus within the market. Rather than pull back during this slowdown, we have continued to invest in our technology that is beginning to open doors. As an example, we've started gaining traction with our passive array technology and maritime security applications. Still early days, but we believe this technology provides a cost-effective solution to a real operational need. We're encouraged by the interest we've received and look forward to providing updates as things develop. We are also pursuing upgrades and improvements to our source controller and towed streamer products, which we believe will generate new opportunities. In recent quarters, I've discussed our capital allocation strategy.

We have a simple capital structure and a debt-free balance sheet, and we ended the quarter with $15.8 million in cash. This liquidity gives us flexibility that not all small public companies possess. We are constantly evaluating opportunities to create meaningful long-term value for our stockholders. Our first priority is always to preserve the strength of the company. This includes funding operations through a period of reduced order flow and lower revenue, while continuing to invest in technology that positions us for the recovery we expect. Beyond that, we see a real need to add scale, and we are actively pursuing opportunities to do so. As we've said previously, there are several paths available to us.

We can execute organic growth initiatives that we have identified. We can acquire assets or businesses adjacent to what we already do, we can combine with another organization. What we will not do is jeopardize the progress that we've made in MIND Technology, Inc. by chasing something that does not fit what we do. That being said, we continue to actively seek out transformative transactions. And we also recognize that another attractive use of capital is stock repurchases, especially at current price levels. We believe that recent prices for our stock do not accurately reflect the true value of the company. I point out that as of the end of the most recent quarter, we had working capital of approximately $36.7 million, which equates to more than $4 per common share. Now, despite these apparently attractive economics, we did not purchase any of our common stock during the second quarter.

I understand how many of you are frustrated by this lack of activity. We do believe our stock at current levels represents a good investment. However, there are often limitations on when we can be active in the market. We are precluded from buying or selling, for that matter, our stock during blackout periods, pending the release of periodic financial results. Additionally, we cannot buy or sell our stock when in possession of material information that has not yet been disseminated to the market. These situations could include ongoing preliminary discussions regarding new business or for strategic transactions. We will continue to assess the appropriate time to enter the market against our other capital priorities.

Going forward, preserving and enhancing value remains our primary focus, and we will allocate capital to the areas where we see the greatest return. In closing, the market remains soft, but I am confident about where this business is headed. The projects our customers have deferred have not gone away, and the underlying demand fundamentals are only growing. When activity returns, we intend to be ready for it. We have no debt, real liquidity, and an aftermarket business generating recurring revenue, and technology that is expanding our addressable markets. We're using this period to improve our positioning and sharpen our competitive edge.

We are focused on innovating, adding scale, and partnering with customers that appreciate the value we deliver. We look forward to executing on these priorities, which we believe will drive improved stockholder value. With that, Operator, I think we can now open the call up for some questions.

Operator

[Operator Instructions]

Our first question comes from the line of Tyson Bauer with KC Capital. Please proceed with your question. Good morning, gentlemen.

分析師問答

Tyson Bauer

Hello, Tyson. I'm just going to follow up quickly on your last comment and that is given the Middle East conflict on and off situation and no resolution seemingly coming quick. How does that sway your capital use decisions for MIND Technology, Inc.? Does that accelerate some of these things you've talked about as far as improving shareholder value and growing the business? Or do you hang on to that cash a little tighter and you see how things kind of play out? And the follow up to that, as you talked about, these blackout periods and a lot of things, irons in the fire you have going, would you anticipate that most, if not all, of Q3 may be in those blackout periods?

Robert Capps

Let me address the last one first. Not necessarily. Again, I don't want to telegraph when we may or may not be in the market, but I wouldn't say that's necessarily the case. I think the situation in the Middle East is something we have to contemplate when we look at capital allocation. If we see a lesser opportunity in the very near term for, you know, new business that might steer us a different direction as far as where we might allocate capital. Maybe if we were inclined to buy back stock at that point, something more strategic. But again, I just don't want to telegraph what we're going to do, but it's something we do have to contemplate. But for sure, the Middle East situation has gone on much longer than I think any of us anticipated, and certainly has a bigger impact than we originally anticipated.

Tyson Bauer

Now you do obviously have business that should not be impacted by the Middle East such as scientific activity in Asia, South Asian Sea, your Scandinavian customers that have been big in the past, critical mineral exploration off the coast of Africa and some of those areas. So when we look at this pipeline being frozen, is it more at the government level for these types of projects, or is it more at the In addition to the corporate budgeting level, there's a kind of a combination at this point.

Robert Capps

Yes, so that's really a good question, Tyson. You know, there are some are projects in the Middle East that have been impacted. But also, I think the general, economic macro situation has caused people to be cautious elsewhere in the world. You know, our customers, you know, maybe where they're located in the Middle East and Dubai or, or in Norway or the U.S., you know, operate on a worldwide basis. So just because they aren't in the Middle East doesn't mean they're not impacted by the macroeconomic situation that happens overall. I think that's really the bigger driver factor for the slowdown in activity. You are definitely correct. We do see activity and are actively chasing projects.

That are non-energy related, especially in Southeast Asia. There's a lot going on there in other parts of the world. So we aren't totally energy dependent and we are seeing activity there. And part of that problem is just the budget cycles and those are driven by governmental issues and government budget cycles, not in the U.S. necessarily, but elsewhere in the world. And they just move very slowly sometimes. But those are some of the larger projects that I alluded to earlier.

Tyson Bauer

If we use this analogy of a frozen pipeline, obviously, you've got two solutions. One, a slow thaw that creates a trickle of orders that come on the backside of this. Or if it thaws quickly, you end up with possibly a pipe bursting, which I think we would not treat that as unwelcome, even though you may have a working capital requirement there. How do you see that playing out? Is it more likely a trickle or more likely a taking the Python or the up-varying orders.

Robert Capps

Yes, that's a tough one to answer. I personally think it's more of a closer to a trickle. Maybe not trickle's, maybe not the right word I would use, but I don't see things just bursting loose. I think because of the uncertainty that this has created, and companies tend to be much more cautious now than they might've been in the past just because of this uncertainty. That's my read on it, but take it for what it's worth.

Tyson Bauer

Last couple quarters you've thrown up the carrot out there, these $10 million projects. What, if anything, you can add color to, what are they contingent upon? that we can watch in the marketplace that makes it more likely or less likely they could occur.

Robert Capps

I think that the particular instances I have in mind are more related to, um, budget cycles and the process we're going to swing through rather than anything from the macro environment. So I don't think the Middle East situation necessarily has a big impact on those particular projects. So government budgets, government agencies, those things. And they move at the pace they move.

Tyson Bauer

A couple quick financials. It appears that Q3-Q4 more likely than less likely to resemble Q2 or within that ballpark of that $5 to $8 million that you've experienced in the past on repair sales and kind of what you've talked about, that recurring revenue base. So, even if we have orders materialize, it's likely that this fiscal year is kind of more or less set. In what we should expect and all the focus then becomes can you grow backlog before the end of the year and what does that imply for fiscal? Is that correct? Yeah. There's definitely truth to what you're saying there.

Robert Capps

I guess modify that in that certainly there are orders that are or prospects that were in the pipeline that we could turn around and deliver in this year. Now, obviously, as time goes by, the closer you get to the year, that likelihood reduces. So I wouldn't, you know, write off the back end of the year completely at this point, but I think that's from a standpoint of large system orders. Okay, and last one.

Tyson Bauer

Last one for me, obviously cash level $15 million. You said that it was an abnormal cash use quarter. Don't expect that to continue. What kind of cash management and projection are you looking at for the next quarter or two?

Robert Capps

Well, again, I think the issue with the cash situation that Mark alluded to, or addressed was we've had a, we actually had three customers which had their cash flow impacted by the [war with Iran]. We'll come back and look at those. There is the third, which is when we get the middle and we just working through the logistics of getting that resolved. So if that's resolved by the end of the year as we expect it would be, then I think you'll see a significant increase in cash balance at that point.

Tyson Bauer

But today's cash balance is greater than the $15.7 million recorded at the end of July.

Operator

Roughly. I mean, not dramatically, but roughly. Okay. Thank you. Our next question comes from the line of Ross Taylor with ARS Investment Partners. Please proceed with your question.

Unknown Speaker

Thank you. Well, Tyson covered a lot of ground that I'd wanted to address, but I think getting down to it, what steps, since it sounds like you expect to be in this situation for a quarter or two longer, what steps are you taking to reduce the operating cash burn to a more acceptable level?

Robert Capps

Sure. So we're looking at things on the production side, production costs, people primarily. On the production side, what we can do there without hurting the longer term prospects. Same thing on the R&D side. We've really already done a lot on the G&A side, although there are a few tweaks here and there, but those aren't the big dollars. So we're definitely actively looking at those things right now, Ross.

Unknown Speaker

Okay. Um, what's, what are your public company costs?

Robert Capps

Oh gosh, since I look at it, it's probably, you know, $2, $3 million anyway on an annual basis.

Unknown Speaker

Okay. So it's not meaningless as

Robert Capps

Oh, no, definitely not. Definitely not. Okay. It strikes me from the- I mean, Ross, let me point you to something. If you look at our 10Qs and our financial reports in our quarterly, I'm sorry, our segment disclosures. That gives you some idea of what the corporate costs are. They're substantial. They're not all public company costs, but it gives you some idea of what that is.

Unknown Speaker

Okay, I appreciate that. Um, it does strike me as the situation in the Middle East and also in the Black Sea actually in many ways should be driving increased demand for exploration away from those regions. So is that something that you are seeing? I mean, obviously, no matter what the outcome of the [war with Iran] is, it's going to lead to a lessened interest demand, less confidence in that as an energy source. So I would think that we would be seeing your customers accelerating a desire to invest, explore elsewhere for these types of, for oil, gas and other things? Is that something you're seeing?

Robert Capps

Absolutely correct. Absolutely. Just how quickly does that happen? You know, these projects have long lead time. So how quickly do we see them come to fruition and therefore filter down to our business? But that's the uncertainty in our mind right now, but there is no doubt in my mind, I think most people's minds, that what you say is absolutely correct.

Unknown Speaker

Okay, and to kind of just sum with your answer to Tyson's question about cash, currently you've got just under $16 million, so you would expect to be measurably higher than that level of cash at the end of fiscal 2027?

Robert Capps

That's correct, based on the collections from this one customer.

Unknown Speaker

Okay. And you've talked a lot about the idea of doing a strategic, you know, potentially something strategic. Given the situation, I mean, it strikes me as MIND Technology, Inc. lacks the size and the stability of revenues, early stability of earnings at this stage to do a lot to leverage your balance sheet. I think you'd be really reticent to make an acquisition that would involve a great deal of debt. However, at the same time, your stock is selling well under book value. I think book value is, you know, coming into the quarter was what, north of $4 and a share and so you're selling well under book which makes it very difficult to use your stock unless a deal is really attractive so how do you think how you what kind of size are you looking at for a deal you talked about transformative i to me that means you know a company that's more than its current size, bigger than it is? Is that a correct read? And stability of profitability. Okay.

Robert Capps

Yes, I mean, obviously those deals don't come along every day, but if we can find that sort of situation or if we can find the tuck-ins that we can do on a reasonable basis to gradually increase scale, but at some point, I think a more transformative transaction that you allude to makes some sense. But again, those are hard to come by, and if you can do it on a relative basis, perhaps it makes some sense. But those are the sort of things we are open to. As we've said before, we have a blank sheet of paper there, so we are open to lots of different ideas, but we recognize we need to change the scale of this operation in order to bring more stability to it.

Unknown Speaker

Right, and changing the scale, you, in many ways, also mean you need to create a business that generates a consistent level of cash flow, earnings, revenues, so that we can put a higher multiple on the overall business, correct? It's not just make it bigger. It's really make it bigger. Yes. You're exactly right. Okay, and I will say, I, um, well, you talked about the idea that you kind of, it seems that you're in a lot of blackout periods. It would be nice to find an open blackout, an open period that would allow your insiders to buy stock. I mean, right now, I think I can probably buy a couple shares of stock for a latte, and it would strike me as it might be worthwhile to see some insider buying there hasn't been insider are buying in this company in a long time and that would be a really nice vote of confidence. I understand that 100%. Okay. Yes, I agree. If we can get ourselves to where cash is higher, you know, we're trading well under book value, the stock does strike me as a very attractive investment here for a patient investor.

So, you know, good luck pushing forward.

Robert Capps

Man. I appreciate it. Okay. Take care, sir.

Operator

This now concludes our question and answer session. I would like to turn the floor back over to management for closing comments.

Robert Capps

I'd just like to thank everyone for joining us today and look forward to giving you ongoing updates about our progress and talking to you again after our third quarter. So thank you very much.

Operator

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. Please disconnect your lines and have a wonderful day.

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