Moving iMage Technologies (NYSEAMERICAN:MITQ) executives said the company delivered year-over-year revenue growth in its fiscal 2026 second quarter while completing a strategic acquisition intended to broaden its product portfolio and expand international reach.
Management highlights “productive” quarter and continued demand
Chief Executive Officer Phil Rafnson said the quarter was “very productive,” pointing to the acquisition of the DCS loudspeaker line as a key milestone in the company’s growth and diversification goals. Rafnson also said the company posted 10% revenue growth compared with the prior-year second quarter, reflecting continued demand across its core cinema equipment and technology offerings, expanding customer engagement, and what he described as disciplined execution by sales, marketing, and operations teams.
Looking ahead, Rafnson said the company remains “cautiously optimistic” about future cinema infrastructure spending tied to refreshing legacy systems, including laser projection, direct-view technologies, and upgraded immersive audio. He said expectations for exhibition industry revenue continue to be shaped by historical capital spending patterns, with large projects often lagging during summer and holiday windows that fall in the company’s fiscal second and third quarters. Rafnson added that while long-term fundamentals for cinema technology investments remain intact, pace and timing may be influenced by the strength of content pipelines, which he said “seem to be strengthening.”
DCS loudspeaker acquisition: integration progress and early sales activity
President and COO Francois Godfrey said the quarter reflected steady execution in the company’s core business during a seasonally slower period, as well as progress on its M&A strategy through the structuring and closing of the DCS loudspeaker line purchase.
Godfrey said the company believes DCS can become a “material long-term contributor,” describing it as an expansion of proprietary product depth and a way to reach large domestic and international exhibition chains. He said the DCS line has built a reputation for quality and performance over more than 20 years and called the deal a “prudent use of company cash” that should create value for shareholders. Godfrey added that the company expects to recoup its full cash investment through the sale of acquired inventory over the next few years.
Since closing the asset purchase in early November, Godfrey said the company has focused on onboarding and integration, building out global sales, distribution, and fulfillment channels, and taking what he called a deliberate approach to establish a strong operational foundation before pursuing scale. He said the company has:
- Completed onboarding of DCS inventory, equipment, and operational data into its systems, while making progress on quality control processes.
- Onboarded contract manufacturing and third-party logistics partners to support continuity of supply, lead times, and product quality.
- Established warehouses in California, the Netherlands, and China to support global operations.
Godfrey said the company has signed distribution relationships with more than 25 established cinema equipment dealers across EMEA, APAC, the Americas, and SAARC regions, promoting DCS in more than 50 countries. He said discussions in additional countries are ongoing and focus on support, training, and long-term product evolution in addition to near-term sales opportunities.
He also reported initial shipments to customers in the United States, the United Kingdom, Taiwan, Thailand, Korea, Germany, Italy, Chile, and Vietnam. According to Godfrey, total sales and pending sales backlogs tied to the DCS line amounted to $400,000, which the company expects to begin recording in its fiscal third quarter. He said early activity confirms market interest domestically and abroad and supports the company’s view that DCS can help expand into international markets where it previously had limited penetration.
Beyond DCS, Godfrey said the company continues to see long-term potential in its core cinema technology solutions and systems integration business, citing exhibitors’ ongoing needs to modernize aging infrastructure, improve operational efficiency, and enhance the customer experience.
Fiscal Q2 financial results: higher revenue, improved margins, narrower losses
Chief Financial Officer Bill Greene said the company released its financial statements and expected to file its Form 10-Q the same day. Greene said fiscal second-quarter 2026 revenue rose 10% to $3.3 million.
Gross profit dollars increased 24% to $1.16 million, and gross margin improved to 30.7% from 27.2% in the prior-year period. Greene attributed the margin improvement primarily to higher-margin product revenues and execution efficiency.
Total operating expense increased 5.1% to $1.57 million from $1.49 million, which Greene said was primarily driven by higher legal expense. Operating loss improved to $408,000 from $561,000 in the year-ago quarter. Net loss was $388,000, or $0.04 per share, compared with a net loss of $527,000, or $0.05 per share, a year earlier.
Balance sheet: working capital steady despite acquisition spending
On the balance sheet, Greene said working capital was $4.46 million at the close of fiscal Q2 2026, compared with $4.59 million at the close of fiscal Q2 2025, despite $1.5 million spent to fund the DCS acquisition. He said the company continues to have no long-term debt.
Net cash was $3.9 million, or approximately $0.39 per share, compared with $5.3 million at fiscal Q2 2025. Greene also highlighted an increase in inventory to $3.08 million at December 2025 from $1.72 million at the end of September 2025, which he said reflects assets acquired under the DCS loudspeaker acquisition and finished goods received as part of the purchase price.
Outlook and call conclusion
Greene said Moving iMage anticipates fiscal third-quarter 2026 revenue of approximately $3 million, reflecting customary seasonality in the core business and a modest initial ramp in sales related to the DCS asset acquisition. He added that the company’s focus remains on disciplined execution, balance sheet strength, and seamless integration of DCS, with an emphasis on positioning the business to unlock operating leverage and support sustainable growth.
The call ended without investor questions after the operator opened the line for Q&A.
About Moving iMage Technologies (NYSEAMERICAN:MITQ)
Moving iMage Technologies, Inc, trading on the NYSE American under the symbol MITQ, designs, manufactures and integrates digital signage solutions for a wide range of industries. The company’s core offerings encompass both hardware and software platforms that support high-definition displays, interactive kiosks and touchscreen environments. Moving iMage’s systems are engineered to deliver dynamic content, remote monitoring and scalable network deployment to meet evolving customer needs.
Its product lineup includes commercial-grade LCD and LED displays, media players, digital signage enclosures and interactive touchscreen modules.
