Moving iMage Technologies Announces Third Quarter Fiscal 2024 Results

Moving iMage Technologies, Inc. (NYSE:MITQ), ("MiT"), a leading technology and services company for cinema, Esports, stadiums, arenas and other out-of-home entertainment venues, today announced results for its third quarter ended March 31, 2024.

"As expected, the long tail of the actors and writers strike in late 2023 impacted our third quarter results," said Phil Rafnson, chairman and chief executive officer of MiT. "The strikes impacted the industry year to date for several reasons, including the lower 2024 domestic box office, which analysts expect to be flat to down, and budgeting delays at many of our customers. Specifically, we have seen multiple projects and orders pushed out into future quarters. Additionally, our quarterly financial results were affected by a large order for seats, which have a significantly lower gross margin than the Company average, and the negative side to having strong operating leverage."

Fiscal 2024 Commentary

"While we expect the industry hangover to continue into our fourth fiscal quarter, we have seen new recent activity that gives us reasons for optimism. First, we finished field testing for LEA's smart power amps with a top-10 circuit, and the results were promising. We also began testing these products at another top-10 circuit and hope to start field testing at two other top-10 circuits over the next few quarters. While we have had some early success scoping LEA products into new cinema builds, keep in mind the attrition market for LEA smart power amplifiers represents a $30-60 million annual TAM in North America for us to penetrate over time.

"Behind the scenes, we continue moving forward with our emerging product lines. Our E-caddy concept was well received by the handful of Major League Baseball and other sports stadium executives we met and is now expected to move into the early manufacturing and testing stage during our fourth quarter. Here, we also had some recent positive news on the hardware side related to power consumption, which could materially expand the range of services we can offer.

"For CineQC, the SaaS quality control and management platform that we license and resell into cinema, the broader rollout has been delayed due to needing a more robust system. While we've been co-developing with our paying customer, at zero expense to us, after a thorough evaluation, we decided the underlying technology needs alterations to scale, and we plan to significantly upgrade the technology, which should take approximately two quarters to complete. When finished, we expect to have direct control of the technology and a path to finally market the offering more broadly.

"For Esports, we've pivoted recently to take a parallel approach with certain larger potential customers while SNDBX is working to raise growth capital. If successful, we believe this could help scale our Esports business more quickly," concluded Rafnson.

Third Quarter Highlights (Fiscal 2024 versus Fiscal 2023)

• Revenue increased 4.0% to $3.9 million compared to $3.7 million;
• Gross Profit decreased to $0.7 million compared to $1.0 million; Gross Margin was 17.4%;
• GAAP Operating Loss of ($0.6) million compared to ($0.5) million;
• GAAP Net Loss and Loss per Share (EPS) of ($0.6) million and ($0.06) compared to ($0.4) million and $(0.04), respectively;
• Non-GAAP Net Loss and Loss per Share (EPS) of ($0.6) million and ($0.06) compared to ($0.4) million and $(0.04), respectively;
• As of March 31, 2024, the Company held cash of $5.9 million;
• During the quarter, the Company repurchased 310,000 shares.

Dial-in and Webcast Information

Date/Time: Wednesday, May 15, 2024, 12:00 p.m. ET

Toll-Free: 1-877-407-4021

Toll/International: 1-201-689-8472

Call me™: Participants can use Guest dial-in #s above and be answered by an operator OR click the Call me™ Link for instant telephone access to the event. Call me™ link will be made active 15 minutes prior to scheduled start time.

Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1671871&tp_key=cda72b6393

Telephone Replay

Replay Dial-In: 1-844-512-2921 or 1-412-317-6671

Replay Expiration: Wednesday, May 29, 2024 at 11:59 p.m. ET

Access ID: 13746715

Telephone Replays will be made available after the conference end time.

About Moving iMage Technologies

Moving iMage Technologies is a leading manufacturer and integrator of purpose-built technology solutions and equipment to support a wide variety of entertainment applications, with a focus on motion picture exhibitions, sports venues and Esports. MiT offers a wide range of products and services, including custom engineering, systems design, integration and installation, enterprise software solution, digital cinema, A/V integration, as well as customized solutions for emerging entertainment technology. MiT's Caddy Products division designs and sells proprietary cup-holder and other seating-based products and lighting systems for theaters and stadiums. For more information, visit www.movingimagetech.com.

Forward-Looking Statements

All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate," "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks and should be consulted along with this release. To the extent permitted under applicable law, we assume no obligation to update any forward-looking statements.

Use of Non-GAAP Measures

The Company uses non-GAAP net income/loss and earnings/loss per share as a measure customarily used by investors and analysts to evaluate the financial performance of companies in addition to the GAAP measures that we present. Our management also believes that eliminating one-time items and non-cash stock compensation expense is useful in evaluating our core operating results and comparing results to prior periods. However, non-GAAP metrics are not a measure of financial performance under GAAP in the United States of America and should not be considered an alternative to Net Income as an indicator of our operating performance.

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