Moving iMage Technologies CEO Shareholder Letter discussing positive cinema trends, and opportunities for the Company in entertainment, esports, sports venues and new initiatives. (Photo: Business Wire)
FOUNTAIN VALLEY, Calif., October 24, 2024--(BUSINESS WIRE)--Moving iMage Technologies $MITQ, (NYSE American: MITQ) ("MiT"), a leading technology and services company for cinema, Esports, stadiums, arenas and other out-of-home entertainment venues, today provided its annual shareholder letter from Chairman, CEO and President Phil Rafnson.
Dear Fellow Shareholders,
As we head towards reporting our first quarter of fiscal 2025 in November, I want to take a moment to reflect on the past year and look ahead with excitement and optimism for MiT. Despite some unexpected industry challenges, our company has made significant progress across several strategic fronts, positioning us for sustained growth in the evolving cinema and entertainment industry.
Fiscal 2024 was truly a year of contrasts. We kicked off the year with strong revenue growth and profitability in the first quarter. However, the momentum we had built came to a pause due to the impact of the Hollywood writers' and actors' strikes, which led to widespread delays in our customers’ spending. Although this created short-term headwinds, we remained focused on the bigger picture and continued to invest in the future of MiT.
Adapting to Industry Challenges
While the strikes certainly tested our resilience, we took proactive steps to mitigate their effects and prepare for a robust recovery. One of our key achievements was the repurchase of 758,000 shares of stock during fiscal 2024, reinforcing our commitment to delivering long-term value to shareholders. We also focused on moving forward our initiatives to introduce emerging higher-margin recurring revenue products, including MiTranslator, E-caddy, and CineQC. These innovative technology offerings are designed to capture new opportunities in the outside-the-home entertainment sector, and they will play a critical role in our future growth strategy.
Heading into the end of calendar 2024, the cinema industry is now regaining its footing, driven by the resurgence of blockbuster films and an increased demand for premium cinema experiences. Theaters are investing in cutting-edge technologies, immersive audio, and enhanced amenities, aligning perfectly with MiT’s strengths. Over the next three years, the eight largest cinema chains in North America plan to invest over $2.2 billion in upgrades, which we believe will lead to broader spending from the remainder of the market to remain competitive, creating a tremendous opportunity for us.
The industry is also entering a new technology refresh and upgrade cycle, with projectors and servers reaching the end of their lifespan. This cycle represents a significant opportunity for MiT, with one medium-sized customer alone planning to upgrade over 200 projectors, a potential $15-25 million in sales for us over the next four years.
Expanding Beyond Cinema
Our strategy goes beyond cinema, as we’ve also made strong strides in new markets like Esports and smart venue technology. Our MovEsports platform has gained momentum, offering theaters the opportunity to expand into live events and gaming. Meanwhile, our innovative E-caddy solution for stadiums and arenas is attracting attention from major sports stadium executives for its potential to revolutionize fan experiences with technology-enhanced seating. We are especially excited about the latter and believe it has the potential to transform the Company in the coming years.
Looking Forward to Fiscal 2025
As we move into fiscal 2025, I’m more confident than ever in our future. We have emerged from the challenges of fiscal 2024 stronger, more focused, and poised to benefit from the recovery of the cinema industry and the growing demand for premium entertainment experiences. We also expect to see meaningful progress from our strategic initiatives, which we will update publicly as appropriate throughout the year.
Finally, to ensure we are operating at peak efficiency, management proactively implemented $600,000 in annualized cost reductions, streamlining our operations to enhance efficiency. These efforts will help us realize greater operating leverage, positioning MiT to achieve profitability more quickly and drive further shareholder value.
In closing, I want to extend my sincere thanks to our shareholders for your unwavering support and confidence in MiT. We are energized by the opportunities ahead and committed to driving sustained growth, profitability, and innovation. Together, we will continue to build on the legacy of MiT and shape the future of entertainment.
Warm regards,
Phil Rafnson CEO, Moving iMage Technologies
About Moving iMage Technologies
Moving iMage Technologies (NYSE American: MITQ) is a leading provider of technology, products, and services for the Motion Picture Exhibition industry, with expanding ventures into live entertainment venues and Esports. We design and manufacture a wide range of proprietary products in-house, including developing potentially disruptive SaaS and subscription-based solutions. Committed to excellence and innovation, Moving iMage Technologies aims to revolutionize the out-of-home entertainment experience with cutting-edge technology and superior service.
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.
Moving iMage Technologies Investor Relations and Media Contacts: Brian Siegel, IRC®, M.B.A. Vice President, Strategic Communications and Investor Relations, MiT Senior Managing Director, Hayden IR (346) 396-8696 brian@haydenir.com
