D-BOX Technologies (DBO) Q1 2025 earnings summary

Executive summary

• Total revenues for Q1 fiscal 2025 decreased 16% to $8.8 million compared to Q1 fiscal 2024, mainly due to softness in the theatrical market and timing differences in simulation and training.

• Sim racing revenues increased by $1.1 million, offsetting declines in other segments.

• Only four net new cinema screens were installed, bringing the total to 933 as of June 30, 2024.

• Adjusted EBITDA dropped to $263 thousand from $1.3 million a year earlier.

• Net loss of $316 thousand was recorded, compared to a net profit of $496 thousand in Q1 2024.

Financial highlights

• System sales revenues fell 15% to $6.3 million, with simulation and training system sales down 29% and entertainment system sales down 7%.

• Rights for use, rental, and maintenance revenues decreased 19% to $2.4 million, reflecting a weaker movie slate.

• Gross profit excluding amortization was $4.8 million, down from $5.6 million, but gross margin excluding amortization improved to 55% from 54%.

• Operating expenses rose less than 3%, with higher administration and selling/marketing costs partially offset by lower R&D and FX losses.

Outlook and guidance

• Management expects an improved movie slate in the second half of calendar 2024 and beyond, which could benefit theatrical revenues.

• Orders from automotive customers in simulation and training are anticipated to be completed later in the year.