Business
Geospace Technologies Reports Fiscal Year 2020 First Quarter Results
HOUSTON--(BUSINESS WIRE)-- Geospace Technologies (NASDAQ: GEOS) today announced that it narrowed its net loss to $1.3 million, or $0.10 per diluted share, on
About this update from Geospace Technologies Corporation
[{"type":"text","content":" HOUSTON--(BUSINESS WIRE)--\nGeospace Technologies (NASDAQ: GEOS) today announced that it narrowed its net loss to $1.3 million, or $0.10 per diluted share, on revenue of $25.7 million for its first quarter ended December 31, 2019. This compares with a net loss of $5.9 million, or $0.44 per diluted share, on revenues of $17.9 million for the first quarter of the prior year.\n\n\nWalter R. (“Rick”) Wheeler, President and CEO of Geospace Technologies (the “Company”), said, “Increased demand for our ocean-bottom marine nodal recording systems fueled first quarter fiscal year 2020 results. Our first quarter revenue outperformed last year’s first quarter by an increase of 44%. In addition, gross profits generated on this higher revenue more than tripled compared to last year, reaching $10.5 million.\n\n\nWheeler continued, “Operating expenses in the first quarter increased 13% over last year, primarily as a result of our acquisition of the OptoSeis® fiber optic sensing technology, as well as an increase in other research and development project expenditures. Despite the increase in operating expenses, Geospace narrowed its net loss for the quarter by 78% to $(0.10) per share as compared to the first quarter of the prior year.”\n\n\nOil and Gas Markets Segment\n\n\nFor the three months ended December 31, 2019, revenue from the Company’s oil and gas markets segment totaled $19.5 million, an increase of approximately 77% compared to $11.0 million for the equivalent three-month period one year ago. Increased revenue generated during the first quarter of fiscal year 2020 is attributed to higher rental deployment of the Company’s OBX marine nodal recording systems. As of December 31, 2019, Geospace had approximately 33,000 OBX stations in its rental fleet, most of which were actively utilized on performing rental contracts with multiple seismic contractors. The Company is in active conversations with new and existing customers to extend current rental contracts as well as execute future rental contracts for its OBX stations. These activities are carefully considered by management in order to gauge the need for potential expansion of the Company’s OBX rental fleet for current and future clients. The Company expects fiscal year 2020 cash investments into its wireless product rental fleet to be $8 million, or more, based on the current level ...