Business
Geospace Technologies Reports Fourth Quarter and Fiscal Year 2021 Results
HOUSTON--(BUSINESS WIRE)-- Geospace Technologies (NASDAQ: GEOS) today announced a net loss of $14.1 million, or $(1.05) per diluted share, on revenue of
About this update from Geospace Technologies Corporation
[{"type":"text","content":" HOUSTON--(BUSINESS WIRE)--\nGeospace Technologies (NASDAQ: GEOS) today announced a net loss of $14.1 million, or $(1.05) per diluted share, on revenue of $94.9 million for its fiscal year ended September 30, 2021. This compares with a net loss of $19.2 million, or ($1.42) per diluted share, on revenue of $87.8 million for the comparable year-ago period.\n\nFor the fourth quarter ended September 30, 2021, Geospace Technologies (the “Company”) reported revenue of $19.4 million and a net loss of $5.0 million, or ($0.39) per diluted share. For the comparable period last year, the Company recorded revenue of $21.5 million and a net loss of $3.9 million, or ($0.29) per diluted share.\n\nWalter R. (“Rick”) Wheeler, President and CEO of the Company said, “While challenged over the past year by the ongoing havoc and instability brought on by COVID-19, we are pleased that revenue for the fiscal year ended September 30, 2021, increased by 8% over last year. This reflects a near match of revenue achieved just before the pandemic in fiscal year 2019. Performance for each of our market segments over the year was mixed. The Oil and Gas Markets segment experienced a reduction in revenue of 15%. While lower demand for our traditional marine products was a factor, the largest reduction stemmed from fewer rentals of our OBX ocean bottom recording systems. Despite this overall reduction, rental revenue from our OBX equipment increased during the last two quarters of fiscal year 2021. This suggests that OBX demand is improving, as both new and earlier stalled projects move forward. As the world emerges from the pandemic, fueling global economic recovery has increased energy demands, resulting in higher oil prices. This bolsters the likelihood of improved demand for our seismic products. However, a lag in time typically occurs between higher oil prices and greater demand for our products. This lag, in part, is the result of exploration and production (E&P) companies’ decision to allocate a significant portion of their cash flow toward shareholder reward initiatives, such as stock buybacks and dividends, as well as debt reduction. Although we believe this is a short-term trend, until E&P operators begin to reinvest capital in exploration and production, challenges will remain for our Oil and Gas Markets segment. In some upbeat news, we received a new...