SYS-CON MEDIA Authors: Elizabeth White, Sean Houghton, Glenn Rossman, Ignacio M. Llorente, Xenia von Wedel

News Feed Item

Geospace Technologies Reports Fiscal Year 2012 Results

Geospace Technologies (NASDAQ: GEOS) today announced net income of $35.1 million, or $2.74 per diluted share, on revenues of $191.7 million for its fiscal year ended September 30, 2012. This compares with a net income of $29.7 million, or $2.36 per diluted share, on revenues of $173.0 million for the prior fiscal year.

For the fourth quarter ended September 30, 2012, the company recorded revenues of $36.9 million and net income of $4.3 million, or $0.33 per diluted share. For the comparable period last year, the company recorded revenues of $32.8 million and a net income of $3.6 million, or $0.28 per diluted share.

As previously announced, the company noted that OYO Corporation, the company’s former owner, sold their remaining 20% stake in the company back in February 2012. This sale prompted the recent change in the company’s name from OYO Geospace Corporation to Geospace Technologies Corporation. The company’s common stock now trades under the ticker symbol GEOS. The company also noted that in October 2012 it announced a 2-for-1 stock split effected in the legal form of a 100% stock dividend. All share and earnings per share amounts in this press release have been adjusted to give effect to the stock split.

“We posted our second consecutive year of record revenues and net income in fiscal year 2012. Revenues grew by 11% from fiscal year 2011 and our net income increased by 18%. While revenues from our traditional seismic exploration and reservoir products were flat compared to fiscal year 2011, our wireless product sales and rentals grew 30% during fiscal year 2012. Since its introduction back in 2008 and through September 30, 2012, we have sold 158,000 wireless channels and at September 30, 2012 we had 52,000 wireless channels in our rental fleet,” said Gary D. Owens, Geospace Technologies’ Chairman, President and CEO.

“Similar to fiscal year 2011, our revenues for the fourth quarter of fiscal year 2012 were lower when compared to the previous quarters of the fiscal year. We attribute this sequential decline in revenues to our erratic order flow and the timing of shipments which is dictated by our customers. As we have often said, our business is lumpy as evidenced by our fourth quarter results for both fiscal year 2011 and 2012. However, revenues are expected to rebound in the first quarter of fiscal year 2013. We have already announced two orders totaling 34,000 channels of our wireless system which are expected to be delivered in the first quarter of fiscal year 2013. Both systems are expected to be initially deployed in Canada for use during the winter season. We believe there are several additional opportunities to receive orders for our wireless system before the end of the first quarter of fiscal year 2013. Regarding the $14.9 million seabed seismic reservoir monitoring system ordered by Shell Brasil Petróleo Ltda, we now expect to deliver this system in the second quarter of fiscal year 2013 due to unforeseen delays with certain contract vendors. However, we do plan to begin revenue recognition for the new Statoil contract in the first quarter of fiscal year 2013. Fiscal year 2013 is off to a great start.”

“We are very excited about the signing of the $160 million Statoil contract in November 2012. As we previously stated, we will recognize revenues and profits from this large contract over the next three fiscal years utilizing the percentage of completion method. Currently, we estimate that approximately 45%, 40% and 15% of the Statoil contract’s revenues will be recognized in fiscal years 2013, 2014 and 2015, respectively. Both the Shell and Statoil contracts for permanent subsea systems give us an unusual visibility not often seen in our other product segments.”

“Our new product development initiatives continue. During fiscal year 2012, our new subsea nodal OBX system was used under a rental contract for the first time with excellent results. Subsequent to fiscal year 2012, two additional OBX systems were rented to customers operating in the offshore waters of Peru and in the North Sea. At the annual SEG meeting in Las Vegas back in November, we announced a new version of our land wireless system called the GCX. The GCX system can be used in any land environment, and it has special applications in high theft areas and provides our smallest footprint for environmentally sensitive areas. The GCX nodal system works seamlessly with our existing land and marine wireless data acquisition systems. The GCX system will be available in both single and three channel versions. The first GCX systems will be ready for sale during the second fiscal quarter of fiscal year 2013.”

“We are preparing for additional growth in our worldwide business operations. During the fourth quarter of fiscal year 2012, we added 119 new fulltime positions at our Houston facility to staff up for the increase in business activities mentioned above. Over the course of fiscal year 2012, we added 209 fulltime employees at our Houston facility. Subsequent to the end of fiscal year 2012, we purchased a 30,000 square foot facility in northwest Houston near our existing Pinemont facility and immediately put it to use. In addition, we just completed the purchase of a 19,000 square foot facility in Bogotá, Colombia to house the operations of our new branch office named Geospace Technologies, Sucursal Sudamericana LLC. The new Colombian branch office will be a center to sell, rent and provide various repair and infield services for our South American based customers. We expect to initiate operations at the new Colombian branch office during the second quarter of fiscal year 2013.”

“Our balance sheet remains strong. We ended fiscal year 2012 with $146 million of working capital, $71 million of cash/short-term investments, and no long-term debt on our balance sheet. Our $25 million credit facility remains untouched at this time, resulting in total liquidity of $96 million at the end of fiscal year 2012. We believe the strength of our balance sheet puts us in a good position to meet the challenges ahead.”

Geospace Technologies Corporation designs and manufactures instruments and equipment used by the oil and gas industry in the acquisition and processing of seismic data as well as in reservoir characterization and monitoring activities. The company also designs and manufactures non-seismic products, including industrial products, offshore cables, thermal printing equipment and film.

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact included herein including statements regarding potential future products and markets, our potential future revenues, future financial position, business strategy, future expectations and other plans and objectives for future operations, are forward-looking statements. We believe our forward-looking statements are reasonable. However, they are based on certain assumptions about our industry and our business that may in the future prove to be inaccurate. Important factors that could cause actual results to differ materially from our expectations include the level of seismic exploration worldwide, which is influenced primarily by prevailing prices for oil and gas, the extent to which our new products are accepted in the market, the availability of competitive products that may be more technologically advanced or otherwise preferable to our products, tensions in the Middle East and other factors disclosed under the heading “Risk Factors” and elsewhere in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which are on file with the Securities and Exchange Commission. Further, all written and verbal forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by such factors.

 
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
                             

Three Months Ended

Year Ended

September 30,

September 30,

September 30,

September 30,

2012

2011

2012

2011

(unaudited) (unaudited) (unaudited)
 
Sales $ 36,949 $ 32,805 $ 191,664 $ 172,970
Cost of sales   23,600     20,025     109,634     98,857  
Gross profit 13,349 12,780 82,030 74,113
 
Operating expenses:
Selling, general and administrative 4,430 4,187 18,914 18,051
Research and development 2,969 2,544 12,167 11,529
Bad debt expense (recovery)   (207 )   (17 )   118     128  
Total operating expenses   7,192     6,714     31,199     29,708  
 
Gain (loss) on sale of assets   37     (17 )   34     --  
 
Income from operations   6,194     6,049     50,865     44,405  
 
Other income (expense):
Interest expense (80 ) -- (199 ) (43 )
Interest income 182 101 743 267
Foreign exchange gains (losses) 173 44 457 80
Other, net   51     (51 )   (4 )   (90 )
Total other income (expense), net   326     94     997     214  
 
Income before income taxes 6,520 6,143 51,862 44,619
Income tax expense   2,254     2,554     16,744     14,908  
 
Net income $ 4,266   $ 3,589   $ 35,118   $ 29,711  
 
 
Basic earnings per share $ 0.33   $ 0.28   $ 2.76   $ 2.39  
 
Diluted earnings per share $ 0.33   $ 0.28   $ 2.74   $ 2.36  
 
 
Weighted average shares outstanding - Basic   12,763,122     12,679,180     12,735,520     12,441,313  
Weighted average shares outstanding - Diluted   12,875,350     12,810,962     12,836,239     12,572,647  

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Verizon Enterprise Solutions is simplifying the cloud-purchasing experience for its clients, with the launch of Verizon Cloud Marketplace, a key foundational component of the company's robust ecosystem of enterprise-class technologies. The online storefront will initially feature pre-built cloud-based services from AppDynamics, Hitachi Data Systems, Juniper Networks, PfSense and Tervela. Available globally to enterprises using Verizon Cloud, Verizon Cloud Marketplace provides a one-stop shop fo...
AppZero has announced that its award-winning application migration software is now fully qualified within the Microsoft Azure Certified program. AppZero has undergone extensive technical evaluation with Microsoft Corp., earning its designation as Microsoft Azure Certified. As a result of AppZero's work with Microsoft, customers are able to easily find, purchase and deploy AppZero from the Azure Marketplace. With just a few clicks, users have an Azure-based solution for moving applications to the...
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today Isomorphic Software, the global leader in high-end, web-based business applications, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Isomorphic Software is the global leader in high-end, web-based business applications. We develop, market, and support the SmartClient & Smart GWT HTML5/Ajax platform, combining the productivity and performance of traditional desktop software ...
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada...
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validation, manufacturing and production, AIC's broad selection of products are highly flexible and are conf...
Leysin American School is an exclusive, private boarding school located in Leysin, Switzerland. Leysin selected an OpenStack-powered, private cloud as a service to manage multiple applications and provide development environments for students across the institution. Seeking to meet rigid data sovereignty and data integrity requirements while offering flexible, on-demand cloud resources to users, Leysin identified OpenStack as the clear choice to round out the school's cloud strategy. Additional...
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
The cloud is becoming the de-facto way for enterprises to leverage common infrastructure while innovating and one of the biggest obstacles facing public cloud computing is security. In his session at 15th Cloud Expo, Jeff Aliber, a global marketing executive at Verizon, discussed how the best place for web security is in the cloud. Benefits include: Functions as the first layer of defense Easy operation –CNAME change Implement an integrated solution Best architecture for addressing network-l...
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
SYS-CON Media announced today that Aruna Ravichandran, VP of Marketing, Application Performance Management and DevOps at CA Technologies, has joined DevOps Journal’s authors. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. DevOps Journal brings valuable information to DevOps professionals who are transforming the way enterprise IT is done. Aruna's inaugural article "Four Essential Cultural Hacks for DevOps Newbies" discusses how to demonstrate the...
"Our premise is Docker is not enough. That's not a bad thing - we actually love Docker. At ActiveState all our products are based on open source technology and Docker is an up-and-coming piece of open source technology," explained Bart Copeland, President & CEO of ActiveState Software, in this SYS-CON.tv interview at DevOps Summit at Cloud Expo®, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.