|By Business Wire||
|December 11, 2012 04:45 PM EST||
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
|Cost of sales||23,600||20,025||109,634||98,857|
|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):|
|Foreign exchange gains (losses)||173||44||457||80|
|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|
|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|
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...
May. 30, 2015 04:00 PM EDT Reads: 6,448
Health care systems across the globe are under enormous strain, as facilities reach capacity and costs continue to rise. M2M and the Internet of Things have the potential to transform the industry through connected health solutions that can make care more efficient while reducing costs. In fact, Vodafone's annual M2M Barometer Report forecasts M2M applications rising to 57 percent in health care and life sciences by 2016. Lively is one of Vodafone's health care partners, whose solutions enable o...
May. 30, 2015 03:45 PM EDT Reads: 2,418
In her General Session at 15th Cloud Expo, Anne Plese, Senior Consultant, Cloud Product Marketing, at Verizon Enterprise, focused on finding the right mix of renting vs. buying Oracle capacity to scale to meet business demands, and offer validated Oracle database TCO models for Oracle development and testing environments. Anne Plese is a marketing and technology enthusiast/realist with over 19+ years in high tech. At Verizon Enterprise, she focuses on driving growth for the Verizon Cloud platfo...
May. 30, 2015 03:00 PM EDT Reads: 5,471
Andi Mann has been serving as Conference Chair of the DevOps Summit since its inception. He is one of the world's recognized leaders in DevOps, and continues to be one of its most articulate advocates. Here are some recent thoughts of his in an interview we conducted in the run-up to the DevOps Summit to be held June 9-11 at the Javits Center in New York City. When did you first start thinking about DevOps and its potential impact on enterprise IT? Andi: I first started thinking about DevOps b...
May. 30, 2015 03:00 PM EDT Reads: 697
The most often asked question post-DevOps introduction is: “How do I get started?” There’s plenty of information on why DevOps is valid and important, but many managers still struggle with simple basics for how to initiate a DevOps program in their business. They struggle with issues related to current organizational inertia, the lack of experience on Continuous Integration/Delivery, understanding where DevOps will affect revenue and budget, etc. In their session at DevOps Summit, JP Morgentha...
May. 30, 2015 02:30 PM EDT Reads: 745
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
May. 30, 2015 02:15 PM EDT Reads: 1,324
Software is eating the world. Companies that were not previously in the technology space now find themselves competing with Google and Amazon on speed of innovation. As the innovation cycle accelerates, companies must embrace rapid and constant change to both applications and their infrastructure, and find a way to deliver speed and agility of development without sacrificing reliability or efficiency of operations. In her Day 2 Keynote DevOps Summit, Victoria Livschitz, CEO of Qubell, discussed...
May. 30, 2015 02:00 PM EDT Reads: 5,576
The speed of product development has increased massively in the past 10 years. At the same time our formal secure development and SDL methodologies have fallen behind. This forces product developers to choose between rapid release times and security. In his session at DevOps Summit, Michael Murray, Director of Cyber Security Consulting and Assessment at GE Healthcare, examined the problems and presented some solutions for moving security into the DevOps lifecycle to ensure that we get fast AND ...
May. 30, 2015 02:00 PM EDT Reads: 4,941
SYS-CON Events announced today that MetraTech, now part of Ericsson, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Ericsson is the driving force behind the Networked Society- a world leader in communications infrastructure, software and services. Some 40% of the world’s mobile traffic runs through networks Ericsson has supplied, serving more than 2.5 billion subscribers.
May. 30, 2015 02:00 PM EDT Reads: 1,536
The OpenStack cloud operating system includes Trove, a database abstraction layer. Rather than applications connecting directly to a specific type of database, they connect to Trove, which in turn connects to one or more specific databases. One target database is Postgres Plus Cloud Database, which includes its own RESTful API. Trove was originally developed around MySQL, whose interfaces are significantly less complicated than those of the Postgres cloud database. In his session at 16th Cloud...
May. 30, 2015 02:00 PM EDT Reads: 1,274
How does one bridge the gap between traditional enterprise storage infrastructures and the private, hybrid, and public cloud? In his session at 15th Cloud Expo, Dan Pollack, Chief Architect of Storage Operations at AOL Inc., examed the workload differences and required changes to reuse existing knowledge and components when building and using a cloud infrastructure. He also looked into the operational considerations, tool requirements, and behavioral changes required for private cloud storage s...
May. 30, 2015 02:00 PM EDT Reads: 2,823
Working with Big Data is challenging, especially when decision makers depend on market insights and intelligence from your data but don't have quick access to it or find it unusable. In their session at 6th Big Data Expo, Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia; Zel Bianco, President, CEO and Co-Founder of Interactive Edge of Solgenia; and Ermanno Bonifazi, CEO & Founder at Solgenia, discussed how a revolutionary cloud-based BI along with mobile analytics is already c...
May. 30, 2015 01:00 PM EDT Reads: 5,397
In their general session at 16th Cloud Expo, Michael Piccininni, Global Account Manager – Cloud SP at EMC Corporation, and Mike Dietze, Regional Director at Windstream Hosted Solutions, will review next generation cloud services, including the Windstream-EMC Tier Storage solutions, and discuss how to increase efficiencies, improve service delivery and enhance corporate cloud solution development. Speaker Bios Michael Piccininni is Global Account Manager – Cloud SP at EMC Corporation. He has b...
May. 30, 2015 01:00 PM EDT Reads: 1,293
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In this session, James Kirkland, Red Hat's Chief Architect for the ...
May. 30, 2015 01:00 PM EDT Reads: 717
While there are hundreds of public and private cloud hosting providers to choose from, not all clouds are created equal. If you’re seeking to host enterprise-level mission-critical applications, where Cloud Security is a primary concern, WHOA.com is setting new standards for cloud hosting, and has established itself as a major contender in the marketplace. We are constantly seeking ways to innovate and leverage state-of-the-art technologies. In his session at 16th Cloud Expo, Mike Rivera, Seni...
May. 30, 2015 12:45 PM EDT Reads: 1,002