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Dec 31, 2019
Geospace Q1 2020 Earnings Report
Geospace Technologies narrowed its net loss on increased revenue.
Key Takeaways
Geospace Technologies reported a narrowed net loss of $1.3 million on revenue of $25.7 million for the first quarter ended December 31, 2019. Revenue increased by 44% compared to the first quarter of the prior year, driven by increased demand for ocean-bottom marine nodal recording systems.
Revenue increased by 44% compared to the same quarter last year.
Net loss narrowed by 78% compared to the first quarter of the prior year.
Gross profits more than tripled compared to last year, reaching $10.5 million.
Wireless seismic products revenue increased by 132% due to higher rental demand and utilization of OBX marine seismic recorders.
Geospace
Geospace
Forward Guidance
Geospace Technologies anticipates continued demand for its OBX marine nodal recording systems. The company also expects potential PRM contract opportunities in fiscal year 2020 and plans to continue its diversification strategies for adjacent and emerging markets.
Positive Outlook
- Continued revenue growth and demand for OBX marine nodal recording systems.
- Renewed focus on offshore reserves by E&P operators driving demand.
- Potential for one or more tenders and opportunities for PRM contracts in fiscal year 2020.
- Diversification strategies for the adjacent and emerging markets to mitigate volatility.
- Onset of meaningful Quantum product revenue from border and perimeter security customers expected this year.
Challenges Ahead
- Traditional exploration and reservoir seismic products remain challenged by very low demand.
- Wireless seismic products for onshore use are impacted by the same conditions.
- Cash collection difficulties with an international customer, potentially leading to a significant bad debt reserve.
- Unrecognized revenue from the customer was $1.5 million for the first fiscal quarter ended December 31, 2019.
- Negotiations with the customer may not lead to a definitive agreement.