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Mar 31, 2024
Geospace Q2 2024 Earnings Report
Reported a net loss due to low utilization of OBX and Mariner ocean bottom nodes, despite positive performance in the Adjacent Markets segment and overall profitability for the first six months of the fiscal year.
Key Takeaways
Geospace Technologies reported a decrease in revenue and a net loss for the second quarter of 2024, primarily due to lower utilization of ocean bottom nodes in the Oil and Gas Markets segment. However, the Adjacent Markets segment performed well, and the company maintains a strong balance sheet with significant cash reserves.
Revenue for the quarter was $24.3 million, compared to $31.4 million in the same period last year.
Net loss for the quarter was $4.3 million, or ($0.32) per diluted share, compared to a net income of $4.6 million, or $0.35 per diluted share, for the quarter ended March 31, 2023.
Adjacent Markets segment revenue was $12.2 million, the third-best quarterly performance in the company’s history.
The company's balance sheet remains strong with $51.2 million in cash and short-term investments and no debt.
Geospace
Geospace
Geospace Revenue by Segment
Revenue by Segment
Smart Water Revenue
CapyFin.comEnergy Solutions Revenue
CapyFin.comIntelligent Industrial Revenue
CapyFin.comCorporate Revenue
CapyFin.com Forward Guidance
Geospace Technologies anticipates better utilization of ocean bottom nodes in the second half of the fiscal year, which is expected to bolster the performance of the Oil and Gas Markets segment.
Positive Outlook
- Expected increased utilization of ocean bottom nodes in the second half of the fiscal year.
- Anticipated improvement in the Oil and Gas Markets segment performance.
- Continued strong performance expected from the Adjacent Markets segment.
- Potential for larger revenue contributions from Emerging Markets in the next fiscal year.
- Strong demand for ocean bottom nodal surveys.
Challenges Ahead
- Low utilization of OBX and Mariner ocean bottom nodes in the second quarter.
- Potential delays in government agency security projects.
- Slow progress in advanced monitoring projects in the energy and energy transition arenas.
- Uncertainty in the timing of larger revenue contributions from Emerging Markets.
- Possible continued lower demand for water meter products and industrial sensor products.
Revenue & Expenses
Visualization of income flow from segment revenue to net income