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Jun 30, 2020
Geospace Q3 2020 Earnings Report
Geospace Technologies reported a net loss with revenue similar to the prior year.
Key Takeaways
Geospace Technologies reported a net loss of $2.3 million, or $0.17 per diluted share, on revenue of $22.7 million for its third quarter ended June 30, 2020. This compares to a net loss of $3.7 million, or $0.27 per diluted share, on revenues of $22.9 million for the third quarter of the prior year.
Third quarter operations were minimally impacted by COVID-19.
Revenue for the three-month period ended June 30, 2020 totaled $22.7 million.
Demand for ocean-bottom marine nodal recording systems fueled the third quarter results.
Quantum subsidiary was awarded a $10 million contract to provide a technology solution to the Department of Homeland Security for the U.S. Customs and Border Protection, U.S. Border Patrol.
Geospace
Geospace
Forward Guidance
Demand for certain products in our oil and gas and adjacent markets segments will continue to be negatively impacted. The company believes that its products serving this market stand out as the preferred instruments of choice within a recovering energy market. In addition, the company believes its executed diversification strategy is already demonstrating successful mitigation of the volatility in our oil and gas markets segment, as evidenced by our contract with U.S. Border Patrol. Furthermore, the company believes its recent cost reduction efforts and its longstanding financial discipline keep us optimally positioned to thrive in a post COVID-19 world ahead.
Positive Outlook
- Products serving this market stand out as the preferred instruments of choice within a recovering energy market.
- Executed diversification strategy is already demonstrating successful mitigation of the volatility in our oil and gas markets segment
- Recent cost reduction efforts and our longstanding financial discipline keep us optimally positioned to thrive in a post COVID-19 world ahead.
Challenges Ahead
- Demand for certain products in our oil and gas and adjacent markets segments will continue to be negatively impacted.
- Curtailed travel and social activities, combined with lower factory outputs, will continue to keep global energy demands at below normal levels.
- Continued balancing of supplies and pricing poses ongoing challenges to the oil and gas companies and energy service providers who are our major customers.