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Jun 30, 2022
Geospace Q3 2022 Earnings Report
Geospace Technologies reported a net loss of $6.6 million and revenue of $20.7 million for Q3 2022.
Key Takeaways
Geospace Technologies reported a decrease in revenue and a net loss for the third quarter of fiscal year 2022, with revenue at $20.7 million compared to $23.1 million in the same quarter last year, and a net loss of $6.6 million, or $(0.51) per diluted share.
Demand for OBX ocean bottom nodes continued to climb, leading to the highest quarterly rental revenue this fiscal year.
Base value of signed OBX rental contracts so far in fiscal year 2022 exceeds $24 million, compared to $8.2 million in fiscal year 2021.
Adjacent Markets segment achieved record quarterly revenue, driven by demand for U.S.-manufactured water meter cables and connectors.
Company is poised to penetrate the smart water market with the rollout of Aquana smart water valves and cloud control software.
Geospace
Geospace
Forward Guidance
Geospace Technologies anticipates improved market conditions in both the Oil and Gas and Adjacent Market segments will lead to better performance and improved liquidity in future quarters.
Positive Outlook
- Continued improvement in Oil and Gas and Adjacent Market segments.
- Expected better performance in future quarters.
- Anticipated overall improved liquidity.
- Growing demand for OBX ocean bottom nodes
- Increased domestic infrastructure spending on smart city projects
Challenges Ahead
- COVID-19 related challenges
- Supply-chain issues
- Geopolitical turmoil
- Derivative challenges of the above issues remain
- Decreases in Oil and Gas Markets segment revenue from prior periods