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Sep 30, 2020
Geospace Q4 2020 Earnings Report
Reported a net loss on decreased revenue due to the impact of COVID-19.
Key Takeaways
Geospace Technologies reported a decrease in revenue and a net loss for the fourth quarter of 2020, primarily due to the negative impacts of COVID-19 on its business segments. Revenue was $21.5 million, with a net loss of $3.9 million, or ($0.29) per diluted share.
Revenue decreased due to lower demand in oil and gas and adjacent market businesses.
Rental contracts for OBX marine systems drove wireless exploration products revenue above last year.
The company took steps to address operating costs with a reduction in force.
A stock repurchase program was authorized by the Board of Directors.
Geospace
Geospace
Forward Guidance
The company anticipates continued challenges due to the ongoing impact of COVID-19 on global economies and oil and gas demand. Efforts are focused on longer-term strategic goals, including OBX and PRM systems, and fulfilling a contract with U.S. Customs and Border Protection.
Positive Outlook
- Focus on longer term strategic goals and projects of major customers.
- Oil and gas companies eager to find new reserves near existing assets using our OBX systems.
- Oil and gas companies intending to maximize recoveries of existing fields using our PRM systems.
- Fulfilling contract to provide the Department of Homeland Security with a technology solution to protect our borders.
- Strong balance sheet with no debt and ample liquidity gives us the fundamental strength to weather this pandemic
Challenges Ahead
- COVID-19 continues to exert a tight grip on the economies of countries around the world.
- Seismic exploration activity will remain at a minimum as long as oil and gas supplies outstrip demand.
- Lower energy demands brought about in reaction to COVID-19 reinforce this condition.
- Some of our customers suffer from the pandemic’s effects.
- Some of our adjacent market products will see reduced demand