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OYO Geospace (NASDAQ: OYOG) today announced net income of $8.2 million, or $1.30 per diluted share, on revenues of $43.1 million for its quarter ended December 31, 2010. This compares with net income of $1.1 million, or $0.18 per diluted share, on revenues of $26.3 million in the comparable quarter last year.
“Our first quarter of fiscal year 2011 produced outstanding financial results due to several factors. Foremost, during the quarter we delivered almost 29,000 channels of our GSR wireless data acquisition system to various customers, including 7,800 rented channels. GSR feedback from our customers has been positive, and we are pleased to hear about productivity improvements to our customers’ operations. We now have almost 60,000 GSR channels sold, rented or available for rent. In addition, other important products contributed significantly to the first quarter’s financial performance, including our marine and borehole reservoir monitoring products,” said Gary D. Owens, OYO Geospace’s Chairman, President and CEO.
“To meet our growing product demand, we increased our worldwide employee headcount during the first quarter from 891 to 976, an increase of 9.5 percent. The added personnel, especially at our Houston manufacturing plant, improved our factory productivity and utilization. Backlog at December 31, 2010 has more than doubled since the beginning of our fiscal first quarter.”
“Cash flow remained healthy throughout the first quarter. During the first quarter ended December 31, 2010, we paid off a $7.7 million mortgage on our Pinemont property in Houston, Texas and ended the first quarter debt free.”
“At this time, we are optimistic about the immediate outlook. Regarding the second quarter of fiscal year 2011, we expect to fulfill sales commitments for approximately 11,000 single-channel GSR units. In addition, we expect to fulfill rental commitments for another 12,000 single-channel GSR units during the second quarter, which will bring our total GSR rental commitments to approximately 20,000 channels. Other key product categories, including marine, borehole and sensor products also have ample levels of commitment for delivery in the second quarter. Although our quoting activities are high, we remain cautious about the future outlook given our limited visibility beyond the next quarter. However, we are encouraged with our first quarter results and with the feedback we are receiving from our customers.”