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Geospace Technologies Corporation (NASDAQ: GEOS) announced today net income of $24.2 million, or $1.85 per diluted share, on revenues of $101.3 million for its fiscal quarter ended December 31, 2013. This compares with a net income of $22.0 million, or $1.70 per diluted share, on revenues of $77.8 million for the comparable quarter last year.
Walter R. Wheeler, Geospace Technologies’ President and CEO said, “Our revenues and net income for the first quarter are both new records for our company. Revenues increased by 30% and net income improved by 10% over last year’s first quarter. As a result, the quarterly earnings per share exceeded the highest ever seen in our company’s history by 9%. Similar to last year, demand for our GSX wireless systems in the first quarter was strong resulting in the sale of 77,000 channels and generating product sale and rental revenues of $45.5 million. Revenues from our reservoir products were $29.3 million including $28.0 million of revenue recognition from production of the Statoil permanent reservoir monitoring systems, slightly less than our $30 million estimate. Our traditional product sales increased to $20.5 million primarily due to the increase in the sale of geophone sensors associated with the sale of wireless channels. Sales of our non-seismic products also increased during the first quarter.”
“Our GSX presence continues to grow in the marketplace. As previously announced, during the first quarter we delivered two large orders of GSX wireless channels, consisting primarily of three-channel stations that allow our customers to obtain enhanced seismic data for their clients. At December 31, 2013, the number of GSX land wireless channels sold into the marketplace since its introduction in 2008 stood at 315,000 channels and we had 89,000 channels in our worldwide rental fleet.”
“We previously announced a $29.4 million order from Seafloor Geophysical Solutions (“SGS”) for over 2,300 stations of our deep water OBX seafloor node. SGS has recently requested that we deliver this order after March 31, 2014, which will shift the revenue recognition and net income associated with this order into our third fiscal quarter ending June 30, 2014. Inquiries for both our shallow-water and deep-water versions of the OBX marine wireless system continue, and we continue to be encouraged about the amount of interest in this new product. The $5.2 million order from Makamin Petroleum Services Company for a permanent land data acquisition system is also scheduled to ship in the second quarter. Revenue recognition for the Statoil order is expected to be approximately $25 million in the second quarter.”