ION Geophysical CEO Discusses Q3 2010 Results - Earnings Call Transcript
ION Geophysical Corporation (
)
Q3 2010 Earnings Call
November 04, 2010 10:00 pm ET
Executives
Jack Lascar - IR, DRG&E
Bob Peebler - CEO
Brian Hanson - EVP& CFO
Analysts
James West - Barclays Capital
Paulo Loureiro - Morgan Stanley
Steven Gengaro - Jefferies & Company
Mark Gaskill - MKG Financial Group
Presentation
Operator
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ION Geophysical Corporation. Q2 2010 Earnings Call Transcript
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ION Geophysical Corporation Q4 2009 Earnings Call Transcript
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ION Geophysical Corporation. Q3 2009 Earnings Conference Call
Good day, ladies and gentlemen and thank you for standing by. Welcome to the ION Geophysical third quarter earnings conference call. During today’s presentation all participants will be in a listen-only mode. And following the presentation the conference will be open for questions and instructions will be given at that time. As a reminder today’s conference is being recorded today, Thursday, 4, November, 2010.
And now let me hand the conference over to Jack Lascar. Please go ahead sir.
Jack Lascar
Thank you Josh and good morning everyone. Welcome to the ION Geophysical Corporation's third quarter earnings conference call. We appreciate you joining us this morning. Your hosts today are Bob Peebler, Chief Executive Officer, and Brian Hanson, Executive Vice President and Chief Financial Officer.
Before I turn the call over to management, I have a few items to cover. If you would like to be on our e-mail distribution list to receive future news releases, please call us at 713-529-6600 and let us know.
If you would like to listen to a replay of today's call, it is available via webcast by going to the investor relations section of the company's website at www.iongeo.com, or via a recorded instant replay until November 18. The information was provided in yesterday's earnings release.
I should also point out that we will be using some telephonic lines to the company for today’s call. They are accessible via the link on the home page of ION’s website at www.iongeo.com.
Information reported on this call speaks only as of today, November 4, 2010, and therefore you are advised that time sensitive information may no longer be accurate as of the time of any replay. Before we begin, let me remind you that certain statements made by management during this call, may constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements are based on management's current expectations and include known and unknown risks, uncertainties and other factors, many of which the company is unable to predict or control that may cause the company's actual results or performance to differ materially from any future results or performance, expressed or implied by the statements.
These risks and uncertainties include the risk factors disclosed by the company from time-to-time in its filings with the SEC, including the net annual report on Form 10-K for the year ended December 31, 2009, and its quarterly reports on Form 10-Q.
Furthermore, as we start this call, please refer to the statement regarding forward-looking statements incorporated in our press release issued yesterday. And please note that the contents of our conference call this morning are covered by these statements.
I’ll now turn the call to Bob Peebler.
Bob Peebler
Thanks Jack and good morning. Third quarter versus first quarter since the financial collapse, we have had good overall financial performance driving positive earnings and highlighted by an exceptionally strong rebound in our multi-client business resulting in a 59 million third quarter compared to 8 million to the second quarter.
It’s also notable that our year-to-date earnings number is now in the black, which makes our goal of being profitable for the entire year including covering any losses from another Geophysical a realistic target if we finish the year as we expect.
Additional highlights for the quarter, include the completion of three new venture projects in the Artic, One Ocean-Bottom Cable Project and two towed streamer projects where our contracted acquisition partners used their state-of-the-art DigiSTREAMER, DigiBIRD and DigiFIN technologies, in addition to our proprietary technology that allows towing streamers below the ice.
We have also seen another strong data processing quarter with sufficient backlog to end with a record year. Our marine command and control software developed by the Concept Systems Group continues to see success in converting vessels to the Orca software platform, our Marine Equipment Group completed large shipment of source and position equipment including DigiFIN, DigiBIRD to BGP for the 12-steamer vessel which will be recognized in the fourth quarter.
The Streamers for this vessel are scheduled to be shipped in the fourth quarter with revenues recognized in 2011. The only real soft spot in the quarter has been the continued softness in our land equipment businesses which are represented by our INOVA Geophysical joint venture and our Sensor geophone business. One highlight we are seeing increased velocity proposals in our Sensor geophone business, which is usually a good proxy for the direction of the land business.
Our macro view of the market includes an overarching belief, that we will see a stronger finish in year end spending that we saw last year, which mainly accrues our data library business, leading to accelerated growth in all our businesses in 2011.
We do have some concerns on the impact of the Gulf of Mexico oil spill and 2011, mainly related to our data processing business, but we also have opportunities developing in other parts of the world such as Mexico and its our belief that we can likely offset any potential slowdown in the Gulf of Mexico with other business that is in our current pipeline of opportunities.
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