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Global Geophysical Services (GGS) plunged more than 50% to a one-year low of 48 cents on Tuesday after the company stated some of its past financial reports are unreliable. The company said in its preliminary fourth-quarter and full fiscal year results that financial reports for each of the fiscal years ended Dec. 31, 2012, 2011, 2010, and 2009 and the first, second and third quarters of 2013 "should no longer be relied upon because of accounting errors resulting from material weaknesses in the company's internal controls." Global Geophysical did state, though, that it expects to report fourth-quarter revenue of approximately $81 million, which would beat the Capital IQ consensus estimate of $75.6 million. The company also expects a pre-tax loss from operations of $69.4 million.
Deal for a $105 million loan maturing in 2016 at higher rates gives the company breathing room.
Global Geophysical Services (NYSE:GGS) has been downgraded by TheStreet Ratings from from a hold to sell.