Update (4:10 p.m.): Updated with one-year low and Tuesday market close information.

NEW YORK (TheStreet) -- Global Geophysical Services  (GGS) plunged more than 60% to a one-year low of 45 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.

The stock closed down 59.32% to less than 48 cents, down from its previous close of $1.17, on Tuesday. It amassed a volume of 9,270,061, more than 41 times its average of 224,062. It hit a high of slightly less than 69 cents for the day and holds a one-year high of $4.96.

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TheStreet Ratings team rates GLOBAL GEOPHYSICAL SVCS INC as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate GLOBAL GEOPHYSICAL SVCS INC (GGS) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • GLOBAL GEOPHYSICAL SVCS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, GLOBAL GEOPHYSICAL SVCS INC swung to a loss, reporting -$0.34 versus $0.16 in the prior year. For the next year, the market is expecting a contraction of 176.5% in earnings (-$0.94 versus -$0.34).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Energy Equipment & Services industry. The net income has significantly decreased by 516.7% when compared to the same quarter one year ago, falling from $5.81 million to -$24.20 million.
  • The debt-to-equity ratio is very high at 5.61 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, GGS maintains a poor quick ratio of 0.82, which illustrates the inability to avoid short-term cash problems.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Energy Equipment & Services industry and the overall market, GLOBAL GEOPHYSICAL SVCS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to $14.55 million or 56.56% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • You can view the full analysis from the report here: GGS Ratings Report

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.