Geospace Technologies Reports Fiscal Year 2016 Results

Geospace Technologies (NASDAQ: GEOS) today announced a net loss of $46.0 million, or $3.52 per diluted share, on revenue of $62.1 million for its fiscal year ended September 30, 2016. This compares with a net loss of $32.6 million, or $2.51 per diluted share, on revenue of $84.9 million for the prior year.

For the fourth quarter ended September 30, 2016, the company recorded revenue of $16.3 million and a net loss of $12.3 million, or $0.94 per diluted share. For the comparable period last year, the company recorded revenue of $16.0 million and a net loss of $13.5 million, or $1.03 per diluted share.

Walter R. ("Rick") Wheeler, Geospace Technologies' President and CEO said, "Revenue in the fourth quarter of fiscal year 2016 declined 8% sequentially from the third quarter, and was up by 2% in comparison with the fourth quarter of last year. For fiscal year 2016, our revenue declined 27%, marking the third consecutive year of declining revenue as market conditions in our seismic business segment worsened despite some strengthening of crude oil prices since the beginning of the calendar year. While lower revenue contributed to our fiscal year 2016 net loss of $46.0 million, several other factors contributed to this record loss. Due to already high inventory levels for most products, our factory activities have been running at a bare minimum and, as a result, we have not been able to absorb most of our fixed factory overhead costs. These fixed costs combined with impairment charges and depreciation expenses from our underutilized rental equipment fleet have more than offset the gross profits generated from substantially lower revenue. Other factors include a $1.0 million charge for termination costs associated with our cost reduction program, a $7.7 million valuation allowance against our U.S. and Canadian deferred tax assets, and $10.6 million of inventory obsolescence expenses associated with products considered to be impaired due to current market conditions. Through our continuous efforts to control costs, we were able to soften these losses by reducing operating expenses while simultaneously preserving and maintaining our core research and development activities targeted at both new and existing products."

If you liked this article you might like

How My Outperforming Value Portfolio Is Bucking the Trend

Catch These Names in My 'Double-Net' Value Portfolio for 2017

5 Stocks That Could Be Squeezed Much Higher

Insider Trading Alert - AMSF, GEOS And MYCC Traded By Insiders

Geospace Technologies (GEOS) Is Strong On High Volume Today