Geospace Technologies Corporation Reports Second Quarter and Six-Month 2025 Earnings
For the six-months ended March 31, 2025, Geospace reported revenue of
Management’s Comments
Richard “Rich” Kelley, President and CEO of the Company said, “Like many companies, the second quarter provided volatility for our company. We had record performance in our Smart Water segment, with our Hydroconn® universal connectors continuing to outperform year over year. We are also experiencing increased interest in our Aquana product offerings. Offsetting that is the on-going uncertainty in the Energy Solutions segment. Global trade concerns, tariffs, and decreasing oil prices have impacted project decisions for our customers, resulting in delayed and canceled opportunities. Our Intelligent Industrial segment is negatively impacted by tariff concerns, especially for our EXILE products. Recognizing those external factors, we are working to optimize our supply chains to minimize the impact to our company and our customers. We are well-positioned to exploit the tremendous potential we have created with our innovative IoT technologies, our talented staff and our continuing diversification into new high-margin markets in the Smart Water and Intelligent Industrial markets.
Points specifically fueling optimism for future periods include Hydroconn universal connectors achieving their highest first six-months revenue ever and continuing growth, a recently announced Mariner contract with interest in possible future requirements, and the on-going PRM studies, which reinforces the market’s interest in our technology. Additionally, our current backlog places us in a strong position going into the second half of the year. Importantly, the longstanding strength of our balance sheet with no debt and
Smart Water Segment
The Company’s Smart Water segment generated revenue of
Energy Solutions Segment
Second quarter revenue from the Company’s Energy Solutions segment totaled
Intelligent Industrial Segment
Revenue from the Company’s Intelligent Industrial segment totaled
Balance Sheet and Liquidity
For the six-month period ended March 31, 2025, the Company used
As of March 31, 2025, the Company had
Conference Call Information
The Company will host a conference call to review its second quarter fiscal year 2025 financial results on Friday, May 9, 2025, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). (800) 267-6316 (US) or (203) 518-9814 (International). Please reference the conference ID: GEOSQ225 prior to the start of the conference call. A replay will be available for approximately 60 days and may be accessed through the Investor Relations tab of the Company’s website at www.geospace.com.
About Geospace Technologies
Geospace Technologies is a global technology and instrumentation manufacturer specializing in advanced sensing, IOT and highly ruggedized products, which serve smart water, energy exploration, industrial, government and commercial customers worldwide. The Company’s products blend engineering expertise with advanced analytic software to optimize energy exploration, enhance national and homeland security, empower water utility and property managers, and streamline electronic printing solutions. With more than four decades of excellence, the Company’s more than 450 employees across the world are dedicated to engineering and technical quality. Geospace is traded on the
Forward Looking Statements
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by terminology such as “may”, “will”, “should”, “could”, “intend”, “expect”, “plan”, “budget”, “forecast”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “continue”, “evaluating” or similar words. Statements that contain these words should be read carefully because they discuss future expectations, contain projections of our future results of operations or of our financial position or state other forward-looking information. Examples of forward- looking statements include, statements regarding our expected operating results and expected demand for our products in various segments. These forward-looking statements reflect our current judgment about future events and trends based on currently available information. However, there will likely be events in the future that we are not able to predict or control. The factors listed under the caption “Risk Factors” in our most recent Annual Report on Form 10-K which is on file with the Securities and Exchange Commission, as well as other cautionary language in such Annual Report, any subsequent Quarterly Report on Form 10- Q, or in our other periodic reports, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. Such examples include, but are not limited to, the failure of the Quantum or OptoSeis® or Aquana technology transactions to yield positive operating results, decreases in commodity price levels, the continued adverse impact of COVID-19, which could reduce demand for our products, the failure of our products to achieve market acceptance (despite substantial investment by us), our sensitivity to short term backlog, delayed or cancelled customer orders, product obsolescence resulting from poor industry conditions or new technologies, bad debt write-offs associated with customer accounts, inability to collect on promissory notes, lack of further orders for our OBX systems, failure of our Quantum products to be adopted by the border and security perimeter market or a decrease in such market due to governmental changes, and infringement or failure to protect intellectual property. The occurrence of the events described in these risk factors and elsewhere in our most recent Annual Report on Form 10-K or in our other periodic reports could have a material adverse effect on our business, results of operations and financial position, and actual events and results of operations may vary materially from our current expectations. We assume no obligation to revise or update any forward- looking statement, whether written or oral, that we may make from time to time, whether as a result of new information, future developments or otherwise, except as required by applicable securities laws and regulations.
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
March 31,
|
|
|
March 31,
|
|
|
March 31,
|
|
|
March 31,
|
|
||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products |
|
$ |
18,708 |
|
|
$ |
19,497 |
|
|
$ |
51,353 |
|
|
$ |
63,211 |
|
Rental |
|
|
(685 |
) |
|
|
4,773 |
|
|
|
3,893 |
|
|
|
11,091 |
|
Total revenue |
|
|
18,023 |
|
|
|
24,270 |
|
|
|
55,246 |
|
|
|
74,302 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products |
|
|
13,747 |
|
|
|
14,995 |
|
|
|
28,016 |
|
|
|
38,837 |
|
Rental |
|
|
2,528 |
|
|
|
3,394 |
|
|
|
5,333 |
|
|
|
7,348 |
|
Total cost of revenue |
|
|
16,275 |
|
|
|
18,389 |
|
|
|
33,349 |
|
|
|
46,185 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
1,748 |
|
|
|
5,881 |
|
|
|
21,897 |
|
|
|
28,117 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
6,775 |
|
|
|
6,546 |
|
|
|
14,195 |
|
|
|
12,372 |
|
Research and development |
|
|
5,235 |
|
|
|
3,863 |
|
|
|
10,129 |
|
|
|
7,465 |
|
Provision for (recovery of) credit losses |
|
|
19 |
|
|
|
(22 |
) |
|
|
19 |
|
|
|
(51 |
) |
Total operating expenses |
|
|
12,029 |
|
|
|
10,387 |
|
|
|
24,343 |
|
|
|
19,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
|
(10,281 |
) |
|
|
(4,506 |
) |
|
|
(2,446 |
) |
|
|
8,331 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(43 |
) |
|
|
(44 |
) |
|
|
(87 |
) |
|
|
(100 |
) |
Interest income |
|
|
693 |
|
|
|
247 |
|
|
|
1,438 |
|
|
|
482 |
|
Foreign currency transaction losses, net |
|
|
(255 |
) |
|
|
(20 |
) |
|
|
(269 |
) |
|
|
(183 |
) |
Other, net |
|
|
(38 |
) |
|
|
7 |
|
|
|
(71 |
) |
|
|
(67 |
) |
Total other income, net |
|
|
357 |
|
|
|
190 |
|
|
|
1,011 |
|
|
|
132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
|
|
(9,924 |
) |
|
|
(4,316 |
) |
|
|
(1,435 |
) |
|
|
8,463 |
|
Income tax expense (benefit) |
|
|
(126 |
) |
|
|
11 |
|
|
|
(13 |
) |
|
|
111 |
|
Net income (loss) |
|
$ |
(9,798 |
) |
|
$ |
(4,327 |
) |
|
$ |
(1,422 |
) |
|
$ |
8,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.77 |
) |
|
$ |
(0.32 |
) |
|
$ |
(0.11 |
) |
|
$ |
0.63 |
|
Diluted |
|
$ |
(0.77 |
) |
|
$ |
(0.32 |
) |
|
$ |
(0.11 |
) |
|
$ |
0.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
12,792,803 |
|
|
|
13,343,793 |
|
|
|
12,772,981 |
|
|
|
13,297,324 |
|
Diluted |
|
|
12,792,803 |
|
|
|
13,343,793 |
|
|
|
12,772,981 |
|
|
|
13,471,775 |
|
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands except share amounts) (unaudited) |
||||||||
|
|
March 31, 2025 |
|
|
September 30, 2024 |
|
||
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
8,294 |
|
|
$ |
6,895 |
|
Short-term investments |
|
|
11,531 |
|
|
|
30,227 |
|
Trade accounts and financing receivables, net |
|
|
36,298 |
|
|
|
21,868 |
|
Inventories, net |
|
|
27,268 |
|
|
|
26,222 |
|
Assets held for sale |
|
|
1,841 |
|
|
|
1,841 |
|
Prepaid expenses and other current assets |
|
|
1,781 |
|
|
|
2,313 |
|
Total current assets |
|
|
87,013 |
|
|
|
89,366 |
|
|
|
|
|
|
|
|
|
|
Non-current inventories, net |
|
|
18,996 |
|
|
|
18,031 |
|
Rental equipment, net |
|
|
11,645 |
|
|
|
14,186 |
|
Property, plant and equipment, net |
|
|
23,662 |
|
|
|
21,083 |
|
Non-current trade accounts and financing receivables |
|
|
4,727 |
|
|
|
6,375 |
|
Operating right-of-use assets |
|
|
361 |
|
|
|
464 |
|
Goodwill |
|
|
736 |
|
|
|
736 |
|
Other intangible assets, net |
|
|
1,574 |
|
|
|
1,649 |
|
Other non-current assets |
|
|
250 |
|
|
|
304 |
|
Total assets |
|
$ |
148,964 |
|
|
$ |
152,194 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable trade |
|
$ |
5,369 |
|
|
$ |
8,003 |
|
Operating lease liabilities |
|
|
117 |
|
|
|
173 |
|
Other current liabilities |
|
|
10,084 |
|
|
|
9,021 |
|
Total current liabilities |
|
|
15,570 |
|
|
|
17,197 |
|
|
|
|
|
|
|
|
|
|
Non-current operating lease liabilities |
|
|
280 |
|
|
|
339 |
|
Deferred tax liabilities, net |
|
|
22 |
|
|
|
34 |
|
Total liabilities |
|
|
15,872 |
|
|
|
17,570 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Preferred stock, 1,000,000 shares authorized, no shares issued and outstanding |
|
|
— |
|
|
|
— |
|
Common Stock, |
|
|
144 |
|
|
|
142 |
|
Additional paid-in capital |
|
|
98,236 |
|
|
|
97,342 |
|
Retained earnings |
|
|
53,860 |
|
|
|
55,282 |
|
Accumulated other comprehensive loss |
|
|
(4,648 |
) |
|
|
(4,257 |
) |
Treasury stock, at cost, 1,558,260 and 1,496,701 shares, respectively |
|
|
(14,500 |
) |
|
|
(13,885 |
) |
Total stockholders’ equity |
|
|
133,092 |
|
|
|
134,624 |
|
Total liabilities and stockholders’ equity |
|
$ |
148,964 |
|
|
$ |
152,194 |
|
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) |
||||||||
|
|
Six Months Ended |
|
|||||
|
|
March 31, 2025 |
|
|
March 31, 2024 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(1,422 |
) |
|
$ |
8,352 |
|
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Deferred income tax expense (benefit) |
|
|
(11 |
) |
|
|
15 |
|
Rental equipment depreciation |
|
|
3,415 |
|
|
|
6,026 |
|
Property, plant and equipment depreciation |
|
|
1,770 |
|
|
|
1,682 |
|
Amortization of intangible assets |
|
|
74 |
|
|
|
204 |
|
Accretion of discounts on short-term investments |
|
|
(156 |
) |
|
|
(234 |
) |
Stock-based compensation expense |
|
|
896 |
|
|
|
762 |
|
Provision for (recovery of) credit losses |
|
|
19 |
|
|
|
(51 |
) |
Inventory obsolescence expense |
|
|
905 |
|
|
|
110 |
|
Gross profit from sale of rental equipment |
|
|
(15,820 |
) |
|
|
(20,553 |
) |
(Gain) loss on disposal of property, plant and equipment |
|
|
(93 |
) |
|
|
10 |
|
Realized gain on investments |
|
|
(10 |
) |
|
|
— |
|
Effects of changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Trade accounts and financing receivables |
|
|
1,829 |
|
|
|
5,963 |
|
Inventories |
|
|
(3,518 |
) |
|
|
(5,566 |
) |
Other assets |
|
|
688 |
|
|
|
873 |
|
Accounts payable trade |
|
|
(2,633 |
) |
|
|
(684 |
) |
Other liabilities |
|
|
666 |
|
|
|
(3,180 |
) |
Net cash used in operating activities |
|
|
(13,401 |
) |
|
|
(6,271 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
|
|
(4,419 |
) |
|
|
(3,166 |
) |
Proceeds from the sale of property, plant and equipment |
|
|
131 |
|
|
|
2 |
|
Investment in rental equipment |
|
|
(900 |
) |
|
|
(3,949 |
) |
Proceeds from the sale of rental equipment |
|
|
1,704 |
|
|
|
30,502 |
|
Purchases of short-term investments |
|
|
— |
|
|
|
(19,293 |
) |
Proceeds from the sale of short-term investments |
|
|
18,862 |
|
|
|
4,000 |
|
Payments received on note receivable related to sale of subsidiary |
|
|
76 |
|
|
|
— |
|
Net cash provided by investing activities |
|
|
15,454 |
|
|
|
8,096 |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Purchase of treasury stock |
|
|
(615 |
) |
|
|
— |
|
Net cash used in financing activities |
|
|
(615 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
|
(39 |
) |
|
|
134 |
|
Increase in cash and cash equivalents |
|
|
1,399 |
|
|
|
1,959 |
|
Cash and cash equivalents, beginning of period |
|
|
6,895 |
|
|
|
18,803 |
|
Cash and cash equivalents, end of period |
|
$ |
8,294 |
|
|
$ |
20,762 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW INFORMATION: |
|
|
|
|
|
|
|
|
Cash paid for income taxes |
|
$ |
113 |
|
|
$ |
— |
|
Accounts and financing receivables related to sale of rental equipment |
|
|
14,701 |
|
|
|
— |
|
Inventory transferred to rental equipment |
|
|
2,395 |
|
|
|
5,352 |
|
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES SUMMARY OF SEGMENT REVENUE AND OPERATING INCOME (LOSS) (in thousands) (unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
March 31, 2025 |
|
|
March 31, 2024 |
|
|
March 31, 2025 |
|
|
March 31, 2024 |
|
||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Smart Water |
|
$ |
9,472 |
|
|
$ |
6,411 |
|
|
$ |
16,760 |
|
|
$ |
10,645 |
|
Energy Solutions |
|
|
2,588 |
|
|
|
11,035 |
|
|
|
26,870 |
|
|
|
50,946 |
|
Intelligent Industrial |
|
|
5,883 |
|
|
|
6,749 |
|
|
|
11,460 |
|
|
|
12,562 |
|
Corporate |
|
|
80 |
|
|
|
75 |
|
|
|
156 |
|
|
|
149 |
|
Total |
|
$ |
18,023 |
|
|
$ |
24,270 |
|
|
$ |
55,246 |
|
|
$ |
74,302 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Smart Water |
|
$ |
1,420 |
|
|
$ |
1,666 |
|
|
$ |
1,790 |
|
|
$ |
2,761 |
|
Energy Solutions |
|
|
(6,668 |
) |
|
|
(1,948 |
) |
|
|
6,614 |
|
|
|
13,120 |
|
Intelligent Industrial |
|
|
(1,287 |
) |
|
|
(708 |
) |
|
|
(2,227 |
) |
|
|
(899 |
) |
Corporate |
|
|
(3,746 |
) |
|
|
(3,516 |
) |
|
|
(8,623 |
) |
|
|
(6,651 |
) |
Total |
|
$ |
(10,281 |
) |
|
$ |
(4,506 |
) |
|
$ |
(2,446 |
) |
|
$ |
8,331 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250508201979/en/
Media Contact: Caroline Kempf, ckempf@geospace.com, 321.341.9305
Source: Geospace Technologies Corporation
