- "Demand for product sales has fallen in direct association with reduced capital spending by our customers due to diminished seismic exploration activities across most sectors of the industry," says Geospace (NASDAQ:GEOS) in its FQ4 report. "To the extent that oil and gas companies continue to reduce exploration spending to find new energy, we expect the demand for these products to remain soft."
- FQ4 product revenue -70% Y/Y to $19.4M, thanks in large part to $38.7M drop in reservoir product revenue (the result of a major deal with Statoil concluding). Rental equipment revenue rose 167% to $6.1M.
- Gross margin fell to 23.1% from 43.6% a year ago. GAAP opex fell 11% to $9.4M.
- Fellow seismic equipment provider Ion Geophysical (IO) could follow Geospace lower.
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FQ4 results, PR