Geospace Technologies (GEOS) Reports Q4 Loss of $0.02, Revenues Beat

Geospace Technologies (NASDAQ: GEOS) reported Q4 EPS of ($0.02), versus $0.00 reported last year. Revenue for the quarter came in at $20.6 million versus the consensus estimate of $14.2 million.

Walter R. (“Rick”) Wheeler, President and CEO of Geospace Technologies said, “In the fourth quarter of fiscal year 2018, we reported total revenue of $20.6 million, representing a decrease of 13% from last year’s fourth quarter. As a consideration for this reduction in revenue, last year’s fourth quarter included the sale of 15,000 stations of three-component GSX recorders, geophone sensors, and batteries from our land seismic rental fleet. By comparison, we sold only 5,000 three-component stations and related equipment in this year’s fourth quarter.

Wheeler continued, “Despite the sequential reduction in quarterly revenue, the fourth quarter was the third consecutive quarter of positive gross profits, which reached its largest level in four years at $5.3 million. The fourth quarter also included a $2.3 million reversal of bad debt charges we had previously recorded in the third quarter associated with the bankruptcy of a large customer. Since the bankruptcy petition was filed in late June 2018, it was unclear how much, if any, of the customer’s unpaid receivables were in jeopardy when we reported our third quarter results. As the bankruptcy progressed through the courts, large amounts of the debt ended up being paid, leading to this quarter’s reversal of the bad debt charges. We ended fiscal year 2018 with revenue of $75.7 million, representing an increase of 3% and 22%, respectively over revenues reported in fiscal years 2017 and 2016. Although we experienced increases in our operating expenses associated with the acquisition of Quantum Technology Sciences, Inc. (“Quantum”) in late July 2018, reductions in other operating expenses were instrumental in narrowing the company’s net loss in fiscal year 2018 to $19.2 million, or $1.45 per share, which is a notable improvement over the previous three fiscal years.”

For earnings history and earnings-related data on Geospace Technologies (GEOS) click here.

You May Also Be Interested In

• Alphabet stock surges 11% to record high on Q1 earnings beat, first-ever dividend
• Aon plc (AON) Misses Q1 EPS by 23c
• Eldorado Gold (EGO) Tops Q1 EPS by 10c