Geospace Technologies Corp. (GEOS: Quote) on Wednesday reported a profit for the first quarter that more than doubled from last year on strong revenue growth. Both revenue and earnings per share for the quarter beat analysts' estimates. The company's shares gained more than 4 percent in extended trade.
Houston, Texas-based Geospace makes equipment used in the processing of seismic data and monitoring of energy reservoirs. It also makes non-seismic products, including industrial products, offshore cables, thermal printing equipment and film.
During the latest quarter, Geospace sold a 24,000-channel GSX system to TGC Industries and a 12,000-channel GSX system to Dawson Geophysical, both existing wireless customers operating in North America. In addition, we sold a 10,000-channel GSX system to SAExploration, a new international customer offering seismic services in both North and South America.
In addition, the company recognized $8.7 million of revenue from the $160 million Statoil ASA (STO) order utilizing the percentage of completion method of revenue recognition.
Gary Owens, President and Chief Executive of Geospace Technologies said, "Wireless product sales led the way with revenues of $46.9 million, driven by the sale of 47,000 channels of our GSX system. As expected, revenues from our reservoir products increased significantly to $11.2 million primarily driven by the recognition of $8.7 million of revenues from the Statoil order."
Geospace's net income for the first quarter was $22.01 million or $1.70 per share, up from $8.69 million or $0.68 per share in the prior-year quarter. On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $1.21 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the quarter grew 80 percent to $77.75 million from $43.28 million in the prior-year period and beat analysts' consensus revenue estimate of $65.44 million.
GEOS closed Wednesday's regular trading session at $93.82, up $0.74 or 0.80 percent on a volume of 118,212 shares. In after-hours, the stock further gained $4.17 or 4.44 percent to $97.99.
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by RTT Staff Writer
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