Geospace Technologies Reports Fourth Quarter and Fiscal Year 2024 Financial Results
Geospace Technologies Corporation (NASDAQ:GEOS) has reported its financial results for the fourth quarter and fiscal year ended September 30, 2024. The company's performance was influenced by strategic decisions and market dynamics, resulting in key financial and operational highlights.
Financial Summary
Key Financial Metrics
| Metric | FY 2024 | FY 2023 | YoY Change | Q4 2024 | Q4 2023 | QoQ Change |
|---|---|---|---|---|---|---|
| Total Revenue | $135.6 million | $124.5 million | +8.9% | $35.4 million | $29.3 million | +20.8% |
| Net Income (Loss) | $(6.6) million | $12.2 million | - | $(12.9) million | $4.4 million | - |
| Adjusted Net Income | $10.7 million | $12.2 million | -12.3% | $4.4 million | $4.4 million | 0% |
Geospace Technologies observed a decline in net income due to significant non-cash charges – a $14.5 million divestiture charge and a $2.8 million impairment of intangible assets. Adjusted figures, however, indicate underlying profitability, with adjusted net income for the fiscal year at $10.7 million.
Revenue by Segment
| Segment | Q4 2024 Revenue | Q4 2023 Revenue | QoQ Change | FY 2024 Revenue | FY 2023 Revenue | YoY Change |
|---|---|---|---|---|---|---|
| Oil and Gas Markets | $17.5 million | $17.8 million | -1.7% | $77.5 million | $74.0 million | +5% |
| Adjacent Markets | $17.6 million | $10.6 million | +65.8% | $55.6 million | $49.0 million | +13.5% |
| Emerging Markets | $0.2 million | $0.8 million | -75% | $2.2 million | $1.2 million | +83.3% |
Revenue growth in the Adjacent Markets segment was driven by strong sales of the Hydroconn® smart water meter cables, contributing to a record-setting year for the product line. The Emerging Markets segment also showed significant annual growth, albeit from a lower revenue base, while the Oil and Gas Markets segment remained relatively stable.
Key Developments and Operational Highlights
- Recorded two significant non-cash charges: a $14.5 million loss from the divestiture of the Russian entity and a $2.8 million impairment charge associated with Quantum Technology Sciences.
- Significant sales and rental announcements totaling over $20 million for OBX seabed nodes.
- Achieved 24 months of consecutive adjusted net income.
- Revenue from Hydroconn® smart water meter cables reached its highest annual performance.
- Successful first international sale of the Aquana product line.
- Inclusion in the Russell 2000®, Russell 3000®, and Russell Micro-Cap® Index.
Management Comments
CEO Richard J. ('Rich') Kelley highlighted strong performance in the Oil and Gas Markets and record-setting achievements in the Adjacent Markets segment. The divestiture from the Russian entity was deemed a prudent action, with limited impact on net assets. Geospace is transitioning to new business segments—Smart Water, Energy Solutions, and Intelligent Industrial—to better align with future growth strategies. Kelley also expressed gratitude to outgoing CEO Rick Wheeler for his nearly 30 years of leadership.
Forward Guidance
The company offered no specific forward guidance in this release, but emphasized its strategic shift towards new business segments scheduled to commence in early February.
Stock Price Movement
Following the earnings announcement, Geospace Technologies saw its stock price increase by 9.17%, reflecting investor confidence in its strategic direction and financial resilience.
This earnings release underscores Geospace Technologies' ability to navigate challenging financial landscapes, while continuing to focus on strategic growth and product innovation.
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