Geospace secures $11.9 million seabed node rental deal

HOUSTON - Geospace Technologies Corporation (NASDAQ:GEOS) today announced a significant rental contract for its ocean bottom seismic data acquisition nodes, marking a notable transaction in the geophysical solutions sector. The 240-day rental agreement, which will provide the company's OBX-750E shallow water seabed wireless seismic data acquisition nodes to a leading global geophysical solutions provider, carries a minimum value of $11.9 million.

The OBX-750E nodes are designed for deployment in offshore waters and various transition zones, capable of operating at depths up to 750 meters. These nodes are instrumental in collecting seismic data for up to 60 days without interruption, catering to the needs of high-quality seismic surveys.

Walter R. Wheeler, President and CEO of Geospace Technologies, expressed satisfaction with the continued trust in their technology, emphasizing the competitive edge the OBX-750E provides in the ocean bottom node market. Wheeler highlighted that the partnership with Geospace allows customers to conduct reliable and precise surveys with a trusted degree of accuracy, while maintaining low investment and operational costs.

The delivery of the OBX nodes is scheduled for Geospace's fourth quarter of the fiscal year 2024. This transaction reflects the company's ongoing commitment to innovation and customer service in the seismic survey industry.

Geospace Technologies is a global technology and instrumentation manufacturer with a focus on vibration sensing and ruggedized products for energy, industrial, government, and commercial sectors. The company boasts over four decades of operational excellence and employs more than 600 individuals worldwide. Geospace is publicly traded on the U.S. NASDAQ stock exchange under the ticker symbol GEOS and is included in the Russell 2000®, Russell 3000®, and Russell Micro-cap® indexes.

This news is based on a press release statement from Geospace Technologies Corporation.

In other recent news, Geospace Technologies reported mixed results for the second quarter of the fiscal year 2024, with a net loss of $4.3 million but a net income of $8.4 million for the first half of the fiscal year. The company's adjacent markets segment and emerging markets segment, notably the DARPA contract, made significant contributions to the revenue, generating $12.2 million in Q2. In addition, Geospace Technologies will be included in the Russell 2000®, Russell 3000®, and Russell Micro-Cap® Indexes starting July 1, 2024, a major recognition that may enhance the company's visibility within the investment community and potentially increase stock liquidity.

The company also announced leadership changes, appointing Rich Kelly as Executive Vice President and COO, and initiated a stock repurchase program. Moreover, Geospace is in talks with government agencies about potential revenue opportunities related to security and surveillance, particularly border patrol projects. These are recent developments that underline the company's ongoing activities and future prospects.

InvestingPro Insights

Geospace Technologies Corporation's (NASDAQ:GEOS) recent contract announcement underscores its robust position in the seismic solutions market. Investors eyeing GEOS will find key metrics from InvestingPro that shed light on the company's financial health and market performance. With a market capitalization of $131.28 million and a healthy Price/Earnings (P/E) ratio of 12.45, Geospace stands out as a company with a reasonable valuation in its sector. Notably, the company's P/E ratio has seen a slight decrease to 12.27 over the last twelve months as of Q3 2024, suggesting stable earnings relative to its share price.

Two "InvestingPro Tips" highlight the company's financial prudence: Geospace boasts a perfect Piotroski Score of 9, indicating high-quality business operations and financials. Additionally, the company holds more cash than debt on its balance sheet, providing it with a solid foundation to navigate market fluctuations and invest in future growth opportunities. These tips, among others available on InvestingPro, offer valuable insights for potential investors. In fact, there are four additional "InvestingPro Tips" for GEOS listed on the platform, providing a comprehensive analysis for those seeking in-depth information.

From a revenue standpoint, Geospace has experienced growth over the last twelve months as of Q3 2024, with an increase of 6.95%. This is indicative of the company's ability to expand its business in a competitive market. However, investors should note the quarterly revenue growth has witnessed a decline of -20.96%, which could be a point of consideration when evaluating the company's short-term performance. The InvestingPro Fair Value estimate for GEOS stands at $12.89, suggesting potential upside from the previous close price of $10.

With Geospace Technologies' commitment to innovation and customer service, backed by strong financial metrics and the strategic insights provided by InvestingPro, the company is positioned to continue making waves in the geophysical solutions sector.

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