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Geospace Technologies Corp (NASDAQ:GEOS), a $97 million market cap company currently trading near its 52-week low, has entered into new employment agreements with key executives, as per a recent SEC filing. The Houston-based company, specializing in measuring and controlling devices, confirmed the new terms for CEO Richard J. Kelley and CFO Robert L. Curda. According to InvestingPro data, the company faces profitability challenges with negative earnings in the last twelve months.
Effective January 1, 2025, Kelley’s two-year agreement includes a $385,000 annual base salary, performance-based bonuses, and potential stock-based compensation. Curda’s similar term agreement sets his annual salary at $315,000, with comparable bonus and stock award provisions. These contracts replace previous agreements and aim to retain top leadership at Geospace Technologies, which has seen revenue decline by 14% over the past year.
In the event of termination, the agreements detail severance conditions, including a lump sum payment equivalent to a year’s base salary, provided certain conditions are met. Despite recent challenges, InvestingPro analysis shows the company maintains a strong balance sheet with more cash than debt and a healthy current ratio of 5.63. For deeper insights into Geospace Technologies’ financial health and detailed analysis, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Geospace Technologies Corporation reported its financial performance for the first quarter of fiscal year 2025, showing a significant decline in revenue. The company posted earnings per share of $0.65, with total revenue reaching $37.2 million, down from $50 million in the same quarter last year. This decrease was primarily attributed to a 39% drop in the Energy Solutions segment, although the Smart Water segment saw a 72% increase in revenue, indicating potential growth opportunities. Operating expenses rose by 31%, driven by higher personnel costs and research and development expenditures.
Additionally, Geospace Technologies completed a $7 million stock repurchase program, buying back 716,000 shares. In governance matters, the company confirmed the election of Edgar R. Giesinger, Jr. and Richard J. Kelley as directors for three-year terms. Stockholders also ratified the appointment of RSM US LLP as the company’s independent public accountants for the fiscal year ending September 30, 2025, with overwhelming support. Furthermore, an advisory vote on executive compensation passed, reflecting shareholder approval of the company’s current financial oversight practices.
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