Geospace Technologies (US:GEOS)2025-05-09 15:57Revenue Performance - Smart Water segment product revenue increased to $9,472,000 for the three months ended March 31, 2025, compared to $6,411,000 for the same period in 2024, representing a growth of 47.5%[101] - Energy Solutions segment total revenue decreased to $2,588,000 for the three months ended March 31, 2025, down from $11,035,000 in the same period in 2024, a decline of 76.6%[101] - Intelligent Industrial segment product revenue was $5,837,000 for the three months ended March 31, 2025, compared to $6,706,000 for the same period in 2024, a decrease of 12.9%[101] - Consolidated total revenue for the three months ended March 31, 2025, was $18,023,000, down from $24,270,000 in the same period in 2024, a decline of 25.7%[101] - Revenue from the Smart Water segment for the three months ended March 31, 2025, increased $3.1 million, or 47.7%, driven by increased demand for Hydroconn® cable and connector products[109] - Revenue from the Energy Solutions segment for the three months ended March 31, 2025, decreased $8.4 million, or 76.5%, compared to the prior year[111] Operating Performance - Consolidated gross profit for the three months ended March 31, 2025, was $1.7 million, a decrease of $4.1 million, or 70.3%, driven by lower wireless product revenue and rental revenue[106] - Consolidated operating expenses for the three months ended March 31, 2025, were $12.0 million, an increase of $1.6 million, or 15.8%, primarily due to higher personnel costs and increased research and development expenditures[107] - Operating loss from the Energy Solutions segment for the three months ended March 31, 2025, was $(6.7) million, compared to $(1.9) million for the prior year[112] Cash Flow and Financial Position - Cash and cash equivalents at March 31, 2025, were $19.8 million, with $13.4 million used in operating activities during the six months ended March 31, 2025[116] - The company generated $15.5 million in cash from investing activities for the six months ended March 31, 2025, primarily from the sale of short-term investments[117] - The company had no outstanding borrowings under its credit agreement as of March 31, 2025, with a borrowing base availability of $14.9 million[120] - The company expects fiscal year 2025 cash investments in property, plant, and equipment to be approximately $7 million[117] Strategic Insights - The company anticipates continued growth in the Smart Water segment driven by the Aquana smart water valve and IoT technology products[102] - The Energy Solutions segment is expected to provide a significant portion of revenue for years to come, but in diminishing proportion to other segments[103] - The company maintains a strong balance sheet with no debt, enabling it to seek business acquisitions and invest in capital assets and product R&D[104] - The company has not received any orders for a large-scale seabed PRM system since 2012, indicating potential challenges in this area[91] - The company’s diversification strategy has led to non-energy related products contributing nearly half of total revenue[82] Reporting Classification - The company is classified as a smaller reporting company and is not required to provide market risk disclosures as per Rule 12b-2 of the Exchange Act[127]