Geospace Technologies (GEOS) - 2023 Q4 - Annual Report

Financial Performance - Consolidated revenue for fiscal year 2023 was $124.5 million, an increase of $35.3 million, or 39.5%, from fiscal year 2022[146] - Consolidated gross profit for fiscal year 2023 was $51.7 million, an increase of $33.6 million, or 186.5%, from fiscal year 2022[147] - Cash generated from operating activities for fiscal year 2023 was $15.6 million, with net income of $12.2 million[158] - Cash and cash equivalents increased by $17.0 million during fiscal year 2023, totaling approximately $33.7 million at year-end[165] Revenue Growth by Market - Revenue from Oil and Gas Markets products for fiscal year 2023 increased $24.9 million, or 50.6%, from fiscal year 2022[151] - Wireless exploration product revenue for fiscal year 2023 increased $20.2 million, or 49.6%, primarily due to increased rental revenue from the OBX rental fleet[151] - Revenue from Adjacent Markets products for fiscal year 2023 increased $9.9 million, or 25.2%, from the prior fiscal year[153] - Revenue from Emerging Markets products for fiscal year 2023 was $1.2 million, compared to $0.7 million from the prior fiscal year[154] - Industrial product revenue increased by $11.2 million, or 43.8%, primarily due to higher demand for water meter products[157] Operating Income and Loss - Operating income associated with Oil and Gas Markets products for fiscal year 2023 was $15.8 million, compared to an operating loss of $(7.5) million from the prior fiscal year[152] - Operating income from Adjacent Markets products for fiscal year 2023 was $11.5 million, an increase of $5.5 million, or 90.8% from the prior fiscal year[153] - Operating loss from Emerging Markets products for fiscal year 2023 was $4.0 million, compared to $9.1 million from the prior fiscal year[155] Future Expectations - The company expects fiscal year 2024 cash investments in the rental fleet to be approximately $9 million and in property, plant, and equipment to be approximately $4 million[159] - Revenue from oil and gas reservoir products is expected to increase slightly in fiscal year 2024 compared to fiscal year 2023[185] - Revenue from Adjacent Markets products is anticipated to increase in fiscal year 2024 due to the acquisition of Aquana and integration of its products[186] - The company expects fiscal year 2024 revenue from Emerging Markets products to increase due to optimism in obtaining new security-related contracts[187] Cost Management and Financial Position - The company implemented a plan to discontinue certain low margin products, expecting annual savings of more than $2 million[141] - The company has no outstanding borrowings under its credit agreement, with a borrowing base availability of $13.1 million[164] - The company is subject to contingent compensation costs related to the acquisition of Aquana, with no maximum limit on potential payments[168] Product Revenue Changes - Imaging product revenue decreased by $1.4 million, or 10.0%, due to lower demand for imaging equipment[157]