Core Viewpoint - Geospace Technologies Corporation reported a significant decline in revenues and increased net losses for the second quarter of fiscal 2025, with mixed performance across its segments, particularly strong results in Smart Water but severe declines in Energy Solutions [2][6][8]. Earnings Snapshot and Segmental Overview - For Q2 fiscal 2025, Geospace reported revenues of $18 million, a 25.7% decrease from $24.3 million year-over-year [2]. - The company incurred a net loss of $9.8 million, or $0.77 per diluted share, worsening from a net loss of $4.3 million, or $0.32 per share, in the same quarter last year [2]. Segment Performance - The Smart Water segment generated $9.5 million in revenues, up 47.7% from $6.4 million in the prior-year quarter [3]. - Energy Solutions revenue plummeted by 76.5% to $2.6 million, down from $11 million [3]. - The Intelligent Industrial segment reported revenues of $5.9 million, a decline of 12.8% from $6.7 million [3]. Other Key Business Metrics - Gross profit for the quarter was $1.7 million, a decrease of 70.3% from $5.9 million a year ago [4]. - Operating expenses rose 15.8% to $12 million from $10.4 million, leading to an operating loss of $10.3 million compared to a loss of $4.5 million in the same period last year [4]. Financial Position - Cash and short-term investments totaled $19.8 million as of March 31, 2025, down from $22.1 million as of December 31, 2024 [5]. - The company had no debt and access to $14.9 million in additional credit, with working capital at $71.4 million [5]. Management Commentary - CEO Richard Kelley noted record results in Smart Water due to strong sales of Hydroconn connectors and the Aquana smart valve product, while attributing Energy Solutions' underperformance to global trade tensions and lower oil prices [6]. - CFO Robert Curda mentioned a $2.2 million receivable reversal that materially affected results and highlighted strategic investments in the rental fleet and property [7]. Factors Influencing Results - The drop in Energy Solutions revenue was attributed to low utilization of marine ocean bottom nodes and the receivable reversal [8]. - The Intelligent Industrial segment faced challenges from reduced demand and the absence of prior-year government contract revenues, though interest in American-made sensor products provided some offset [8]. Guidance - No specific forward-looking revenue or earnings guidance was provided, but management expressed confidence in stronger performance in the second half of fiscal 2025, supported by a robust backlog and anticipated deliveries [10]. Other Developments - Geospace plans to sell 17 acres of excess land, expected to generate between $7 million and $10 million, enhancing liquidity [11]. - Management reiterated intentions to seek accretive acquisitions for immediate top-line growth [11].