Geospace Technologies (US:GEOS)2025-08-08 15:00Financial Data and Key Metrics Changes - For the three months ended June 30, 2025, the company reported revenue of $24.8 million, a slight decrease from $24.9 million in the same period last year. The net income for the quarter was $760,000, compared to a net loss of $2.1 million in the prior year [6][14] - For the first nine months of the fiscal year, revenue was $80.1 million, down from $100.2 million last year, with a net loss of $662,000 compared to a net income of $6.3 million in the previous year [6][14] Business Line Data and Key Metrics Changes - The Smart Water segment generated revenue of $10.5 million for the three months ended June 30, 2025, an increase of 6% from $9.9 million in the prior year. For the nine-month period, revenue was $27.3 million, up 33% from $20.6 million [15] - The Energy Solutions segment reported revenue of $8.1 million for the three-month period, a decrease of 14% from $9.4 million last year. For the nine-month period, revenue was $35.35 million, down 42% from the previous year [16] - The Intelligent Industrial segment's revenue totaled $6.1 million for the three-month period, a decrease of 5% from $6.5 million last year. For the nine-month period, revenue was $17.6 million, down 8% from $19.1 million [17][18] Market Data and Key Metrics Changes - The company continues to face challenges in the ocean bottom node markets, but there are opportunities for revenue generation in the Smart Water and Energy Solutions segments, which have improved operational efficiencies [10][12] Company Strategy and Development Direction - The company is focused on growth through acquisitions and has recently acquired HeartBee Detector, a security technology, to enhance its portfolio and create recurring revenue streams [11][12] - The company aims to leverage its products and services portfolio to exploit high-margin markets and has engaged former US Border Patrol chief to promote its security solutions [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning for future performance, citing a strong backlog and ongoing discussions with partners for additional contracts [12][13] - The company is addressing workforce costs and development expenses to achieve sustained profitability [12] Other Important Information - The company announced a significant contract with Petrobras for the supply and installation of a permanent reservoir monitoring system, expected to generate over $80 million in revenue, with installation anticipated to be completed by fiscal year 2027 [8][9] Q&A Session Summary Question: Can you discuss the PRM announcement and its implications? - Management indicated that the contract with Petrobras had been in negotiation for several months and was a significant achievement against competitors [22][23] Question: What is the expected revenue recognition timeline for the Petrobras contract? - Revenue recognition is hoped to begin in the first fiscal quarter, but specific milestones are still being defined [52] Question: Why has the Border Patrol not adopted the heartbeat detector technology? - The current technologies in use are capital-intensive and less efficient, presenting an opportunity for the new technology to improve operational efficiency [53][55] Question: What funding is allocated for tunnel detection in the recent bill? - There is a $30 million allocation, but it is not guaranteed that the full amount will be dedicated to tunnel detection [57] Question: What is the status of the SBIR-3 certification and its implications for government contracts? - The SBIR-3 certification is in place, but the specifics of government procurement processes remain unclear [59][60]