Geospace secures $11.9 million ocean hub lease By Investing.com

HOUSTON – Geospace Technologies Corporation (NASDAQ:GEOS) today announced a significant lease for its seafloor seismic data acquisition nodes, a notable transaction in the geophysical solutions space. The 240-day lease, which transfers the Company’s OBX-750E wireless shallow-water seismic data acquisition nodes to a global leader in geophysical solutions, has a minimum value of $11.9 million.

The OBX-750E nodes are designed for use in offshore waters and various transition zones and can operate at depths of up to 750 meters. These nodes are critical for collecting seismic data continuously for up to 60 days, meeting the requirements for high-quality seismic surveys.

Walter R. Wheeler, President and CEO of Geospace Technologies, expressed his satisfaction with the continued confidence in their technology and emphasized the competitive advantage the OBX-750E offers in the seafloor node market. Wheeler emphasized that the partnership with Geospace enables customers to conduct reliable and precise surveys with a trusted level of accuracy while maintaining low capital and operating costs.

Geospace plans to deliver the OBX nodes in the fourth quarter of fiscal 2024. This transaction reflects the Company’s continued commitment to innovation and customer service in the seismic survey industry.

Geospace Technologies is a global technology and instrumentation company focused on vibration sensors and rugged products for the energy, industrial, government and commercial markets. The company has over four decades of operational excellence and employs over 600 people worldwide. Geospace is publicly traded on the NASDAQ under the ticker symbol GEOS and is included in the ®, Russell 3000® and Russell Micro-cap® indices.

This news is based on a press release from Geospace Technologies Corporation.

In other recent news, Geospace Technologies reported mixed results for the second quarter of fiscal 2024, with a net loss of $4.3 million but net income of $8.4 million for the first half of the fiscal year. The company’s adjacent markets segment and emerging markets segment, particularly the DARPA contract, contributed significantly to revenue, generating $12.2 million in the second quarter. In addition, Geospace Technologies will be included in the Russell 2000®, Russell 3000® and Russell Micro-Cap® indices effective July 1, 2024, an important recognition that could increase the company’s visibility within the investment community and potentially increase stock liquidity.

The company also announced leadership changes, appointing Rich Kelly as Executive Vice President and COO and initiating a share repurchase program. In addition, Geospace is in discussions with government agencies about potential revenue opportunities in the security and surveillance space, particularly border security projects. These are recent developments that underscore the company’s ongoing activities and future prospects.

InvestingPro Insights

Geospace Technologies Corporation’s (NASDAQ:GEOS) recent contract announcement underscores its strong position in the seismic solutions market. Investors keeping an eye on GEOS can find key metrics on InvestingPro that shed light on the company’s financial health and market performance. With a market capitalization of $131.28 million and a healthy price-to-earnings (P/E) ratio of 12.45, Geospace stands out as a company with a reasonable valuation in its sector. Notably, the company’s P/E ratio has declined slightly to 12.27 over the trailing twelve months from Q3 2024, suggesting stable earnings relative to the share price.

Two InvestingPro Picks highlight the company’s financial prudence: Geospace has a perfect Piotroski Score of 9, indicating high-quality operations and finances. Additionally, the company has more cash than debt on its balance sheet, giving it a solid foundation to ride out market fluctuations and invest in future growth opportunities. These and other picks available on InvestingPro provide valuable insight to potential investors. In fact, the platform lists four other InvestingPro Picks for GEOS, providing comprehensive analysis for those seeking detailed information.

From a revenue perspective, Geospace has recorded a growth of 6.95% over the past twelve months (as of Q3 2024). This is an indication of the company’s ability to expand its business in a competitive market. However, investors should note that the quarterly revenue growth has declined by -20.96%, which could be considered while evaluating the company’s short-term performance. InvestingPro’s fair value estimate for GEOS is $12.89, suggesting potential upside from the previous close of $10.

Geospace Technologies’ commitment to innovation and customer service, supported by strong financial metrics and InvestingPro’s strategic insights, positions the company to continue to make waves in the geophysical solutions space.

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