OYO Geospace Reports Fiscal 2003 Third Quarter Results.Energy Editors/Business Editors STAFFORD, Texas--(BUSINESS WIRE)--July 28, 2003 OYO Geospace (Nasdaq:OYOG) today announced a net loss of $759,000, or $(0.14) per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, on revenues of $12.9 million for its third quarter ended June 30, 2003. This compares with net income of $1.2 million, or $0.21 per diluted share, on revenues of $24.7 million in the comparable quarter last year. Last year's third quarter results reflect a $15.8 million sale of a large seabed reservoir characterization A rather long and fancy word for analyzing a system or process and measuring its "characteristics." For example, a Web characterization would yield the number of current sites on the Web, types of sites, annual growth, etc. and monitoring system as well as a $1.2 million asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most of the company's primary supplier of thermal film. For the nine months ended June 30, 2003, OYO Geospace recorded sales of $39.4 million and a net loss of $2.0 million, or ($0.37) per diluted share. For the comparable period last year, the company recorded sales of $51.4 million and net income of $1.7 million, or $0.31 per diluted share. Along with the $15.8 million sale and $1.2 million asset impairment charge discussed above, last year's period included an extraordinary gain of $686,000, or $0.12 per diluted share, related to the company's increased ownership in its Russian Russian associated in some way with Russia. Russian blue a breed of cats with short, dense, silver-tipped blue-colored coat and vivid green eyes. subsidiary, OYO-GEO Impulse impulse, in mechanics: see momentum. Impulse (mechanics) The integral of a force over an interval of time. For a force F , the impulse J over the interval from t0 to t1 International. The net loss for the quarter was impacted by several unusual charges including (i) a $446,000 write-off of defective defective adj. not being capable of fulfilling its function, ranging from a deed of land to a piece of equipment. (See: defect, defective title) film inventories, including film stocks remaining from the former (now bankrupt BANKRUPT. A person who has done, or suffered some act to be done, which is by law declared an act of bankruptcy; in such case he may be declared a bankrupt. 2. It is proper to notice that there is much difference between a bankrupt and an insolvent. ) film supplier and from the company's initial effort to manufacture film, (ii) a $121,000 charge to accelerate the depreciation on certain assets in the company's borehole bore·hole n. A hole that is drilled into the earth, as in exploratory well drilling or in building construction. services group, partially due to technology upgrades, and (iii) severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when payments of $50,000 resulting from the company's reorganization effort. "Our traditional seismic exploration marketplace continues to struggle with little new crew activity or equipment needs," said Gary D. Owens, OYO Geospace's Chairman, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "We continue to see margins in this part of our business slip as equipment manufacturers scramble To encode (encrypt) data in order to make it indecipherable without having a secret key to "unlock" it. The term came from the early days of cryptography which camouflaged analog transmissions with secret frequency patterns. to serve a declining marketplace. In response to these conditions, we are rationalizing and reordering re·or·der v. re·or·dered, re·or·der·ing, re·or·ders v.tr. 1. To order (the same goods) again. 2. To straighten out or put in order again. 3. To rearrange. v. our workforce, planning a multi-facility consolidation and reorganizing the structure of the company. This reorganization is expected to facilitate profitability through a significant reduction of future manufacturing and operating costs operating costs npl → gastos mpl operacionales . "While challenges plague plague, any contagious, malignant, epidemic disease, in particular the bubonic plague and the black plague (or Black Death), both forms of the same infection. the seismic exploration market, we continue to see customer interest in our seismic reservoir characterization and monitoring products. New international customers have placed orders and expressed indications of interest for these products, and two existing customers have purchased additional equipment to expand their fleet. These products continue to be an important growth opportunity for our company," continued Owens. "We are also pleased to see steady growth in our offshore cable and umbilical umbilical /um·bil·i·cal/ (um-bil´i-k'l) pertaining to the umbilicus. um·bil·i·cal adj. 1. Of or relating to the navel. 2. Relating to the umbilical region of the abdomen. products. Customer bookings and quotes continue to increase as our cable design and production capabilities become better known in this large marketplace. We believe sales growth in this division will continue to gain momentum in the near term," said Owens. "Our commercial graphics operation posted its first quarterly profit in over a year. We are now routinely and successfully producing our own private label film that meets our customer's strict quality demands. New products include the recent introduction of a 1200 dpi imager, and we recently initiated development of a new film for higher density applications. This operation appears to have turned the corner and we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that operating results will continue to show improvement," Owens continued. OYO Geospace designs and manufactures instruments and equipment used by the oil and gas industry in the acquisition and processing of seismic data as well as in reservoir characterization and monitoring activities. The company also designs and manufactures equipment and film for the commercial graphics industry worldwide. This press release includes "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact included herein including statements regarding potential future products and markets, our potential future revenues and growth, future financial position, business strategy, future expectations and other plans and objectives for future operations, are forward-looking statements. We believe our forward-looking statements are reasonable. However, they are based on certain assumptions about our industry and our business that may in the future prove to be inaccurate. Important factors that could cause actual results to differ materially from our expectations include the level of seismic exploration and other oil and gas related activities worldwide, which is influenced primarily by prevailing prices for oil and gas, the extent to which our new products are accepted in the market, the availability of competitive products that may be more technologically advanced or otherwise preferable to our products, the resolution of the situation in the Middle East and other factors disclosed under the heading "Risk Factors" and elsewhere in our most recent Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Quarterly Report on Form 10-Q Form 10-Q See 10-Q. , which are on file with the Securities and Exchange Commission. Further, all written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. by such factors.
OYO Geospace Corporation and Subsidiaries
Consolidated Statements of Operations
(in thousands except share and per share data)
(unaudited)
Three Months Ended Nine Months Ended
June 30, June 30,
-------------------------------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Sales $12,855 $24,668 $39,433 $51,401
Cost of sales 10,151 17,904 29,824 35,747
---------- ---------- ---------- ----------
Gross profit 2,704 6,764 9,609 15,654
Operating expenses:
Selling, general and
administrative expenses 2,807 2,756 8,766 8,795
Research and development
expenses 1,299 1,531 4,002 4,048
Impairment of assets - 1,216 - 1,216
---------- ---------- ---------- ----------
Total operating
expenses 4,106 5,503 12,768 14,059
---------- ---------- ---------- ----------
Income (loss) from
operations (1,402) 1,261 (3,159) 1,595
Other income (expense):
Interest expense (121) (162) (359) (476)
Interest income 108 44 223 141
Other, net 101 (14) 148 (290)
---------- ---------- ---------- ----------
Total other income
(expense), net 88 (132) 12 (625)
---------- ---------- ---------- ----------
Income (loss) before
income taxes, minority
interest and extraordinary
gain (1,314) 1,129 (3,147) 970
Income tax benefit (457) (38) (1,044) (160)
---------- ---------- ---------- ----------
Income (loss) before
minority interest and
extraordinary gain (857) 1,167 (2,103) 1,130
Minority interest 98 (11) 64 (93)
---------- ---------- ---------- ----------
Income (loss) before
extraordinary gain (759) 1,156 (2,039) 1,037
Extraordinary gain, net of
tax of $85,000 - - - 686
---------- ---------- ---------- ----------
Net income (loss) $(759) $1,156 $(2,039) $1,723
========== ========== ========== ==========
Basic earnings (loss) per
share
Income (loss) before
extraordinary gain $(0.14) $0.21 $(0.37) $0.19
Extraordinary gain - - - 0.12
========== ========== ========== ==========
Net income (loss) $(0.14) $0.21 $(0.37) $0.31
========== ========== ========== ==========
Diluted earnings (loss)
per share
Income (loss) before
extraordinary gain $(0.14) $0.21 $(0.37) $0.19
Extraordinary gain - - - 0.12
========== ========== ========== ==========
Net income (loss) $(0.14) $0.21 $(0.37) $0.31
========== ========== ========== ==========
Weighted average shares
outstanding - Basic 5,551,652 5,545,113 5,548,872 5,532,641
========== ========== ========== ==========
Weighted average shares
outstanding - Diluted 5,551,652 5,556,853 5,548,872 5,545,323
========== ========== ========== ==========
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