Geospace Technologies (GEOS) 8-K Geospace Technologies Reports Fiscal Year 2015

Exhibit 99.1

NEWS RELEASE

7007 Pinemont Drive

Houston, TX 77040 USA

Contact: W. Richard Wheeler

President and CEO

TEL: 713.986.4444

FAX: 713.986.4445

FOR IMMEDIATE RELEASE

GEOSPACE TECHNOLOGIES REPORTS FISCAL YEAR 2015

THIRD QUARTER RESULTS

Houston, Texas – August 6, 2015 – Geospace Technologies (NASDAQ: GEOS) today announced a net loss of $8.6 million, or $0.66 per diluted share, on revenues of $19.8 million for its fiscal quarter ended June 30, 2015. This compares with a net income of $3.8 million, or $0.29 per diluted share, on revenues of $40.7 million for the corresponding quarter in the prior fiscal year.

For the nine months ended June 30, 2015, the company recorded revenues of $68.9 million and a net loss of $19.2 million, or $1.48 per diluted share. For the comparable period last year, the company recorded revenues of $210.6 million and a net income of $38.7 million, or $2.95 per diluted share.

Walter R. (“Rick”) Wheeler, Geospace Technologies’ President and CEO said, “In our third fiscal quarter, we saw no relief from the continuation of depressed market conditions and declining demand for our seismic equipment products. When compared to last year, fiscal year 2015 third quarter revenues were down by $21.0 million or 52%, and in the nine months ended June 30, 2015 revenues declined by $141.8 million or 67% from the same period a year ago. These revenue declines are attributed to the pronounced decrease in demand for our seismic products seen in today’s market, coupled with having no large contracts currently underway for the manufacture of permanent reservoir monitoring (PRM) systems.”

“Traditional seismic product revenues in the third fiscal quarter were $6.3 million, a decrease of $3.6 million or 36% from last year. For the nine months ended June 30, 2015, revenues for this segment were $23.6 million, a reduction of $19.7 million or 45% over the same prior year period. The reductions in both periods are a direct reflection of the very low industry activity in the current seismic exploration market. In addition, the difference in revenue year-over-year for the nine month period is accentuated by uncommonly large geophone orders in last year’s first quarter.”

“Revenues for wireless products in the third quarter were $6.0 million, a decrease of $6.2 million or 51% from the third quarter of last year. For the nine months ended June 30, 2015, our wireless product revenues totaled $23.8 million, a decrease of $46.5 million or 66% compared to the same period last year. These declines are again a direct result of reduced demand for seismic equipment in today’s market. We

note, however, that in contrast to the declining overall seismic market, utilization of our OBX marine nodal systems continued to increase in the third quarter. We deployed over 3,700 OBX stations from our rental fleet to various customers on different projects throughout the quarter. Rental revenues have sequentially increased in our second and third quarters of this fiscal year, mostly from increasing rentals of the OBX marine nodal system. While we remain encouraged about the future of our OBX product line, project delays and job cancellations reported by our customers demonstrate that risk and volatility still remain even in this specialized ocean bottom seismic market.”

“Reservoir product revenues for the third quarter totaled $1.2 million, a decrease of $12.1 million or 91% compared to last year’s third quarter. For the nine months ended June 30, 2015, reservoir product revenues were $4.5 million, a reduction of $76.2 million or 94% compared to the same period of last year. Although lower demand for our borehole and other reservoir products was a contributor to these decreases, the largest component of these decreases was the absence of any PRM system contracts during the current fiscal year. Last year, the Statoil PRM order contributed revenues of $6.7 million and $61.7 million for the three months and nine months ended June 30, 2014, respectively. Discussions are continuing with potential customers for future PRM systems and we believe that our vast leadership, experience, and past success in PRM technology for over a decade keep us well positioned to secure future PRM contracts.”

“Our non-seismic businesses continued down the path of improved performance. Third quarter revenues were $6.1 million, a sequential increase of 21% from the second quarter, and an increase of $0.9 million or 17% from last year. For the nine months ended June 30, 2015, revenues and operating income for our non-seismic businesses were $16.5 million and $2.3 million, respectively, up 4% and 29% from the same period last year.”

“Industry demand for seismic exploration services is at historic low levels, and there is no simple way to forecast when higher levels of product demand may return. To the extent that the current market conditions in the industry remain unchanged, demand for our seismic equipment products will likely continue at these low levels. Until seismic industry activity returns to more conventional norms, our profits will continue to be hard hit by depreciation of unutilized rental equipment and fixed factory overhead costs left unabsorbed by minimal manufacturing operations. Given that seismic exploration and reservoir management are necessary components for a stable and sustainable energy market, endurance through this down cycle and a strong emergence thereafter are our focused objectives. We believe that our strong balance sheet and continued development of industry technology are the key elements that will allow us to achieve these objectives.”

Conference Call Information

Geospace Technologies will host a conference call to review its fiscal year 2015 third quarter financial results on August 7, 2015, at 10:00 a.m. Eastern Time (9 a.m. Central). Participants can access the call at (866) 952-1906 (US) or (785) 424-1825 (International). Please reference the conference ID: GEOSQ315 prior to the start of the conference call. A replay will be available for approximately 60 days and may be accessed through the Investor tab of our website atwww.geospace.com.

About Geospace Technologies

Geospace Technologies Corporation designs and manufactures instruments and equipment used by the oil and gas industry to acquire seismic data in order to locate, characterize and monitor hydrocarbon producing reservoirs. The company also designs and manufactures non-seismic products, including industrial products, offshore cables, thermal printing equipment and film.

Forward Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact included herein including statements regarding potential future products and markets, our potential future revenues, future financial position, business strategy, future expectations and estimates 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 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, tensions 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 and Quarterly Report on Form 10-Q, which are on file with the Securities and Exchange Commission. Further, all written and verbal forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by such factors. We assume no obligation to revise or update any forward-looking statement, whether written or oral, that we may make from time to time, whether as a result of new information, future developments or otherwise.

GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

(unaudited)

	Three Months Ended						Nine Months Ended
	June 30, 2015			June 30, 2014			June 30, 2015			June 30, 2014
Revenues:
Products	$	15,467		$	33,437		$	58,763		$	190,167
Rental equipment		4,284			7,291			10,096			20,460
Total revenues		19,751			40,728			68,859			210,627
Cost of revenues:
Products		19,233			21,902			59,248			110,540
Rental equipment		3,824			3,450			11,522			9,716
Total cost of revenues		23,057			25,352			70,770			120,256
Gross profit (loss)		(3,306	)		15,376			(1,911	)		90,371
Operating expenses:
Selling, general and administrative		5,469			6,237			17,291			19,493
Research and development		3,564			3,667			10,556			13,139
Bad debt expense		112			14			1,130			658
Total operating expenses		9,145			9,918			28,977			33,290
Income (loss) from operations		(12,451	)		5,458			(30,888	)		57,081
Other income (expense):
Interest expense		(36	)		(143	)		(255	)		(378	)
Interest income		138			12			312			68
Foreign exchange gains (losses), net		(567	)		52			1,621			132
Other, net		(24	)		(50	)		(137	)		(88	)
Total other income (expense), net		(489	)		(129	)		1,541			(266	)
Income (loss) before income taxes		(12,940	)		5,329			(29,347	)		56,815
Income tax expense (benefit)		(4,376	)		1,577			(10,156	)		18,071
Net income (loss)	$	(8,564	)	$	3,752		$	(19,191	)	$	38,744
Basic earnings (loss) per share	$	(0.66	)	$	0.29		$	(1.48	)	$	2.96
Diluted earnings (loss) per share	$	(0.66	)	$	0.29		$	(1.48	)	$	2.95
Weighted average shares outstanding – Basic		13,002,916			12,951,845			12,994,391			12,949,807
Weighted average shares outstanding – Diluted		13,002,916			12,999,807			12,994,391			13,001,103

GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands)

	June 30, 2015			September 30, 2014
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	25,606		$	33,357
Short-term investments		19,610			19,861
Trade accounts receivable, net		13,339			24,602
Current portion of notes receivable		4,504			3,786
Income tax receivable		9,399			2,570
Inventories, net		131,387			145,890
Deferred income tax assets		8,320			7,244
Prepaid expenses and other current assets		3,018			6,698
Total current assets		215,183			244,008
Rental equipment, net		48,789			53,873
Property, plant and equipment, net		50,445			49,205
Goodwill		1,843			1,843
Non-current deferred income tax assets		1,202			75
Non-current notes receivable		1,077			28
Prepaid income taxes		4,515			5,848
Other assets		97			106
Total assets	$	323,151		$	354,986
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable trade	$	3,114		$	4,964
Accrued expenses and other current liabilities		9,559			14,590
Deferred revenue		312			3,752
Deferred income tax liabilities		41			23
Income taxes payable		—			22
Total current liabilities		13,026			23,351
Non-current deferred income tax liabilities		1,102			2,377
Total liabilities		14,128			25,728
Commitments and contingencies
Stockholders’ equity:
Preferred stock		—			—
Common stock		131			131
Additional paid-in capital		73,073			70,704
Retained earnings		241,728			260,919
Accumulated other comprehensive loss		(5,909	)		(2,496	)
Total stockholders’ equity		309,023			329,258
Total liabilities and stockholders’ equity	$	323,151		$	354,986

GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	Nine Months			Nine Months
	Ended			Ended
	June 30, 2015			June 30, 2014
Cash flows from operating activities:
Net income (loss)	$	(19,191	)	$	38,744
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Deferred income tax benefit		(3,458	)		(730	)
Depreciation		14,777			13,125
Accretion of discounts on short-term-investments		174			3
Stock-based compensation		3,434			3,026
Bad debt expense		1,130			658
Inventory obsolescence expense		2,566			2,176
Gross profit from the sale of used rental equipment		(1,658	)		(10,309	)
Gain on disposal of property, plant and equipment		(2	)		(60	)
Excess tax expense from stock-based compensation		(1,065	)		—
Effects of changes in operating assets and liabilities:
Trade accounts and notes receivable		7,314			25,081
Income tax receivable		(6,829	)		—
Inventories		5,274			(6,738	)
Costs and estimated earnings in excess of billings		—			12,400
Prepaid expenses and other current assets		2,832			78
Prepaid income taxes		1,333			(109	)
Accounts payable		(1,827	)		(12,036	)
Accrued expenses and other		(8,127	)		(255	)
Deferred revenue		(3,412	)		2,987
Income taxes payable		(19	)		3,033
Net cash provided by (used in) operating activities		(6,754	)		71,074
Cash flows from investing activities:
Purchase of property, plant and equipment		(2,046	)		(5,650	)
Investment in rental equipment		(3,784	)		(25,726	)
Proceeds from sale of used rental equipment		4,547			16,019
Proceeds from the sale of property, plant and equipment		—			27
Purchases of short-term investments		(4,281	)		(5,867	)
Proceeds from the sale of short-term investments		4,415			—
Net cash used in investing activities		(1,149	)		(21,197	)
Cash flows from financing activities:
Principal payments on debt arrangements		—			(931	)
Excess tax benefit from stock-based compensation		—			674
Proceeds from exercise of stock options		—			265
Net cash provided by financing activities		—			8
Effect of exchange rate changes on cash		152			(3	)
Increase (decrease) in cash and cash equivalents		(7,751	)		49,882
Cash and cash equivalents, beginning of period		33,357			2,726
Cash and cash equivalents, end of period	$	25,606		$	52,608

GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES

SUMMARY OF SEGMENT REVENUES AND OPERATING INCOME (LOSS)

(in thousands)

(unaudited)

	Three Months Ended				Nine Months Ended
	June 30, 2015		June 30, 2014		June 30, 2015		June 30, 2014
Seismic segment revenues:
Traditional exploration products	$	6,323	$	9,928	$	23,613	$	43,272
Wireless exploration products		6,017		12,184		23,796		70,333
Reservoir products		1,198		13,265		4,503		80,702
		13,538		35,377		51,912		194,307
Non-Seismic segment revenues		6,098		5,209		16,548		15,916
Corporate revenues		115		142		399		404
Total revenues	$	19,751	$	40,728	$	68,859	$	210,627

	Three Months Ended						Nine Months Ended
	June 30, 2015			June 30, 2014			June 30, 2015			June 30, 2014
Operating income (loss):
Seismic segment	$	(10,253	)	$	8,149		$	(23,382	)	$	66,165
Non-Seismic segment		971			777			2,331			1,814
Corporate		(3,169	)		(3,468	)		(9,837	)		(10,898	)
Total operating income (loss)	$	(12,451	)	$	5,458		$	(30,888	)	$	57,081