Geospace Technologies (GEOS) 8-K Geospace Technologies Reports Fiscal Year 2018 Third

Exhibit 99.1

NEWS RELEASE

7007 Pinemont Drive

Houston, TX 77040 USA

Contact: Rick Wheeler

President and CEO

TEL: 713.986.4444

FAX: 713.986.4445

FOR IMMEDIATE RELEASE

GEOSPACE TECHNOLOGIES REPORTS FISCAL YEAR 2018 THIRD

QUARTER AND NINE MONTH RESULTS

Houston, Texas — August 2, 2018 — Geospace Technologies (NASDAQ: GEOS) today announced that it narrowed its net loss to $4.8 million, or $0.36 per diluted share, on revenue of $21.3 million for its third quarter ended June 30, 2018 compared to a net loss of $14.4 million, or $1.09 per diluted share, on revenue of $14.2 million for the third quarter of the prior year.

For the nine months ended June 30, 2018, the company recorded revenue of $55.2 million compared to revenue of $50.0 million during the prior year period. The company reported a net loss of $19.0 million, or $1.43 per diluted share compared to a net loss of $37.6 million, or $2.86 per diluted share for the year ago period.

Walter R. (“Rick”) Wheeler, President and CEO of Geospace Technologies said, “We are very pleased to see another sequential increase in our quarterly revenue, with our third quarter revenue setting the high-mark so far for fiscal year 2018. For the quarter ended June 30, 2018 we generated a 50% increase in revenue from last year’s third quarter. For the nine-month period ended June 30, 2018, our revenue increased 10% over last year’s comparable period. The consecutive revenue growth has also resulted in our second consecutive quarter of generating a positive gross profit. This brings ouryear-to-date gross profit for the nine months ended June 30, 2018 to $5.7 million. In conjunction with our overall cost reduction efforts, lower inventory obsolescence charges helped to drive our positive improvements in gross profits.”

Wheeler continued, “Unfortunately, a significant portion of our third quarter andyear-to-date financial results were negatively impacted by a $2.7 million bad debt charge reported in the third quarter. Virtually all of this charge is in association with the recently filed bankruptcy of one of our customers. Excluding the impact of bad debt charges, our operating expenses in the third quarter and nine months of this fiscal year declined by 18% and 12%, respectively.”

Traditional Seismic Products

The company’s traditional seismic products generated revenue of $2.6 million in the third quarter, and for the nine months ended June 30, 2018 generated revenue of $9.6 million. For the quarter, this represents a reduction of 28% from last year, and a much narrower decline of less than 3% for this year’s nine month period when compared to last year. The decline in both periods can be largely attributed to lower demand for the company’s specialty sensor products as well as traditional products used in the marine seismic industry.

Wireless Seismic Products

Revenue from wireless seismic products totaled $7.9 million in the third quarter, almost tripling the amount reported last year. This revenue increase was almost entirely driven by an increase in OBX rentals. Despite this quarterly increase, wireless product revenue for the first nine months of the current fiscal year declined by almost 6% when compared with last year’s equivalent nine-month period. In examining the comparison to the prior year periods, these varied current year results reflect increasing rental income from OBX rental contracts, but are offset somewhat by lower wireless product sales. The OBX nodal marine system continues to gain expanded use in the ocean bottom seismic market, and based on existing rental contracts and quoting activity, the company expects this to continue.

Reservoir Seismic Products

For the quarter ended June 30, 2018, revenue from the company’s reservoir seismic products increased 83% in comparison to last year’s third quarter. For the nine month period, reservoir product revenue more than doubled compared to last year. In both periods, higher service revenues along with stronger sales of borehole systems, including downhole tools from the company’s rental fleet, contributed to the increases. The company’s customers use these products to perform ‘frac monitoring’ and borehole reservoir characterization services for oil and gas companies. While an increase in these activities has driven higher borehole product sales in recent periods, the company does not expect revenue contributions to reach the levels seen in years past unless the company receives a contract to manufacture and deliver a permanent reservoir monitoring (PRM) system. Based on management’s ongoing industry discussions, an opportunity to be awarded such a contract is unlikely to occur in the next six months to a year.

Non-Seismic Products

The company’snon-seismic products generated revenue totaling $8.8 million in the third quarter. This is the highest level of revenue from this segment in the company’s history, and represents an increase of over 30% compared to last year’s third quarter. For the first nine months of the fiscal year, revenue from these products increased by almost 22% compared to the same period a year ago, reaching $23.1 million. Increasing demand for the company’s water meter products was particularly strong during the three and nine-month periods with modest revenue gains also coming from the company’s imaging products.

Wheeler continued, “We are encouraged by the consecutive quarterly growth in our revenues. These recent contributions have resulted from increased commerce in both our seismic andnon-seismic business segments. Despite these recent quarterly improvements, the modestyear-to-date revenue decline we realized in our traditional and wireless seismic product lines is an indicator that there is still a lot of ground yet to be gained in the oil and gas seismic industry recovery. Revenue from these two product lines in particular is expected to remain low until depletion of existing reserves prompts additional focus on seismic exploration activities. Despite this concern, we continue to be encouraged by our overall seismic revenue growth that such an industry recovery is underway.”

“As we very recently announced, our acquisition of Quantum Technology Sciences represents a strategic effort to further expand Geospace’s core seismic engineering and manufacturing competencies into the border, critical infrastructure and perimeter security markets. We believe Quantum’s highly unique seismic analytic software technology and existing products are rapidly gaining recognition in these important industries. In future course, our planned efforts include the blending of our technologies to incorporate Quantum’s innovative analytic solutions with our ruggedized large channel count PRM data acquisition system designs. In this accomplishment, we expect to provide new products of incomparable functionality for markets focused on homeland security and the protection of borders and critical infrastructure.”

Wheeler concluded, “Our balance sheet as of June 30, 2018 remained debt free and included $39.6 million in cash and short-term securities as well as $21.9 million of borrowings available under our credit facility. After the $4.4 million cash down payment related to the acquisition of Quantum, we believe our remaining liquidity and debt free status continue to reflect an extremely strong financial position. We also believe that this financial strength in conjunction with a calculated exploitation of broader markets for our seismic technologies provides significant opportunities for the company’s growth and diversification in the coming years.”

Conference Call Information

Geospace Technologies will host a conference call to review its fiscal year 2018 third quarter and nine month financial results on August 3, 2018, at 10:00 a.m. Eastern Time (9 a.m. Central). Participants can access the call at (866)831-8713 (US) or (203)518-9713 (International). Please reference the conference ID: GEOSQ318 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. Through its acquisition of Quantum Technology Sciences, the company designs and manufactures instruments, equipment and analytical software used in the border and perimeter security industry for the protection of borders and critical infrastructure. The company also designs and manufacturesnon-seismic products, including industrial products, offshore cables and imaging equipment.

Forward Looking Statements

This press release contains “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. These forward-looking statements can be identified by terminology such as “may”, “will”, “should”, “intend”, “expect”, “plan”, “budget”, “forecast”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “continue”, “evaluating” or similar words. Statements that contain these words should be

read carefully because they discuss our future expectations, contain projections of our future results of operations or of our financial position or state other forward-looking information. Examples of forward-looking statements include, among others, statements that we make regarding our expected operating results, the results and success of our transactions with Quantum, the adoption and sale of our products in various geographic regions, anticipated levels of capital expenditures and the sources of funding therefore, and our strategy for growth, product development, market position, financial results and the provision of accounting reserves. These forward-looking statements reflect our current judgment about future events and trends based on the information currently available to us. However, there will likely be events in the future that we are not able to predict or control. The factors listed under the caption “Risk Factors” and elsewhere in our most recent Annual Report on Form10-K and Quarterly Report on Form10-Q, which are on file with the Securities and Exchange Commission, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. Such examples include, but are not limited to, the failure of the Quantum transaction to yield positive operating results, decreases in commodity price levels, which could reduce demand for our products, the failure of our products to achieve market acceptance, despite substantial investment by us, our sensitivity to short term backlog, delayed or cancelled customer orders, product obsolescence resulting from poor industry conditions or new technologies, bad debt write-offs associated with customer accounts, lack of further orders for our OBX systems, failure of ournon-seismic products to be adopted by the border and security perimeter market, infringement or failure to protect intellectual property, and any negative impact from our restatement of our financial statements regarding current assets. The occurrence of the events described in these risk factors and elsewhere in our most recent Annual Report on Form10-K and Quarterly Report on Form10-Q could have a material adverse effect on our business, results of operations and financial position, and actual events and results of operations may vary materially from our current expectations. 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, 2018			June 30, 2017			June 30, 2018			June 30, 2017
Revenue:
Products	$	13,417		$	12,888		$	40,886		$	37,960
Rental equipment		7,853			1,307			14,275			12,078
Total revenue		21,270			14,195			55,161			50,038
Cost of revenue:
Products		13,011			15,489			40,459			49,124
Rental equipment		3,582			3,818			8,994			11,911
Total cost of revenue		16,593			19,307			49,453			61,035
Gross profit (loss)		4,677			(5,112	)		5,708			(10,997	)
Operating expenses:
Selling, general and administrative		4,551			4,972			14,465			15,092
Research and development		2,537			3,674			8,125			10,458
Bad debt expense (recovery)		2,725			16			3,081			(402	)
Total operating expenses		9,813			8,662			25,671			25,148
Loss from operations		(5,136	)		(13,774	)		(19,963	)		(36,145	)
Other income (expense):
Interest expense		(94	)		(8	)		(285	)		(24	)
Interest income		257			185			799			453
Foreign exchange gains (losses), net		264			(120	)		(85	)		(401	)
Other, net		(34	)		(11	)		(88	)		(44	)
Total other expense, net		393			46			341			(16	)
Loss before income taxes		(4,743	)		(13,728	)		(19,622	)		(36,161	)
Income tax expense (benefit)		53			648			(617	)		1,423
Net loss	$	(4,796	)	$	(14,376	)	$	(19,005	)	$	(37,584	)
Loss per common share:
Basic	$	(0.36	)	$	(1.09	)	$	(1.43	)	$	(2.86	)
Diluted	$	(0.36	)	$	(1.09	)	$	(1.43	)	$	(2.86	)
Weighted average common shares outstanding:
Basic		13,266,316			13,147,016			13,244,242			13,129,196
Diluted		13,266,316			13,147,016			13,244,242			13,129,196

GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands except share amounts)

(unaudited)

	June 30, 2018			September 30, 2017
ASSETS
Current assets:
Cash and cash equivalents	$	12,550		$	15,092
Short-term investments		27,014			36,137
Trade accounts receivable, net		11,150			9,435
Financing receivables		5,031			3,055
Income tax receivable		9			273
Inventories		18,959			20,752
Prepaid expenses and other current assets		3,014			1,623
Total current assets		77,727			86,367
Rental equipment, net		34,345			16,462
Property, plant and equipment, net		34,173			37,399
Non-current inventories		35,355			55,935
Deferred income tax assets, net		287			259
Non-current financing receivables, net		5,513			8,195
Prepaid income taxes		57			450
Other assets		213			629
Total assets	$	187,670		$	205,696
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable trade	$	4,033		$	2,599
Accrued expenses and other current liabilities		5,359			6,338
Deferred revenue		982			1,568
Income tax payable		8			—
Total current liabilities		10,382			10,505
Deferred income tax liabilities		45			37
Total liabilities		10,427			10,542
Commitments and contingencies:
Stockholders’ equity:
Preferred stock, 1,000,000 shares authorized, no shares issued and outstanding		—			—
Common stock, $.01 par value, 20,000,000 shares authorized, 13,576,041 and 13,438,316 shares issued and outstanding		136			134
Additionalpaid-in capital		85,593			83,733
Retained earnings		106,161			125,517
Accumulated other comprehensive loss		(14,647	)		(14,230	)
Total stockholders’ equity		177,243			195,154
Total liabilities and stockholders’ equity	$	187,670		$	205,696

GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	Nine Months Ended
	June 30, 2018			June 30, 2017
Cash flows from operating activities:
Net loss	$	(19,005	)	$	(37,584	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Deferred income tax benefit		(37	)		(25	)
Rental equipment depreciation		7,475			9,858
Property, plant and equipment depreciation		3,105			3,930
Impairment of long-lived assets		488			—
Accretion of discounts on short-term investments		31			45
Stock-based compensation expense		1,833			4,289
Bad debt expense (recovery)		3,081			(402	)
Inventory obsolescence expense		4,001			12,111
Gross profit from sale of used rental equipment		(4,966	)		(2,650	)
Gain on disposal of property, plant and equipment		(25	)		—
Realized loss on short-term investments		1			2
Effects of changes in operating assets and liabilities:
Trade accounts receivable		(3,932	)		8,871
Income tax receivable		262			12,847
Inventories		(5,702	)		1,208
Prepaid expenses and other current assets		(1,186	)		459
Prepaid income taxes		41			1,156
Accounts payable trade		1,437			(77	)
Accrued expenses and other		505			(2,033	)
Deferred revenue		512			119
Income tax payable		8			(117	)
Net cash provided by (used in) operating activities		(12,073	)		12,007
Cash flows from investing activities:
Purchase of property, plant and equipment		(1,005	)		(588	)
Proceeds from sale of property and equipment		200			—
Investment in rental equipment		(2,511	)		(299	)
Proceeds from the sale of used rental equipment		4,333			4,424
Purchases of short-term investments		(11,162	)		(16,042	)
Proceeds from the sale of short-term investments		20,163			6,991
Payments for damages related to insurance claim		(1,970	)		—
Proceeds from insurance claim		900			—
Increase in insurance claim receivable		849			—
Net cash provided by (used in) investing activities		9,797			(5,514	)
Cash flows from financing activities:
Proceeds from the exercise of stock options		19			50
Net cash provided by financing activities		19			50
Effect of exchange rate changes on cash		(285	)		272
Increase (decrease) in cash and cash equivalents		(2,542	)		6,815
Cash and cash equivalents, beginning of fiscal year		15,092			10,262
Cash and cash equivalents, end of fiscal period	$	12,550		$	17,077

GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES

SUMMARY OF SEGMENT REVENUE AND OPERATING LOSS

(in thousands)

(unaudited)

	Three Months Ended						Nine Months Ended
	June 30, 2018			June 30, 2017			June 30, 2018			June 30, 2017
Seismic segment revenue:
Traditional exploration products	$	2,582		$	3,604		$	9,559		$	9,811
Wireless exploration products		7,890			2,681			17,560			18,605
Reservoir products		1,873			1,023			4,552			2,242
	12,345			7,308			31,671			30,658
Non-Seismic segment revenue:
Industrial product revenue		5,674			3,873			14,061			10,253
Imaging product revenue		3,104			2,868			8,997			8,692
	8,778			6,741			23,058			18,945
Corporate		147			146			432			435
Total revenue	$	21,270		$	14,195		$	55,161		$	50,038
	Three Months Ended						Nine Months Ended
	June 30, 2018			June 30, 2017			June 30, 2018			June 30, 2017
Operating income (loss):
Seismic segment	$	(4,122	)	$	(11,972	)	$	(15,552	)	$	(30,581	)
Non-seismic segment		1,428			1,004			3,841			3,108
Corporate		(2,442	)		(2,806	)		(8,252	)		(8,672	)
Total operating loss	$	(5,136	)	$	(13,774	)	$	(19,963	)	$	(36,145	)