Geospace Technologies (GEOS) 10-Q 6 Feb 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Dec. 31, 2013	Jan. 31, 2014
Document Information [Line Items]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	31-Dec-13	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'
Trading Symbol	'GEOS	'
Entity Registrant Name	'GEOSPACE TECHNOLOGIES CORP	'
Entity Central Index Key	'0001001115	'
Current Fiscal Year End Date	'--09-30	'
Entity Filer Category	'Large Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	13,134,416

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2013	Sep. 30, 2013
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$44,393	$2,726
Trade accounts receivable, net	52,721	49,756
Current portion of notes receivable, net	4,007	5,290
Inventories, net	132,115	149,548
Costs and estimated earnings in excess of billings	3,134	12,400
Deferred income tax assets	6,929	7,056
Prepaid expenses and other current assets	10,481	6,327
Total current assets	253,780	233,103
Rental equipment, net	52,547	36,908
Property, plant and equipment, net	48,500	48,480
Goodwill	1,843	1,843
Non-current deferred income tax assets	395	594
Prepaid income taxes	8,232	6,201
Other assets	105	96
Total assets	365,402	327,225
Current liabilities:	'	'
Accounts payable trade	15,646	16,737
Accrued expenses and other current liabilities	14,357	16,638
Deferred revenue	5,590	1,093
Deferred income tax liabilities	12	12
Income tax payable	12,480	159
Total current liabilities	48,085	34,639
Long-term debt	'	931
Non-current deferred income tax liabilities	2,496	2,597
Total liabilities	50,581	38,167
Commitments and contingencies	'	'
Stockholders’ equity:	'	'
Preferred stock	'	'
Common stock	131	129
Additional paid-in capital	67,667	65,985
Retained earnings	248,184	224,008
Accumulated other comprehensive loss	-1,161	-1,064
Total stockholders’ equity	314,821	289,058
Total liabilities and stockholders’ equity	$365,402	$327,225

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Sales	$101,348	$77,751
Cost of sales	54,257	37,206
Gross profit	47,091	40,545
Operating expenses:	'	'
Selling, general and administrative	6,702	5,363
Research and development	4,375	3,365
Bad debt expense	347	269
Total operating expenses	11,424	8,997
Income from operations	35,667	31,548
Other income (expense):	'	'
Interest expense	-132	-85
Interest income	31	229
Foreign exchange gains (losses)	-21	46
Other, net	-26	-16
Total other income (expense), net	-148	174
Income before income taxes	35,519	31,722
Income tax expense	11,343	9,709
Net income	$24,176	$22,013
Basic earnings per share	$1.86	$1.72
Diluted earnings per share	$1.85	$1.70
Weighted average shares outstanding - Basic	12,947,195	12,827,918
Weighted average shares outstanding - Diluted	13,000,113	12,926,814

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Net income	$24,176	$22,013
Other comprehensive income (loss):	'	'
Change in unrealized gains on available-for-sale securities (net of tax)	'	-6
Foreign currency translation adjustments	-97	304
Other comprehensive income (loss)	-97	298
Total comprehensive income	$24,079	$22,311

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities:	'	'
Net income	$24,176	$22,013
Adjustments to reconcile net income to net cash provided by (used in) operating activities:	'	'
Deferred income tax expense	248	458
Depreciation	3,474	1,994
Amortization	'	60
Accretion of discounts on short-term-investments	'	87
Stock-based compensation	810	250
Bad debt expense	347	269
Inventory obsolescence recovery	904	-550
Gross profit from the sale of used rental equipment	-5,331	-6,519
(Gain) loss on disposal of property, plant and equipment	-31	19
Realized gain on short-term investments	'	-1
Effects of changes in operating assets and liabilities:	'	'
Trade accounts and notes receivable	-2,243	-5,981
Inventories	13,717	-13,704
Costs and estimated earnings in excess of billings	9,266	-6,325
Other current assets	-4,157	-3,823
Prepaid income taxes	-2,031	-1,231
Accounts payable	-1,086	154
Accrued expenses and other	-2,146	152
Deferred revenue	4,496	2,112
Income taxes payable	12,321	8,454
Net cash provided by (used in) operating activities	52,734	-2,112
Cash flows from investing activities:	'	'
Purchase of property, plant and equipment	-1,382	-6,494
Investment in rental equipment	-17,717	-11,419
Proceeds from sale of used rental equipment	8,092	12,408
Purchases of short-term investments	'	-702
Proceeds from the sale of short-term investments	'	900
Net cash used in investing activities	-11,007	-5,307
Cash flows from financing activities:	'	'
Principal payments on debt arrangements	-931	'
Excess tax benefit from stock-based compensation	661	1,092
Proceeds from exercise of stock options and other	212	461
Net cash provided by (used in) financing activities	-58	1,553
Effect of exchange rate changes on cash	-2	'
Increase (decrease) in cash and cash equivalents	41,667	-5,866
Cash and cash equivalents, beginning of period	2,726	50,752
Cash and cash equivalents, end of period	$44,393	$44,886

Significant_Accounting_Policie

Significant Accounting Policies	3 Months Ended
	Dec. 31, 2013
Significant Accounting Policies	'
	1. Significant Accounting Policies
	Basis of Presentation
	The consolidated balance sheet of Geospace Technologies Corporation and its subsidiaries (the “Company”) at September 30, 2013 was derived from the Company’s audited consolidated financial statements at that date. The consolidated balance sheet at December 31, 2013 and the consolidated statements of operations and statements of comprehensive income for the three months ended December 31, 2013 and 2012, and the consolidated statements of cash flows for the three months ended December 31, 2013 and 2012 were prepared by the Company without audit. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the consolidated financial position, results of operations and cash flows were made. The results of operations for the three months ended December 31, 2013 are not necessarily indicative of the operating results for a full year or of future operations.
	Certain information and footnote disclosures normally included in financial statements presented in accordance with accounting principles generally accepted in the United States of America were omitted. The accompanying consolidated financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended September 30, 2013.
	Reclassifications
	Certain amounts previously presented in the consolidated financial statements may have been reclassified to conform to the current year presentation. Such reclassifications, if any, had no effect on net income, stockholders’ equity or cash flows.
	Use of Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The Company considers many factors in selecting appropriate operational and financial accounting policies and controls, and in developing the estimates and assumptions that are used in the preparation of these financial statements. The Company continually evaluates its estimates, including those related to bad debt reserves, inventory obsolescence reserves, percentage-of-completion revenue recognition, self-insurance reserves, product warranty reserves, long-lived assets, intangible assets and deferred income tax assets. The Company bases its estimates on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different conditions or assumptions.
	Cash and Cash Equivalents
	The Company considers all highly liquid investments purchased with an original or remaining maturity at the time of purchase of three months or less to be cash equivalents.
	Short-term Investments
	The Company classifies its short-term investments consisting of corporate bonds, government bonds and other such similar investments as available-for-sale securities. Available-for-sale securities are carried at fair market value with net unrealized holding gains and losses reported each period as a component of comprehensive income in stockholders’ equity. At September 30, 2013 and December 31, 2013, the Company did not hold any short-term investments.
	Inventories
	The Company records a write-down of its inventories when the cost basis of any manufactured product, including any estimated future costs to complete the manufacturing process, exceeds its net realizable value. Inventories are stated at the lower of cost or market value. Cost is determined on the first-in, first-out method, except that the Company’s subsidiary in the Russian Federation uses an average cost method to value its inventories.
	Revenue Recognition – Products and Services
	The Company primarily derives revenue from the sale of its manufactured products, including revenues derived from the sale of its manufactured rental equipment. In addition, the Company generates revenue from the short-term rental under operating leases of its manufactured products. Except for revenues recognized using the percentage-of-completion method discussed below, the Company recognizes revenue from product sales, including the sale of used rental equipment, when (i) title passes to the customer, (ii) the customer assumes risks and rewards of ownership, (iii) the product sales price has been determined, (iv) collectability of the sales price is reasonably assured, and (v) product delivery occurs as directed by the customer. Except for certain of the Company’s reservoir characterization products, the Company’s products are generally sold without any customer acceptance provisions and the Company’s standard terms of sale do not allow customers to return products for credit. The Company recognizes rental revenues as earned over the rental period. Rentals of the Company’s equipment generally range from daily rentals to rental periods of up to six months or longer. Revenues from engineering services are recognized as services are rendered over the duration of a project, or as billed on a per hour basis. Field service revenues are recognized when services are rendered and are generally priced on a per day rate.
	Revenue Recognition – Percentage of Completion
	The Company utilizes the percentage-of-completion method (the “POC Method”) to recognize revenues and costs on contracts having the following characteristics:
	—	the order/contract requires significant custom designs for customer specific applications;
	—	the product design requires significant engineering efforts;
	—	the order/contract requires the customer to make progress payments during the contract term, and;
	—	the order/contract requires at least 90 days of engineering and manufacturing effort.
	The POC Method requires the Company’s senior management to make estimates, at least quarterly, of the (i) total expected costs of the contract, (ii) manufacturing progress against the contract and (iii) the estimated cost to complete the contract. These estimates impact the amount of revenue and gross profit the Company recognizes for each reporting period. Significant estimates that may affect the future cost to complete a contract include the cost and availability of raw materials and component parts, engineering services, manufacturing equipment, labor, manufacturing capacity, factory productivity, contract penalties and disputes, product warranties and other contingent factors. Change orders are included in the total estimated contract revenue when it is probable that the change order will result in additional value that can be reliably estimated and realized. The Company defers recognition of the entire amount of revenue or portion thereof associated with unapproved change orders if there is substantial uncertainty as to amounts involved or ultimate realization. The cumulative impact of periodic revisions to the future cost to complete a contract will be reflected in the period in which these changes become known, including, to the extent required, the recognition of losses at the time such losses are known and estimable. Due to the various estimates inherent in the POC Method, actual final results at the conclusion of a contract could differ from management’s previous estimates.
	The Company analyzes a variety of indicators to determine manufacturing progress, including actual costs incurred to date compared to total estimated costs and actual quantities produced to date compared to total contract quantities.
	Cost of sales includes direct contract costs, such as materials and labor, and indirect costs that are attributable to a contract’s production activity. The timing of when the Company invoices its customer is dependent upon the completion of certain production milestones as defined in the contract. Cumulative contract costs and estimated earnings to date in excess of cumulative billings are reported as a current asset on the consolidated balance sheet as “costs and estimated earnings in excess of billings.” Cumulative billings in excess of cumulative costs and estimated earnings are reported as a current liability on the consolidated balance sheet as “billings in excess of costs and estimated earnings.” Any uncollected billed revenue, including contract retentions, is included in trade accounts receivable, net.
	Research and Development Costs
	The Company expenses research and development costs as incurred. Research and development costs include salaries, employee benefit costs, department supplies, direct project costs and other related costs.
	Product Warranties
	Most of the Company’s products do not require installation assistance or sophisticated instructions. The Company offers a standard product warranty obligating it to repair or replace equipment with manufacturing defects. The Company maintains a reserve for future warranty costs based on historical experience or, in the absence of historical product experience, management’s estimates. Reserves for future warranty costs are included within accrued expenses and other current liabilities on the consolidated balance sheets. Changes in the warranty reserve are reflected in the following table (in thousands):
	Balance at October 1, 2013	$	1,952
	Accruals for warranties issued during the period		357
	Settlements made (in cash or in kind) during the period		(412	)
	Balance at December 31, 2013	$	1,897

Derivative_Financial_Instrumen

Derivative Financial Instruments	3 Months Ended
	Dec. 31, 2013
Derivative Financial Instruments	'
	2. Derivative Financial Instruments
	At December 31, 2013, the Company’s Canadian subsidiary had $50.0 million of Canadian dollar denominated intercompany accounts payable owed to the Company’s U.S. subsidiaries. In order to mitigate its exposure to movements in foreign currency rates between the U.S. dollar and Canadian dollar, the Company routinely enters into foreign currency forward contracts to hedge a portion of its exposure to changes in the value of the Canadian dollar. At December 31, 2013, the Company was a party to a $35.0 million foreign currency forward contract. This contract reduces the impact on cash flows from movements in the Canadian dollar/U.S. dollar currency exchange rate. At December 31, 2013, the Company had accrued unrealized foreign exchange gains of $0.1million under this contract.
	The following table summarizes the gross fair value of all derivative instruments, which are not designated as hedging instruments and their location in the consolidated balance sheets (in thousands):
	Derivative Instrument	Location	December 31, 2013			September 30, 2013
	Foreign Currency Exchange Contracts	Prepaid Expenses and Other Current Assets	$	84		$	--
	Foreign Currency Exchange Contracts	Accrued Expenses		--		$	351
			$	84		$	351
	The following table summarizes the impact of the Company’s derivatives on the consolidated statements of operations for the three month periods ended December 31, 2013 and 2012 (in thousands ):
		Location of (Loss)	Three Months Ended
		Gain on Derivative
	Derivative	Instrument	December 31, 2013			December 31, 2012
	Instrument
	Foreign Currency Exchange Contracts	Other Income (Expense)	$	(862	)	$	213

Fair_Value_of_Financial_Instru

Fair Value of Financial Instruments	3 Months Ended
	Dec. 31, 2013
Fair Value of Financial Instruments	'
	3. Fair Value of Financial Instruments
	At December 31, 2013, the Company’s financial instruments included cash and cash equivalents, trade and other receivables, other current assets, accounts payable, other current liabilities and long-term debt. Due to the short-term maturities of cash and cash equivalents, trade and other receivables, other current assets, accounts payable, other current liabilities and long-term debt, the carrying amounts approximate fair value on the respective balance sheet dates.
	The Company measures derivatives at fair value on a recurring basis.
	The fair value measurement of the Company’s foreign currency forward contracts was determined using the following inputs:
		As of December 31, 2013 (in thousands)
		Total			Quoted Prices in		Significant			Significant
					Active Markets for		Other			Unobservable
					Identical Assets		Observable			(Level 3)
					(Level 1)		(Level 2)
	Foreign currency forward contract	$	84		$	—	$	84		$	—
	Total	$	84		$	—	$	84		$	—
		As of September 30, 2013 (in thousands)
		Total			Quoted Prices in		Significant			Significant
					Active Markets for		Other			Unobservable
					Identical Assets		Observable			(Level 3)
					(Level 1)		(Level 2)
	Foreign currency forward contract	$	(351	)	$	—	$	(351	)	$	—
	Total	$	(351	)	$	—	$	(351	)	$	—

StockBased_Compensation

Stock-Based Compensation	3 Months Ended
	Dec. 31, 2013
Stock-Based Compensation	'
	4. Stock-Based Compensation:
	On November 21, 2013, the Company issued 184,000 shares of restricted stock under the 1997 Key Employee Stock Option Plan (as amended, the “Plan”).  The fair value of the Company’s common stock on the date of grant was $98.68 per share, and the unrecognized compensation cost on the date of grant related to these awards, net of estimated forfeitures, was $17.3 million and will be charged to expense over four years as the restrictions lapse. Under the terms of the Plan, recipients of restricted stock awards are entitled to vote such shares and are entitled to dividends, if paid.
	The compensation expense for these awards was determined based on the closing market price of the Company’s stock on the date of grant applied to the total number of shares that were anticipated to fully vest. As of December 31, 2013, we had unrecognized compensation expense of approximately $16.6 million related to restricted stock awards.

Accumulated_Other_Comprehensiv

Accumulated Other Comprehensive Loss	3 Months Ended
	Dec. 31, 2013
Accumulated Other Comprehensive Loss	'
	5. Accumulated Other Comprehensive Loss:
	Accumulated other comprehensive income (loss) consisted of the following (in thousands):
		Foreign
		Currency
		Translation
		Adjustments
	Balance at September 30, 2013	$	(1,064	)
	Foreign currency translation adjustments		(97	)
	Balance at December 31, 2013	$	(1,161	)

Inventories

Inventories	3 Months Ended
	Dec. 31, 2013
Inventories	'
	6. Inventories
	Inventories consist of the following (in thousands):
		December 31, 2013			September 30, 2013
	Finished goods	$	21,611		$	44,391
	Work-in-process		27,496			25,156
	Raw materials		90,840			86,933
	Obsolescence reserve		(7,832	)		(6,932	)
		$	132,115		$	149,548
	During the three months ended December 31, 2013 and 2012 the Company made non-cash transfers of $2.8 million and $1.0 million, respectively, of inventories to its rental equipment fleet.

Percentage_of_Completion

Percentage of Completion	3 Months Ended
	Dec. 31, 2013
Percentage of Completion	'
	7. Percentage of Completion
	The Company utilizes the POC Method to recognize revenues under a contract with a customer. The balance sheets reflect cost and estimated earnings in excess of billings as follows (in thousands):
		December 31, 2013			September 30, 2013
	Contract revenues earned	$	137,648		$	109,565
	Less contract billings		(134,514	)		(97,165	)
	Costs and estimated earnings in excess of billings	$	3,134		$	12,400

Accounts_and_Notes_Receivable

Accounts and Notes Receivable	3 Months Ended
	Dec. 31, 2013
Accounts and Notes Receivable	'
	8. Accounts and Notes Receivable
	Current trade accounts are reflected in the following table (in thousands):
		December 31, 2013			September 30, 2013
	Trade accounts receivable	$	53,478		$	50,132
	Allowance for doubtful accounts		(757	)		(376	)
		$	52,721		$	49,756
	The allowance for doubtful accounts represents the Company’s best estimate of probable credit losses. The Company determines the allowance based upon historical experience and a review of its balances. Accounts receivable balances are charged off against the allowance whenever it is probable that the receivable will not be recoverable. The Company does not have any off-balance-sheet credit exposure related to its customers.
	Notes receivable are reflected in the following table (in thousands):
		December 31, 2013			September 30, 2013
	Notes receivable	$	4,007		$	5,290
	Allowance for doubtful notes		—			—
			4,007			5,290
	Less current portion		4,007			5,290
		$	—		$	—

LongTerm_Debt

Long-Term Debt	3 Months Ended
	Dec. 31, 2013
Long-Term Debt	'
	9. Long-Term Debt
	Long-term debt consisted of the following (in thousands):
		December 31, 2013		September 30, 2013
	Working capital line of credit	$	—	$	931
			—		931
	Less current portion		—		—
		$	—	$	931
	On March 2, 2011, the Company entered into a credit agreement with a bank. On September 27, 2013, the Company amended the credit agreement and increased its borrowing availability to $50.0 million (as amended, the “Credit Agreement”).  The Company’s borrowings are principally secured by its accounts receivable, inventories and equipment.  In addition, certain domestic subsidiaries of the Company have guaranteed the obligations of the Company under the Credit Agreement and such subsidiaries have secured the obligations by the pledge of certain of the assets of such subsidiaries.  The Credit Agreement expires on April 27, 2016 and all borrowed funds are due and payable at that time.  The Company is required to make quarterly interest payments on borrowed funds.  The Credit Agreement limits the incurrence of additional indebtedness, requires the maintenance of certain financial ratios, restricts the Company and its subsidiaries’ ability to pay cash dividends and contains other covenants customary in agreements of this type.  The interest rate for borrowings under the Credit Agreement is a LIBOR based rate with a margin spread of 250 to 325 basis points depending upon the maintenance of certain ratios.  At December 31, 2013, the Company was in compliance with all covenants.  At December 31, 2013 there were no borrowings outstanding under the Credit Agreement.  At September 30, 2013 and December 31, 2013, there were standby letters of credit outstanding in the amount of $42,000 and zero, respectively.  Additional borrowings available under the Credit Agreement at December 31, 2013 were $50.0 million.

Earnings_Per_Common_Share

Earnings Per Common Share	3 Months Ended
	Dec. 31, 2013
Earnings Per Common Share	'
	10. Earnings Per Common Share
	In connection with the issuance of 184,000 shares of restricted stock on November 21, 2013, the Company applied the two-class method in calculating per share data for the three months ended December 31, 2013.  The following table summarizes the calculation of net earnings and weighted average common shares and common equivalent shares outstanding for purposes of the computation of earnings per share (in thousands, except share and per share data):
		Three Months Ended
		December 31, 2013			December 31, 2012
	Net income	$	24,176		$	22,013
	Less:  Income allocable to unvested restricted stock		(152	)		--
	Income available to common shareholders	$	24,024		$	22,013
	Reallocation of participating earnings		1			--
	Diluted income attributable to common shareholders	$	24,025		$	22,013
	Weighted average number of common share equivalents:
	Common shares used in basic earnings per share		12,947,195			12,827,918
	Common share equivalents outstanding related to stock options		52,918			98,896
	Total weighted average common shares and common share equivalents used in diluted earnings per share		13,000,113			12,926,814
	Basic earnings per common share	$	1.86		$	1.72
	Diluted earnings per common share	$	1.85		$	1.7
	There were no stock options excluded from the computation of weighted average shares outstanding due to anti-dilution.

Segment_Information

Segment Information	3 Months Ended
	Dec. 31, 2013
Segment Information	'
	11. Segment Information
	The Company’s Seismic product lines include land and marine wireless data acquisition systems, seabed reservoir characterization products and services, geophones and geophone strings, hydrophones, leader wire, connectors, telemetry cables, marine streamer retrieval and steering devices and various other products. The Non-Seismic product lines include thermal imaging products and industrial products. The Company typically has a minor amount of Seismic product sales to its Non-Seismic customers.
	The following table summarizes the Company’s segment information (in thousands):
		Three Months Ended
		December 31, 2013			December 31, 2012
	Net sales:
	Seismic	$	95,227		$	72,084
	Non-Seismic		5,912			5,467
	Corporate		209			200
	Total	$	101,348		$	77,751
	Income (loss) from operations:
	Seismic	$	38,543		$	33,961
	Non-Seismic		774			465
	Corporate		(3,650	)		(2,878	)
	Total	$	35,667		$	31,548

Income_Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2013
Income Taxes	'
	12. Income Taxes
	The United States statutory tax rate for the three months ended December 31, 2013 and 2012 was 35%. The Company’s effective tax rates for the three months ended December 31, 2013 and 2012 were 31.9% and 30.6%, respectively. Compared to the United States statutory rate of 35%, the Company’s lower effective tax rates for each of the periods ended December 31, 2013 and 2012 primarily resulted from a manufacturers’/producers’ deduction available to U.S. manufacturers.
	From time to time the Company is the subject of audits by various tax authorities that can result in claims and assessments and additional tax payments, penalties and interest. The United States Internal Revenue Service (“IRS”) is in the process of conducting an audit of the Company’s United States Federal income tax returns for fiscal year 2012. Management believes that the outcome of such audit will not have a material effect on the Company’s financial position, results of operations or cash flows.

Significant_Accounting_Policie1

Significant Accounting Policies (Policies)	3 Months Ended
	Dec. 31, 2013
Basis of Presentation	'
	Basis of Presentation
	The consolidated balance sheet of Geospace Technologies Corporation and its subsidiaries (the “Company”) at September 30, 2013 was derived from the Company’s audited consolidated financial statements at that date. The consolidated balance sheet at December 31, 2013 and the consolidated statements of operations and statements of comprehensive income for the three months ended December 31, 2013 and 2012, and the consolidated statements of cash flows for the three months ended December 31, 2013 and 2012 were prepared by the Company without audit. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the consolidated financial position, results of operations and cash flows were made. The results of operations for the three months ended December 31, 2013 are not necessarily indicative of the operating results for a full year or of future operations.
	Certain information and footnote disclosures normally included in financial statements presented in accordance with accounting principles generally accepted in the United States of America were omitted. The accompanying consolidated financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended September 30, 2013.
Reclassifications	'
	Reclassifications
	Certain amounts previously presented in the consolidated financial statements may have been reclassified to conform to the current year presentation. Such reclassifications, if any, had no effect on net income, stockholders’ equity or cash flows.
Use of Estimates	'
	Use of Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The Company considers many factors in selecting appropriate operational and financial accounting policies and controls, and in developing the estimates and assumptions that are used in the preparation of these financial statements. The Company continually evaluates its estimates, including those related to bad debt reserves, inventory obsolescence reserves, percentage-of-completion revenue recognition, self-insurance reserves, product warranty reserves, long-lived assets, intangible assets and deferred income tax assets. The Company bases its estimates on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different conditions or assumptions.
Cash and Cash Equivalents	'
	Cash and Cash Equivalents
	The Company considers all highly liquid investments purchased with an original or remaining maturity at the time of purchase of three months or less to be cash equivalents.
Short-term Investments	'
	Short-term Investments
	The Company classifies its short-term investments consisting of corporate bonds, government bonds and other such similar investments as available-for-sale securities. Available-for-sale securities are carried at fair market value with net unrealized holding gains and losses reported each period as a component of comprehensive income in stockholders’ equity. At September 30, 2013 and December 31, 2013, the Company did not hold any short-term investments.
Inventories	'
	Inventories
	The Company records a write-down of its inventories when the cost basis of any manufactured product, including any estimated future costs to complete the manufacturing process, exceeds its net realizable value. Inventories are stated at the lower of cost or market value. Cost is determined on the first-in, first-out method, except that the Company’s subsidiary in the Russian Federation uses an average cost method to value its inventories.
Revenue Recognition	'
	Revenue Recognition – Products and Services
	The Company primarily derives revenue from the sale of its manufactured products, including revenues derived from the sale of its manufactured rental equipment. In addition, the Company generates revenue from the short-term rental under operating leases of its manufactured products. Except for revenues recognized using the percentage-of-completion method discussed below, the Company recognizes revenue from product sales, including the sale of used rental equipment, when (i) title passes to the customer, (ii) the customer assumes risks and rewards of ownership, (iii) the product sales price has been determined, (iv) collectability of the sales price is reasonably assured, and (v) product delivery occurs as directed by the customer. Except for certain of the Company’s reservoir characterization products, the Company’s products are generally sold without any customer acceptance provisions and the Company’s standard terms of sale do not allow customers to return products for credit. The Company recognizes rental revenues as earned over the rental period. Rentals of the Company’s equipment generally range from daily rentals to rental periods of up to six months or longer. Revenues from engineering services are recognized as services are rendered over the duration of a project, or as billed on a per hour basis. Field service revenues are recognized when services are rendered and are generally priced on a per day rate.
	Revenue Recognition – Percentage of Completion
	The Company utilizes the percentage-of-completion method (the “POC Method”) to recognize revenues and costs on contracts having the following characteristics:
	—	the order/contract requires significant custom designs for customer specific applications;
	—	the product design requires significant engineering efforts;
	—	the order/contract requires the customer to make progress payments during the contract term, and;
	—	the order/contract requires at least 90 days of engineering and manufacturing effort.
	The POC Method requires the Company’s senior management to make estimates, at least quarterly, of the (i) total expected costs of the contract, (ii) manufacturing progress against the contract and (iii) the estimated cost to complete the contract. These estimates impact the amount of revenue and gross profit the Company recognizes for each reporting period. Significant estimates that may affect the future cost to complete a contract include the cost and availability of raw materials and component parts, engineering services, manufacturing equipment, labor, manufacturing capacity, factory productivity, contract penalties and disputes, product warranties and other contingent factors. Change orders are included in the total estimated contract revenue when it is probable that the change order will result in additional value that can be reliably estimated and realized. The Company defers recognition of the entire amount of revenue or portion thereof associated with unapproved change orders if there is substantial uncertainty as to amounts involved or ultimate realization. The cumulative impact of periodic revisions to the future cost to complete a contract will be reflected in the period in which these changes become known, including, to the extent required, the recognition of losses at the time such losses are known and estimable. Due to the various estimates inherent in the POC Method, actual final results at the conclusion of a contract could differ from management’s previous estimates.
	The Company analyzes a variety of indicators to determine manufacturing progress, including actual costs incurred to date compared to total estimated costs and actual quantities produced to date compared to total contract quantities.
	Cost of sales includes direct contract costs, such as materials and labor, and indirect costs that are attributable to a contract’s production activity. The timing of when the Company invoices its customer is dependent upon the completion of certain production milestones as defined in the contract. Cumulative contract costs and estimated earnings to date in excess of cumulative billings are reported as a current asset on the consolidated balance sheet as “costs and estimated earnings in excess of billings.” Cumulative billings in excess of cumulative costs and estimated earnings are reported as a current liability on the consolidated balance sheet as “billings in excess of costs and estimated earnings.” Any uncollected billed revenue, including contract retentions, is included in trade accounts receivable, net.
Research and Development Costs	'
	Research and Development Costs
	The Company expenses research and development costs as incurred. Research and development costs include salaries, employee benefit costs, department supplies, direct project costs and other related costs.
Product Warranties	'
	Product Warranties
	Most of the Company’s products do not require installation assistance or sophisticated instructions. The Company offers a standard product warranty obligating it to repair or replace equipment with manufacturing defects. The Company maintains a reserve for future warranty costs based on historical experience or, in the absence of historical product experience, management’s estimates. Reserves for future warranty costs are included within accrued expenses and other current liabilities on the consolidated balance sheets. Changes in the warranty reserve are reflected in the following table (in thousands):
	Balance at October 1, 2013	$	1,952
	Accruals for warranties issued during the period		357
	Settlements made (in cash or in kind) during the period		(412	)
	Balance at December 31, 2013	$	1,897

Significant_Accounting_Policie2

Significant Accounting Policies (Tables)	3 Months Ended
	Dec. 31, 2013
Changes in Warranty Reserve	'
	Most of the Company’s products do not require installation assistance or sophisticated instructions. The Company offers a standard product warranty obligating it to repair or replace equipment with manufacturing defects. The Company maintains a reserve for future warranty costs based on historical experience or, in the absence of historical product experience, management’s estimates. Reserves for future warranty costs are included within accrued expenses and other current liabilities on the consolidated balance sheets. Changes in the warranty reserve are reflected in the following table (in thousands):
	Balance at October 1, 2013	$	1,952
	Accruals for warranties issued during the period		357
	Settlements made (in cash or in kind) during the period		(412	)
	Balance at December 31, 2013	$	1,897

Derivative_Financial_Instrumen1

Derivative Financial Instruments (Tables)	3 Months Ended
	Dec. 31, 2013
Gross Fair Value of all Derivative Instruments	'
	The following table summarizes the gross fair value of all derivative instruments, which are not designated as hedging instruments and their location in the consolidated balance sheets (in thousands):
	Derivative Instrument	Location	December 31, 2013			September 30, 2013
	Foreign Currency Exchange Contracts	Prepaid Expenses and Other Current Assets	$	84		$	--
	Foreign Currency Exchange Contracts	Accrued Expenses		--		$	351
			$	84		$	351
Company's Derivatives on Condensed Consolidated Financial Statements of Operations	'
	The following table summarizes the impact of the Company’s derivatives on the consolidated statements of operations for the three month periods ended December 31, 2013 and 2012 (in thousands ):
		Location of (Loss)	Three Months Ended
		Gain on Derivative
	Derivative	Instrument	December 31, 2013			December 31, 2012
	Instrument
	Foreign Currency Exchange Contracts	Other Income (Expense)	$	(862	)	$	213

Fair_Value_of_Financial_Instru1

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Dec. 31, 2013
Fair Value Measurement of Company's Foreign Currency Forward Contracts	'
	The fair value measurement of the Company’s foreign currency forward contracts was determined using the following inputs:
		As of December 31, 2013 (in thousands)
		Total			Quoted Prices in		Significant			Significant
					Active Markets for		Other			Unobservable
					Identical Assets		Observable			(Level 3)
					(Level 1)		(Level 2)
	Foreign currency forward contract	$	84		$	—	$	84		$	—
	Total	$	84		$	—	$	84		$	—
		As of September 30, 2013 (in thousands)
		Total			Quoted Prices in		Significant			Significant
					Active Markets for		Other			Unobservable
					Identical Assets		Observable			(Level 3)
					(Level 1)		(Level 2)
	Foreign currency forward contract	$	(351	)	$	—	$	(351	)	$	—
	Total	$	(351	)	$	—	$	(351	)	$	—

Accumulated_Other_Comprehensiv1

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Dec. 31, 2013
Accumulated Other Comprehensive Loss	'
	Accumulated other comprehensive income (loss) consisted of the following (in thousands):
		Foreign
		Currency
		Translation
		Adjustments
	Balance at September 30, 2013	$	(1,064	)
	Foreign currency translation adjustments		(97	)
	Balance at December 31, 2013	$	(1,161	)

Inventories_Tables

Inventories (Tables)	3 Months Ended
	Dec. 31, 2013
Inventories	'
	Inventories consist of the following (in thousands):
		December 31, 2013			September 30, 2013
	Finished goods	$	21,611		$	44,391
	Work-in-process		27,496			25,156
	Raw materials		90,840			86,933
	Obsolescence reserve		(7,832	)		(6,932	)
		$	132,115		$	149,548

Percentage_of_Completion_Table

Percentage of Completion (Tables)	3 Months Ended
	Dec. 31, 2013
Cost and Estimated Earnings in Excess of Billings	'
	The Company utilizes the POC Method to recognize revenues under a contract with a customer. The balance sheets reflect cost and estimated earnings in excess of billings as follows (in thousands):
		December 31, 2013			September 30, 2013
	Contract revenues earned	$	137,648		$	109,565
	Less contract billings		(134,514	)		(97,165	)
	Costs and estimated earnings in excess of billings	$	3,134		$	12,400

Accounts_and_Notes_Receivable_

Accounts and Notes Receivable (Tables)	3 Months Ended
	Dec. 31, 2013
Current Trade Accounts Receivable	'
	Current trade accounts are reflected in the following table (in thousands):
		December 31, 2013			September 30, 2013
	Trade accounts receivable	$	53,478		$	50,132
	Allowance for doubtful accounts		(757	)		(376	)
		$	52,721		$	49,756
Notes Receivable	'
	Notes receivable are reflected in the following table (in thousands):
		December 31, 2013			September 30, 2013
	Notes receivable	$	4,007		$	5,290
	Allowance for doubtful notes		—			—
			4,007			5,290
	Less current portion		4,007			5,290
		$	—		$	—

LongTerm_Debt_Tables

Long-Term Debt (Tables)	3 Months Ended
	Dec. 31, 2013
Long-Term Debt	'
	Long-term debt consisted of the following (in thousands):
		December 31, 2013		September 30, 2013
	Working capital line of credit	$	—	$	931
			—		931
	Less current portion		—		—
		$	—	$	931

Earnings_Per_Common_Share_Tabl

Earnings Per Common Share (Tables)	3 Months Ended
	Dec. 31, 2013
Calculation of Weighted Average Common Shares and Common Equivalent Shares Outstanding	'
	In connection with the issuance of 184,000 shares of restricted stock on November 21, 2013, the Company applied the two-class method in calculating per share data for the three months ended December 31, 2013.  The following table summarizes the calculation of net earnings and weighted average common shares and common equivalent shares outstanding for purposes of the computation of earnings per share (in thousands, except share and per share data):
		Three Months Ended
		December 31, 2013			December 31, 2012
	Net income	$	24,176		$	22,013
	Less:  Income allocable to unvested restricted stock		(152	)		--
	Income available to common shareholders	$	24,024		$	22,013
	Reallocation of participating earnings		1			--
	Diluted income attributable to common shareholders	$	24,025		$	22,013
	Weighted average number of common share equivalents:
	Common shares used in basic earnings per share		12,947,195			12,827,918
	Common share equivalents outstanding related to stock options		52,918			98,896
	Total weighted average common shares and common share equivalents used in diluted earnings per share		13,000,113			12,926,814
	Basic earnings per common share	$	1.86		$	1.72
	Diluted earnings per common share	$	1.85		$	1.7

Segment_Information_Tables

Segment Information (Tables)	3 Months Ended
	Dec. 31, 2013
Summary of Company's Segment Information	'
	The following table summarizes the Company’s segment information (in thousands):
		Three Months Ended
		December 31, 2013			December 31, 2012
	Net sales:
	Seismic	$	95,227		$	72,084
	Non-Seismic		5,912			5,467
	Corporate		209			200
	Total	$	101,348		$	77,751
	Income (loss) from operations:
	Seismic	$	38,543		$	33,961
	Non-Seismic		774			465
	Corporate		(3,650	)		(2,878	)
	Total	$	35,667		$	31,548

Changes_in_Warranty_Reserve_De

Changes in Warranty Reserve (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013
Changes in product warranty reserve	'
Balance at the beginning of the period	$1,952
Accruals for warranties issued during the period	357
Settlements made (in cash or in kind) during the period	-412
Balance at the end of the period	$1,897

Gross_Fair_Value_of_all_Deriva

Gross Fair Value of all Derivative Instruments (Details) (Foreign Currency Exchange Contracts, USD $)	Dec. 31, 2013	Sep. 30, 2013
In Thousands, unless otherwise specified
Derivatives Fair Value [Line Items]	'	'
Liability Derivatives	$84	$351
Prepaid Expenses and Other Current Assets | Not Designated as Hedging Instrument	'	'
Derivatives Fair Value [Line Items]	'	'
Liability Derivatives	84	'
Accrued Expenses | Not Designated as Hedging Instrument	'	'
Derivatives Fair Value [Line Items]	'	'
Liability Derivatives	'	$351

Companys_Derivatives_on_Conden

Company's Derivatives on Condensed Consolidated Financial Statements of Operations (Details) (Other Income (Expense), Foreign Currency Exchange Contracts, USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Other Income (Expense) | Foreign Currency Exchange Contracts	'	'
Derivative Instruments Gain Loss [Line Items]	'	'
Amount of (Loss) Gain Recognized in Income	($862)	$213

Derivative_Financial_Instrumen2

Derivative Financial Instruments - Additional Information (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2013
Derivative Financial Instruments [Line Items]	'
Accrued unrealized foreign exchange losses	$0.10
Foreign Currency Forward Contracts	'
Derivative Financial Instruments [Line Items]	'
Foreign currency forward contract to hedge	35
Canadian Subsidiary	'
Derivative Financial Instruments [Line Items]	'
Denominated intercompany accounts payable	$50

Fair_Value_Measurement_of_Comp

Fair Value Measurement of Company's Foreign Currency Forward Contracts (Details) (Fair Value, Measurements, Recurring, USD $)	Dec. 31, 2013	Sep. 30, 2013
In Thousands, unless otherwise specified
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]	'	'
Total	$84	($351)
Quoted Prices in Active Markets for Identical Assets (Level 1)	'	'
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]	'	'
Total	'	'
Significant Other Observable (Level 2)	'	'
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]	'	'
Total	84	-351
Significant Unobservable (Level 3)	'	'
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]	'	'
Total	'	'
Foreign currency forward contract	'	'
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]	'	'
Foreign currency forward contract	84	-351
Foreign currency forward contract | Quoted Prices in Active Markets for Identical Assets (Level 1)	'	'
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]	'	'
Foreign currency forward contract	'	'
Foreign currency forward contract | Significant Other Observable (Level 2)	'	'
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]	'	'
Foreign currency forward contract	84	-351
Foreign currency forward contract | Significant Unobservable (Level 3)	'	'
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]	'	'
Foreign currency forward contract	'	'

StockBased_Compensation_Additi

Stock-Based Compensation - Additional Information (Details) (Restricted Stock, USD $)	1 Months Ended
In Millions, except Share data, unless otherwise specified	Nov. 30, 2013	Dec. 31, 2013
Restricted Stock	'	'
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]	'	'
Restricted shares issued	184,000	'
Fair value of the Company’s common stock on the date of grant	$98.68	'
Unrecognized compensation expense	$17.30	$16.60
Expected period for recognition of unrecognized compensation expense	'4 years	'

Accumulated_Other_Comprehensiv2

Accumulated Other Comprehensive Loss (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Accumulated other comprehensive loss	($1,064)	'
Foreign currency translation adjustments	-97	304
Accumulated other comprehensive loss	($1,161)	'

Inventories_Details

Inventories (Details) (USD $)	Dec. 31, 2013	Sep. 30, 2013
In Thousands, unless otherwise specified
Inventory Net [Abstract]	'	'
Finished goods	$21,611	$44,391
Work-in-process	27,496	25,156
Raw materials	90,840	86,933
Obsolescence reserve	-7,832	-6,932
Total	$132,115	$149,548

Inventories_Additional_Informa

Inventories - Additional Information (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Inventories (Textual) [Abstract]	'	'
Inventories transferred to rental equipment	$2.80	$1

Cost_and_Estimated_Earnings_in

Cost and Estimated Earnings in Excess of Billings (Details) (USD $)	Dec. 31, 2013	Sep. 30, 2013
In Thousands, unless otherwise specified
Cost And Estimated Earnings In Excess Of Billings [Line Items]	'	'
Contract revenues earned	$137,648	$109,565
Less contract billings	-134,514	-97,165
Costs and estimated earnings in excess of billings	$3,134	$12,400

Current_Trade_Accounts_Receiva

Current Trade Accounts Receivable (Details) (USD $)	Dec. 31, 2013	Sep. 30, 2013
In Thousands, unless otherwise specified
Current trade accounts receivable	'	'
Trade accounts receivable	$53,478	$50,132
Allowance for doubtful accounts	-757	-376
Total current trade accounts receivable	$52,721	$49,756

Notes_Receivable_Details

Notes Receivable (Details) (USD $)	Dec. 31, 2013	Sep. 30, 2013
In Thousands, unless otherwise specified
Notes receivable	'	'
Notes receivable	$4,007	$5,290
Allowance for doubtful notes	'	'
Total	4,007	5,290
Less current portion	4,007	5,290
Long-term portion	'	'

LongTerm_Debt_Details

Long-Term Debt (Details) (USD $)	Dec. 31, 2013	Sep. 30, 2013
In Thousands, unless otherwise specified
Long-Term Debt [Abstract]	'	'
Working capital line of credit	'	$931
Total notes payable and long-term debt	'	931
Less current portion	'	'
Total long-term debt	'	$931

LongTerm_Debt_Additional_Infor

Long-Term Debt - Additional Information (Details) (USD $)	3 Months Ended	12 Months Ended	1 Months Ended	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Mar. 31, 2011	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2013	Sep. 30, 2013
			New Agreement	Line of Credit	Line of Credit	Credit Agreement	Standby Letters of Credit	Standby Letters of Credit
				Minimum	Maximum
Long-Term Debt (Textual) [Abstract]	'	'	'	'	'	'	'	'
Credit agreement date	'	'	2-Mar-11	'	'	'	'	'
Company can borrow principally secured loans by its accounts receivable, inventories and equipment	$50,000,000	'	'	'	'	'	'	'
Line of credit facility expiration date	27-Apr-14	'	'	'	'	'	'	'
Credit Agreement is a LIBOR based rate with a margin spread	'	'	'	2.50%	3.25%	'	'	'
Line of Credit Facility, Outstanding borrowing	'	'	'	'	'	0	'	'
Credit Agreement, standby letters of credit outstanding amount	'	'	'	'	'	'	0	42,000
Additional borrowings available	'	$50,000,000	'	'	'	'	'	'

Calculation_of_Weighted_Averag

Calculation of Weighted Average Common Shares and Common Equivalent Shares Outstanding (Details) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items]	'	'
Net income	$24,176	$22,013
Less: Income allocable to unvested restricted stock	-152	'
Income available to common shareholders	24,024	22,013
Reallocation of participating earnings	1	'
Diluted income attributable to common shareholders	$24,025	$22,013
Weighted average number of common share equivalents:	'	'
Common shares used in basic earnings per share	12,947,195	12,827,918
Common share equivalents outstanding related to stock options	52,918	98,896
Total weighted average common shares and common share equivalents used in diluted earnings per share	13,000,113	12,926,814
Basic earnings per common share	$1.86	$1.72
Diluted earnings per common share	$1.85	$1.70

Earnings_Per_Common_Share_Addi

Earnings Per Common Share - Additional Information (Details) (Restricted Stock)	Nov. 21, 2013
Restricted Stock	'
Earnings Per Share Disclosure [Line Items]	'
Issuance of restricted stock	184,000

Summary_of_Companys_Segment_In

Summary of Company's Segment Information (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Segment Reporting Information [Line Items]	'	'
Sales	$101,348	$77,751
Total income (loss) from operations	35,667	31,548
Seismic	'	'
Segment Reporting Information [Line Items]	'	'
Sales	95,227	72,084
Total income (loss) from operations	38,543	33,961
Non-Seismic	'	'
Segment Reporting Information [Line Items]	'	'
Sales	5,912	5,467
Total income (loss) from operations	774	465
Corporate	'	'
Segment Reporting Information [Line Items]	'	'
Sales	209	200
Total income (loss) from operations	($3,650)	($2,878)

Income_Taxes_Additional_Inform

Income Taxes - Additional Information (Details)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Income Taxes [Line Items]	'	'
United States statutory tax rate	35.00%	35.00%
Company's effective tax rates	31.90%	30.60%