Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2015 | Jan. 31, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | GEOS | |
Entity Registrant Name | GEOSPACE TECHNOLOGIES CORP | |
Entity Central Index Key | 1,001,115 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 13,328,066 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Sep. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 17,425 | $ 22,314 |
Short-term investments | 19,562 | 18,112 |
Trade accounts receivable, net | 7,083 | 12,693 |
Current portion of notes receivable | 1,296 | 2,004 |
Income tax receivable | 25,252 | 17,369 |
Inventories, net | 120,250 | 124,800 |
Prepaid expenses and other current assets | 1,997 | 1,295 |
Total current assets | 192,865 | 198,587 |
Rental equipment, net | 42,964 | 46,036 |
Property, plant and equipment, net | 47,961 | 48,709 |
Deferred income tax assets | 23 | 4,554 |
Non-current notes receivable | 1,949 | 1,516 |
Prepaid income taxes | 3,697 | 4,095 |
Other assets | 140 | 95 |
Total assets | 289,599 | 303,592 |
Current liabilities: | ||
Accounts payable trade | 2,093 | 4,077 |
Accrued expenses and other current liabilities | 9,723 | 9,679 |
Deferred revenue | 63 | 165 |
Income tax payable | 20 | 3 |
Total current liabilities | 11,899 | 13,924 |
Deferred income tax liabilities | 494 | 44 |
Total liabilities | $ 12,393 | $ 13,968 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity: | ||
Preferred stock | ||
Common stock | $ 133 | $ 131 |
Additional paid-in capital | 74,030 | 74,160 |
Retained earnings | 217,236 | 228,278 |
Accumulated other comprehensive loss | (14,193) | (12,945) |
Total stockholders’ equity | 277,206 | 289,624 |
Total liabilities and stockholders’ equity | $ 289,599 | $ 303,592 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue: | ||
Total revenue | $ 13,137 | $ 21,166 |
Cost of revenue: | ||
Total cost of revenue | 19,539 | 21,187 |
Gross profit (loss) | (6,402) | (21) |
Operating expenses: | ||
Selling, general and administrative expenses | 5,574 | 5,869 |
Research and development expenses | 3,605 | 3,301 |
Bad debt expense (recovery) | (889) | 697 |
Total operating expenses | 8,290 | 9,867 |
Loss from operations | (14,692) | (9,888) |
Other income (expense): | ||
Interest expense | (7) | (112) |
Interest income | 106 | 59 |
Foreign exchange gains (losses) | (10) | 1,589 |
Other, net | (16) | (90) |
Total other income, net | 73 | 1,446 |
Loss before income taxes | (14,619) | (8,442) |
Income tax benefit | (3,577) | (2,997) |
Net loss | $ (11,042) | $ (5,445) |
Loss per common share: | ||
Basic | $ (0.85) | $ (0.41) |
Diluted | $ (0.85) | $ (0.41) |
Weighted average common shares outstanding: | ||
Basic | 13,024,579 | 12,977,913 |
Diluted | 13,024,579 | 12,977,913 |
Products | ||
Revenue: | ||
Total revenue | $ 11,752 | $ 18,463 |
Cost of revenue: | ||
Total cost of revenue | 15,444 | 18,613 |
Rental equipment | ||
Revenue: | ||
Total revenue | 1,385 | 2,703 |
Cost of revenue: | ||
Total cost of revenue | $ 4,095 | $ 2,574 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (11,042) | $ (5,445) |
Other comprehensive loss: | ||
Change in unrealized losses on available-for-sale securities, net of tax | (26) | (2) |
Foreign currency translation adjustments | (1,222) | (2,652) |
Total other comprehensive loss | (1,248) | (2,654) |
Total comprehensive loss | $ (12,290) | $ (8,099) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (11,042) | $ (5,445) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Deferred income tax expense (benefit) | 4,926 | (702) |
Depreciation expense | 4,810 | 3,933 |
Accretion of discounts on short-term-investments | 44 | 57 |
Stock-based compensation expense | 1,185 | 1,220 |
Bad debt expense (recovery) | (889) | 697 |
Inventory obsolescence expense | 2,294 | 777 |
Gross (profit) loss from sale of used rental equipment | (4) | 5 |
Realized loss on short-term investments | 1 | |
Excess tax expense from stock-based compensation | (1,313) | (1,051) |
Effects of changes in operating assets and liabilities: | ||
Trade accounts and notes receivable | 6,708 | 10,099 |
Income tax receivable | (7,883) | (3,526) |
Inventories | 2,078 | (3,953) |
Prepaid expenses and other current assets | (717) | 855 |
Prepaid income taxes | 398 | 452 |
Accounts payable trade | (1,975) | 794 |
Accrued expenses and other | (901) | (6,766) |
Deferred revenue | (99) | (163) |
Income taxes payable | 19 | 257 |
Net cash used in operating activities | (2,360) | (2,460) |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (679) | (1,147) |
Investment in rental equipment | (135) | (29) |
Proceeds from the sale of used rental equipment | 35 | 244 |
Purchases of short-term investments | (4,902) | (1,550) |
Proceeds from the sale of short-term investments | 3,370 | 1,715 |
Net cash used in investing activities | (2,311) | (767) |
Effect of exchange rate changes on cash | (218) | 160 |
Decrease in cash and cash equivalents | (4,889) | (3,067) |
Cash and cash equivalents, beginning of fiscal year | 22,314 | 33,357 |
Cash and cash equivalents, end of fiscal period | $ 17,425 | $ 30,290 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
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, 2015 was derived from the Company’s audited consolidated financial statements at that date. The consolidated balance sheet at December 31, 2015 and the consolidated statements of operations, comprehensive loss and cash flows for the three months ended December 31, 2015 and 2014 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, 2015 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 pursuant to the rules of the Securities and Exchange Commission. 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 Company’s fiscal year ended September 30, 2015. Reclassifications Certain amounts previously presented in the consolidated financial statements have been reclassified to conform to the current year presentation. During the three months ended December 31, 2015, the Company elected to early adopt Financial Accounting Standards Board (“FASB”), Accounting Standards Update (“ASU”) 2015-17-Income Taxes (Topic 740) requiring all deferred tax assets and liabilities to be classified as non-current on the balance sheet. The purpose of this adoption was to simplify the presentation of deferred income taxes. The accompanying balance sheet as of September 30, 2015 has been retrospectively adjusted to reflect the adoption of this standard. The effect of the adjustment at September 30, 2015 was a $ 6.4 million decrease in current assets, a $ 10,000 decrease in current liabilities, a $ 3.0 million increase in non-current deferred tax assets and a $ 3.4 million decrease in non-current deferred tax liabilities. Such reclassification had no effect on net loss, 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, self-insurance reserves, product warranty reserves, impairment of long-lived 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 accumulated other comprehensive loss in stockholders’ equity. See note 2 for additional information. 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 certain of the Company’s foreign subsidiaries use an average cost method to value their inventories. Impairment of Long-lived Assets The Company’s long-lived assets are reviewed for impairment whenever an event or change in circumstances indicates the carrying amount of an asset or group of assets may not be recoverable. The impairment review, if necessary, includes a comparison of expected future cash flows (undiscounted and without interest charges) to be generated by an asset group with the associated carrying value of the related assets. If the carrying value of the asset group exceeds the expected future cash flows, an impairment loss is recognized to the extent that the carrying value of the asset group exceeds its fair value. At December 31, 2015, management reviewed the recoverability of the carrying value of the Company’s long-lived assets based on future undiscounted cash flows and determined that no such impairment of these assets was necessary as the expected future cash flows exceeded the carrying value of the assets . Revenue Recognition – Products and Services The Company primarily derives revenue from the sale of its manufactured products, including revenue 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. T he Company recognizes revenue from product sales, including the sale of used rental equipment, when (i) title passes to the customer, (ii) the customer assumes the 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 revenue 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. Revenue 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 revenue are recognized when services are rendered and are generally priced on a per day rate. 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, 2015 ........................ $ 2,326 Accruals for warranties issued during the period .......... 201 Settlements made (in cash or in kind) during the period ..... (1,428 ) Balance at December 31, 2015 ...................... $ 1,099 Recent Accounting Pronouncements In November 2015, the Financial Accounting Standards Board (“FASB”) issued guidance requiring all deferred tax assets and liabilities, and any related valuation allowance, to be classified as non-current on the balance sheet. The classification change for all deferred taxes as non-current simplifies entities’ processes as it eliminates the need to separately identify the net current and net non-current deferred tax asset or liability in each jurisdiction and allocate valuation allowances. The guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. The guidance can be applied retrospectively or prospectively and early adoption is permitted. The Company elected to retrospectively adopt the accounting standard in our first quarter of fiscal 2016. Prior periods in our consolidated financial statements were retrospectively adjusted. In July 2015, the FASB issued guidance requiring management to measure inventory at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The pronouncement is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period and should be applied retrospectively, with early application permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements and related disclosures. In August 2014, the FASB issued guidance requiring management to evaluate whether there are conditions and events that raise substantial doubt about the entity's ability to continue as a going concern and to provide disclosures in certain circumstances. The new guidance was issued to reduce diversity in the timing and content of footnote disclosures. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2016. The Company will continue to evaluate any significant impacts of this guidance on consolidated financial statement disclosures. In May 2014, the FASB issued guidance requiring entities to recognize revenue from contracts with customers by applying a five-step model in accordance with the core principle to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this guidance specifies the accounting for some costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. In August 2015, the FASB issued guidance deferring the effective date of this guidance to annual periods beginning after December 15, 2017, including interim reporting periods therein. Entities have the option to adopt this guidance either retrospectively or through a modified retrospective transition method. This new standard will supersede existing revenue guidance and affect the Company's revenue recognition process and the presentations or disclosures of the Company's consolidated financial statements and footnotes. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. |
Short-term Investments
Short-term Investments | 3 Months Ended |
Dec. 31, 2015 | |
Investments Debt And Equity Securities [Abstract] | |
Short-term Investments | 2. Short-term Investments AS OF DECEMBER 31, 2015 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Corporate bonds ......................... $ 15,977 $ — $ (34 ) $ 15,943 Government bonds ....................... 3,629 — (10 ) 3,619 Total ................................ $ 19,606 $ — $ (44 ) $ 19,562 AS OF SEPTEMBER 30, 2015 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Corporate bonds ......................... $ 15,166 $ — $ (5 ) $ 15,161 Government bonds ....................... 2,948 3 — 2,951 Total ................................ $ 18,114 $ 3 $ (5 ) $ 18,112 Accumulated other comprehensive loss on the consolidated balance sheets at December 31, 2015 and September 30, 2015 included unrealized losses (net of tax) of $ 29,000 and $ 3,000 , respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 3. Derivative Financial Instruments At December 31, 2015 and September 30, 2015, the Company’s Canadian subsidiary had $ 28.3 million and $ 28.1 million, respectively, of Canadian dollar denominated intercompany accounts payable owed to one of 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. Approximately $ 2.1 million of these Canadian dollar denominated intercompany accounts payable are considered by management to be of a short-term nature whereby the appreciation or devaluation of the Canadian dollar against the U.S. dollar will result in a gain or loss, respectively, to the consolidated statement of operations. The Company considers the remaining $ 26.2 million Canadian dollar denominated intercompany accounts payable to be of a long-term nature and whereby settlement is not planned or anticipated in the foreseeable future; therefore, any resulting foreign exchange gains and losses are reported in the consolidated balance sheets as a component of other comprehensive income in accordance with ASC 830 “Foreign Currency Matters”. In December 2015, the Company entered into a $ 2.0 million 90 -day hedge contract with a United States bank to hedge its short-term Canadian dollar foreign exchange rate exposure. This contract reduces the impact on cash flows from movements in the Canadian dollar/U.S. dollar currency exchange rate, but has not been designated as a hedge for accounting purposes. At December 31, 2015, the Company had an accrued unrealized foreign exchange loss of $ 8,000 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, 2015 SEPTEMBER 30, 2015 Foreign Currency Forward Contracts ............. Accrued Expenses and Other Current Liabilities $ 8 $ 18 The following table summarizes the Company’s gains on derivative instruments in the consolidated statements of operations for the three month periods ended December 31, 2015 and 2014 (in thousands): Derivative Instrument Location of Gain on Derivative Instrument DECEMBER 31, 2015 DECEMBER 31, 2014 Foreign Currency Forward Contracts ............. Other Income (Expense) $ 116 $ 925 Amounts in the above table include realized and unrealiz ed derivative gains and losses. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 4. Fair Value of Financial Instruments At December 31, 2015, the Company’s financial instruments included cash and cash equivalents, short-term investments, foreign currency forward contract, trade and notes receivables and accounts payable. Due to the short-term maturities of cash and cash equivalents, trade and other receivables and accounts payable, the carrying amounts approximate fair value on the respective balance sheet dates. The Company measures its short-term investments and derivative instruments at fair value on a recurring basis. The fair value measurement of the Company’s short-term investments and derivative instruments was determined using the following inputs (in thousands): AS OF DECEMBER 31, 2015 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable (Level 2) Significant Unobservable (Level 3) Short-term investments: Corporate bonds ......................... $ 15,943 $ 15,943 $ — $ — Government bonds ....................... 3,619 3,619 — — Foreign currency forward contract ................. (8 ) — (8 ) — Total ................................ $ 19,554 $ 19,562 $ (8 ) $ — AS OF SEPTEMBER 30, 2015 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable (Level 2) Significant Unobservable (Level 3) Short-term investments: Corporate bonds ......................... $ 15,161 $ 15,161 $ — $ — Government bonds ....................... 2,951 2,951 — — Foreign currency forward contract ................. (18 ) — (18 ) — Total ................................ $ 18,094 $ 18,112 $ (18 ) $ — The Company applies fair value techniques on a non-recurring basis in evaluating potential impairment losses related to long-lived assets. |
Accounts and Notes Receivable
Accounts and Notes Receivable | 3 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Accounts and Notes Receivable | 5. Accounts and Notes Receivable Current trade accounts are reflected in the following table (in thousands): DECEMBER 31, 2015 SEPTEMBER 30, 2015 Trade accounts receivable ................. $ 8,451 $ 15,209 Allowance for doubtful accounts ............ (1,368 ) (2,516 ) $ 7,083 $ 12,693 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, net are reflected in the following table (in thousands): DECEMBER 31, 2015 SEPTEMBER 30, 2015 Notes receivable ........................ $ 3,245 $ 3,520 Allowance for doubtful notes ................ — — 3,245 3,520 Less current portion ...................... 1,296 2,004 Non-current notes receivable ................ $ 1,949 $ 1,516 |
Inventories
Inventories | 3 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | 6. Inventories Inventories consist of the following (in thousands): DECEMBER 31, 2015 SEPTEMBER 30, 2015 Finished goods ........................ $ 52,758 $ 55,074 Work in process ....................... 2,183 5,632 Raw material ......................... 72,802 70,769 Obsolescence reserve .................... (7,493 ) (6,675 ) $ 120,250 $ 124,800 During the three months ended December 31, 2015 and 2014, the Company made non-cash inventory transfers of $ 0.1 million and $ 0.1 million, respectively, to its rental equipment fleet. Raw materials include semi-finished goods and component parts totaling $ 49.5 million and $ 48.4 million, respectively, at December 3 1 , 2015 and September 30, 2015. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 7. Long-Term Debt The Company had no long-term debt outstanding at December 31, 2015 and September 30, 2015 . On March 2, 2011, the Company entered into a credit agreement with Frost 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 interest rate for borrowings under the Credit Agreement was a LIBOR based rate with a margin spread of 250 to 325 basis points depending upon the maintenance of certain ratios. On May 4, 2015, the Company amended the Credit Agreement which reduced its borrowing availability to $ 30.0 million with amounts available for borrowing determined by a borrowing base. Under the amendments to the Credit Agreement, the borrowing base is determined based upon certain of the Company’s and its U.S. subsidiaries’ assets which include (i) 80 % of certain accounts receivable plus (ii) 50 % of certain notes receivable (such result not to exceed $ 10 million) plus (iii) 25 % of certain inventories (excluding work-in-process inventories). As of December 31, 2015, the Company’s borrowing base was $ 34.3 million resulting in borrowing availability of $ 30.0 million less any outstanding letters of credit. Borrowings under the Credit Agreement as amended are secured by substantially all of the Company’s assets. In addition, the Company’s domestic subsidiaries have guaranteed the obligations of the Company under the Credit Agreement and such subsidiaries have secured their obligations under such guarantees by the pledge of substantially all of the assets of such subsidiaries. The Credit Agreement as amended expires on May 4, 2018 and all borrowed funds are due and payable at that time. The Company is required to make monthly interest payments on borrowed funds. The Credit Agreement as amended limits the incurrence of additional indebtedness, requires the maintenance of a single financial ratio that compares certain of the Company’s assets to certain of its liabilities, 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 as amended is based on the Wall Street Journal prime rate, which was 3.50 % at December 31, 2015. At December 31, 2015, the Company was in compliance with all covenants under the Credit Agreement. At December 31, 2015, the Company had standby letters of credit outstanding in the amount of $ 136,000 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Dec. 31, 2015 | |
Stockholders Equity Note [Abstract] | |
Accumulated Other Comprehensive Loss | 8. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consisted of the following (in thousands): Unrealized Losses on Available-for- Sale Securities Foreign Currency Translation Adjustments Total Balance at October 1, 2015 ....................... $ (3 ) $ (12,942 ) $ (12,945 ) Changes in unrealized losses on available-for-sale securities (net of tax) (26 ) — (26 ) Foreign currency translation adjustments ......... — (1,222 ) (1,222 ) Balance at December 31, 2015 .................... $ (29 ) $ (14,164 ) $ (14,193 ) |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 9. Stock-Based Compensation During the three months ended December 31, 2015, the Company issued 181,400 shares of restricted stock under its 2014 Long Term Incentive Plan, as amended (the “Plan”). The fair value of the restricted stock on the date of grant was $ 14.87 per share. The unrecognized compensation cost on the date of grant related to these awards was $2.7 million and will be charged to expense over the next four years as the restrictions lapse. Compensation expense for restricted stock 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 are anticipated to fully vest. Recipients of restricted stock awards are entitled to vote such shares and are entitled to dividends, if paid. During the three months ended December 31, 2015, the Company also issued 69,300 nonqualified stock options under the Plan. The options issued are based upon three tiers, each with separate market and service based vesting conditions. Market based vesting conditions are based on achieving a specified market return on the Company’s stock price. Compensation expense for the nonqualified stock option awards was determined based on a Monte Carlo simulation, which incorporates the possibility that the market conditions may not be satisfied. The weighted average grant date fair value of the options issued was determined to be $5.96 per option, with unrecognized compensation costs related to the awards of $0.4 million. The compensation costs will be charged to expense over the requisite service period of the options, ranging from 18 to 36 months. As of December 31, 2015, the Company had unrecognized compensation expense of $10.8 million relating to restricted stock awards which is expected to be recognized over a weighted average period of 3.2 years . In addition, the Company had $0.4 million of unrecognized compensation expense related to nonqualified stock option awards which is expected to be recognized over a weighted average period of 2.1 years. As of December 31, 2015, a total of 280,150 shares of restricted stock and 159,000 nonqualified stock options shares were outstanding. |
Loss Per Common Share
Loss Per Common Share | 3 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Loss Per Common Share | 10. Loss Per Common Share The Company applies the two -class method in calculating per share data. The following table summarizes the calculation of net loss and weighted average common shares and common equivalent shares outstanding for purposes of the computation of loss per share (in thousands, except share and per share data): Three Months Ended December 31, 2015 December 31, 2014 Net loss ................................. $ (11,042 ) $ (5,445 ) Less: Income allocable to unvested restricted stock ..... — 70 Loss available to common shareholders ............ (11,042 ) (5,375 ) Reallocation of participating earnings ............. — — Loss attributable to common shareholders for diluted earnings per share $ (11,042 ) $ (5,375 ) Weighted average number of common share equivalents: Common shares used in basic loss per share ..... 13,024,579 12,9 7 7,913 Common share equivalents outstanding related to stock options — — Total weighted average common shares and common share equivalents used in diluted loss per share 13,024,579 12,977,913 Loss per share: Basic ............................... $ (0.85 ) $ (0.41 ) Diluted .............................. $ (0.85 ) $ (0.41 ) For the calculation of diluted loss per share for the three months ended December 31, 2015 and 2014, 159,000 stock options and 89,700 stock options, respectively, were excluded in the calculation of weighted average shares outstanding as a result of their impact being antidilutive. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies The Company is involved in various pending or potential legal actions in the ordinary course of our business. Management is unable to predict the ultimate outcome of these actions, because of the inherent uncertainty of litigation. Management is not aware of any material pending or known to be contemplated legal or government proceedings against the Company. |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | 12. Segment Information The Company reports and evaluates financial information for two segments: Seismic and Non-Seismic. Seismic product lines include: land and marine wireless data acquisition systems, permanent land and seabed reservoir monitoring 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 following table summarizes the Company’s segment information (in thousands): Three Months Ended December 31, 2015 December 31, 2014 Revenue: Seismic .............................. $ 7,574 $ 15,593 Non-Seismic .......................... 5,433 5,431 Corporate ............................ 130 142 Total ................................ 13,137 21,166 Income (loss) from operations: Seismic .............................. (12,135 ) (7,385 ) Non-Seismic .......................... 562 858 Corporate ............................ (3,119 ) (3,361 ) Total ................................ $ (14,692 ) $ (9,888 ) |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes The Company’s effective tax rates for the three months ended December 31, 2015 and 2014 were (24.5) % and (35.5) %, respectively. The United States statutory rate for the same periods was 35 %. The lower effective tax rate for the period ended December 31, 2015 primarily resulted from the recording of a valuation allowance against the Company’s Canadian subsidiary’s net deferred tax assets. As of December 31, 2015, the Company’s Canadian subsidiary had a tax net operating loss carry-forward (“NOL”) of approximately $ 9.9 million. The Company, using the “more likely than not” criteria, has determined that its Canadian subsidiary will not likely be able to utilize this NOL to offset future taxable income. Therefore, the Company recorded a valuation allowance during the three months ended December 31, 2015 to fully offset the value of its Canadian deferred tax assets. |
Significant Accounting Polici19
Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated balance sheet of Geospace Technologies Corporation and its subsidiaries (the “Company”) at September 30, 2015 was derived from the Company’s audited consolidated financial statements at that date. The consolidated balance sheet at December 31, 2015 and the consolidated statements of operations, comprehensive loss and cash flows for the three months ended December 31, 2015 and 2014 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, 2015 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 pursuant to the rules of the Securities and Exchange Commission. 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 Company’s fiscal year ended September 30, 2015. |
Reclassifications | Reclassifications Certain amounts previously presented in the consolidated financial statements have been reclassified to conform to the current year presentation. During the three months ended December 31, 2015, the Company elected to early adopt Financial Accounting Standards Board (“FASB”), Accounting Standards Update (“ASU”) 2015-17-Income Taxes (Topic 740) requiring all deferred tax assets and liabilities to be classified as non-current on the balance sheet. The purpose of this adoption was to simplify the presentation of deferred income taxes. The accompanying balance sheet as of September 30, 2015 has been retrospectively adjusted to reflect the adoption of this standard. The effect of the adjustment at September 30, 2015 was a $ 6.4 million decrease in current assets, a $ 10,000 decrease in current liabilities, a $ 3.0 million increase in non-current deferred tax assets and a $ 3.4 million decrease in non-current deferred tax liabilities. Such reclassification had no effect on net loss, 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, self-insurance reserves, product warranty reserves, impairment of long-lived 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 accumulated other comprehensive loss in stockholders’ equity. See note 2 for additional information. |
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 certain of the Company’s foreign subsidiaries use an average cost method to value their inventories. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company’s long-lived assets are reviewed for impairment whenever an event or change in circumstances indicates the carrying amount of an asset or group of assets may not be recoverable. The impairment review, if necessary, includes a comparison of expected future cash flows (undiscounted and without interest charges) to be generated by an asset group with the associated carrying value of the related assets. If the carrying value of the asset group exceeds the expected future cash flows, an impairment loss is recognized to the extent that the carrying value of the asset group exceeds its fair value. At December 31, 2015, management reviewed the recoverability of the carrying value of the Company’s long-lived assets based on future undiscounted cash flows and determined that no such impairment of these assets was necessary as the expected future cash flows exceeded the carrying value of the assets . |
Revenue Recognition | Revenue Recognition – Products and Services The Company primarily derives revenue from the sale of its manufactured products, including revenue 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. T he Company recognizes revenue from product sales, including the sale of used rental equipment, when (i) title passes to the customer, (ii) the customer assumes the 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 revenue 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. Revenue 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 revenue are recognized when services are rendered and are generally priced on a per day rate. |
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, 2015 ........................ $ 2,326 Accruals for warranties issued during the period .......... 201 Settlements made (in cash or in kind) during the period ..... (1,428 ) Balance at December 31, 2015 ...................... $ 1,099 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2015, the Financial Accounting Standards Board (“FASB”) issued guidance requiring all deferred tax assets and liabilities, and any related valuation allowance, to be classified as non-current on the balance sheet. The classification change for all deferred taxes as non-current simplifies entities’ processes as it eliminates the need to separately identify the net current and net non-current deferred tax asset or liability in each jurisdiction and allocate valuation allowances. The guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. The guidance can be applied retrospectively or prospectively and early adoption is permitted. The Company elected to retrospectively adopt the accounting standard in our first quarter of fiscal 2016. Prior periods in our consolidated financial statements were retrospectively adjusted. In July 2015, the FASB issued guidance requiring management to measure inventory at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The pronouncement is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period and should be applied retrospectively, with early application permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements and related disclosures. In August 2014, the FASB issued guidance requiring management to evaluate whether there are conditions and events that raise substantial doubt about the entity's ability to continue as a going concern and to provide disclosures in certain circumstances. The new guidance was issued to reduce diversity in the timing and content of footnote disclosures. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2016. The Company will continue to evaluate any significant impacts of this guidance on consolidated financial statement disclosures. In May 2014, the FASB issued guidance requiring entities to recognize revenue from contracts with customers by applying a five-step model in accordance with the core principle to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this guidance specifies the accounting for some costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. In August 2015, the FASB issued guidance deferring the effective date of this guidance to annual periods beginning after December 15, 2017, including interim reporting periods therein. Entities have the option to adopt this guidance either retrospectively or through a modified retrospective transition method. This new standard will supersede existing revenue guidance and affect the Company's revenue recognition process and the presentations or disclosures of the Company's consolidated financial statements and footnotes. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. |
Significant Accounting Polici20
Significant Accounting Policies (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Changes in Warranty Reserve | Changes in the warranty reserve are reflected in the following table (in thousands): Balance at October 1, 2015 ........................ $ 2,326 Accruals for warranties issued during the period .......... 201 Settlements made (in cash or in kind) during the period ..... (1,428 ) Balance at December 31, 2015 ...................... $ 1,099 |
Short-term Investments (Tables)
Short-term Investments (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Investments Debt And Equity Securities [Abstract] | |
Short-term Investments | AS OF DECEMBER 31, 2015 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Corporate bonds ......................... $ 15,977 $ — $ (34 ) $ 15,943 Government bonds ....................... 3,629 — (10 ) 3,619 Total ................................ $ 19,606 $ — $ (44 ) $ 19,562 AS OF SEPTEMBER 30, 2015 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Corporate bonds ......................... $ 15,166 $ — $ (5 ) $ 15,161 Government bonds ....................... 2,948 3 — 2,951 Total ................................ $ 18,114 $ 3 $ (5 ) $ 18,112 |
Derivative Financial Instrume22
Derivative Financial Instruments (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
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, 2015 SEPTEMBER 30, 2015 Foreign Currency Forward Contracts ............. Accrued Expenses and Other Current Liabilities $ 8 $ 18 |
Company's Derivatives on Consolidated Financial Statements of Operations | The following table summarizes the Company’s gains on derivative instruments in the consolidated statements of operations for the three month periods ended December 31, 2015 and 2014 (in thousands): Derivative Instrument Location of Gain on Derivative Instrument DECEMBER 31, 2015 DECEMBER 31, 2014 Foreign Currency Forward Contracts ............. Other Income (Expense) $ 116 $ 925 |
Fair Value of Financial Instr23
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement of Company's Short-term Investments and Derivative Instruments | The fair value measurement of the Company’s short-term investments and derivative instruments was determined using the following inputs (in thousands): AS OF DECEMBER 31, 2015 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable (Level 2) Significant Unobservable (Level 3) Short-term investments: Corporate bonds ......................... $ 15,943 $ 15,943 $ — $ — Government bonds ....................... 3,619 3,619 — — Foreign currency forward contract ................. (8 ) — (8 ) — Total ................................ $ 19,554 $ 19,562 $ (8 ) $ — AS OF SEPTEMBER 30, 2015 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable (Level 2) Significant Unobservable (Level 3) Short-term investments: Corporate bonds ......................... $ 15,161 $ 15,161 $ — $ — Government bonds ....................... 2,951 2,951 — — Foreign currency forward contract ................. (18 ) — (18 ) — Total ................................ $ 18,094 $ 18,112 $ (18 ) $ — |
Accounts and Notes Receivable (
Accounts and Notes Receivable (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Current Trade Accounts Receivable | Current trade accounts are reflected in the following table (in thousands): DECEMBER 31, 2015 SEPTEMBER 30, 2015 Trade accounts receivable ................. $ 8,451 $ 15,209 Allowance for doubtful accounts ............ (1,368 ) (2,516 ) $ 7,083 $ 12,693 |
Notes Receivable | Notes receivable, net are reflected in the following table (in thousands): DECEMBER 31, 2015 SEPTEMBER 30, 2015 Notes receivable ........................ $ 3,245 $ 3,520 Allowance for doubtful notes ................ — — 3,245 3,520 Less current portion ...................... 1,296 2,004 Non-current notes receivable ................ $ 1,949 $ 1,516 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following (in thousands): DECEMBER 31, 2015 SEPTEMBER 30, 2015 Finished goods ........................ $ 52,758 $ 55,074 Work in process ....................... 2,183 5,632 Raw material ......................... 72,802 70,769 Obsolescence reserve .................... (7,493 ) (6,675 ) $ 120,250 $ 124,800 |
Accumulated Other Comprehensi26
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Stockholders Equity Note [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consisted of the following (in thousands): Unrealized Losses on Available-for- Sale Securities Foreign Currency Translation Adjustments Total Balance at October 1, 2015 ....................... $ (3 ) $ (12,942 ) $ (12,945 ) Changes in unrealized losses on available-for-sale securities (net of tax) (26 ) — (26 ) Foreign currency translation adjustments ......... — (1,222 ) (1,222 ) Balance at December 31, 2015 .................... $ (29 ) $ (14,164 ) $ (14,193 ) |
Loss Per Common Share (Tables)
Loss Per Common Share (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Calculation of Net Loss and Weighted Average Common Shares and Common Equivalent Shares Outstanding for Computation of Loss Per Share | The following table summarizes the calculation of net loss and weighted average common shares and common equivalent shares outstanding for purposes of the computation of loss per share (in thousands, except share and per share data): Three Months Ended December 31, 2015 December 31, 2014 Net loss ................................. $ (11,042 ) $ (5,445 ) Less: Income allocable to unvested restricted stock ..... — 70 Loss available to common shareholders ............ (11,042 ) (5,375 ) Reallocation of participating earnings ............. — — Loss attributable to common shareholders for diluted earnings per share $ (11,042 ) $ (5,375 ) Weighted average number of common share equivalents: Common shares used in basic loss per share ..... 13,024,579 12,9 7 7,913 Common share equivalents outstanding related to stock options — — Total weighted average common shares and common share equivalents used in diluted loss per share 13,024,579 12,977,913 Loss per share: Basic ............................... $ (0.85 ) $ (0.41 ) Diluted .............................. $ (0.85 ) $ (0.41 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Summary of Company's Segment Information | The following table summarizes the Company’s segment information (in thousands): Three Months Ended December 31, 2015 December 31, 2014 Revenue: Seismic .............................. $ 7,574 $ 15,593 Non-Seismic .......................... 5,433 5,431 Corporate ............................ 130 142 Total ................................ 13,137 21,166 Income (loss) from operations: Seismic .............................. (12,135 ) (7,385 ) Non-Seismic .......................... 562 858 Corporate ............................ (3,119 ) (3,361 ) Total ................................ $ (14,692 ) $ (9,888 ) |
Significant Accounting Polici29
Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2015 | Sep. 30, 2015 | |
Significant Accounting Policies [Line Items] | ||
Impairment of property plant and equipment | $ 0 | |
Current assets | ||
Significant Accounting Policies [Line Items] | ||
Effect of retrospective adjustment due to accounting standard update | $ (6,400,000) | |
Current liabilities | ||
Significant Accounting Policies [Line Items] | ||
Effect of retrospective adjustment due to accounting standard update | (10,000) | |
Non-Current deferred tax assets | ||
Significant Accounting Policies [Line Items] | ||
Effect of retrospective adjustment due to accounting standard update | 3,000,000 | |
Non-Current deferred tax liabilities | ||
Significant Accounting Policies [Line Items] | ||
Effect of retrospective adjustment due to accounting standard update | $ (3,400,000) |
Changes in Warranty Reserve (De
Changes in Warranty Reserve (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2015USD ($) | |
Changes in product warranty reserve | |
Balance at the beginning of the period | $ 2,326 |
Accruals for warranties issued during the period | 201 |
Settlements made (in cash or in kind) during the period | (1,428) |
Balance at the end of the period | $ 1,099 |
Short-term Investments (Details
Short-term Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Sep. 30, 2015 |
Schedule Of Available For Sale Securities [Line Items] | ||
Short-term Investments, Amortized Cost | $ 19,606 | $ 18,114 |
Short-term Investments, Unrealized Gains | 3 | |
Short-term Investments, Unrealized Losses | (44) | (5) |
Short-term investments | 19,562 | 18,112 |
Corporate bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Short-term Investments, Amortized Cost | 15,977 | 15,166 |
Short-term Investments, Unrealized Losses | (34) | (5) |
Short-term investments | 15,943 | 15,161 |
Government bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Short-term Investments, Amortized Cost | 3,629 | 2,948 |
Short-term Investments, Unrealized Gains | 3 | |
Short-term Investments, Unrealized Losses | (10) | |
Short-term investments | $ 3,619 | $ 2,951 |
Short-term Investments - Additi
Short-term Investments - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Sep. 30, 2015 | |
Short Term Investments [Abstract] | ||
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss), Net of Tax | $ 29,000 | $ 3,000 |
Derivative Financial Instrume33
Derivative Financial Instruments - Additional Information (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2015 | Sep. 30, 2015 | |
Canadian Dollar Forward Contract | ||
Derivative [Line Items] | ||
Foreign currency forward contract to hedge | $ 2,000,000 | |
Foreign currency forward contract term | 90 days | |
Accrued unrealized foreign exchange loss | $ 8,000 | |
Canadian Subsidiary | ||
Derivative [Line Items] | ||
Denominated intercompany accounts payable | 28,300,000 | $ 28,100,000 |
Denominated intercompany accounts payable, short-term nature | 2,100,000 | |
Denominated intercompany accounts payable, long-term nature | $ 26,200,000 |
Gross Fair Value of all Derivat
Gross Fair Value of all Derivative Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Sep. 30, 2015 |
Foreign Currency Forward Contract | Accrued Expenses and Other Current Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivatives Liabilities | $ 8 | $ 18 |
Company's Derivatives on Consol
Company's Derivatives on Consolidated Financial Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Foreign Currency Forward Contract | Other Income (Expense) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amount of (Loss) Gain Recognized in Income | $ 116 | $ 925 |
Fair Value Measurement of Compa
Fair Value Measurement of Company's Short-term Investments and Derivative Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Sep. 30, 2015 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term Investments, Estimated Fair Value | $ 19,562 | $ 18,112 |
Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 19,554 | 18,094 |
Fair Value, Measurements, Recurring | Corporate bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term Investments, Estimated Fair Value | 15,943 | 15,161 |
Fair Value, Measurements, Recurring | Government bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term Investments, Estimated Fair Value | 3,619 | 2,951 |
Fair Value, Measurements, Recurring | Canadian Dollar Forward Contract | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Net Derivatives | (8) | (18) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 19,562 | 18,112 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Corporate bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term Investments, Estimated Fair Value | 15,943 | 15,161 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Government bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term Investments, Estimated Fair Value | 3,619 | 2,951 |
Significant Other Observable (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | (8) | (18) |
Significant Other Observable (Level 2) | Fair Value, Measurements, Recurring | Canadian Dollar Forward Contract | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Net Derivatives | $ (8) | $ (18) |
Current Trade Accounts Receivab
Current Trade Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Sep. 30, 2015 |
Current trade accounts receivable | ||
Trade accounts receivable | $ 8,451 | $ 15,209 |
Allowance for doubtful accounts | (1,368) | (2,516) |
Total current trade accounts receivable | $ 7,083 | $ 12,693 |
Notes Receivable (Details)
Notes Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Sep. 30, 2015 |
Accounts Receivable Net [Abstract] | ||
Notes receivable | $ 3,245 | $ 3,520 |
Total | 3,245 | 3,520 |
Less current portion | 1,296 | 2,004 |
Non-current notes receivable | $ 1,949 | $ 1,516 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Sep. 30, 2015 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 52,758 | $ 55,074 |
Work in process | 2,183 | 5,632 |
Raw material | 72,802 | 70,769 |
Obsolescence reserve | (7,493) | (6,675) |
Total | $ 120,250 | $ 124,800 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |||
Inventories transferred to rental equipment | $ 0.1 | $ 0.1 | |
Raw materials include semi-finished goods and component parts | $ 49.5 | $ 48.4 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - Frost Bank Credit Agreement - USD ($) | 3 Months Ended | |||
Dec. 31, 2015 | Sep. 30, 2015 | May. 04, 2015 | Sep. 27, 2013 | |
Debt Instrument [Line Items] | ||||
Total long-term debt outstanding | $ 0 | $ 0 | ||
Line of credit borrowing capacity | 34,300,000 | $ 50,000,000 | ||
Credit agreement borrowing availability | $ 30,000,000 | $ 30,000,000 | ||
Credit agreement expiration date | May 4, 2018 | |||
Certain Accounts Receivable | ||||
Debt Instrument [Line Items] | ||||
Borrowing base as percentage of assets | 80.00% | |||
Certain Notes Receivable | ||||
Debt Instrument [Line Items] | ||||
Borrowing base as percentage of assets | 50.00% | |||
Maximum amount of borrowing based upon assets | $ 10,000,000 | |||
Certain Inventories | ||||
Debt Instrument [Line Items] | ||||
Borrowing base as percentage of assets | 25.00% | |||
Prime Rate | ||||
Debt Instrument [Line Items] | ||||
Marginal interest rate | 3.50% | |||
New Agreement | ||||
Debt Instrument [Line Items] | ||||
Credit agreement date | Mar. 2, 2011 | |||
Line of Credit | Minimum | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Marginal interest rate | 2.50% | |||
Line of Credit | Maximum | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Marginal interest rate | 3.25% | |||
Standby Letters of Credit | ||||
Debt Instrument [Line Items] | ||||
Standby letters of credit outstanding | $ 136,000 |
Accumulated Other Comprehensi42
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated other comprehensive loss | $ (12,945) | |
Changes in unrealized losses on available-for-sale securities (net of tax) | (26) | $ (2) |
Foreign currency translation adjustments | (1,222) | $ (2,652) |
Accumulated other comprehensive loss | (14,193) | |
Unrealized Losses on Available-for-Sale Securities | ||
Accumulated other comprehensive loss | (3) | |
Changes in unrealized losses on available-for-sale securities (net of tax) | (26) | |
Accumulated other comprehensive loss | (29) | |
Foreign Currency Translation Adjustments | ||
Accumulated other comprehensive loss | (12,942) | |
Foreign currency translation adjustments | (1,222) | |
Accumulated other comprehensive loss | $ (14,164) |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation expense | $ | $ 0.4 |
Expected period for recognition of unrecognized compensation expense | 2 years 1 month 6 days |
Share outstanding, restricted stock | shares | 280,150 |
Nonqualified stock options outstanding | shares | 159,000 |
2014 Long Term Incentive Plan Member | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares issued | shares | 69,300 |
Unrecognized compensation expense | $ | $ 0.4 |
Stock options, weighted average grant date fair value | $ / shares | $ 5.96 |
2014 Long Term Incentive Plan Member | Minimum | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Expected period for recognition of unrecognized compensation expense | 18 months |
2014 Long Term Incentive Plan Member | Maximum | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Expected period for recognition of unrecognized compensation expense | 36 months |
Restricted Stock | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation expense | $ | $ 10.8 |
Expected period for recognition of unrecognized compensation expense | 3 years 2 months 12 days |
Restricted Stock | 2014 Long Term Incentive Plan Member | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares issued | shares | 181,400 |
Fair value of the restricted stock on the date of grant | $ / shares | $ 14.87 |
Unrecognized compensation expense | $ | $ 2.7 |
Expected period for recognition of unrecognized compensation expense | 4 years |
Loss Per Common Share - Additio
Loss Per Common Share - Additional Information (Details) | 3 Months Ended | |
Dec. 31, 2015shares | Dec. 31, 2014shares | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Split of common stock ratio | 2 | |
Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Number of Stock options | 159,000 | 89,700 |
Calculation of Net Loss and Wei
Calculation of Net Loss and Weighted Average Common Shares and Common Equivalent Shares Outstanding for Computation of Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (11,042) | $ (5,445) |
Less: Income allocable to unvested restricted stock | 70 | |
Loss available to common shareholders | (11,042) | (5,375) |
Loss attributable to common shareholders for diluted earnings per share | $ (11,042) | $ (5,375) |
Weighted average number of common share equivalents: | ||
Common shares used in basic loss per share | 13,024,579 | 12,977,913 |
Total weighted average common shares and common share equivalents used in diluted loss per share | 13,024,579 | 12,977,913 |
Basic | $ (0.85) | $ (0.41) |
Diluted | $ (0.85) | $ (0.41) |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Dec. 31, 2015Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Summary of Company's Segment In
Summary of Company's Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 13,137 | $ 21,166 |
Income (loss) from operations | (14,692) | (9,888) |
Corporate, Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Revenue | 130 | 142 |
Income (loss) from operations | (3,119) | (3,361) |
Seismic | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 7,574 | 15,593 |
Income (loss) from operations | (12,135) | (7,385) |
Non-Seismic | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 5,433 | 5,431 |
Income (loss) from operations | $ 562 | $ 858 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Line Items] | ||
Company's effective tax rates | (24.50%) | (35.50%) |
United States statutory tax rate | 35.00% | 35.00% |
Canadian Subsidiary | ||
Income Taxes [Line Items] | ||
Net operating loss, carryforward | $ 9.9 |