Geospace Technologies (GEOS) 10-Q 4 Aug 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2017	Jul. 31, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
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		13,439,566

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2017	Sep. 30, 2016
Current assets:
Cash and cash equivalents	$ 17,077	$ 10,262
Short-term investments	36,461	27,491
Trade accounts receivable, net	8,327	15,392
Current portion of notes receivable	2,614	1,533
Income tax receivable	473	13,290
Inventories, net	88,024	104,540
Prepaid expenses and other current assets	1,854	1,826
Total current assets	154,830	174,334
Rental equipment, net	20,551	30,973
Property, plant and equipment, net	43,432	44,732
Deferred income tax assets, net	267	216
Non-current notes receivable, net	588	1,817
Prepaid income taxes	1,464	2,620
Other assets	641	80
Total assets	221,773	254,772
Current liabilities:
Accounts payable trade	2,041	2,120
Accrued expenses and other current liabilities	5,666	7,849
Deferred revenue	1,386	174
Income tax payable	3	125
Total current liabilities	9,096	10,268
Deferred income tax liabilities	31	37
Total liabilities	9,127	10,305
Commitments and contingencies (Note 11)
Stockholders’ equity:
Preferred stock
Common stock	134	133
Additional paid-in capital	82,291	77,967
Retained earnings	144,724	182,308
Accumulated other comprehensive loss	(14,503)	(15,941)
Total stockholders’ equity	212,646	244,467
Total liabilities and stockholders’ equity	$ 221,773	$ 254,772

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenue:
Total revenue	$ 14,195	$ 17,678	$ 50,038	$ 45,746
Cost of revenue:
Total cost of revenue	19,307	20,578	61,035	59,642
Gross profit (loss)	(5,112)	(2,900)	(10,997)	(13,896)
Operating expenses:
Selling, general and administrative expenses	4,972	5,125	15,092	16,316
Research and development expenses	3,674	3,441	10,458	10,556
Bad debt expense (recovery)	16	549	(402)	(74)
Total operating expenses	8,662	9,115	25,148	26,798
Loss from operations	(13,774)	(12,015)	(36,145)	(40,694)
Other income (expense):
Interest expense	(8)	(7)	(24)	(18)
Interest income	185	84	453	252
Foreign exchange losses, net	(120)	(678)	(401)	(9)
Other, net	(11)	(16)	(44)	(50)
Total other income (expense), net	46	(617)	(16)	175
Loss before income taxes	(13,728)	(12,632)	(36,161)	(40,519)
Income tax expense (benefit)	648	(978)	1,423	(6,858)
Net loss	$ (14,376)	$ (11,654)	$ (37,584)	$ (33,661)
Loss per common share:
Basic	$ (1.09)	$ (0.89)	$ (2.86)	$ (2.58)
Diluted	$ (1.09)	$ (0.89)	$ (2.86)	$ (2.58)
Weighted average common shares outstanding:
Basic	13,147,016	13,051,916	13,129,196	13,042,000
Diluted	13,147,016	13,051,916	13,129,196	13,042,000
Products
Revenue:
Total revenue	$ 12,888	$ 12,594	$ 37,960	$ 34,452
Cost of revenue:
Total cost of revenue	15,489	15,894	49,124	46,252
Rental equipment
Revenue:
Total revenue	1,307	5,084	12,078	11,294
Cost of revenue:
Total cost of revenue	$ 3,818	$ 4,684	$ 11,911	$ 13,390

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (14,376,000)	$ (11,654,000)	$ (37,584,000)	$ (33,661,000)
Other comprehensive income (loss)
Change in unrealized (losses) gains on available-for-sale securities, net of tax	(10,000)	16,000	(61,000)	21,000
Foreign currency translation adjustments	452,000	115,000	1,499,000	(1,473,000)
Total other comprehensive income (loss)	442,000	131,000	1,438,000	(1,452,000)
Total comprehensive loss	$ (13,934,000)	$ (11,523,000)	$ (36,146,000)	$ (35,113,000)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net loss	$ (37,584)	$ (33,661)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Deferred income tax (benefit) expense	(25)	4,211
Rental equipment depreciation	9,858	11,189
Property, plant and equipment depreciation	3,930	4,017
Impairment of rental assets		998
Accretion of discounts on short-term investments	45	89
Stock-based compensation expense	4,289	3,934
Bad debt recovery	(402)	(74)
Inventory obsolescence expense	12,111	7,031
Gross profit from sale of used rental equipment	(2,650)	(229)
Realized loss on short-term investments	2	4
Excess tax expense from stock-based compensation		(1,390)
Effects of changes in operating assets and liabilities:
Trade accounts and notes receivable	8,871	72
Income tax receivable	12,847	6,858
Inventories	1,208	3,066
Prepaid expenses and other current assets	459	(4,435)
Prepaid income taxes	1,156	1,097
Accounts payable trade	(77)	(1,844)
Accrued expenses and other	(2,033)	(2,062)
Deferred revenue	119	(74)
Income tax payable	(117)	109
Net cash provided by (used in) operating activities	12,007	(1,094)
Cash flows from investing activities:
Purchase of property, plant and equipment	(588)	(1,206)
Investment in rental equipment	(299)	(504)
Proceeds from the sale of used rental equipment	4,424	1,280
Purchases of short-term investments	(16,042)	(20,800)
Proceeds from the sale of short-term investments	6,991	11,679
Net cash used in investing activities	(5,514)	(9,551)
Cash flows from financing activities:
Proceeds from the exercise of stock options	50
Net cash provided by financing activities	50
Effect of exchange rate changes on cash	272	(143)
Increase (decrease) in cash and cash equivalents	6,815	(10,788)
Cash and cash equivalents, beginning of fiscal year	10,262	22,314
Cash and cash equivalents, end of fiscal period	$ 17,077	$ 11,526

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Jun. 30, 2017
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, 2016 was derived from the Company’s audited consolidated financial statements at that date. The consolidated balance sheet at June 30, 2017 and the consolidated statements of operations and comprehensive loss for the three and nine months ended June 30, 2017 and 2016, and the consolidated statements of cash flows for the nine months ended June 30, 2017 and 2016 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 and nine months ended June 30, 2017 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, 2016. Reclassifications Certain amounts previously presented in the consolidated financial statements have been reclassified to conform to the current year presentation. Such reclassifications 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 management to make estimates and assumptions that affect the amounts of assets, liabilities, revenue and expenses 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, the results of which form the basis for making judgments about the carrying values of assets and liabilities which are not readily available from other sources. 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. The Company periodically reviews the composition of its inventories to determine if market demand, product modifications, technology changes, excessive quantities on-hand and other factors hinder its ability to recover its investment in such inventories. The Company’s assessment is based upon historical product demand, estimated future product demand and various other judgments and estimates. Inventory obsolescence reserves are recorded when such assessments reveal that portions or components of the Company’s inventory investment will not be realized in its operating activities. 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, which is measured by the expected future cash flows. 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. The Company recognizes revenue from product sales, including the sale of used rental equipment, when all of the following have occurred: (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. Although infrequent, in cases where collectability is not reasonably assured, the installment or cost recovery method is used. 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 is recognized as services are rendered over the duration of a project, or as billed on a per hour basis. Field service revenue is recognized when services are rendered and is 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, 2016 $ 392 Accruals for warranties issued during the period 592 Settlements made (in cash or in kind) during the period (453 ) Balance at June 30, 2017 $ 531 Recent Accounting Pronouncements In May 2017, the Financial Accounting Standards Board (“FASB”) issued guidance clarifying when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. The new guidance must be adopted by the Company on a prospective basis no later than its first quarter of fiscal year 2018, with early adoption permitted. This new guidance is not expected to have an impact on the Company’s consolidated financial statements as it is not the Company’s practice to change either the terms or conditions of share-based payment awards once they are granted. In November 2016, the FASB issued guidance which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance must be adopted by the Company no later than its first quarter of fiscal year 2019 and should be applied on a retrospective transition basis. The Company has historically not held restricted cash balances and, therefore, does not expect the adoption of this guidance to have a material effect on its consolidated financial statements. However, upon adoption of this guidance, the Company will make any necessary changes to present restricted cash balances in accordance with the guidance. In October 2016, the FASB issued guidance which eliminates the exception of recognizing, at the time of transfer, current and deferred income taxes for intercompany profits on intra-entity asset transfers other than inventory. This guidance must be adopted by the Company no later than its first quarter of fiscal year 2019 and applied on a modified retrospective transition basis. Since early adoption is permitted, the Company is planning to adopt this guidance in its first quarter of its fiscal year ending September 30, 2018. Under current guidance, the Company maintains a non-current prepaid income tax asset on its consolidated balance sheets representing income taxes paid in the U.S. on profits realized from the sale of rental equipment to its foreign subsidiaries. As this rental equipment is depreciated, the prepaid tax is recognized as a current income tax expense in the Company’s consolidated statement of operations. Upon adoption of the new guidance, the Company will be required to recognize a deferred tax asset related to the intercompany profits realized on the sale of assets to its subsidiaries; however, profits realized from the intercompany sale of inventories will continue to be accounted for as a prepaid income tax asset similar to the current guidance. The deferred tax asset resulting from the sale of non-inventory assets will be recognized at the jurisdictional tax rate of the subsidiary purchasing the asset. Any differences between the subsidiary’s jurisdictional tax rate and the seller’s tax rate pertaining to the intercompany profit will be charged to seller’s current income tax expense at the time of the sale. Since the current U.S. income tax rate is substantially higher than the current income tax rates applicable to each of the Company’s foreign subsidiaries, adoption of the new guidance could have a significant impact on the Company’s provision for income taxes in future periods if significant amounts of rental equipment are sold by the Company’s U.S. subsidiaries to its foreign subsidiaries. In June 2016, the FASB issued guidance surrounding credit losses for financial instruments that replaces the incurred loss impairment methodology in current U.S. generally accepted accounting principles (“GAAP”). The new impairment model requires immediate recognition of estimated credit losses expected to occur for most financial assets and certain other financial instruments. For available-for-sale debt securities with unrealized losses, credit losses will be recognized as allowances rather than reductions in the amortized cost of the securities. The standard is effective for annual reporting periods beginning after December 15, 2019 and interim periods within those annual periods. Early adoption for a fiscal year beginning after December 15, 2018 is permitted. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first effective reporting period. The Company expects to adopt this standard during the first quarter of its fiscal year ending September 30, 2021 and is currently evaluating the impact of this new guidance on its consolidated financial statements. In March 2016, the FASB issued guidance to simplify key components of employee share-based payment accounting. The guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. The Company expects to adopt this guidance in the first quarter of its fiscal year ending September 30, 2018. The new guidance simplifies several aspects of the accounting for share-based payment transactions, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification of excess tax benefits from share-based payments on the statement of cash flows. Under the current standard, the Company is required to track and record as a component of additional paid-in capital the tax impact of cumulative windfalls, net of any shortfalls, which result from excess tax benefits from share-based payments. As a result, the impact of net windfalls has not historically affected the Company’s provision for income taxes or its effective income tax rate. Upon adoption of the new standard, the Company will record a cumulative-effect adjustment to retained earnings for unrecorded excess tax benefits residing in its additional paid in capital account. In addition, the Company will no longer track windfalls or shortfalls resulting from share-based payments since all future windfalls and shortfalls will be recorded as a component of the Company’s current provision for income taxes. Depending on the magnitude of future windfalls or shortfalls, this change could significantly affect the Company’s provision for income taxes in a positive or negative direction. In February 2016, the FASB issued guidance requiring a lessee to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement and presentation of expense and cash flows arising from a lease by a lessee primarily will depend on its classification of the lease as a finance or operating lease. However, unlike current GAAP, which requires only capital leases to be recognized on the balance sheet, the new guidance will also require operating leases of the lessee to be recognized on the balance sheet if the operating lease term is more than 12 months. The guidance also requires disclosures to help investors and other financial statement users to better understand the amount, timing and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2018 and is to be applied using the modified retrospective approach. The Company expects to adopt this standard in its first quarter of its fiscal year ending September 30, 2020. The Company currently is not a lessee under any lease agreements with a term longer than one year. The Company is routinely a lessor in its rental contracts with customers; however, these rental agreements are short-term in nature and would be treated as operating leases under the new guidance. As a result, the Company does not expect the adoption of this guidance to have a material effect upon its consolidated financial statements. In July 2015, the FASB issued guidance requiring management to measure inventory at the lower of cost or net realizable value. Under the new guidance, net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new guidance 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 expects to adopt this standard in its first quarter of its fiscal year ending September 30, 2018. Since the Company is a manufacturer and the nature of its inventory is generally unique to its designs and applications thus preventing the gathering of relevant external market data, its practice for calculating net realizable value under the current standard is consistent with the practice prescribed by the new guidance. Therefore, the Company does not expect the adoption of the new guidance to have a material effect upon its consolidated financial statements. In August 2014, the FASB issued guidance requiring management to evaluate whether there are conditions and events that raise substantial doubt about an 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 ending after December 15, 2016 and interim reporting periods thereafter. The Company’s management will begin evaluating any potential events and conditions which raise substantial doubt about the Company’s ability to continue as a going concern upon adoption on September 30, 2017. The adoption of this guidance may result in additional disclosures to our consolidated financial statements. 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 recognizes revenue through three primary transactions types: (i) the immediate recognition of revenue through the routine delivery of products to its customers, (ii) the rental of equipment to its customers through short-term operating leases, and (iii) the recognition of revenue utilizing the percentage of completion method for the delivery of complex products requiring long manufacturing times and substantial engineering resources. While the Company does not expect the new guidance to impact its routine product sales or rental contracts, the new guidance could impact the manner in which it recognizes revenue using the percentage of completion method. The Company expects to adopt this standard in the first quarter of its fiscal year ending September 30, 2019 and is in the early stages of evaluating the standard including the method of adoption to determine the impact on its consolidated financial statements. Further disclosures around policy changes or quantitative effects will be made as the Company moves closer to the adoption of this standard.

Short-term Investments

Short-term Investments	9 Months Ended
	Jun. 30, 2017
Investments Debt And Equity Securities [Abstract]
Short-term Investments	2. Short-term Investments As of June 30, 2017 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments Corporate bonds $ 23,756 $ — $ (45 ) $ 23,711 Government bonds 12,785 — (35 ) 12,750 Total $ 36,541 $ — $ (80 ) $ 36,461 As of September 30, 2016 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments Corporate bonds $ 17,342 $ — $ (19 ) $ 17,323 Government bonds 10,169 — (1 ) 10,168 Total $ 27,511 $ — $ (20 ) $ 27,491 Accumulated other comprehensive loss on the consolidated balance sheets at June 30, 2017 and September 30, 2016 included unrealized losses (net of tax) of $61,000 and $12,000, respectively. The Company’s short-term investments have contractual maturities ranging from August 2017 to March 2019.

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Jun. 30, 2017
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	3. Derivative Financial Instruments At June 30, 2017 and September 30, 2016, the Company’s Canadian subsidiary had $24.9 million 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 $0.7 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 $24.2 million Canadian dollar denominated intercompany accounts payable to be of a long-term nature 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”. On June 30, 2017, the Company entered into a $0.7 million Canadian dollar hedge contract with a United States bank to hedge its short-term Canadian dollar foreign exchange rate exposure. An additional $4.3 million Canadian dollar hedge contract was entered into in July 2017. These contracts, which expire September 30, 2017, reduce the impact on cash flows from movements in the Canadian dollar/U.S. dollar currency exchange rate, but have not been designated as a hedge for accounting purposes. 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 June 30, 2017 September 30, 2016 Foreign Currency Forward Contracts Prepaid Expenses and Other Current Assets $ — $ 5 The following table summarizes the Company’s gains on derivative instruments in the consolidated statements of operations for the three and nine month periods ended June 30, 2017 and 2016 (in thousands): Three Months Ended Nine Months Ended Derivative Instrument Location June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Foreign Currency Forward Contracts Other Income (Expense) $ (48 ) $ (14 ) $ (20 ) $ 14 Amounts in the above table include realized and unrealized derivative gains and losses.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	4. Fair Value of Financial Instruments At June 30, 2017, 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 June 30, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable (Level 2) Significant Unobservable (Level 3) Totals Short-term investments Corporate bonds $ 23,711 $ — $ — $ 23,711 Government bonds 12,750 — — 12,750 Total $ 36,461 $ — $ — $ 36,461 As of September 30, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable (Level 2) Significant Unobservable (Level 3) Totals Short-term investments Corporate bonds $ 17,323 $ — $ — $ 17,323 Government bonds 10,168 — — $ 10,168 Foreign currency forward contract — 5 — 5 Total $ 27,491 $ 5 $ — $ 27,496

Accounts and Notes Receivable

Accounts and Notes Receivable	9 Months Ended
	Jun. 30, 2017
Receivables [Abstract]
Accounts and Notes Receivable	5. Accounts and Notes Receivable Current trade accounts receivable are reflected in the following table (in thousands): June 30, 2017 September 30, 2016 Trade accounts receivable $ 9,725 $ 17,841 Allowance for doubtful accounts (1,398 ) (2,449 ) $ 8,327 $ 15,392 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 current review of its balances. Accounts receivable balances are charged off against the allowance whenever it is probable that the receivable will not be recoverable. Notes receivable, net is reflected in the following table (in thousands): June 30, 2017 September 30, 2016 Notes receivable $ 4,222 $ 3,850 Allowance for doubtful notes (1,020 ) (500 ) 3,202 3,350 Less current portion 2,614 1,533 Non-current notes receivable $ 588 $ 1,817

Inventories

Inventories	9 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Inventories	6. Inventories Inventories consist of the following (in thousands): June 30, 2017 September 30, 2016 Finished goods $ 36,190 $ 40,260 Work in process 1,828 8,272 Raw material 70,438 65,682 Obsolescence reserve (20,432 ) (9,674 ) $ 88,024 $ 104,540 During the nine months ended June 30, 2017 and 2016, the Company made non-cash inventory transfers of $1.6 million and $3.0 million, respectively, to rental equipment and $1.9 million and $0.1 million, respectively, to property, plant and equipment. Raw materials include semi-finished goods and component parts totaling $43.8 million at June 30, 2017 and September 30, 2016, respectively.

Long-Term Debt

Long-Term Debt	9 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Long-Term Debt	7. Long-Term Debt The Company had no long-term debt outstanding at June 30, 2017 and September 30, 2016. On March 2, 2011, the Company entered into a credit agreement with Frost Bank with borrowing availability of $50.0 million (the “Credit Agreement”). 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 June 30, 2017, the Company’s borrowing base was $26.2 million. As of June 30, 2017, the amount available for borrowing was $25.8 million after consideration of $0.4 million of outstanding letters of credit. 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, except real property assets. The Credit Agreement 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 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 repurchase its common stock and 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 4.25% at June 30, 2017. At June 30, 2017, the Company was in compliance with all covenants under the Credit Agreement.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Jun. 30, 2017
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 Totals Balance at October 1, 2016 $ (15 ) $ (15,926 ) $ (15,941 ) Changes in unrealized losses on available-for-sale securities (61 ) — (61 ) Foreign currency translation adjustments — 1,499 1,499 Balance at June 30, 2017 $ (76 ) $ (14,427 ) $ (14,503 )

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Jun. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	9. Stock-Based Compensation During the nine months ended June 30, 2017, the Company issued 109,500 shares of restricted stock under its 2014 Long Term Incentive Plan, as amended (the “Plan”). The weighted average grant date fair value of the restricted stock was $21.12 per share. The grant date fair value of these awards was $2.3 million, which 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 nine months ended June 30, 2017, the Company also issued 51,300 nonqualified stock options under the Plan. The options issued are based upon three tiers, each with separate service based vesting conditions and market conditions that affect exercisability. Market based 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 $9.35 per option resulting in unrecognized compensation costs of $0.5 million, which will be charged to expense over the requisite service period of the options, ranging from 18 to 36 months. As of June 30, 2017, the Company had unrecognized compensation expense of $5.1 million relating to restricted stock awards. This unrecognized compensation expense is expected to be recognized over a weighted average period of 2.7 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 1.5 years. As of June 30, 2017, a total of 292,550 shares of restricted stock and 201,800 nonqualified stock options shares were outstanding.

Loss Per Common Share

Loss Per Common Share	9 Months Ended
	Jun. 30, 2017
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 Nine Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Net loss $ (14,376 ) $ (11,654 ) $ (37,584 ) $ (33,661 ) Less: Income allocable to unvested restricted stock — — — — Loss available to common shareholders (14,376 ) (11,654 ) (37,584 ) (33,661 ) Reallocation of participating earnings — — — — Loss attributable to common shareholders for diluted earnings per share $ (14,376 ) $ (11,654 ) $ (37,584 ) $ (33,661 ) Weighted average number of common share equivalents: Common shares used in basic loss per share 13,147,016 13,051,916 13,129,196 13,042,000 Common share equivalents outstanding related to stock options — — — — Total weighted average common shares and common share equivalents used in diluted loss per share 13,147,016 13,051,916 13,129,196 13,042,000 Loss per share: Basic $ (1.09 ) $ (0.89 ) $ (2.86 ) $ (2.58 ) Diluted $ (1.09 ) $ (0.89 ) $ (2.86 ) $ (2.58 ) For the calculation of diluted loss per share for the three and nine months ended June 30, 2017 and 2016, 201,800 stock options and 159,000 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	9 Months Ended
	Jun. 30, 2017
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	9 Months Ended
	Jun. 30, 2017
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 imaging products and industrial products. The following table summarizes the Company’s segment information (in thousands): Three Months Ended Nine Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Revenue: Seismic $ 7,308 $ 9,567 $ 30,658 $ 25,642 Non-Seismic 6,741 7,967 18,945 19,687 Corporate 146 144 435 417 Total $ 14,195 $ 17,678 $ 50,038 $ 45,746 Income (loss) from operations: Seismic $ (11,972 ) $ (10,263 ) $ (30,581 ) $ (34,232 ) Non-Seismic 1,004 1,194 3,108 2,604 Corporate (2,806 ) (2,946 ) (8,672 ) (9,066 ) Total $ (13,774 ) $ (12,015 ) $ (36,145 ) $ (40,694 )

Income Taxes

Income Taxes	9 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	13. Income Taxes The Company’s effective tax rates for the three months ended June 30, 2017 and 2016 were (4.7)% and (7.7)% , respectively. The Company’s effective tax rates for the nine months ended June 30, 2017 and 2016 were (3.9)% and (16.9)%, respectively. The United States statutory tax rate for the same periods was 35%. Compared to the United States statutory rate, the lower effective tax rates for all periods resulted primarily from the provision of a valuation allowance against the Company’s U.S. and Canadian deferred tax assets due to the uncertainty surrounding the Company’s ability to utilize such deferred tax assets in the future to offset taxable income. Income tax expense for the three months and nine months ended June 30, 2017 resulted from (i) the recognition as income tax expense for taxes paid in prior years resulting from the sale of rental equipment to the Company’s foreign subsidiaries and (ii) the recognition of a valuation allowance against a foreign tax credit realized on rental revenues invoiced outside the United States.

Significant Accounting Polici19

Significant Accounting Policies (Policies)	9 Months Ended
	Jun. 30, 2017
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, 2016 was derived from the Company’s audited consolidated financial statements at that date. The consolidated balance sheet at June 30, 2017 and the consolidated statements of operations and comprehensive loss for the three and nine months ended June 30, 2017 and 2016, and the consolidated statements of cash flows for the nine months ended June 30, 2017 and 2016 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 and nine months ended June 30, 2017 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, 2016.
Reclassifications	Reclassifications Certain amounts previously presented in the consolidated financial statements have been reclassified to conform to the current year presentation. Such reclassifications 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 management to make estimates and assumptions that affect the amounts of assets, liabilities, revenue and expenses 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, the results of which form the basis for making judgments about the carrying values of assets and liabilities which are not readily available from other sources. 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. The Company periodically reviews the composition of its inventories to determine if market demand, product modifications, technology changes, excessive quantities on-hand and other factors hinder its ability to recover its investment in such inventories. The Company’s assessment is based upon historical product demand, estimated future product demand and various other judgments and estimates. Inventory obsolescence reserves are recorded when such assessments reveal that portions or components of the Company’s inventory investment will not be realized in its operating activities.
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, which is measured by the expected future cash flows.
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. The Company recognizes revenue from product sales, including the sale of used rental equipment, when all of the following have occurred: (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. Although infrequent, in cases where collectability is not reasonably assured, the installment or cost recovery method is used. 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 is recognized as services are rendered over the duration of a project, or as billed on a per hour basis. Field service revenue is recognized when services are rendered and is 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, 2016 $ 392 Accruals for warranties issued during the period 592 Settlements made (in cash or in kind) during the period (453 ) Balance at June 30, 2017 $ 531
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2017, the Financial Accounting Standards Board (“FASB”) issued guidance clarifying when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. The new guidance must be adopted by the Company on a prospective basis no later than its first quarter of fiscal year 2018, with early adoption permitted. This new guidance is not expected to have an impact on the Company’s consolidated financial statements as it is not the Company’s practice to change either the terms or conditions of share-based payment awards once they are granted. In November 2016, the FASB issued guidance which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance must be adopted by the Company no later than its first quarter of fiscal year 2019 and should be applied on a retrospective transition basis. The Company has historically not held restricted cash balances and, therefore, does not expect the adoption of this guidance to have a material effect on its consolidated financial statements. However, upon adoption of this guidance, the Company will make any necessary changes to present restricted cash balances in accordance with the guidance. In October 2016, the FASB issued guidance which eliminates the exception of recognizing, at the time of transfer, current and deferred income taxes for intercompany profits on intra-entity asset transfers other than inventory. This guidance must be adopted by the Company no later than its first quarter of fiscal year 2019 and applied on a modified retrospective transition basis. Since early adoption is permitted, the Company is planning to adopt this guidance in its first quarter of its fiscal year ending September 30, 2018. Under current guidance, the Company maintains a non-current prepaid income tax asset on its consolidated balance sheets representing income taxes paid in the U.S. on profits realized from the sale of rental equipment to its foreign subsidiaries. As this rental equipment is depreciated, the prepaid tax is recognized as a current income tax expense in the Company’s consolidated statement of operations. Upon adoption of the new guidance, the Company will be required to recognize a deferred tax asset related to the intercompany profits realized on the sale of assets to its subsidiaries; however, profits realized from the intercompany sale of inventories will continue to be accounted for as a prepaid income tax asset similar to the current guidance. The deferred tax asset resulting from the sale of non-inventory assets will be recognized at the jurisdictional tax rate of the subsidiary purchasing the asset. Any differences between the subsidiary’s jurisdictional tax rate and the seller’s tax rate pertaining to the intercompany profit will be charged to seller’s current income tax expense at the time of the sale. Since the current U.S. income tax rate is substantially higher than the current income tax rates applicable to each of the Company’s foreign subsidiaries, adoption of the new guidance could have a significant impact on the Company’s provision for income taxes in future periods if significant amounts of rental equipment are sold by the Company’s U.S. subsidiaries to its foreign subsidiaries. In June 2016, the FASB issued guidance surrounding credit losses for financial instruments that replaces the incurred loss impairment methodology in current U.S. generally accepted accounting principles (“GAAP”). The new impairment model requires immediate recognition of estimated credit losses expected to occur for most financial assets and certain other financial instruments. For available-for-sale debt securities with unrealized losses, credit losses will be recognized as allowances rather than reductions in the amortized cost of the securities. The standard is effective for annual reporting periods beginning after December 15, 2019 and interim periods within those annual periods. Early adoption for a fiscal year beginning after December 15, 2018 is permitted. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first effective reporting period. The Company expects to adopt this standard during the first quarter of its fiscal year ending September 30, 2021 and is currently evaluating the impact of this new guidance on its consolidated financial statements. In March 2016, the FASB issued guidance to simplify key components of employee share-based payment accounting. The guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. The Company expects to adopt this guidance in the first quarter of its fiscal year ending September 30, 2018. The new guidance simplifies several aspects of the accounting for share-based payment transactions, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification of excess tax benefits from share-based payments on the statement of cash flows. Under the current standard, the Company is required to track and record as a component of additional paid-in capital the tax impact of cumulative windfalls, net of any shortfalls, which result from excess tax benefits from share-based payments. As a result, the impact of net windfalls has not historically affected the Company’s provision for income taxes or its effective income tax rate. Upon adoption of the new standard, the Company will record a cumulative-effect adjustment to retained earnings for unrecorded excess tax benefits residing in its additional paid in capital account. In addition, the Company will no longer track windfalls or shortfalls resulting from share-based payments since all future windfalls and shortfalls will be recorded as a component of the Company’s current provision for income taxes. Depending on the magnitude of future windfalls or shortfalls, this change could significantly affect the Company’s provision for income taxes in a positive or negative direction. In February 2016, the FASB issued guidance requiring a lessee to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement and presentation of expense and cash flows arising from a lease by a lessee primarily will depend on its classification of the lease as a finance or operating lease. However, unlike current GAAP, which requires only capital leases to be recognized on the balance sheet, the new guidance will also require operating leases of the lessee to be recognized on the balance sheet if the operating lease term is more than 12 months. The guidance also requires disclosures to help investors and other financial statement users to better understand the amount, timing and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2018 and is to be applied using the modified retrospective approach. The Company expects to adopt this standard in its first quarter of its fiscal year ending September 30, 2020. The Company currently is not a lessee under any lease agreements with a term longer than one year. The Company is routinely a lessor in its rental contracts with customers; however, these rental agreements are short-term in nature and would be treated as operating leases under the new guidance. As a result, the Company does not expect the adoption of this guidance to have a material effect upon its consolidated financial statements. In July 2015, the FASB issued guidance requiring management to measure inventory at the lower of cost or net realizable value. Under the new guidance, net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new guidance 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 expects to adopt this standard in its first quarter of its fiscal year ending September 30, 2018. Since the Company is a manufacturer and the nature of its inventory is generally unique to its designs and applications thus preventing the gathering of relevant external market data, its practice for calculating net realizable value under the current standard is consistent with the practice prescribed by the new guidance. Therefore, the Company does not expect the adoption of the new guidance to have a material effect upon its consolidated financial statements. In August 2014, the FASB issued guidance requiring management to evaluate whether there are conditions and events that raise substantial doubt about an 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 ending after December 15, 2016 and interim reporting periods thereafter. The Company’s management will begin evaluating any potential events and conditions which raise substantial doubt about the Company’s ability to continue as a going concern upon adoption on September 30, 2017. The adoption of this guidance may result in additional disclosures to our consolidated financial statements. 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 recognizes revenue through three primary transactions types: (i) the immediate recognition of revenue through the routine delivery of products to its customers, (ii) the rental of equipment to its customers through short-term operating leases, and (iii) the recognition of revenue utilizing the percentage of completion method for the delivery of complex products requiring long manufacturing times and substantial engineering resources. While the Company does not expect the new guidance to impact its routine product sales or rental contracts, the new guidance could impact the manner in which it recognizes revenue using the percentage of completion method. The Company expects to adopt this standard in the first quarter of its fiscal year ending September 30, 2019 and is in the early stages of evaluating the standard including the method of adoption to determine the impact on its consolidated financial statements. Further disclosures around policy changes or quantitative effects will be made as the Company moves closer to the adoption of this standard.

Significant Accounting Polici20

Significant Accounting Policies (Tables)	9 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Changes in Warranty Reserve	Changes in the warranty reserve are reflected in the following table (in thousands): Balance at October 1, 2016 $ 392 Accruals for warranties issued during the period 592 Settlements made (in cash or in kind) during the period (453 ) Balance at June 30, 2017 $ 531

Short-term Investments (Tables)

Short-term Investments (Tables)	9 Months Ended
	Jun. 30, 2017
Investments Debt And Equity Securities [Abstract]
Short-term Investments	As of June 30, 2017 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments Corporate bonds $ 23,756 $ — $ (45 ) $ 23,711 Government bonds 12,785 — (35 ) 12,750 Total $ 36,541 $ — $ (80 ) $ 36,461 As of September 30, 2016 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments Corporate bonds $ 17,342 $ — $ (19 ) $ 17,323 Government bonds 10,169 — (1 ) 10,168 Total $ 27,511 $ — $ (20 ) $ 27,491

Derivative Financial Instrume22

Derivative Financial Instruments (Tables)	9 Months Ended
	Jun. 30, 2017
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 June 30, 2017 September 30, 2016 Foreign Currency Forward Contracts Prepaid Expenses and Other Current Assets $ — $ 5
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 and nine month periods ended June 30, 2017 and 2016 (in thousands): Three Months Ended Nine Months Ended Derivative Instrument Location June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Foreign Currency Forward Contracts Other Income (Expense) $ (48 ) $ (14 ) $ (20 ) $ 14

Fair Value of Financial Instr23

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Jun. 30, 2017
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 June 30, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable (Level 2) Significant Unobservable (Level 3) Totals Short-term investments Corporate bonds $ 23,711 $ — $ — $ 23,711 Government bonds 12,750 — — 12,750 Total $ 36,461 $ — $ — $ 36,461 As of September 30, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable (Level 2) Significant Unobservable (Level 3) Totals Short-term investments Corporate bonds $ 17,323 $ — $ — $ 17,323 Government bonds 10,168 — — $ 10,168 Foreign currency forward contract — 5 — 5 Total $ 27,491 $ 5 $ — $ 27,496

Accounts and Notes Receivable (

Accounts and Notes Receivable (Tables)	9 Months Ended
	Jun. 30, 2017
Receivables [Abstract]
Current Trade Accounts Receivable	Current trade accounts receivable are reflected in the following table (in thousands): June 30, 2017 September 30, 2016 Trade accounts receivable $ 9,725 $ 17,841 Allowance for doubtful accounts (1,398 ) (2,449 ) $ 8,327 $ 15,392
Notes Receivable	Notes receivable, net is reflected in the following table (in thousands): June 30, 2017 September 30, 2016 Notes receivable $ 4,222 $ 3,850 Allowance for doubtful notes (1,020 ) (500 ) 3,202 3,350 Less current portion 2,614 1,533 Non-current notes receivable $ 588 $ 1,817

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Inventories	Inventories consist of the following (in thousands): June 30, 2017 September 30, 2016 Finished goods $ 36,190 $ 40,260 Work in process 1,828 8,272 Raw material 70,438 65,682 Obsolescence reserve (20,432 ) (9,674 ) $ 88,024 $ 104,540

Accumulated Other Comprehensi26

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Jun. 30, 2017
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 Totals Balance at October 1, 2016 $ (15 ) $ (15,926 ) $ (15,941 ) Changes in unrealized losses on available-for-sale securities (61 ) — (61 ) Foreign currency translation adjustments — 1,499 1,499 Balance at June 30, 2017 $ (76 ) $ (14,427 ) $ (14,503 )

Loss Per Common Share (Tables)

Loss Per Common Share (Tables)	9 Months Ended
	Jun. 30, 2017
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 Nine Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Net loss $ (14,376 ) $ (11,654 ) $ (37,584 ) $ (33,661 ) Less: Income allocable to unvested restricted stock — — — — Loss available to common shareholders (14,376 ) (11,654 ) (37,584 ) (33,661 ) Reallocation of participating earnings — — — — Loss attributable to common shareholders for diluted earnings per share $ (14,376 ) $ (11,654 ) $ (37,584 ) $ (33,661 ) Weighted average number of common share equivalents: Common shares used in basic loss per share 13,147,016 13,051,916 13,129,196 13,042,000 Common share equivalents outstanding related to stock options — — — — Total weighted average common shares and common share equivalents used in diluted loss per share 13,147,016 13,051,916 13,129,196 13,042,000 Loss per share: Basic $ (1.09 ) $ (0.89 ) $ (2.86 ) $ (2.58 ) Diluted $ (1.09 ) $ (0.89 ) $ (2.86 ) $ (2.58 )

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Summary of Company's Segment Information	The following table summarizes the Company’s segment information (in thousands): Three Months Ended Nine Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Revenue: Seismic $ 7,308 $ 9,567 $ 30,658 $ 25,642 Non-Seismic 6,741 7,967 18,945 19,687 Corporate 146 144 435 417 Total $ 14,195 $ 17,678 $ 50,038 $ 45,746 Income (loss) from operations: Seismic $ (11,972 ) $ (10,263 ) $ (30,581 ) $ (34,232 ) Non-Seismic 1,004 1,194 3,108 2,604 Corporate (2,806 ) (2,946 ) (8,672 ) (9,066 ) Total $ (13,774 ) $ (12,015 ) $ (36,145 ) $ (40,694 )

Changes in Warranty Reserve (De

Changes in Warranty Reserve (Details) $ in Thousands	9 Months Ended
	Jun. 30, 2017USD ($)
Changes in product warranty reserve
Balance at the beginning of the period	$ 392
Accruals for warranties issued during the period	592
Settlements made (in cash or in kind) during the period	(453)
Balance at the end of the period	$ 531

Significant Accounting Polici30

Significant Accounting Policies - Additional Information (Details)	9 Months Ended
	Jun. 30, 2017USD ($)Transaction
Accounting Policies [Abstract]
Restricted cash | $	$ 0
Number of primary transactions type recognizes revenue | Transaction	3

Short-term Investments (Details

Short-term Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Sep. 30, 2016
Schedule Of Available For Sale Securities [Line Items]
Short-term Investments, Amortized Cost	$ 36,541	$ 27,511
Short-term Investments, Unrealized Losses	(80)	(20)
Short-term Investments, Estimated Fair Value	36,461	27,491
Corporate bonds
Schedule Of Available For Sale Securities [Line Items]
Short-term Investments, Amortized Cost	23,756	17,342
Short-term Investments, Unrealized Losses	(45)	(19)
Short-term Investments, Estimated Fair Value	23,711	17,323
Government bonds
Schedule Of Available For Sale Securities [Line Items]
Short-term Investments, Amortized Cost	12,785	10,169
Short-term Investments, Unrealized Losses	(35)	(1)
Short-term Investments, Estimated Fair Value	$ 12,750	$ 10,168

Short-term Investments - Additi

Short-term Investments - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Sep. 30, 2016
Short Term Investments [Abstract]
Unrealized losses (net of tax)	$ (10,000)	$ 16,000	$ (61,000)	$ 21,000	$ (12,000)
Short-term investments, contractual maturity period range start			2017-08
Short-term investments, contractual maturity period range end			2019-03

Derivative Financial Instrume33

Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Millions	Jun. 30, 2017	Jul. 31, 2017	Jun. 30, 2017	Sep. 30, 2016
Canadian Dollar Forward Contract
Derivative [Line Items]
Foreign currency forward contract to hedge	$ 0.7
Foreign currency forward contract, expiry date			Sep. 30, 2017
Canadian Dollar Forward Contract | Subsequent Event
Derivative [Line Items]
Foreign currency forward contract to hedge		$ 4.3
Canadian Subsidiary
Derivative [Line Items]
Denominated intercompany accounts payable	24.9		$ 24.9	$ 24.9
Denominated intercompany accounts payable, short-term nature	0.7		0.7
Denominated intercompany accounts payable, long-term nature	$ 24.2		$ 24.2

Gross Fair Value of all Derivat

Gross Fair Value of all Derivative Instruments (Details) $ in Thousands	Sep. 30, 2016USD ($)
Foreign Currency Forward Contracts | Prepaid Expenses and Other Current Assets
Derivatives Fair Value [Line Items]
Derivative Assets	$ 5

Company's Derivatives on Consol

Company's Derivatives on Consolidated Financial Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Foreign Currency Forward Contracts | Other Income (Expense)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Amount of Gain Recognized in Income	$ (48)	$ (14)	$ (20)	$ 14

Fair Value Measurement of Compa

Fair Value Measurement of Company's Short-term Investments and Derivative Instruments (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Jun. 30, 2017	Sep. 30, 2016
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total	$ 36,461	$ 27,496
Foreign Currency Forward Contracts
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Net Derivatives		5
Corporate bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Short-term Investments, Estimated Fair Value	23,711	17,323
Government bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Short-term Investments, Estimated Fair Value	12,750	10,168
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total	36,461	27,491
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Short-term Investments, Estimated Fair Value	23,711	17,323
Quoted Prices in Active Markets for Identical Assets (Level 1) | Government bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Short-term Investments, Estimated Fair Value	$ 12,750	10,168
Significant Other Observable (Level 2)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total		5
Significant Other Observable (Level 2) | Foreign Currency Forward Contracts
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Net Derivatives		$ 5

Current Trade Accounts Receivab

Current Trade Accounts Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Sep. 30, 2016
Current trade accounts receivable
Trade accounts receivable	$ 9,725	$ 17,841
Allowance for doubtful accounts	(1,398)	(2,449)
Total current trade accounts receivable	$ 8,327	$ 15,392

Notes Receivable (Details)

Notes Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Sep. 30, 2016
Accounts Receivable Net [Abstract]
Notes receivable	$ 4,222	$ 3,850
Allowance for doubtful notes	(1,020)	(500)
Total	3,202	3,350
Less current portion	2,614	1,533
Non-current notes receivable	$ 588	$ 1,817

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Sep. 30, 2016
Inventory Disclosure [Abstract]
Finished goods	$ 36,190	$ 40,260
Work in process	1,828	8,272
Raw material	70,438	65,682
Obsolescence reserve	(20,432)	(9,674)
Total	$ 88,024	$ 104,540

Inventories - Additional Inform

Inventories - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Sep. 30, 2016
Inventory Disclosure [Abstract]
Inventories transferred to rental equipment	$ 1.6	$ 3
Inventories transferred to property, plant and equipment	1.9	$ 0.1
Raw materials include semi-finished goods and component parts	$ 43.8		$ 43.8

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Details) - Frost Bank Credit Agreement - USD ($)	9 Months Ended
	Jun. 30, 2017	Sep. 30, 2016	May 04, 2015	Mar. 02, 2011
Debt Instrument [Line Items]
Total long-term debt outstanding	$ 0	$ 0
Line of credit borrowing capacity	26,200,000			$ 50,000,000
Credit agreement borrowing availability	25,800,000		$ 30,000,000
Outstanding letters of credit	$ 400,000
Credit agreement expiration date	May 4, 2018
New Agreement
Debt Instrument [Line Items]
Credit agreement date	Mar. 2, 2011
Prime Rate
Debt Instrument [Line Items]
Marginal interest rate	4.25%
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 Accounts Receivable
Debt Instrument [Line Items]
Borrowing base as percentage of assets			80.00%
Certain Inventories
Debt Instrument [Line Items]
Borrowing base as percentage of assets			25.00%

Accumulated Other Comprehensi42

Accumulated Other Comprehensive Loss (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Sep. 30, 2016
Beginning Balance			$ 244,467,000
Changes in unrealized losses on available-for-sale securities	$ (10,000)	$ 16,000	(61,000)	$ 21,000	$ (12,000)
Foreign currency translation adjustments	452,000	$ 115,000	1,499,000	$ (1,473,000)
Ending Balance	212,646,000		212,646,000		244,467,000
Unrealized Losses on Available-for-Sale Securities
Beginning Balance			(15,000)
Changes in unrealized losses on available-for-sale securities			(61,000)
Ending Balance	(76,000)		(76,000)		(15,000)
Foreign Currency Translation Adjustments
Beginning Balance			(15,926,000)
Foreign currency translation adjustments			1,499,000
Ending Balance	(14,427,000)		(14,427,000)		(15,926,000)
Accumulated Other Comprehensive Loss
Beginning Balance			(15,941,000)
Ending Balance	$ (14,503,000)		$ (14,503,000)		$ (15,941,000)

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Millions	9 Months Ended
	Jun. 30, 2017USD ($)$ / 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	1 year 6 months
Share outstanding, restricted stock | shares	292,550
Nonqualified stock options outstanding | shares	201,800
2014 Long Term Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares issued | shares	51,300
Stock options, weighted average grant date fair value | $ / shares	$ 9.35
Unrecognized compensation expense | $	$ 0.5
2014 Long Term Incentive Plan | 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 | 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 | $	$ 5.1
Expected period for recognition of unrecognized compensation expense	2 years 8 months 12 days
Restricted Stock | 2014 Long Term Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares issued | shares	109,500
Weighted average grant date fair value of the restricted stock | $ / shares	$ 21.12
Grant date fair value of restricted stock | $	$ 2.3
Restricted stock restriction period	4 years

Loss Per Common Share - Additio

Loss Per Common Share - Additional Information (Details)	3 Months Ended		9 Months Ended
	Jun. 30, 2017shares	Jun. 30, 2016shares	Jun. 30, 2017shares	Jun. 30, 2016shares
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	201,800	159,000	201,800	159,000

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		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Net loss	$ (14,376)	$ (11,654)	$ (37,584)	$ (33,661)
Loss available to common shareholders	(14,376)	(11,654)	(37,584)	(33,661)
Loss attributable to common shareholders for diluted earnings per share	$ (14,376)	$ (11,654)	$ (37,584)	$ (33,661)
Weighted average number of common share equivalents:
Common shares used in basic loss per share	13,147,016	13,051,916	13,129,196	13,042,000
Total weighted average common shares and common share equivalents used in diluted loss per share	13,147,016	13,051,916	13,129,196	13,042,000
Loss per share:
Basic	$ (1.09)	$ (0.89)	$ (2.86)	$ (2.58)
Diluted	$ (1.09)	$ (0.89)	$ (2.86)	$ (2.58)

Segment Information - Additiona

Segment Information - Additional Information (Details)	9 Months Ended
	Jun. 30, 2017Segment
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		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Segment Reporting Information [Line Items]
Revenue	$ 14,195	$ 17,678	$ 50,038	$ 45,746
Income (loss) from operations	(13,774)	(12,015)	(36,145)	(40,694)
Operating Segments | Seismic
Segment Reporting Information [Line Items]
Revenue	7,308	9,567	30,658	25,642
Income (loss) from operations	(11,972)	(10,263)	(30,581)	(34,232)
Operating Segments | Non-Seismic
Segment Reporting Information [Line Items]
Revenue	6,741	7,967	18,945	19,687
Income (loss) from operations	1,004	1,194	3,108	2,604
Corporate
Segment Reporting Information [Line Items]
Revenue	146	144	435	417
Income (loss) from operations	$ (2,806)	$ (2,946)	$ (8,672)	$ (9,066)

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details)	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Company's effective tax rates	(4.70%)	(7.70%)	(3.90%)	(16.90%)
United States statutory tax rate	35.00%	35.00%	35.00%	35.00%