Geospace Technologies (GEOS) 10-Q 3 Aug 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2018	Jul. 31, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
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		13,597,041

CONSOLIDATED BALANCE SHEETS (Un

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

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2018	Sep. 30, 2017
Statement Of Financial Position [Abstract]
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	13,576,041	13,438,316
Common stock, shares outstanding	13,576,041	13,438,316

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue:
Total revenue	$ 21,270	$ 14,195	$ 55,161	$ 50,038
Cost of revenue:
Total cost of revenue	16,593	19,307	49,453	61,035
Gross profit (loss)	4,677	(5,112)	5,708	(10,997)
Operating expenses:
Selling, general and administrative	4,551	4,972	14,465	15,092
Research and development	2,537	3,674	8,125	10,458
Bad debt expense (recovery)	2,725	16	3,081	(402)
Total operating expenses	9,813	8,662	25,671	25,148
Loss from operations	(5,136)	(13,774)	(19,963)	(36,145)
Other income (expense):
Interest expense	(94)	(8)	(285)	(24)
Interest income	257	185	799	453
Foreign exchange gains (losses), net	264	(120)	(85)	(401)
Other, net	(34)	(11)	(88)	(44)
Total other expense, net	393	46	341	(16)
Loss before income taxes	(4,743)	(13,728)	(19,622)	(36,161)
Income tax expense (benefit)	53	648	(617)	1,423
Net loss	$ (4,796)	$ (14,376)	$ (19,005)	$ (37,584)
Loss per common share:
Basic	$ (0.36)	$ (1.09)	$ (1.43)	$ (2.86)
Diluted	$ (0.36)	$ (1.09)	$ (1.43)	$ (2.86)
Weighted average common shares outstanding:
Basic	13,266,316	13,147,016	13,244,242	13,129,196
Diluted	13,266,316	13,147,016	13,244,242	13,129,196
Products
Revenue:
Total revenue	$ 13,417	$ 12,888	$ 40,886	$ 37,960
Cost of revenue:
Total cost of revenue	13,011	15,489	40,459	49,124
Rental equipment
Revenue:
Total revenue	7,853	1,307	14,275	12,078
Cost of revenue:
Total cost of revenue	$ 3,582	$ 3,818	$ 8,994	$ 11,911

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (4,796)	$ (14,376)	$ (19,005)	$ (37,584)
Other comprehensive income (loss), net of tax
Change in unrealized gains (losses) on available-for-sale securities	36	(10)	(53)	(61)
Foreign currency translation adjustments	(1,198)	452	(364)	1,499
Total other comprehensive income (loss), net of tax	(1,162)	442	(417)	1,438
Total comprehensive loss	$ (5,958)	$ (13,934)	$ (19,422)	$ (36,146)

CONSOLIDATED STATEMENTS OF CASH

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

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Jun. 30, 2018
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, 2017 was derived from the Company’s audited consolidated financial statements at that date. The consolidated balance sheet at June 30, 2018 and the consolidated statements of operations, comprehensive loss and the consolidated statements of cash flows for the three and nine months ended June 30, 2018 and 2017 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, 2018 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, 2017. 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 consolidated 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. Cash and cash equivalents include $8.1 million held by the Company’s foreign subsidiaries and branch offices. If the Company were to repatriate the cash held by its foreign subsidiaries, it would be required to accrue and pay taxes on any amount repatriated. 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. Recently Adopted Accounting Pronouncements In October 2016, the Financial Accounting Standards Board (“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. The Company adopted this guidance in its first quarter of its fiscal year ending September 30, 2018 using the modified retrospective approach. T he adoption resulted in a cumulative-effect charge to opening retained earnings of $0.4 million. Under prior guidance, the Company maintained 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 was depreciated, the prepaid tax was recognized as a current income tax expense in the Company’s consolidated statement of operations. Under the new guidance, the Company is required to recognize a deferred tax asset related to the intercompany profits realized on the sale of non-inventory 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 in accordance with the prior guidance. Under the new guidance, the deferred tax asset resulting from the sale of non-inventory assets is recognized at the jurisdictional tax rate of the subsidiary which purchased the asset. Any differences between the subsidiary’s jurisdictional tax rate and the seller’s tax rate pertaining to the intercompany profit are charged to seller’s current income tax expense at the time of the sale. With the recent reduction in the U.S. income tax rate to 21%, and assuming that a majority of the Company’s future intercompany equipment sales will continue to be made to its Canadian subsidiary having a higher statutory tax rate, the new guidance is expected to have a favorable impact on the Company’s provision for income taxes in future periods. Due to the fact the Company has a valuation allowance against most of its net deferred tax assets, the adoption of this guidance had no impact upon the Company’s income tax expense for the three and nine months ended June 30, 2018. In March 2016, the FASB issued guidance to simplify key components of employee share-based payment accounting. 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. The Company adopted this guidance in the first quarter of its fiscal year ending September 30, 2018. No cumulative effect adjustment to retained earnings was needed upon adoption since the Company had no unrecorded excess tax benefits residing in its additional paid-in-capital account. Under the prior standard, the Company was required to track and record as a component of additional paid-in capital the tax impact of cumulative windfalls, net of any shortfalls, which resulted 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. Under the new guidance, 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. Since the Company had a valuation allowance against the value of its cumulative U.S. net operating losses, the adoption of this guidance had no impact upon the Company’s income tax expense for the three and nine months ended June 30, 2018. 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. 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 existing practice for calculating net realizable value under the current standard is consistent with the practice prescribed by the new guidance. The Company adopted this standard in its first quarter of its fiscal year ending September 30, 2018. The adoption of this guidance had no impact upon the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements 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 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 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 generally short-term in nature, and the Company believes would be treated as operating leases under the new guidance; however, the Company has not completed a detailed review of its lease arrangements, and these conclusions are subject to change. 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. The Company will adopt this standard in the first quarter of its fiscal year ending September 30, 2019 using the modified retrospective method. The Company’s evaluation of the standard is largely complete. At this point in the evaluation, the Company has not identified a transaction that will have a material effect on its consolidated financial statements. The Company continues to evaluate the standard’s potential effects on its consolidated financial statements.

Short-term Investments

Short-term Investments	9 Months Ended
	Jun. 30, 2018
Investments Debt And Equity Securities [Abstract]
Short-term Investments	2. Short-term Investments As of June 30, 2018 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Corporate bonds $ 18,345 $ — $ (86 ) $ 18,259 Government bonds 8,777 — (22 ) 8,755 Total $ 27,122 $ — $ (108 ) $ 27,014 As of September 30, 2017 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Corporate bonds $ 22,829 $ — $ (31 ) $ 22,798 Government bonds 13,363 — (24 ) 13,339 Total $ 36,192 $ — $ (55 ) $ 36,137

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Jun. 30, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	3. Derivative Financial Instruments At June 30, 2018 and September 30, 2017, the Company’s Canadian subsidiary had CAN$38.9 million and CAD$26.1 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. On March 28, 2018, the Company entered into $30.0 million Canadian dollar short-term hedge contract with a United States bank to reduce 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. 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, 2018 September 30, 2017 Foreign Currency Forward Contracts Accrued Expenses and Other Current Liabilities $ 218 $ — 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, 2018 and 2017 (in thousands): Three Months Ended Nine Months Ended Derivative Instrument Location June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Foreign Currency Forward Contracts Other Income (Expense) $ 601 $ (48 ) $ 1,176 $ (20 ) Amounts in the above table include realized and unrealized derivative gains and losses.

Trade Accounts and Financing Re

Trade Accounts and Financing Receivables	9 Months Ended
	Jun. 30, 2018
Receivables [Abstract]
Trade Accounts and Financing Receivables	4. Trade Accounts and Financing Receivables Trade accounts receivable are reflected in the following table (in thousands): June 30, 2018 September 30, 2017 Trade accounts receivable $ 14,719 $ 10,830 Allowance for doubtful accounts (3,569 ) (1,395 ) $ 11,150 $ 9,435 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. During the three months ended June 30, 2018, the Company recorded bad debt expense of $2.7 million primarily attributable to a trade accounts receivable from a customer which filed for bankruptcy protection during the period. While the Company is uncertain of the ultimate amount of bad debt that will result from the bankruptcy proceedings, it has provided a bad debt allowance for all of its pre-petition bankruptcy receivable claims. Should any portion of these pre-petition claims be recovered in the future, the Company will reverse such bad debt expenses. Financing receivables are reflected in the following table (in thousands): June 30, 2018 September 30, 2017 Promissory notes $ 6,661 $ 4,306 Sales-type lease 6,127 8,581 Total financing receivables 12,788 12,887 Unearned income from promissory notes (95 ) (90 ) Unearned income from sales-type lease (300 ) (527 ) Total unearned income (395 ) (617 ) Total financing receivables, net of unearned income 12,393 12,270 Less allowance for doubtful promissory notes (1,849 ) (1,020 ) Less current portion of financing receivables (5,031 ) (3,055 ) Non-current financing receivables $ 5,513 $ 8,195 During the nine months ended June 30, 2018, the Company issued promissory notes to customers totaling $4.0 million in connection with the sale of rental equipment. Cash flows from financing receivables related to the sale of rental equipment for the nine months ended June 30, 2018 of $3.6 million are included in proceeds from the sale of used rental equipment in the consolidated statements of cash flows.

Inventories

Inventories	9 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Inventories	5. Inventories Inventories consist of the following (in thousands): June 30, 2018 September 30, 2017 Finished goods $ 22,880 $ 33,690 Work in process 8,045 2,512 Raw material 54,403 70,099 Obsolescence reserve (31,014 ) (29,614 ) 54,314 76,687 Less current portion (18,959 ) (20,752 ) Non-current portion $ 35,355 $ 55,935 During the nine months ended June 30, 2018 and 2017, the Company made non-cash inventory transfers of $23.5 million and $1.6 million, respectively, to rental equipment. Raw materials include semi-finished goods and component parts which totaled approximately $28.7 million and $48.2 million at June 30, 2018 and September 30, 2017, respectively.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Jun. 30, 2018
Stockholders Equity Note [Abstract]
Accumulated Other Comprehensive Loss	6. 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, 2017 $ (58 ) $ (14,172 ) $ (14,230 ) Changes in unrealized losses on available-for-sale securities (53 ) — (53 ) Foreign currency translation adjustments — (364 ) (364 ) Balance at June 30, 2018 $ (111 ) $ (14,536 ) $ (14,647 )

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Jun. 30, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	7. Stock-Based Compensation During the nine months ended June 30, 2018, the Company issued 155,450 shares of restricted stock under its 2014 Long Term Incentive Plan, as amended. The weighted average grant date fair value of the restricted stock was $15.21 per share. The grant date fair value of these awards was $2.4 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. As of June 30, 2018, the Company had unrecognized compensation expense of $4.1 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 $0.1 million of unrecognized compensation expense related to nonqualified stock option awards which is expected to be recognized over a weighted average period of 1.0 years. As of June 30, 2018, a total of 309,725 shares of restricted stock and 194,600 nonqualified stock options shares were outstanding.

Loss Per Common Share

Loss Per Common Share	9 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Loss Per Common Share	8. 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, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Net loss $ (4,796 ) $ (14,376 ) $ (19,005 ) $ (37,584 ) Less: Loss allocable to unvested restricted stock — — — — Loss available to common shareholders (4,796 ) (14,376 ) (19,005 ) (37,584 ) Reallocation of participating earnings — — — — Loss attributable to common shareholders for diluted earnings per share $ (4,796 ) $ (14,376 ) $ (19,005 ) $ (37,584 ) Weighted average number of common share equivalents: Common shares used in basic loss per share 13,266,316 13,147,016 13,244,242 13,129,196 Common share equivalents outstanding related to stock options — — — — Total weighted average common shares and common share equivalents used in diluted loss per share 13,266,316 13,147,016 13,244,242 13,129,196 Loss per share: Basic $ (0.36 ) $ (1.09 ) $ (1.43 ) $ (2.86 ) Diluted $ (0.36 ) $ (1.09 ) $ (1.43 ) $ (2.86 ) For the calculation of diluted loss per share for the three and nine months ended June 30, 2018 and 2017, 194,600 and 201,800 stock options, respectively, were excluded in the calculation of weighted average shares outstanding as a result of their impact being antidilutive.

Segment Information

Segment Information	9 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Segment Information	9. 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, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Revenue: Seismic $ 12,345 $ 7,308 $ 31,671 $ 30,658 Non-Seismic 8,778 6,741 23,058 18,945 Corporate 147 146 432 435 Total $ 21,270 $ 14,195 $ 55,161 $ 50,038 Income (loss) from operations: Seismic $ (4,122 ) $ (11,972 ) $ (15,552 ) $ (30,581 ) Non-Seismic 1,428 1,004 3,841 3,108 Corporate (2,442 ) (2,806 ) (8,252 ) (8,672 ) Total $ (5,136 ) $ (13,774 ) $ (19,963 ) $ (36,145 )

Income Taxes

Income Taxes	9 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	10. Income Taxes The Company’s statutory U.S. income tax rate for the nine months ended June 30, 2018 was impacted by the Tax Cuts and Jobs Act (the “Act”), which was enacted into law on December 22, 2017. Income tax effects resulting from changes in tax laws are accounted for by the Company in accordance with the authoritative guidance, which requires that these tax effects be recognized in the period in which the law is enacted and the effects are recorded as a component of the provision for income taxes from continuing operations. As a result, the Company made changes to its provision for income tax resulting from the enactment of the Act for the nine months ended June 30, 2018. The Act includes significant changes to the U.S. corporate income tax system which (i) reduces the U.S. federal corporate tax rate from 35% to 21% as of January 1, 2018, (ii) shifts to a modified territorial tax regime which requires companies to pay a one-time transition tax on the cumulative earnings of certain foreign subsidiaries that were previously tax deferred and (iii) creates new taxes on certain foreign-sourced earnings. The decrease in the U.S. federal corporate tax rate from 35% to 21% results in a blended statutory tax rate of 24.5% for the Company’s fiscal year ending September 30, 2018. The new taxes for certain foreign-sourced earnings under the Act are effective for the Company beginning after the fiscal year ending September 30, 2018. The Company is currently evaluating the impact of the Act on its consolidated financial statements. Based on the Company’s assessments to date, it expects the one-time deemed repatriation tax on certain foreign earnings and profits to not have a cash impact since it anticipates, that it will be able to utilize existing net operating loss carryforwards to substantially offset any taxes payable on foreign earnings and profits. Additionally, the Company has adjusted its U.S. gross deferred tax assets and liabilities to the new 21% statutory tax rate; however, it also recorded a corresponding adjustment to a valuation allowance which resulted in no net impact to deferred tax assets or provision for income taxes. Except for, the adjustments referred to above, the Company does not expect any further adjustments relating to tax effects of the Act in its consolidated financial statements (including any provisional amounts) based on the Company’s analysis of its current and expected tax attributes. The Company’s effective tax rates for the three months ended June 30, 2018 and 2017 were (1.1)% and (4.7)%, respectively. The Company’s effective tax rates for the nine months ended June 30, 2018 and 2017 were 3.1% and (3.9)%, respectively. The United States statutory rate for the three and nine months ended June 30, 2018 and 2017 was 24.5% (blended) and 35%, respectively. Compared to the United States statutory rate, the lower effective tax rates 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. In addition, for the three months ended March 31, 2018, the Company amended its prior year U.S. tax return to claim a $0.7 million refund.

Exit and Disposal Activities

Exit and Disposal Activities	9 Months Ended
	Jun. 30, 2018
Restructuring And Related Activities [Abstract]
Exit and Disposal Activities	11. Exit and Disposal Activities In December 2017, the Company initiated a program to reduce operating costs in light of expected and continuing low levels of seismic product demand. The program is expected to produce approximately $6 million of annualized cash savings. The majority of the cost reductions were realized through a reduction of over 60 employees from the Company’s Houston area workforce. In connection with the workforce reductions, the Company incurred $0.7 million of termination costs in its first quarter of fiscal year 2018. The termination costs were recorded to both cost of revenue and operating expenses in the consolidated statement of operations. No further termination costs are expected and there are no outstanding liabilities related to this program as of June 30, 2018.

Subsequent Event

Subsequent Event	9 Months Ended
	Jun. 30, 2018
Subsequent Events [Abstract]
Subsequent Event	12. Subsequent Event On July 27, 2018, the Company acquired Quantum Technology Sciences, Inc., a Florida-based tactical security and surveillance systems solutions provider (“Quantum”) through a merger of the Company’s subsidiary with and into Quantum, with Quantum as the surviving corporation. Quantum’s operations will remain in Florida, performing as a wholly-owned subsidiary of the Company. The acquisition purchase price for Quantum consisted of a cash down payment at closing of approximately $4.4 million and contingent earn-out payments of up to $23.5 million over a four-year period. The contingent payments, if any, which may be paid in the form of cash or Company stock, will be derived from certain eligible revenue that may be generated during the four-year earn-out period.

Significant Accounting Polici19

Significant Accounting Policies (Policies)	9 Months Ended
	Jun. 30, 2018
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, 2017 was derived from the Company’s audited consolidated financial statements at that date. The consolidated balance sheet at June 30, 2018 and the consolidated statements of operations, comprehensive loss and the consolidated statements of cash flows for the three and nine months ended June 30, 2018 and 2017 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, 2018 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, 2017.
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 consolidated 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. Cash and cash equivalents include $8.1 million held by the Company’s foreign subsidiaries and branch offices. If the Company were to repatriate the cash held by its foreign subsidiaries, it would be required to accrue and pay taxes on any amount repatriated.
Revenue Recognition - Products and Services	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.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In October 2016, the Financial Accounting Standards Board (“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. The Company adopted this guidance in its first quarter of its fiscal year ending September 30, 2018 using the modified retrospective approach. T he adoption resulted in a cumulative-effect charge to opening retained earnings of $0.4 million. Under prior guidance, the Company maintained 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 was depreciated, the prepaid tax was recognized as a current income tax expense in the Company’s consolidated statement of operations. Under the new guidance, the Company is required to recognize a deferred tax asset related to the intercompany profits realized on the sale of non-inventory 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 in accordance with the prior guidance. Under the new guidance, the deferred tax asset resulting from the sale of non-inventory assets is recognized at the jurisdictional tax rate of the subsidiary which purchased the asset. Any differences between the subsidiary’s jurisdictional tax rate and the seller’s tax rate pertaining to the intercompany profit are charged to seller’s current income tax expense at the time of the sale. With the recent reduction in the U.S. income tax rate to 21%, and assuming that a majority of the Company’s future intercompany equipment sales will continue to be made to its Canadian subsidiary having a higher statutory tax rate, the new guidance is expected to have a favorable impact on the Company’s provision for income taxes in future periods. Due to the fact the Company has a valuation allowance against most of its net deferred tax assets, the adoption of this guidance had no impact upon the Company’s income tax expense for the three and nine months ended June 30, 2018. In March 2016, the FASB issued guidance to simplify key components of employee share-based payment accounting. 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. The Company adopted this guidance in the first quarter of its fiscal year ending September 30, 2018. No cumulative effect adjustment to retained earnings was needed upon adoption since the Company had no unrecorded excess tax benefits residing in its additional paid-in-capital account. Under the prior standard, the Company was required to track and record as a component of additional paid-in capital the tax impact of cumulative windfalls, net of any shortfalls, which resulted 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. Under the new guidance, 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. Since the Company had a valuation allowance against the value of its cumulative U.S. net operating losses, the adoption of this guidance had no impact upon the Company’s income tax expense for the three and nine months ended June 30, 2018. 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. 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 existing practice for calculating net realizable value under the current standard is consistent with the practice prescribed by the new guidance. The Company adopted this standard in its first quarter of its fiscal year ending September 30, 2018. The adoption of this guidance had no impact upon the Company’s consolidated financial statements.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements 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 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 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 generally short-term in nature, and the Company believes would be treated as operating leases under the new guidance; however, the Company has not completed a detailed review of its lease arrangements, and these conclusions are subject to change. 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. The Company will adopt this standard in the first quarter of its fiscal year ending September 30, 2019 using the modified retrospective method. The Company’s evaluation of the standard is largely complete. At this point in the evaluation, the Company has not identified a transaction that will have a material effect on its consolidated financial statements. The Company continues to evaluate the standard’s potential effects on its consolidated financial statements.

Short-term Investments (Tables)

Short-term Investments (Tables)	9 Months Ended
	Jun. 30, 2018
Investments Debt And Equity Securities [Abstract]
Short-term Investments	As of June 30, 2018 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Corporate bonds $ 18,345 $ — $ (86 ) $ 18,259 Government bonds 8,777 — (22 ) 8,755 Total $ 27,122 $ — $ (108 ) $ 27,014 As of September 30, 2017 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Corporate bonds $ 22,829 $ — $ (31 ) $ 22,798 Government bonds 13,363 — (24 ) 13,339 Total $ 36,192 $ — $ (55 ) $ 36,137

Derivative Financial Instrume21

Derivative Financial Instruments (Tables)	9 Months Ended
	Jun. 30, 2018
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, 2018 September 30, 2017 Foreign Currency Forward Contracts Accrued Expenses and Other Current Liabilities $ 218 $ —
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, 2018 and 2017 (in thousands): Three Months Ended Nine Months Ended Derivative Instrument Location June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Foreign Currency Forward Contracts Other Income (Expense) $ 601 $ (48 ) $ 1,176 $ (20 )

Trade Accounts and Financing 22

Trade Accounts and Financing Receivables (Tables)	9 Months Ended
	Jun. 30, 2018
Receivables [Abstract]
Trade Accounts Receivable	Trade accounts receivable are reflected in the following table (in thousands): June 30, 2018 September 30, 2017 Trade accounts receivable $ 14,719 $ 10,830 Allowance for doubtful accounts (3,569 ) (1,395 ) $ 11,150 $ 9,435
Financing Receivables	Financing receivables are reflected in the following table (in thousands): June 30, 2018 September 30, 2017 Promissory notes $ 6,661 $ 4,306 Sales-type lease 6,127 8,581 Total financing receivables 12,788 12,887 Unearned income from promissory notes (95 ) (90 ) Unearned income from sales-type lease (300 ) (527 ) Total unearned income (395 ) (617 ) Total financing receivables, net of unearned income 12,393 12,270 Less allowance for doubtful promissory notes (1,849 ) (1,020 ) Less current portion of financing receivables (5,031 ) (3,055 ) Non-current financing receivables $ 5,513 $ 8,195

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Inventories	Inventories consist of the following (in thousands): June 30, 2018 September 30, 2017 Finished goods $ 22,880 $ 33,690 Work in process 8,045 2,512 Raw material 54,403 70,099 Obsolescence reserve (31,014 ) (29,614 ) 54,314 76,687 Less current portion (18,959 ) (20,752 ) Non-current portion $ 35,355 $ 55,935

Accumulated Other Comprehensi24

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Jun. 30, 2018
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, 2017 $ (58 ) $ (14,172 ) $ (14,230 ) Changes in unrealized losses on available-for-sale securities (53 ) — (53 ) Foreign currency translation adjustments — (364 ) (364 ) Balance at June 30, 2018 $ (111 ) $ (14,536 ) $ (14,647 )

Loss Per Common Share (Tables)

Loss Per Common Share (Tables)	9 Months Ended
	Jun. 30, 2018
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, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Net loss $ (4,796 ) $ (14,376 ) $ (19,005 ) $ (37,584 ) Less: Loss allocable to unvested restricted stock — — — — Loss available to common shareholders (4,796 ) (14,376 ) (19,005 ) (37,584 ) Reallocation of participating earnings — — — — Loss attributable to common shareholders for diluted earnings per share $ (4,796 ) $ (14,376 ) $ (19,005 ) $ (37,584 ) Weighted average number of common share equivalents: Common shares used in basic loss per share 13,266,316 13,147,016 13,244,242 13,129,196 Common share equivalents outstanding related to stock options — — — — Total weighted average common shares and common share equivalents used in diluted loss per share 13,266,316 13,147,016 13,244,242 13,129,196 Loss per share: Basic $ (0.36 ) $ (1.09 ) $ (1.43 ) $ (2.86 ) Diluted $ (0.36 ) $ (1.09 ) $ (1.43 ) $ (2.86 )

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Jun. 30, 2018
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, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Revenue: Seismic $ 12,345 $ 7,308 $ 31,671 $ 30,658 Non-Seismic 8,778 6,741 23,058 18,945 Corporate 147 146 432 435 Total $ 21,270 $ 14,195 $ 55,161 $ 50,038 Income (loss) from operations: Seismic $ (4,122 ) $ (11,972 ) $ (15,552 ) $ (30,581 ) Non-Seismic 1,428 1,004 3,841 3,108 Corporate (2,442 ) (2,806 ) (8,252 ) (8,672 ) Total $ (5,136 ) $ (13,774 ) $ (19,963 ) $ (36,145 )

Significant Accounting Polici27

Significant Accounting Policies - Additional Information (Details) - USD ($)	Jan. 01, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Accounting Policies [Abstract]
Cash and cash equivalents held by foreign subsidiaries and branch offices		$ 8,100,000		$ 8,100,000
Cumulative-effect adjustment to opening retained earnings		$ 400,000		$ 400,000
U.S. income tax rate	21.00%	24.50%	35.00%	24.50%	35.00%	35.00%
Valuation allowance against net deferred tax assets		$ 0		$ 0
Unrecorded excess tax benefits in additional paid-in-capital account				0
Restricted cash		$ 0		$ 0

Short-term Investments (Details

Short-term Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017
Schedule Of Available For Sale Securities [Line Items]
Short-term Investments, Amortized Cost	$ 27,122	$ 36,192
Short-term Investments, Unrealized Losses	(108)	(55)
Short-term Investments, Estimated Fair Value	27,014	36,137
Corporate bonds
Schedule Of Available For Sale Securities [Line Items]
Short-term Investments, Amortized Cost	18,345	22,829
Short-term Investments, Unrealized Losses	(86)	(31)
Short-term Investments, Estimated Fair Value	18,259	22,798
Government bonds
Schedule Of Available For Sale Securities [Line Items]
Short-term Investments, Amortized Cost	8,777	13,363
Short-term Investments, Unrealized Losses	(22)	(24)
Short-term Investments, Estimated Fair Value	$ 8,755	$ 13,339

Short-term Investments - Additi

Short-term Investments - Additional Information (Details)	9 Months Ended
	Jun. 30, 2018
Short Term Investments [Abstract]
Short-term investments, contractual maturity period range start	2018-07
Short-term investments, contractual maturity period range end	2020-03

Derivative Financial Instrume30

Derivative Financial Instruments - Additional Information (Details) - CAD ($) $ in Millions	Mar. 28, 2018	Jun. 30, 2018	Sep. 30, 2017
Canadian Dollar Forward Contract
Derivative [Line Items]
Foreign currency forward contract to hedge	$ 30
Canadian Subsidiary
Derivative [Line Items]
Denominated intercompany accounts payable		$ 38.9	$ 26.1

Gross Fair Value of all Derivat

Gross Fair Value of all Derivative Instruments (Details) $ in Thousands	Jun. 30, 2018USD ($)
Foreign Currency Forward Contracts | Accrued Expenses and Other Current Liabilities
Derivatives Fair Value [Line Items]
Derivatives Liabilities	$ 218

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, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Foreign Currency Forward Contracts | Other Income (Expense)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Amount of (Loss) Gain Recognized in Income	$ 601	$ (48)	$ 1,176	$ (20)

Trade Accounts Receivable (Deta

Trade Accounts Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017
Current trade accounts receivable
Trade accounts receivable	$ 14,719	$ 10,830
Allowance for doubtful accounts	(3,569)	(1,395)
Total current trade accounts receivable	$ 11,150	$ 9,435

Trade Accounts and Financing 34

Trade Accounts and Financing Receivables - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Accounts Notes And Loans Receivable [Line Items]
Financing receivables related to sale of rental equipment		$ 3.6
Customer | Promissory Notes
Accounts Notes And Loans Receivable [Line Items]
Promissory note receivable issued		$ 4
Trade Accounts Receivable | Customer
Accounts Notes And Loans Receivable [Line Items]
Bad debt expense from a customer filed for bankruptcy protection	$ 2.7

Financing Receivables (Details)

Financing Receivables (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017
Accounts Notes And Loans Receivable [Line Items]
Total financing receivables	$ 12,788	$ 12,887
Total unearned income	(395)	(617)
Total financing receivables, net of unearned income	12,393	12,270
Less allowance for doubtful promissory notes	(1,849)	(1,020)
Less current portion of financing receivables	(5,031)	(3,055)
Non-current financing receivables	5,513	8,195
Promissory Notes
Accounts Notes And Loans Receivable [Line Items]
Total financing receivables	6,661	4,306
Total unearned income	(95)	(90)
Sales Type Lease
Accounts Notes And Loans Receivable [Line Items]
Total financing receivables	6,127	8,581
Total unearned income	$ (300)	$ (527)

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017
Inventory Disclosure [Abstract]
Finished goods	$ 22,880	$ 33,690
Work in process	8,045	2,512
Raw material	54,403	70,099
Obsolescence reserve	(31,014)	(29,614)
Total	54,314	76,687
Less current portion	(18,959)	(20,752)
Non-current portion	$ 35,355	$ 55,935

Inventories - Additional Inform

Inventories - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Sep. 30, 2017
Inventory Disclosure [Abstract]
Inventories transferred to rental equipment	$ 23.5	$ 1.6
Raw materials include semi-finished goods and component parts	$ 28.7		$ 48.2

Accumulated Other Comprehensi38

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Beginning Balance			$ 195,154
Changes in unrealized losses on available-for-sale securities	$ 36	$ (10)	(53)	$ (61)
Foreign currency translation adjustments	(1,198)	$ 452	(364)	$ 1,499
Ending Balance	177,243		177,243
Unrealized Losses on Available-for-Sale Securities
Beginning Balance			(58)
Changes in unrealized losses on available-for-sale securities			(53)
Ending Balance	(111)		(111)
Foreign Currency Translation Adjustments
Beginning Balance			(14,172)
Foreign currency translation adjustments			(364)
Ending Balance	(14,536)		(14,536)
Accumulated Other Comprehensive Loss
Beginning Balance			(14,230)
Ending Balance	$ (14,647)		$ (14,647)

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Millions	9 Months Ended
	Jun. 30, 2018USD ($)$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation expense | $	$ 0.1
Expected period for recognition of unrecognized compensation expense	1 year
Share outstanding, restricted stock | shares	309,725
Nonqualified stock options outstanding | shares	194,600
Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation expense | $	$ 4.1
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	155,450
Weighted average grant date fair value of the restricted stock | $ / shares	$ 15.21
Grant date fair value of restricted stock | $	$ 2.4
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, 2018shares	Jun. 30, 2017shares	Jun. 30, 2018shares	Jun. 30, 2017shares
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	194,600	201,800	194,600	201,800

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, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share [Abstract]
Net loss	$ (4,796)	$ (14,376)	$ (19,005)	$ (37,584)
Loss available to common shareholders	(4,796)	(14,376)	(19,005)	(37,584)
Loss attributable to common shareholders for diluted earnings per share	$ (4,796)	$ (14,376)	$ (19,005)	$ (37,584)
Weighted average number of common share equivalents:
Common shares used in basic loss per share	13,266,316	13,147,016	13,244,242	13,129,196
Total weighted average common shares and common share equivalents used in diluted loss per share	13,266,316	13,147,016	13,244,242	13,129,196
Loss per share:
Basic	$ (0.36)	$ (1.09)	$ (1.43)	$ (2.86)
Diluted	$ (0.36)	$ (1.09)	$ (1.43)	$ (2.86)

Segment Information - Additiona

Segment Information - Additional Information (Details)	9 Months Ended
	Jun. 30, 2018Segment
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, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Revenue	$ 21,270	$ 14,195	$ 55,161	$ 50,038
Income (loss) from operations	(5,136)	(13,774)	(19,963)	(36,145)
Operating Segments | Seismic
Segment Reporting Information [Line Items]
Revenue	12,345	7,308	31,671	30,658
Income (loss) from operations	(4,122)	(11,972)	(15,552)	(30,581)
Operating Segments | Non-Seismic
Segment Reporting Information [Line Items]
Revenue	8,778	6,741	23,058	18,945
Income (loss) from operations	1,428	1,004	3,841	3,108
Corporate
Segment Reporting Information [Line Items]
Revenue	147	146	432	435
Income (loss) from operations	$ (2,442)	$ (2,806)	$ (8,252)	$ (8,672)

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)	Jan. 01, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Sep. 30, 2018	Dec. 31, 2017
Income Taxes [Line Items]
United States statutory tax rate	21.00%	24.50%		35.00%	24.50%	35.00%		35.00%
Valuation allowance for deferred tax assets or provision for income taxes		$ 0			$ 0
Company's effective tax rates		(1.10%)		(4.70%)	3.10%	(3.90%)
Amended prior year tax return, refund claim amount			$ 700,000
Scenario, Plan
Income Taxes [Line Items]
United States statutory tax rate							24.50%

Exit and Disposal Activities -

Exit and Disposal Activities - Additional Information (Details)	1 Months Ended	3 Months Ended
	Dec. 31, 2017USD ($)Employee	Dec. 31, 2017USD ($)	Jun. 30, 2018USD ($)
Restructuring Cost And Reserve [Line Items]
Expected annualized cash savings	$ 6,000,000
Termination costs		$ 700,000
Expected further termination costs			$ 0
Outstanding liabilities			$ 0
Employee Reduction | Houston Area Workforce
Restructuring Cost And Reserve [Line Items]
Reduction in number of employees | Employee	60

Subsequent Event - Additional I

Subsequent Event - Additional Information (Details) - Quantum - Subsequent Event	Jul. 27, 2018USD ($)
Subsequent Event [Line Items]
Business acquisition date	Jul. 27, 2018
Acquisition purchase price	$ 4,400,000
Contingent payments earn-out period	4 years
Contingent payments maximum earn-out amount	$ 23,500,000