Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2019 | Jan. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | GEOS | |
Security Exchange Name | NASDAQ | |
Entity Registrant Name | GEOSPACE TECHNOLOGIES CORP | |
Entity Central Index Key | 0001001115 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 13,661,489 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity File Number | 001-13601 | |
Entity Tax Identification Number | 76-0447780 | |
Entity Incorporation, State or Country Code | TX | |
Entity Address, Address Line One | 7007 Pinemont | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77040 | |
City Area Code | (713) | |
Local Phone Number | 986-4444 | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 10,141 | $ 18,925 |
Trade accounts receivable, net | 32,681 | 24,193 |
Financing receivables | 2,517 | 3,233 |
Inventories | 23,907 | 23,855 |
Property held for sale | 691 | |
Income tax receivable | 11 | 7 |
Prepaid expenses and other current assets | 1,960 | 1,001 |
Total current assets | 71,908 | 71,214 |
Non-current financing receivables | 116 | 184 |
Non-current inventories | 19,223 | 21,524 |
Rental equipment, net | 66,985 | 62,062 |
Property, plant and equipment, net | 31,615 | 31,474 |
Operating right-of-use asset | 184 | |
Goodwill | 5,008 | 5,008 |
Other intangible assets, net | 9,630 | 10,063 |
Deferred income tax assets, net | 262 | 236 |
Prepaid income taxes | 65 | 64 |
Other assets | 180 | 179 |
Total assets | 205,176 | 202,008 |
Current liabilities: | ||
Accounts payable trade | 6,339 | 4,051 |
Accrued expenses and other current liabilities | 6,241 | 6,370 |
Deferred revenue and customer deposits | 3,658 | 2,724 |
Operating lease liability | 160 | |
Income tax payable | 35 | 25 |
Total current liabilities | 16,433 | 13,170 |
Contingent consideration | 9,940 | 9,940 |
Non-current operating lease liability | 42 | |
Deferred income tax liabilities | 46 | 51 |
Total liabilities | 26,461 | 23,161 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity: | ||
Preferred stock, 1,000,000 shares authorized, no shares issued and outstanding | ||
Common stock, $.01 par value, 20,000,000 shares authorized, 13,661,489 and 13,630,666 shares issued and outstanding | 137 | 136 |
Additional paid-in capital | 89,250 | 88,660 |
Retained earnings | 104,519 | 105,808 |
Accumulated other comprehensive loss | (15,191) | (15,757) |
Total stockholders’ equity | 178,715 | 178,847 |
Total liabilities and stockholders’ equity | $ 205,176 | $ 202,008 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Dec. 31, 2019 | Sep. 30, 2019 |
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 | 13,661,489 | 13,630,666 |
Common stock, shares outstanding | 13,661,489 | 13,630,666 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue: | ||
Products | $ 9,083,000 | $ 10,459,000 |
Revenue, Product and Service [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember |
Rental | $ 16,615,000 | $ 7,416,000 |
Total revenue | 25,698,000 | 17,875,000 |
Cost of revenue: | ||
Products | $ 9,903,000 | $ 11,220,000 |
Revenue, Product and Service [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember |
Rental | $ 5,305,000 | $ 3,565,000 |
Total cost of revenue | 15,208,000 | 14,785,000 |
Gross profit | 10,490,000 | 3,090,000 |
Operating expenses: | ||
Selling, general and administrative | 5,997,000 | 6,085,000 |
Research and development | 4,296,000 | 3,171,000 |
Bad debt expense (recovery) | 27,000 | (103,000) |
Total operating expenses | 10,320,000 | 9,153,000 |
Income (loss) from operations | 170,000 | (6,063,000) |
Other income (expense): | ||
Interest expense | (12,000) | (34,000) |
Interest income | 134,000 | 272,000 |
Foreign exchange gains (losses), net | (132,000) | 67,000 |
Other, net | (29,000) | (88,000) |
Total other income (loss), net | (39,000) | 217,000 |
Income (loss) before income taxes | 131,000 | (5,846,000) |
Income tax expense | 1,420,000 | 7,000 |
Net loss | $ (1,289,000) | $ (5,853,000) |
Loss per common share: | ||
Basic | $ (0.10) | $ (0.44) |
Diluted | $ (0.10) | $ (0.44) |
Weighted average common shares outstanding: | ||
Basic | 13,454,254 | 13,339,408 |
Diluted | 13,454,254 | 13,339,408 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (1,289) | $ (5,853) |
Other comprehensive income (loss): | ||
Change in unrealized gains on available-for-sale securities, net of tax | 64 | |
Foreign currency translation adjustments | 566 | (218) |
Total other comprehensive income (loss) | 566 | (154) |
Total comprehensive loss | $ (723) | $ (6,007) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance at Sep. 30, 2018 | $ 176,587 | $ 136 | $ 86,116 | $ 105,954 | $ (15,619) |
Beginning Balance, Shares at Sep. 30, 2018 | 13,600,541 | ||||
Net loss | (5,853) | (5,853) | |||
Other comprehensive income (loss) | (154) | (154) | |||
Issuance of restricted stock, Shares | 8,000 | ||||
Forfeiture of restricted stock, Shares | 250 | ||||
Issuance of common stock pursuant to the exercise of stock options | 215 | 215 | |||
Issuance of common stock pursuant to the exercise of stock options, Shares | 24,500 | ||||
Stock-based compensation | 602 | 602 | |||
Ending Balance at Dec. 31, 2018 | 171,397 | $ 136 | 86,933 | 100,101 | (15,773) |
Beginning Balance, Shares at Dec. 31, 2018 | 13,632,791 | ||||
Forfeiture of restricted stock, Shares | (250) | ||||
Beginning Balance at Sep. 30, 2019 | $ 178,847 | $ 136 | 88,660 | 105,808 | (15,757) |
Beginning Balance, Shares at Sep. 30, 2019 | 13,630,666 | 13,630,666 | |||
Net loss | $ (1,289) | (1,289) | |||
Other comprehensive income (loss) | 566 | 566 | |||
Issuance of common stock pursuant to the vesting of restricted stock units | 1 | $ 1 | |||
Issuance of common stock pursuant to the vesting of restricted stock units, Shares | 30,823 | ||||
Stock-based compensation | 590 | 590 | |||
Ending Balance at Dec. 31, 2019 | $ 178,715 | $ 137 | $ 89,250 | $ 104,519 | $ (15,191) |
Beginning Balance, Shares at Dec. 31, 2019 | 13,661,489 | 13,661,489 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (1,289) | $ (5,853) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Deferred income tax benefit | (25) | (61) |
Rental equipment depreciation | 4,443 | 2,711 |
Property, plant and equipment depreciation | 930 | 919 |
Amortization of intangible assets | 433 | 362 |
Amortization of premiums on short-term investments | (7) | |
Stock-based compensation expense | 590 | 602 |
Bad debt expense (recovery) | 27 | (103) |
Inventory obsolescence expense | 1,436 | 1,428 |
Gross profit from sale of used rental equipment | (284) | |
Gain on disposal of property, plant and equipment | (14) | |
Realized loss on short-term investments | 59 | |
Effects of changes in operating assets and liabilities: | ||
Trade accounts and other receivables | (8,460) | 1,824 |
Income tax receivable | 4 | |
Inventories | (3,126) | (6,302) |
Prepaid expenses and other current assets | (949) | (1,472) |
Prepaid income taxes | (1) | (12) |
Accounts payable trade | 2,284 | 4,240 |
Accrued expenses and other | (283) | 2,008 |
Deferred revenue and customer deposits | 925 | 879 |
Income tax payable | 9 | 50 |
Net cash provided by (used in) operating activities | (3,358) | 1,272 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (1,670) | (717) |
Proceeds from the sale of property, plant and equipment | 40 | |
Investment in rental equipment | (5,152) | (10,164) |
Proceeds from the sale of used rental equipment | 1,146 | 728 |
Proceeds from the sale of short-term investments | 16,081 | |
Business acquisition | (1,819) | |
Payments for damages related to insurance claim | (118) | |
Proceeds from insurance claim | 78 | |
Net cash provided by (used in) investing activities | (5,636) | 4,069 |
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 215 | |
Net cash provided by financing activities | 215 | |
Effect of exchange rate changes on cash | 210 | (379) |
Increase (decrease) in cash and cash equivalents | (8,784) | 5,177 |
Cash and cash equivalents, beginning of fiscal year | 18,925 | 11,934 |
Cash and cash equivalents, end of fiscal period | 10,141 | 17,111 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Cash paid for interest | 12 | 34 |
Cash paid for income taxes | 1,440 | 7 |
Inventory transferred to rental equipment | $ 4,070 | $ 7,353 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2019 | |
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, 2019 was derived from the Company’s audited consolidated financial statements at that date. The consolidated balance sheet at December 31, 2019 and the consolidated statements of operations, comprehensive income (loss), stockholders’ equity and cash flows for the three months ended December 31, 2019 and 2018 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. All intercompany balances and transactions have been eliminated. The results of operations for the three months ended December 31, 2019 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, 2019. 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 previously reported 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 (“GAAP”) 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. While management believes current estimates are reasonable and appropriate, 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. At December 31, 2019, cash and cash equivalents included $6.9 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 under rates enacted by The Tax Cuts and Jobs Act (“2017 Tax Act”). Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“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 Company adopted this guidance on October 1, 2019 using the optional transition method, which allows it to initially apply the new guidance at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings. The adoption of this guidance had an immaterial impact on the Company’s consolidated financial statements, and there was no adjustment made to the opening balance of retained earnings. In June 2018, the FASB issued guidance expanding the scope of ASC Topic 718, Compensation - Stock Compensation In August 2018, the FASB issued guidance requiring certain existing disclosure requirements in ASC Topic 820, Fair Value Measurements and Disclosures Recently Issued Accounting Pronouncements In January 2017, the FASB issued guidance simplifying the current two-step goodwill impairment test by eliminating Step 2 of the test. The guidance requires a one-step impairment test in which an entity compares the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, if any. This guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, and should be applied on a prospective basis. Early adoption is permitted for the interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company will 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 financial statements. In June 2016, the FASB issued guidance surrounding credit losses for financial instruments that replaces the incurred loss impairment methodology in generally accepted accounting principles. 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 fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. 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 will 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. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 2. Revenue Recognition On October 1, 2018, the Company adopted ASC Topic 606, Revenue from Contracts with Customers. Under the new standard, the Company recognizes revenue when performance of contractual obligations are satisfied, generally when control of the promised goods or services is transferred to its customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. The Company primarily derives product revenue from the sale of its manufactured products. Revenue from these product sales, including the sale of used rental equipment, is recognized when obligations under the terms of a contract are satisfied, control is transferred and collectability of the sales price is reasonably assured. In situations where collectability of the sales price is not reasonably assured, the Company recognizes the sales price on a cash basis. Transfer of control generally occurs with shipment or delivery, depending on the terms of the underlying contract. 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. 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. The Company also generates revenue from short-term rentals under operating leases of its manufactured products. Rental revenue is recognized as earned over the rental period and collectability of the rent is reasonably assured. Rentals of the Company’s equipment generally range from daily rentals to minimum rental periods of up to six months or longer. The Company has determined that the new standard does not apply to rental contracts, which are within the scope of other revenue recognition accounting standards. The cumulative effect of the changes made to the Company’s consolidated balance sheet as of October 1, 2018 resulting from the adoption of the new standard was not material and did not impact beginning retained earnings. The impact on the timing of sales and services for the fiscal year ended September 30, 2019 resulting from the application of the new standard was not material. As permissible under the new standard, sales taxes and transaction-based taxes are excluded from revenue. The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Additionally, the Company expenses costs incurred to obtain contracts when incurred because the amortization period would have been one year or less. These costs are recorded in selling, general and administrative expenses. At December 31, 2019 and September 30, 2019, the Company had no deferred contract liabilities or deferred contract costs. During the three months ended December 31, 2019 and 2018, the Company recognized revenue of zero and $0.1 million, respectively, from deferred contract liabilities and cost of revenue of zero and $8,000, respectively, from deferred contract costs. For each of the Company’s operating segments, the following table presents revenue only from the sale of products and the performance of services under contracts with customers (in thousands). Therefore, the table excludes all revenue earned from rental contracts. Three Months Ended December 31, 2019 December 31, 2018 Oil and Gas Markets Traditional exploration product revenue $ 2,330 $ 2,726 Wireless exploration product revenue 404 144 Reservoir product revenue 180 888 Total revenue 2,914 3,758 Adjacent Markets Industrial product revenue 3,596 3,562 Imaging product revenue 2,476 3,051 Total revenue 6,072 6,613 Emerging Markets Revenue 97 88 Total $ 9,083 $ 10,459 See note 13 for more information on the Company’s operating segments. For each of the geographic areas where the Company operates, the following table presents revenue (in thousands) from the sale of products and services under contracts with customers. The table excludes all revenue earned from rental contracts: Three Months Ended December 31, 2019 December 31, 2018 Asia $ 445 $ 1,558 Canada 473 288 Europe 1,413 915 United States 6,597 6,610 Other 155 1,088 Total $ 9,083 $ 10,459 Revenue is attributable to countries based on the ultimate destination of the product sold, if known. If the ultimate destination is not known, revenue is attributable to countries based on the geographic location of the initial shipment. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 3. Derivative Financial Instruments At December 31, 2019 and September 30, 2019, the Company’s Canadian subsidiary had CAD $8.3 million and CAD $9.3 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. At December 31, 2019 and September 30, 2019, the Company had short-term hedge contracts of CAD $6.0 million and CAD $7.0 million, respectively, 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 the contract 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 December 31, 2019 September 30, 2019 Foreign Currency Forward Contracts Accrued Expenses and Other Current Liabilities $ 26 $ 4 The following table summarizes the Company’s realized gains (losses) on derivative instruments included in the consolidated statements of operations for the three months ended December 31, 2019 and 2018 (in thousands): Three Months Ended Derivative Instrument Location December 31, 2019 December 31, 2018 Foreign Currency Forward Contracts Other Income (Expense) $ (98 ) $ 552 |
Trade Accounts Receivable and F
Trade Accounts Receivable and Financing Receivables | 3 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Trade Accounts Receivable and Financing Receivables | 4. Trade Accounts Receivable and Financing Receivables Trade accounts receivable, net are reflected in the following table (in thousands): December 31, 2019 September 30, 2019 Trade accounts receivable $ 33,641 $ 25,144 Allowance for doubtful accounts (960 ) (951 ) Total $ 32,681 $ 24,193 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 accounts receivable balances. Accounts receivable balances are charged off against the allowance whenever it is probable that the receivable balance will not be recoverable. Trade accounts receivable at December 31, 2019 and September 30, 2019 includes $8.7 million and $8.5 million, respectively, due from an international seismic marine customer that, as of December 31, 2019 rented a significant amount of marine nodal equipment from the Company. The Company has experienced cash collection difficulties with this customer throughout fiscal year 2019 and into the first quarter of fiscal year 2020 due to the customer’s inability to generate sufficient cash flows to pay its obligations in a timely manner. In November 2019, the Company accepted from the customer a plan to bring its unpaid invoices to a satisfactory status. The most recent payment made by the customer prior to the plan was $1.4 million in November 2019. The customer did not make any of the scheduled payments as detailed in that plan. In late November 2019, the Company ceased recognizing revenue from this customer and expects to continue to do so until the customer demonstrates its ability to routinely service its debts owed to the Company in the ordinary course of business. At December 31, 2019, the total debt contractually owed by the customer to the Company is $10.2 million; however, the trade accounts receivable of $8.7 million on the Company’s balance sheet at December 31, 2019 excludes $1.5 million of unrecognized revenue invoiced by the Company during the quarter ended December 31, 2019. Prior to the customer missing the first scheduled payment in late November, the Company recognized $2.5 million of revenue from this customer for the quarter ended December 31, 2019. Subsequent to December 31, 2019, the Company has commenced negotiations with the customer to enter into an agreement requiring the customer to pay a portion of the trade accounts receivable in the near term, to pay all rental payments going forward on a current basis and convert the remaining amount owed into a debt instrument secured by certain of the customer’s assets. The Company expects to finalize the agreement with the customer in its second quarter ending March 31, 2020. While the Company has significant concerns about the ultimate collection of its accounts receivable from this customer, the Company has not provided any additional bad debt reserves toward its outstanding accounts receivable balance from this customer due to the on-going negotiations. If it becomes probable (in the Company’s judgment) that the customer is unable to generate cash flows sufficient to satisfy the customer’s obligations from the variety of options available to it, the Company will record additional bad debt reserves. The current negotiations may not lead to a definitive agreement being entered into; or the fair market value of the collateral securing the debt under the agreement may not equal or exceed the balance of accounts receivable owed by the customer; or the customer may not meet it’s payment obligations. If any of these situations occur, the Company could record a significant bad debt reserve as soon as the second quarter of fiscal year 2020. Financing receivables are reflected in the following table (in thousands): December 31, 2019 September 30, 2019 Promissory notes $ 607 $ 780 Sales-type lease 2,054 2,692 Total financing receivables 2,661 3,472 Unearned income: Sales-type lease (28 ) (55 ) Total unearned income (28 ) (55 ) Total financing receivables, net of unearned income 2,633 3,417 Less current portion (2,517 ) (3,233 ) Non-current financing receivables $ 116 $ 184 Promissory notes receivable are generally collateralized by the products sold, and bear interest at rates ranging up to 5% per year. The promissory notes receivable mature at various times through May 2021. The Company has, on occasion, extended or renewed notes receivable as they mature, but there is no obligation to do so. The Company entered into a sales-type lease in September 2017 resulting from the sale of rental equipment. The sales-type lease has a term of three years. Future minimum lease payments required under the lease at December 31, 2019 were $2.1 million, including $0.1 million of unearned income. The future minimum lease payments are due in fiscal year 2020. Interest income earned on the lease for the three months ended December 31, 2019 and 2018 was $32,000 and $0.1 million, respectively. The ownership of the equipment will transfer to the lessee at the end of the lease term. |
Inventories
Inventories | 3 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 5. Inventories Inventories consist of the following (in thousands): December 31, 2019 September 30, 2019 Finished goods $ 24,286 $ 17,967 Work in process 6,745 3,681 Raw materials 44,446 55,781 Obsolescence reserve (32,347 ) (32,050 ) 43,130 45,379 Less current portion (23,907 ) (23,855 ) Non-current portion $ 19,223 $ 21,524 Raw materials included semi-finished goods and component parts that totaled approximately $19.2 million and $25.2 million at December 31, 2019 and September 30, 2019, respectively. |
Leases
Leases | 3 Months Ended |
Dec. 31, 2019 | |
Rental Equipment [Abstract] | |
Leases | 6. Leases As Lessee The Company has elected not to record operating right-of-use assets or operating lease liabilities with a term of 12 months or less on its consolidated balance sheet. Such leases are expensed on a straight-line basis over the lease term. The Company has one operating right-of use asset on its consolidated balance sheet related to a leased facility in Austin, Texas. The lease commenced in May 2019 and is for a two-year term. Future minimum lease payments related to the operating lease is as follows (in thousands): For fiscal year ending September 30, 2020 (remainder) $ 124 2021 84 Future minimum lease payments 208 Less interest (6 ) Present value of future minimum lease payments 202 Less current portion (160 ) Non-current portion $ 42 The discount rate used on the lease was 5%, which represents the Company’s incremental borrowing rate. Operating lease costs are recorded in a single expense in the consolidated statements of operations and allocated to the right-of-use asset and the related lease liability as amortization expense and interest expense, respectively. Right-of-use asset operating lease costs of $38,000 and short-term lease costs of $76,000, both included as a component of total operating expenses, were recognized for the three months ended December 31, 2019. Supplemental cash flow information related to the operating lease is a follows (in thousands): Three Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liability $ 40 Operating lease asset obtained in exchange for new lease liability 219 As Lessor The Company leases equipment to customers primarily for terms of six months or less. The majority of the Company’s rental revenue is generated from its marine-based wireless seismic data acquisition system. All of the Company’s leasing arrangements as lessor are classified as operating leases except for one sales-type lease. See note 4 for more information on this lease. Rental revenue for the three months ended December 31, 2019 and 2018 was $16.6 million and $7.4 million, respectively. At December 31, 2019, future minimum leases payments due from the Company’s leasing customers (all in fiscal year 2020) were $3.2 million (not inclusive of lease deposits of $0.7 million). At December 31, 2019, the minimum lease term for the majority of the equipment on lease to customers was expired and was lea s Rental equipment consisted of the following (in thousands): December 31, 2019 September 30, 2019 Rental equipment, primarily wireless recording equipment $ 117,210 $ 107,645 Accumulated depreciation and impairment (50,225 ) (45,583 ) $ 66,985 $ 62,062 |
Property Held for Sale
Property Held for Sale | 3 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Property Held for Sale | 7. Property Held for Sale The Company owns a property located in Bogot á |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 8. Goodwill and Other Intangible Assets The Company’s consolidated goodwill and other intangible assets consisted of the following (in thousands): Weighted- Average Remaining Useful Lives (in years) December 31, 2019 September 30, 2019 Goodwill $ 5,008 $ 5,008 Other intangible assets: Developed technology 16.7 5,919 5,918 Customer relationships 2.7 3,900 3,900 Trade names 3.7 1,930 1,930 Non-compete agreements 2.7 170 170 Total other intangible assets 9.8 11,919 11,918 Accumulated amortization (2,289 ) (1,855 ) $ 9,630 $ 10,063 Other intangible assets amortization expense for each of the three months ended December 31, 2019 and 2018 was $0.4 million. As of December 31, 2019, future estimated amortization expense of other intangible assets is as follows (in thousands): For fiscal years ending September 30, 2020 (remainder) $ 1,299 2021 1,732 2022 1,624 2023 714 2024 342 Thereafter 3,919 $ 9,630 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Dec. 31, 2019 | |
Stockholders Equity Note [Abstract] | |
Accumulated Other Comprehensive Loss | 9. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consisted of the following (in thousands): Three Month Ended December 31, 2019 Balance at October 1, 2019 $ (15,757 ) Foreign currency translation adjustments 566 Balance at December 31, 2019 $ (15,191 ) Three Month Ended December 31, 2018 Balance at October 1, 2018 $ (15,619 ) Changes in unrealized gain on available-for-sale securities, net of tax 64 Foreign currency translation adjustments (218 ) Balance at December 31, 2018 $ (15,773 ) |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 10. Stock-Based Compensation During the three months ended December 31, 2019, the Company issued 146,850 restricted stock units (“RSUs”) under its 2014 Long Term Incentive Plan, as amended (the “Plan”). The RSUs issued include both time-based and performance-based vesting provisions. The weighted average grant date fair value of each RSU was $14.76 per unit. The grant date fair value of the RSUs was $2.2 million, which will be charged to expense over the next four years as the restrictions lapse. Compensation expense for RSUs was determined based on the closing market price of the Company’s stock on the date of grant applied to the total number of units that are anticipated to fully vest. Each RSU represents a contingent right to receive one share of the Company’s common stock upon vesting. As of December 31, 2019, the Company had unrecognized compensation expense of $3.6 million relating to RSUs that is expected to be recognized over a weighted average period of 3.5 years. As of December 31, 2019, the Company had $1.8 million of unrecognized compensation expense related to restricted stock awards (“RSAs”) that is expected to be recognized over a weighted average period of 1.8 years. As of December 31, 2019, there were 253,320 RSUs, 125,849 RSAs and 165,600 nonqualified stock options outstanding. |
Loss Per Common Share
Loss Per Common Share | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Loss Per Common Share | 11. Loss Per Common Share The following table summarizes the calculation of net loss and weighted average common shares and common equivalent shares outstanding for purposes of the computation of loss per share (in thousands, except share and per share data): Three Months Ended December 31, 2019 December 31, 2018 Net loss $ (1,289 ) $ (5,853 ) Less: Loss allocable to unvested restricted stock — — Loss attributable to common shareholders for diluted earnings per share $ (1,289 ) $ (5,853 ) Weighted average number of common share equivalents: Common shares used in basic loss per share 13,454,254 13,339,408 Common share equivalents outstanding related to stock options and RSUs — — Total weighted average common shares and common share equivalents used in diluted loss per share 13,454,254 13,339,408 Loss per share: Basic $ (0.10 ) $ (0.44 ) Diluted $ (0.10 ) $ (0.44 ) For the calculation of diluted loss per share for the three months ended December 31, 2019, 165,600 stock options and 253,320 non-vested RSUs were excluded in the calculation of weighted average shares outstanding since their impact on diluted loss per share was antidilutive. For the calculation of diluted loss per share for the three months ended December 31, 2018, 165,600 stock options and 147,800 non-vested RSUs were excluded in the calculation of weighted average shares outstanding since their impact on diluted loss per share was antidilutive. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Contingent Consideration In connection with its acquisitions of Quantum Technology Sciences, Inc. (“Quantum”) and the OptoSeis ® The Company recorded an initial contingent earn-out liability of $7.7 million in connection with its July 2018 acquisition of Quantum. Contingent payments, if any, may be paid in the form of cash or Company stock and will be derived from eligible revenue generated during a four-year earn-out period ending July 2022. The maximum amount of contingent payments is $23.5 million over the four-year earn-out period. Subsequent to the Quantum acquisition, the Company recorded a $2.9 million adjustment to decrease the initial earn-out liability to its estimated fair value. The Company recorded an initial contingent earn-out liability of $4.3 million in connection with its November 2018 acquisition of all the intellectual property and related assets of the OptoSeis ® ® The Company reviews and accesses the fair value of its contingent earn-out liabilities on a quarterly basis. At December 31, 2019, management re-accessed the Company’s projections of future eligible revenue and determined that the projections had not materially changed since September 30, 2019. Based on the assessment, no adjustments were made to the fair value of the Company’s contingent earn-out liabilities for the first fiscal quarter of 2020. Operating Leases The Company leases office space and certain equipment for terms of two years or less. For the remaining nine months of fiscal year 2020 and for fiscal year 2021, future minimum lease obligations for the Company’s operating right-of-use asset and the Company’s other short-term leases $0.2 million and $0.1 million, respectively. Legal Proceedings The Company is involved in various pending legal actions in the ordinary course of its business. Management is unable to predict the ultimate outcome of these actions, because of the inherent uncertainty such actions. However, management believes that the most probable, ultimate resolution of these pending matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 13. Segment Information The Company reports and evaluates financial information for three operating segments: Oil and Gas Markets, Adjacent Markets and Emerging Markets. The Oil and Gas Markets segment products include wireless seismic data acquisition systems, reservoir characterization products and services, and traditional seismic exploration products such as geophones, hydrophones, leader wire, connectors, cables, marine streamer retrieval and steering devices and various other seismic products. The Adjacent Markets segment products include imaging equipment, water meter products, offshore cables, and seismic sensors used for vibration monitoring and geotechnical applications such as mine safety applications and earthquake detection. The Emerging Markets segment was added in conjunction with the Company’s acquisition of Quantum, which designs and markets seismic products targeted at the border and perimeter security markets. The following table summarizes the Company’s segment information (in thousands): Three Months Ended December 31, 2019 December 31, 2018 Revenue: Oil and Gas Markets $ 19,502 $ 11,004 Adjacent Markets 6,099 6,635 Emerging Markets 97 88 Corporate — 148 Total $ 25,698 $ 17,875 Income (loss) from operations: Oil and Gas Markets $ 4,099 $ (2,601 ) Adjacent Markets 851 982 Emerging Markets (1,365 ) (1,192 ) Corporate (3,415 ) (3,252 ) Total $ 170 $ (6,063 ) |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes Consolidated income tax expense for the three months ended December 31, 2019 was $1.4 million compared to $7,000 for corresponding period of the prior fiscal year. The income tax expense for the three months ended December 31, 2019 primarily reflects foreign withholding tax on rental income earned in Nigeria and Brunei. During the three months ended December 31, 2019, a substantial portion of the Company’s rental activities were in international locations. The Company is currently unable to record any tax benefits for its tax losses in the U.S. and Canada due to the uncertainty surrounding its ability to utilize such losses in the future to offset taxable income. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2019 | |
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, 2019 was derived from the Company’s audited consolidated financial statements at that date. The consolidated balance sheet at December 31, 2019 and the consolidated statements of operations, comprehensive income (loss), stockholders’ equity and cash flows for the three months ended December 31, 2019 and 2018 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. All intercompany balances and transactions have been eliminated. The results of operations for the three months ended December 31, 2019 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, 2019. |
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 previously reported 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 (“GAAP”) 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. While management believes current estimates are reasonable and appropriate, 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. At December 31, 2019, cash and cash equivalents included $6.9 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 under rates enacted by The Tax Cuts and Jobs Act (“2017 Tax Act”). |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“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 Company adopted this guidance on October 1, 2019 using the optional transition method, which allows it to initially apply the new guidance at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings. The adoption of this guidance had an immaterial impact on the Company’s consolidated financial statements, and there was no adjustment made to the opening balance of retained earnings. In June 2018, the FASB issued guidance expanding the scope of ASC Topic 718, Compensation - Stock Compensation In August 2018, the FASB issued guidance requiring certain existing disclosure requirements in ASC Topic 820, Fair Value Measurements and Disclosures |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In January 2017, the FASB issued guidance simplifying the current two-step goodwill impairment test by eliminating Step 2 of the test. The guidance requires a one-step impairment test in which an entity compares the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, if any. This guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, and should be applied on a prospective basis. Early adoption is permitted for the interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company will 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 financial statements. In June 2016, the FASB issued guidance surrounding credit losses for financial instruments that replaces the incurred loss impairment methodology in generally accepted accounting principles. 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 fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. 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 will 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. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenue from the Sale of Products and Performance of Services Under Contracts with Customers Excludes All Revenue Earned from Rental Contracts by Operating Segments | For each of the Company’s operating segments, the following table presents revenue only from the sale of products and the performance of services under contracts with customers (in thousands). Therefore, the table excludes all revenue earned from rental contracts. Three Months Ended December 31, 2019 December 31, 2018 Oil and Gas Markets Traditional exploration product revenue $ 2,330 $ 2,726 Wireless exploration product revenue 404 144 Reservoir product revenue 180 888 Total revenue 2,914 3,758 Adjacent Markets Industrial product revenue 3,596 3,562 Imaging product revenue 2,476 3,051 Total revenue 6,072 6,613 Emerging Markets Revenue 97 88 Total $ 9,083 $ 10,459 |
Summary of Revenue from the Sale of Products and Services Under Contracts with Customers Excludes All Revenue Earned from Rental Contracts by Geographic Areas | For each of the geographic areas where the Company operates, the following table presents revenue (in thousands) from the sale of products and services under contracts with customers. The table excludes all revenue earned from rental contracts: Three Months Ended December 31, 2019 December 31, 2018 Asia $ 445 $ 1,558 Canada 473 288 Europe 1,413 915 United States 6,597 6,610 Other 155 1,088 Total $ 9,083 $ 10,459 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Gross Fair Value of all Derivative Instruments | The following table summarizes the gross fair value of all derivative instruments, which are not designated as hedging instruments and their location in the consolidated balance sheets (in thousands). Derivative Instrument Location December 31, 2019 September 30, 2019 Foreign Currency Forward Contracts Accrued Expenses and Other Current Liabilities $ 26 $ 4 |
Company's Derivatives on Consolidated Financial Statements of Operations | The following table summarizes the Company’s realized gains (losses) on derivative instruments included in the consolidated statements of operations for the three months ended December 31, 2019 and 2018 (in thousands): Three Months Ended Derivative Instrument Location December 31, 2019 December 31, 2018 Foreign Currency Forward Contracts Other Income (Expense) $ (98 ) $ 552 |
Trade Accounts Receivable and_2
Trade Accounts Receivable and Financing Receivables (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Trade Accounts Receivable, Net | Trade accounts receivable, net are reflected in the following table (in thousands): December 31, 2019 September 30, 2019 Trade accounts receivable $ 33,641 $ 25,144 Allowance for doubtful accounts (960 ) (951 ) Total $ 32,681 $ 24,193 |
Financing Receivables | Financing receivables are reflected in the following table (in thousands): December 31, 2019 September 30, 2019 Promissory notes $ 607 $ 780 Sales-type lease 2,054 2,692 Total financing receivables 2,661 3,472 Unearned income: Sales-type lease (28 ) (55 ) Total unearned income (28 ) (55 ) Total financing receivables, net of unearned income 2,633 3,417 Less current portion (2,517 ) (3,233 ) Non-current financing receivables $ 116 $ 184 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following (in thousands): December 31, 2019 September 30, 2019 Finished goods $ 24,286 $ 17,967 Work in process 6,745 3,681 Raw materials 44,446 55,781 Obsolescence reserve (32,347 ) (32,050 ) 43,130 45,379 Less current portion (23,907 ) (23,855 ) Non-current portion $ 19,223 $ 21,524 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Future Minimum Lease Payments Related to Operating Lease | Future minimum lease payments related to the operating lease is as follows (in thousands): For fiscal year ending September 30, 2020 (remainder) $ 124 2021 84 Future minimum lease payments 208 Less interest (6 ) Present value of future minimum lease payments 202 Less current portion (160 ) Non-current portion $ 42 |
Supplemental Cash Flow Information Related to Operating Lease | Supplemental cash flow information related to the operating lease is a follows (in thousands): Three Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liability $ 40 Operating lease asset obtained in exchange for new lease liability 219 |
Rental Equipment | Rental equipment consisted of the following (in thousands): December 31, 2019 September 30, 2019 Rental equipment, primarily wireless recording equipment $ 117,210 $ 107,645 Accumulated depreciation and impairment (50,225 ) (45,583 ) $ 66,985 $ 62,062 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Other Intangible Assets | The Company’s consolidated goodwill and other intangible assets consisted of the following (in thousands): Weighted- Average Remaining Useful Lives (in years) December 31, 2019 September 30, 2019 Goodwill $ 5,008 $ 5,008 Other intangible assets: Developed technology 16.7 5,919 5,918 Customer relationships 2.7 3,900 3,900 Trade names 3.7 1,930 1,930 Non-compete agreements 2.7 170 170 Total other intangible assets 9.8 11,919 11,918 Accumulated amortization (2,289 ) (1,855 ) $ 9,630 $ 10,063 |
Future Estimated Amortization Expense of Other intangible Assets | As of December 31, 2019, future estimated amortization expense of other intangible assets is as follows (in thousands): For fiscal years ending September 30, 2020 (remainder) $ 1,299 2021 1,732 2022 1,624 2023 714 2024 342 Thereafter 3,919 $ 9,630 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Stockholders Equity Note [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consisted of the following (in thousands): Three Month Ended December 31, 2019 Balance at October 1, 2019 $ (15,757 ) Foreign currency translation adjustments 566 Balance at December 31, 2019 $ (15,191 ) Three Month Ended December 31, 2018 Balance at October 1, 2018 $ (15,619 ) Changes in unrealized gain on available-for-sale securities, net of tax 64 Foreign currency translation adjustments (218 ) Balance at December 31, 2018 $ (15,773 ) |
Loss Per Common Share (Tables)
Loss Per Common Share (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Calculation of Net Loss and Weighted Average Common Shares and Common Equivalent Shares Outstanding for Computation of Loss Per Share | The following table summarizes the calculation of net loss and weighted average common shares and common equivalent shares outstanding for purposes of the computation of loss per share (in thousands, except share and per share data): Three Months Ended December 31, 2019 December 31, 2018 Net loss $ (1,289 ) $ (5,853 ) Less: Loss allocable to unvested restricted stock — — Loss attributable to common shareholders for diluted earnings per share $ (1,289 ) $ (5,853 ) Weighted average number of common share equivalents: Common shares used in basic loss per share 13,454,254 13,339,408 Common share equivalents outstanding related to stock options and RSUs — — Total weighted average common shares and common share equivalents used in diluted loss per share 13,454,254 13,339,408 Loss per share: Basic $ (0.10 ) $ (0.44 ) Diluted $ (0.10 ) $ (0.44 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Company's Segment Information | The following table summarizes the Company’s segment information (in thousands): Three Months Ended December 31, 2019 December 31, 2018 Revenue: Oil and Gas Markets $ 19,502 $ 11,004 Adjacent Markets 6,099 6,635 Emerging Markets 97 88 Corporate — 148 Total $ 25,698 $ 17,875 Income (loss) from operations: Oil and Gas Markets $ 4,099 $ (2,601 ) Adjacent Markets 851 982 Emerging Markets (1,365 ) (1,192 ) Corporate (3,415 ) (3,252 ) Total $ 170 $ (6,063 ) |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Details) $ in Millions | Dec. 31, 2019USD ($) |
Accounting Policies [Abstract] | |
Cash and cash equivalents held by foreign subsidiaries and branch offices | $ 6.9 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Disaggregation Of Revenue [Line Items] | |||
Deferred contract liabilities | $ 0 | $ 0 | |
Deferred contract costs | 0 | $ 0 | |
Revenue | 9,083,000 | $ 10,459,000 | |
Cost of revenue recognized from deferred contract cost | 0 | 8,000 | |
Deferred Contract Liability | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | $ 0 | $ 100,000 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Revenue from the Sale of Products and Performance of Services Under Contracts with Customers Excludes All Revenue Earned from Rental Contracts by Operating Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 9,083 | $ 10,459 |
Operating Segments | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 9,083 | 10,459 |
Operating Segments | Oil and Gas Markets | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 2,914 | 3,758 |
Operating Segments | Oil and Gas Markets | Traditional Exploration Product Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 2,330 | 2,726 |
Operating Segments | Oil and Gas Markets | Wireless Exploration Product Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 404 | 144 |
Operating Segments | Oil and Gas Markets | Reservoir Product Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 180 | 888 |
Operating Segments | Adjacent Markets | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 6,072 | 6,613 |
Operating Segments | Adjacent Markets | Industrial Product Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 3,596 | 3,562 |
Operating Segments | Adjacent Markets | Imaging Product Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 2,476 | 3,051 |
Operating Segments | Emerging Markets | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 97 | $ 88 |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Revenue from the Sale of Products and Services Under Contracts with Customers Excludes All Revenue Earned from Rental Contracts by Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 9,083 | $ 10,459 |
Operating Segments | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 9,083 | 10,459 |
Operating Segments | Asia | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 445 | 1,558 |
Operating Segments | Canada | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 473 | 288 |
Operating Segments | Europe | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 1,413 | 915 |
Operating Segments | United States | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 6,597 | 6,610 |
Operating Segments | Other | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 155 | $ 1,088 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) - CAD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Sep. 30, 2019 | |
Canadian Dollar Forward Contract | ||
Derivative [Line Items] | ||
Foreign currency forward contract to hedge | $ 6 | $ 7 |
Canadian Subsidiary | ||
Derivative [Line Items] | ||
Denominated intercompany accounts payable | $ 8.3 | $ 9.3 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Gross Fair Value of all Derivative Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Foreign Currency Forward Contracts | Accrued Expenses and Other Current Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivatives Liabilities | $ 26 | $ 4 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Company's Derivatives on Consolidated Financial Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
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 | $ (98) | $ 552 |
Trade Accounts Receivable and_3
Trade Accounts Receivable and Financing Receivables - Trade Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Current trade accounts receivable | ||
Trade accounts receivable | $ 33,641 | $ 25,144 |
Allowance for doubtful accounts | (960) | (951) |
Total | $ 32,681 | $ 24,193 |
Trade Accounts Receivable and_4
Trade Accounts Receivable and Financing Receivables - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Nov. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Accounts receivable | $ 33,641,000 | $ 25,144,000 | ||
Payment made by customer prior to the plan | $ 1,400,000 | |||
Revenue | $ 9,083,000 | $ 10,459,000 | ||
Rental Equipment | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Promissory notes receivable maximum interest rate | 5.00% | |||
Promissory notes receivable maturity month and year | 2021-05 | |||
Term of sales-type lease | 3 years | |||
Future minimum lease payments | $ 2,100,000 | |||
Future minimum lease payments of unearned income | 100,000 | |||
Interest income earned on lease | 32,000 | $ 100,000 | ||
Single Customer | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Accounts receivable | 10,200,000 | |||
Unrecognized revenue | 1,500,000 | |||
Single Customer | Customer Concentration Risk | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Revenue | 2,500,000 | |||
Single Customer | Trade Accounts Receivable | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Accounts receivable | $ 8,700,000 | $ 8,500,000 |
Trade Accounts Receivable and_5
Trade Accounts Receivable and Financing Receivables - Financing Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total financing receivables | $ 2,661 | $ 3,472 |
Total unearned income | (28) | (55) |
Total financing receivables, net of unearned income | 2,633 | 3,417 |
Less current portion | (2,517) | (3,233) |
Non-current financing receivables | 116 | 184 |
Promissory Notes | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total financing receivables | 607 | 780 |
Sales Type Lease | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total financing receivables | 2,054 | 2,692 |
Total unearned income | $ (28) | $ (55) |
Inventories - Inventories (Deta
Inventories - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 24,286 | $ 17,967 |
Work in process | 6,745 | 3,681 |
Raw materials | 44,446 | 55,781 |
Obsolescence reserve | (32,347) | (32,050) |
Total | 43,130 | 45,379 |
Less current portion | (23,907) | (23,855) |
Non-current portion | $ 19,223 | $ 21,524 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials included semi-finished goods and component parts | $ 19.2 | $ 25.2 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Related to Operating Lease (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 (remainder) | $ 124 |
2021 | 84 |
Future minimum lease payments | 208 |
Less interest | (6) |
Present value of future minimum lease payments | 202 |
Less current portion | (160) |
Non-current operating lease liability | $ 42 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Line Items] | ||
Lessee operating lease, discount rate | 5.00% | |
Right-of-use asset, operating lease costs | $ 38,000 | |
Short-term lease costs | 76,000 | |
Rental revenue | 16,615,000 | $ 7,416,000 |
Future minimum leases payments to be received | 3,200,000 | |
Lease deposits | $ 700,000 | |
Maximum | ||
Leases [Line Items] | ||
Lease term | 6 months |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Operating Lease (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of lease liability | $ 40 |
Operating lease asset obtained in exchange for new lease liability | $ 219 |
Leases - Rental Equipment (Deta
Leases - Rental Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Leases [Abstract] | ||
Rental equipment, primarily wireless recording equipment | $ 117,210 | $ 107,645 |
Accumulated depreciation and impairment | (50,225) | (45,583) |
Rental equipment, net | $ 66,985 | $ 62,062 |
Property Held for Sale - Additi
Property Held for Sale - Additional Information (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Discontinued Operations And Disposal Groups [Abstract] | |
Carrying value of property reclassified to property held for sale | $ 691 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill And Other Intangible Assets [Line Items] | |||
Goodwill | $ 5,008 | $ 5,008 | $ 5,008 |
Total other intangible assets | 11,919 | 11,918 | |
Accumulated amortization | (2,289) | (1,855) | |
Other intangible assets, net | $ 9,630 | $ 10,063 | 10,063 |
Weighted-Average Remaining Useful Lives (in years) | 9 years 9 months 18 days | ||
Developed Technology | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Total other intangible assets | $ 5,919 | 5,918 | |
Weighted-Average Remaining Useful Lives (in years) | 16 years 8 months 12 days | ||
Customer Relationships | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Total other intangible assets | $ 3,900 | 3,900 | |
Weighted-Average Remaining Useful Lives (in years) | 2 years 8 months 12 days | ||
Trade Names | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Total other intangible assets | $ 1,930 | 1,930 | |
Weighted-Average Remaining Useful Lives (in years) | 3 years 8 months 12 days | ||
Non-compete Agreements | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Total other intangible assets | $ 170 | $ 170 | |
Weighted-Average Remaining Useful Lives (in years) | 2 years 8 months 12 days |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 433 | $ 362 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Future Estimated Amortization Expense Of Other intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
2020 (remainder) | $ 1,299 | ||
2021 | 1,732 | ||
2022 | 1,624 | ||
2023 | 714 | ||
2024 | 342 | ||
Thereafter | 3,919 | ||
Other intangible assets, net | $ 9,630 | $ 10,063 | $ 10,063 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Beginning Balance | $ 178,847 | $ 176,587 |
Changes in unrealized gain on available-for-sale securities, net of tax | 64 | |
Foreign currency translation adjustments | 566 | (218) |
Ending Balance | 178,715 | 171,397 |
Accumulated Other Comprehensive Loss | ||
Beginning Balance | (15,757) | (15,619) |
Ending Balance | $ (15,191) | $ (15,773) |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Nonqualified stock options unvested and outstanding | 165,600 |
Restricted Stock Units (RSUs) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Share unvested and outstanding | 253,320 |
Restricted Stock Units (RSUs) | 2014 Long Term Incentive Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares issued | 146,850 |
Weighted average grant date fair value of the restricted stock | $ / shares | $ 14.76 |
Grant date fair value of restricted stock | $ | $ 2.2 |
Restricted stock restriction period | 4 years |
Restricted stock units vesting rights | Each RSU represents a contingent right to receive one share of the Company’s common stock upon vesting. |
Unrecognized compensation expense | $ | $ 3.6 |
Expected period for recognition of unrecognized compensation expense | 3 years 6 months |
Restricted Stock Awards | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation expense | $ | $ 1.8 |
Expected period for recognition of unrecognized compensation expense | 1 year 9 months 18 days |
Share unvested and outstanding | 125,849 |
Loss Per Common Share - Calcula
Loss Per Common Share - Calculation of Net Loss and Weighted Average Common Shares and Common Equivalent Shares Outstanding for Computation of Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (1,289) | $ (5,853) |
Loss attributable to common shareholders for diluted earnings per share | $ (1,289) | $ (5,853) |
Weighted average number of common share equivalents: | ||
Common shares used in basic loss per share | 13,454,254 | 13,339,408 |
Total weighted average common shares and common share equivalents used in diluted loss per share | 13,454,254 | 13,339,408 |
Loss per share: | ||
Basic | $ (0.10) | $ (0.44) |
Diluted | $ (0.10) | $ (0.44) |
Loss Per Common Share - Additio
Loss Per Common Share - Additional Information (Details) - shares | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Number of stock excluded from calculation of weighted average shares outstanding | 165,600 | 165,600 |
Restricted Stock Units (RSUs) | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Number of stock excluded from calculation of weighted average shares outstanding | 253,320 | 147,800 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | Nov. 13, 2018 | Jul. 27, 2018 | Sep. 30, 2019 | Dec. 31, 2019 |
Commitments And Contingencies [Line Items] | ||||
Contingent earn-out liability | $ 9,940,000 | $ 9,940,000 | ||
Future minimum lease obligations, remainder of fiscal year 2020 | 124,000 | |||
Future minimum lease obligations, fiscal year 2021 | 84,000 | |||
Office Space and Certain Equipment | ||||
Commitments And Contingencies [Line Items] | ||||
Future minimum lease obligations, remainder of fiscal year 2020 | 200,000 | |||
Future minimum lease obligations, fiscal year 2021 | $ 100,000 | |||
Maximum | Office Space and Certain Equipment | ||||
Commitments And Contingencies [Line Items] | ||||
Operating lease term | 2 years | |||
Quantum | ||||
Commitments And Contingencies [Line Items] | ||||
Contingent earn-out liability | $ 7,700,000 | |||
Contingent payments earn-out period | 4 years | |||
Contingent payments earn-out period ending month and year | 2022-07 | |||
Contingent payments maximum earn-out amount | $ 23,500,000 | |||
Adjustment to initial contingent earn-out liability | (2,900,000) | |||
OptoSeis® Fiber Optic Sensing Technology Business | ||||
Commitments And Contingencies [Line Items] | ||||
Contingent earn-out liability | $ 4,300,000 | |||
Contingent payments earn-out period | 5 years 6 months | |||
Contingent payments earn-out period ending month and year | 2024-05 | |||
Contingent payments maximum earn-out amount | $ 23,200,000 | |||
Adjustment to initial contingent earn-out liability | $ 800,000 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Dec. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Segment Information - Summary o
Segment Information - Summary of Company's Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 25,698 | $ 17,875 |
Income (loss) from operations | 170 | (6,063) |
Operating Segments | Oil and Gas Markets | ||
Segment Reporting Information [Line Items] | ||
Revenue | 19,502 | 11,004 |
Income (loss) from operations | 4,099 | (2,601) |
Operating Segments | Adjacent Markets | ||
Segment Reporting Information [Line Items] | ||
Revenue | 6,099 | 6,635 |
Income (loss) from operations | 851 | 982 |
Operating Segments | Emerging Markets | ||
Segment Reporting Information [Line Items] | ||
Revenue | 97 | 88 |
Income (loss) from operations | (1,365) | (1,192) |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Revenue | 148 | |
Income (loss) from operations | $ (3,415) | $ (3,252) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 1,420,000 | $ 7,000 |