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EXHIBIT 99.1
IoINPUT/OUTPUT, INC.
NEWS RELEASE
For further information contact:
C. Robert Bunch
Chief Administrative Officer
(281) 933-3339
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THURSDAY, FEBRUARY 01, 2001
INPUT/OUTPUT REPORTS RESULTS FOR THE SEVEN MONTHS ENDED
DECEMBER 31, 2000 FOLLOWING CHANGE IN YEAR END
Input/Output, Inc. (NYSE: IO) today announced a net loss applicable to
common stockholders for the seven months ended December 31, 2000 of $(13.4)
million, or $(0.26) per share, on revenues of $78.3 million, compared to a net
loss applicable to common stockholders of $(78.5) million, or $(1.55) per share,
on revenues of $121.5 million for the year ending May 31, 2000. The Company had
previously announced that effective December 31, 2000 the Company's fiscal
year-end would change from May 31 to December 31. Accordingly, the Company
intends to file a transition report on Form 10-K as of and for the seven months
ended December 31, 2000.
Tim Probert, the Company's President and Chief Executive Officer said,
"The timing of the change in year-end is ideal. The Company is moving towards
more acceptable levels of performance, with business fundamentals for the
seismic sector decidedly improving. The 33% increase in revenues for the three
months ended December 31, 2000 compared to the previous three months primarily
reflects a strengthening market for land seismic equipment, particularly sensors
and energy sources. Sales of marine equipment remain weak at this point in the
cycle." Probert added, "The Company's net loss for the quarter was also
adversely impacted by an increase in research and development expense resulting
principally from costs associated with an ongoing build of VectorSeis(TM) and
other prototypes to meet anticipated market requirements. This increased
prototype expense will continue through the first half of 2001 as the Company
assesses the commercial feasibility of its multicomponent platform and other
products."
Commenting on anticipated results for 2001, Probert stated, "IO should
benefit from increased sales in 2001 due to increased seismic spending caused by
expanding exploration budgets and reduced inventories of seismic data, as well
as the inclusion of Pelton Company. However, as previously announced, we expect
that first quarter revenues will be flat when compared with the three months
ended March 31, 2000. Overall 2001 revenues are anticipated to increase between
35-40% compared with
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calendar 2000. Land sales are anticipated to provide the majority of the sales
increase due to continued over-capacity in the marine seismic fleet." Probert
added, "While we expect that the Company will continue to report net losses
applicable to common stockholders through the first half of the year, the
Company should be slightly profitable for the year as a whole."
The Company also released twelve months of historical information which
will be included for comparative purposes in the Company's Quarterly Reports on
Form 10-Q filed hereafter.
Input/Output, Inc. is an industry leader in seismic acquisition imaging
technology for land, marine, transition zone exploration, production and
reservoir monitoring. The Company specializes in market technology that creates
value for the energy industry in the areas of 2D, 3D, 4D and multi-component
seismic data. Additional information on Input/Output, Inc. is available on the
Internet at www.i-o.com or contact us at ir@i-o.com
"The information included herein contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and section 21E
of the Securities Exchange Act of 1934. These forward-looking statements include
statements concerning anticipated results from the improvement in business
fundamentals for the seismic industry, expected continued weak performance by
the Company's marine operations, expected revenues for the first quarter of
fiscal 2001, anticipated financial results of operations (including revenues,
and profits and losses) during and for fiscal 2001, future cost reduction
initiatives and expected continued investment in new technology. Actual results
may vary materially from those described in these forward-looking statements.
All forward-looking statements reflect numerous assumptions and involve a number
of risks and uncertainties. These risks and uncertainties include energy
exploration industry conditions, worldwide prices for oil and natural gas, the
timing and development of the Company's products and market acceptance of new
and revised product offerings, technological and marketplace changes affecting
the Company's product line, risks associated with competition and pricing
pressures, unanticipated increases in research and development and marketing
expenditures due to changes in market demand, and risks associated with sales to
customers outside the United States (including risks regarding collectibility of
sales receivables). Additional risk factors which could affect actual results
are disclosed by the Company from time to time in its filings with the
Securities and Exchange Commission."
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INPUT/OUTPUT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
Seven Months
Ended Year Ended
December 31, May 31,
2000 2000
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(Unaudited)
Net sales ......................................... $ 78,317 $ 121,454
Cost of sales ..................................... 58,554 106,642
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Gross profit ............................ 19,763 14,812
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Operating expenses:
Research and development ....................... 16,051 28,625
Marketing and sales ............................ 5,934 10,284
General and administrative ..................... 8,127 21,885
Amortization of intangibles .................... 2,757 39,488
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Total operating expenses................. 32,869 100,282
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Loss from operations .............................. (13,106) (85,470)
Interest expense .................................. (627) (826)
Interest income ................................... 4,583 4,930
Other income, net ................................. 176 1,306
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Loss before income taxes .......................... (8,974) (80,060)
Income tax expense (benefit) ...................... 1,332 (6,097)
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Net loss .......................................... (10,306) (73,963)
Preferred dividend ................................ 3,051 4,557
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Net loss applicable to common stock ............... $ (13,357) $ (78,520)
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Basic and diluted loss per common share ........... $ (0.26) $ (1.55)
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Weighted average number of basic and
diluted common shares outstanding ................. 50,840,256 50,716,378
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INPUT / OUTPUT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
(UNAUDITED)
THREE MONTHS ENDED
3/31/00 6/30/00 9/30/00 12/31/00
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Net sales $ 40,041 $ 26,624 $ 30,355 $ 40,364
Cost of sales 41,602 22,874 23,129 29,888
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Gross profit (loss) (1,561) 3,750 7,226 10,476
Operating expenses:
Research and development 7,260 7,072 6,246 7,506
Marketing and sales 2,684 2,656 2,413 2,751
General and administrative (2,737) 13,411 3,293 3,665
Amortization and impairment of
intangibles 2,058 33,598 910 1,192
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Total operating expenses 9,265 56,737 12,862 15,114
Loss from operations (10,826) (52,987) (5,636) (4,638)
Interest expense (195) (212) (288) (278)
Interest income 1,916 549 1,587 2,376
Other income (expense) (60) 1,553 141 161
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Loss before income taxes (9,165) (51,097) (4,196) (2,379)
Income tax expense 124 2,032 2,970 246
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Net loss (9,289) (53,129) (7,166) (2,625)
Preferred dividend 1,158 1,180 1,279 1,383
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Net loss applicable to common stock $ (10,447) $ (54,309) $ (8,445) $ (4,008)
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Basic and diluted loss per common share $ (0.21) $ (1.07) $ (0.17) $ (0.08)
Weighted average number of basic and
diluted common shares outstanding 50,784,775 50,765,728 50,918,674 50,935,900