EXHIBIT 99.1
[OYO GEOSPACE LOGO] News Release
12750 South Kirkwood, Suite 200
Stafford, Texas 77477 USA
Contact:
Gary D. Owens
Chairman, President & CEO
TEL: 281.494.8282
FAX: 281.494.8303
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FOR IMMEDIATE RELEASE
OYO GEOSPACE REPORTS FISCAL 2003 SECOND QUARTER RESULTS
STAFFORD, Texas - April 25, 2003 - OYO Geospace (NASDAQ: OYOG) today announced
operating results for its second quarter ended March 31, 2003. For the second
fiscal quarter of 2003, OYO Geospace recorded sales of $16.5 million versus
sales of $13.8 million in the comparable quarter of the prior year. The company
recorded net income of $38,000, or $0.01 per diluted share, versus a net loss of
$80,000, or ($0.01) per diluted share, in the comparable quarter last year.
For the six months ended March 31, 2003, OYO Geospace recorded sales of $26.6
million and a net loss of $1.3 million, or ($0.23) per diluted share. This
compares with sales of $26.7 million and net income of $567,000, or $0.10 in the
comparable period last year. The company noted that the prior year period
included a gain of $686,000 ($0.12) per diluted share related to the company's
increased ownership in its Russian subsidiary, OYO-GEO Impulse International
LLC.
"The quarter's performance was aided by a reasonably busy Canadian winter and
strong contributions from our reservoir products group," said Gary D. Owens, OYO
Geospace's Chairman, President and CEO. "However, a very weak market for our
traditional seismic exploration products and losses from our commercial graphics
products largely offset these gains."
"Losses in our commercial graphics operations were due to the financial failure
of our primary film supplier as previously announced. During the quarter, our
commercial graphics operations successfully manufactured a private label film.
Small profits during the last two months of the quarter did not offset a larger
loss recorded in January. Our first generation 1200 dpi imagers were shipped
this quarter, opening new commercial graphics markets for the company. We
believe financial performance in this segment should improve as shipments of our
private label film increase and the 1200 dpi imager line expands,"Owens
continued.
"Other notable achievements for the quarter included the first sizable shipment
of products in our newly created offshore cable product line. Additional
bookings lead us to optimism as to further growth in this line during this
fiscal year. Our 85% owned Russian joint venture successfully achieved
manufacturing qualification for one of our most popular geophones as well as an
associated cable product. Shipments to us from this factory will begin
immediately. Additional geophone and cable qualification efforts are underway,"
Owens said.
Commenting on the company's outlook, Owens said, "Poor market conditions and
continued competitive pressures for our traditional seismic exploration products
persist. Cost reduction efforts continued during the quarter, with further
reductions and restructuring plans in progress as we adapt to the present market
environment. Visibility in our markets is very limited and the immediate, as
well as the longer term, outlook is difficult to predict."
OYO Geospace designs and manufactures instruments and equipment used by the oil
and gas industry in the acquisition and processing of seismic data as well as in
reservoir characterization and monitoring activities. The company also designs
and manufactures equipment and film for the commercial graphics industry
worldwide.
This press release includes "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. All statements other than statements of historical fact
included herein including statements regarding potential future products and
markets, our potential future revenues, future financial position, business
strategy, future expectations and other plans and objectives for future
operations, are forward-looking statements. We believe our forward-looking
statements are reasonable. However, they are based on certain assumptions about
our industry and our business that may in the future prove to be inaccurate.
Important factors that could cause actual results to differ materially from our
expectations include the level of seismic exploration worldwide, which is
influenced primarily by prevailing prices for oil and gas, the extent to which
our new products are accepted in the market, the availability of competitive
products that may be more technologically advanced or otherwise preferable to
our products, the resolution of the situation in the Middle East and other
factors disclosed under the heading "Risk Factors" and elsewhere in our most
recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which are
on file with the Securities end Exchange Commission. In addition, the impact on
the general economy and our business from the recent viral outbreak in the Far
East creates uncertainties that we cannot yet evaluate. Further, all written and
verbal forward-looking statements attributable to us or persons acting on our
behalf are expressly qualified in their entirety by such factors.
M O R E
OYO Geospace Corporation and Subsidiaries
Consolidated Statements of Operations
(in thousands except share and per share data)
(unaudited)
Three Months Six Months
Ended March 31, Ended March 31,
----------------------- ----------------------
2003 2002 2003 2002
---------- ----------- ---------- ----------
Sales................................................... $ 16,517 $ 13,833 $ 26,578 $ 26,733
Cost of sales........................................... 11,921 8,978 19,673 17,843
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Gross profit............................................ 4,596 4,855 6,905 8,890
Operating expenses:.....................................
Selling, general and administrative expenses......... 3,123 3,163 5,959 6,039
Research and development expenses.................... 1,324 1,437 2,703 2,517
---------- ---------- ---------- ----------
Total operating expenses......................... 4,447 4,600 8,662 8,556
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Income (loss) from operations........................... 149 255 (1,757) 334
Other income (expense):.................................
Interest expense..................................... (147) (163) (238) (314)
Interest income...................................... 74 47 115 97
Other, net........................................... 1 (281) 47 (276)
---------- ---------- ---------- ----------
Total other expense, net......................... (72) (397) (76) (493)
---------- ---------- ---------- ----------
Income (loss) before income taxes, minority interest and
extraordinary gain.................................... 77 (142) (1,833) (159)
Income tax expense (benefit)............................ 24 (115) (587) (122)
---------- ---------- ---------- ----------
Income (loss) before minority interest and extraordinary
gain.................................................. 53 (27) (1,246) (37)
Minority interest....................................... (15) (53) (34) (82)
---------- ---------- ---------- ----------
Income (loss) before extraordinary gain................. 38 (80) (1,280) (119)
Extraordinary gain, net of tax of $85,000............... -- -- -- 686
---------- ---------- ---------- ----------
Net income (loss)....................................... $ 38 $ (80) $ (1,280) $ 567
========== ========== ========== ==========
Basic earnings (loss) per share.........................
Income (loss) before extraordinary gain................. $ 0.01 $ (0.01) $ (0.23) $ (0.02)
Extraordinary gain...................................... -- -- -- 0.12
========== ========== ========== ==========
Net income (loss)....................................... $ 0.01 $ (0.01) $ (0.23) $ 0.10
========== ========== ========== ==========
Diluted earnings (loss) per share.......................
Income (loss) before extraordinary gain................. $ 0.01 $ (0.01) $ (0.23) $ (0.02)
Extraordinary gain...................................... -- -- -- 0.12
========== ========== ========== ==========
Net income (loss)....................................... $ 0.01 $ (0.01) $ (0.23) $ 0.10
========== ========== ========== ==========
Weighted average shares outstanding--Basic.............. 5,548,411 5,537,409 5,547,482 5,526,406
========== ========== ========== ==========
Weighted average shares outstanding--Diluted............ 5,551,634 5,537,409 5,547,482 5,539,824
========== ========== ========== ==========