GEOS - Earnings call transcript Q4 2020 | Geospace Technologies Corporation

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Operator

Welcome to the Geospace Technologies Fourth Quarter and Full Year 2020 Earnings Conference Call. Hosting the call today from Geospace is Mr. Rick Wheeler, President and Chief Executive Officer. He is joined by Robert Curda, the company's Chief Financial Officer; and Mark Tinker, CEO of Geospace's subsidiary, Quantum Technology Sciences. Today's call is being recorded and will be available on the Geospace Technologies Investor Relations website following the call. participants floor placed your will the all mode a questions time presentation. the and be this have in been listen-only following At open for over pleasure And turn now Instructions] Wheeler. my [Operator the it's floor to Rick to Sir, you may begin.

Walter Wheeler

and Chris. company's end Officer, Technologies year conference to you, Financial company's Executive the XXXX our Robert I'm fiscal the Thank joined Rick welcome quarter President Wheeler, Chief for the fourth Geospace Officer. and by morning Good Chief and of call year. I'm Curda, and

We also the make Dr. in-depth fourth some Robert us few a so overview first with our and Quantum Mark before with then Mark Robert, that the of have give commentary can last remarks Tinker, on Technology and quarter of line I'll end, I follow CEO and our year Sciences opening answer financial subsidiary. will I'll an questions. performance.

XX-Q Some performance including awareness, revenue say of can Private These be outcomes and or uncertainties and from Reform risks the known cannot filings. results may capital those discussed lead include present differences and uncertainties Forms or we based Litigation Act statements affected or by forward-looking are about and and actual in defined expenditures. are comments on to considered as SEC control today's predict. planned what imply XX-K unknown operations statements today. our undesirable risks other we factors Both of Such while product, our XXXX, Securities in recognition, markets,

website. convenience, of our Investor a page this recording was call will geospace.com the we Relations link For on of as mentioned,

replay. a not September year our morning Note, visit at refreshed listens quarter financial in released and and we time XXXX. reporting and it and the is be may the the fourth revamped information XX, Our after website and fiscal encourage I XXXX results to ended for and the market this Yesterday, has everyone actually reflected it time-sensitive this discussed recently to the final look. have been closed, one accurate of

protect economies to XXXX fiscal continues year. As in we pandemic, in impacts the customers to noted while our which valued began operations safety they've manner our the ensuring still early to had Despite of maintain relatively in impact the COVID-XX and served and which grown negatively we are our employees, our everywhere In accustomed. business help on implemented response, each heightened health protocols COVID-XX segments. our has negative

valued cash from sale any year purchase year recording system the the from that also X% million Note our year's include XXXX to our are figure in was We as of the this revenue this the we which listed within sale last total customers. of XX.X not a of fiscal GCL the amounts generated revenue, course at quarter operations. later when of of second this $X the This of of at over note. date we on pleased charges a are interest end $XX.X on likely. million toward including of collection almost system as our is received By included sheet $XX promissory XXXX non-current had been note. to intend toward million of part amounts million financing over land that's And our million $XX balance deferred recognize Principal reported one that September through revenue total. payment a in note does

fueled ocean-bottom our OBX for year, As was by to our recording results the case fourth throughout be systems. demand quarter continued the fiscal

this we the various year's exploration as partially well reduced our contracts experienced drove effects helped In and supply OBX demand demand led above products experienced. business. for our our of from for imbalance offsetting which in have segment, our last disease This fact, demand weaker mark. by of oil other products products down negative the rental brought driven gas, revenue marine as demand largely systems for to oil demand and in to the in has wireless cases combat for was Reduced about over gas world's largest ever the efforts all in markets COVID-XX. adjacent The

majority demand for limited. products exploration suspended, our seismic remains activities the oil With currently gas of and

Our adjacent due demand with rentals took markets lower a with have events. we social and in and been demand processes, keeping thus year graphic our third tourism COVID-XX, these also for type activities used of sports, to in operating and to in the force quarter products our These in imaging are costs, setbacks. fiscal printing reduction financial and management, of the products. for products lowering Recognizing our other have this merchandising conservative schools, of promotions steps these many products gathering lower seen XXXX. curtailed, entertainment, But

oil proposal PRM to a fourth quarter of fiscal and of unclear. almost manufacture a or and seabed a to received producer from a seems normalcy monitoring of extent installation some major request return is we the these Although for timing form and recovery of reservoir the system. provide a certain from gas Late circumstances such the large-scale XXXX, in permanent year

fiscal to the also year. the awarded second latter have part is of customer be a the XXXX utilizing the resolution our a electromagnetic high configurations in and from border of unique producers the systems. were revenue a I'll began largest million call note, If sensor over Border Border would in October and fiscal provide $XX possible the discussions fiber X, of contract detail. financial well underway now of which continuing other year execution more either expected contract, point, to perimeter XXXX Revenue optic so or to OptoSeis sensors, us year, in of security we tender, we XXXX. base Patrol are we In XX, the system. US expected a with the Robert, matter US the fiscal is by installed for September a PRM XXXX from in recognized can our be and third and world, potential provide gas award the As of And and favored technology. turn likely not to contract be Unrelated our event Customs Protection; until in ends awarded oil technology-based beyond. to this At this our XXXX recognized this he the we to or also PRM contract response, to major quarter with systems contract are April XXXX

Robert Curda

Thanks Rick everyone. and good morning

revenue morning. compared of remind quarter or for to press specific Before call Net diluted million X.X $X.XX or net last I September everyone income $X.XX share the we per last our yesterday's million. during to release of revenue or we per XX.X any year's fourth In loss year's our XX, quarter quarter was earnings to fourth like begin, million I'd not of will XX.X provide revenue this compared reported that ended share. guidance for million X.X diluted the XXXX,

For compared the last million to XX.X year year. of ended XX.X of September XX, we reported revenue million XXXX, revenue

a year Quantum liabilities the benefited fair increase company's value XX.X related $X.XX contingent old Year for Year $X XX and loss in net acquisitions liabilities gain OptoSeis. was per to net of value the XXXX charge acquisitions of million compared a of in share. million of Our XXXX net net to XXX,XXX X.X was per earn-out or loss contingent the from from Fiscal non-essential in or to diluted related and Quantum gas a our X.X the reduction impairment $XXX,XXX share OptoSeis year's segment. diluted of burdened million sale net business estate $X goodwill and the and million earn-out for our and Fiscal real of fair a loss last with

or Excluding per for gas per net loss XX.X share. $X.XX fiscal A a these of adjustments fiscal oil year diluted reported revenue of XXXX, while or share, diluted breakdown company the of our million have XXXX in would million would year follows. have is X.X resulted as and product net loss $X.XX a

compared Our revenue increase increase traditional The to X.X was the revenue fourth year's the exploration decrease The last level Revenue decline for demand the revenue to caused oil due compared low products historic XXX,XXX gas at quarter as same of and of for is in low an last million, the the year. year attributed revenue revenue seismic X.X traditional a last XX% to period for was XXXX quarter XX% the to of the million, million. X.X activity, to of due in a demand our by fourth comparing in of is product the lower result to revenue annual minimal period COVID-XX from year. for pandemic. of

last wireless Our million, of of revenue was a XX XX% product year. to for decrease compared million XX the revenue quarter

over lower was our the system result modest prior OBX the in The compared year due year wireless revenue of rental increase increase fourth decrease is annual rental fiscal to XXXX demand The year XX.X product sales X% revenue quarter is at wireless fiscal for and XX.X million, For fleet. XXXX full million year. of the products. to an for

from We fiscal expect demand for XXXX due reduced oil the gas. revenue the year in of systems rental to reduced OBX and global

a the not revenue second we quarter and secured in million product fiscal million in promissory note. year a reminder, for the by XXXX XX.X As recognized have sale delivered GCL $XX

XX, have payments million X we of cash in XXXX, As interest customer. our September almost from for received and principal

payments of of recognize the the this of sale current of on remain we our been on long-term The transaction obligations. have plan sheet cost long-term as payment continues deferred the associated customer received to collection is cost cost when Our part for the promissory of probable. principal note and revenue determine all balance deferred to revenue. with revenue We revenue revenue and recorded and

XXX,XXX borehole rental XXX,XXX, Our lower a XX% Reductions tools a these million We both revenue of for of of quarter responsible demand decrease the to and revenue product in year. X.X revenue of system. of to year meaningful engaged last monitoring we Revenue year. a engineering did decrease reservoir full the and a repair permanent XXX,XXX, service for are in products not in fourth the the XX% for delivery periods. expect unless decrease was and of was our revenue compared reservoir until from for for compared the sale, contract last are

quarter XXXX the to to oil of a be contract in and recognized award the second part year beyond. revenue would received the request, expect fiscal of the the a contract quote potential the likely not we If system to awarded third request quarter year fiscal or gas During latter PRM we and our scale until the on XXXX. we customer reply fourth Provided from producer. large major

to demand of the and of fiscal fiscal is decreases lower our for months revenue our contract revenue revenue decline Moving for contract causing awarded XX.X last commercial US year for quarter, border of imaging in respectively for fourth XXX,XXX pandemic's of the a attributed XXXX. are product revenue and related year's COVID-XX services. fourth quarter last both US revenue was compared a to to Border the in gas for Patrol due the adjacent initial to believe fourth million. million September from and on pandemic, will primarily markets and markets to the demand XX% Protection, Revenue contract revenue increase to Border million. XXXX. XX% million, The Imaging X.X for the year decline million, a effect product for of and year in primarily year's be manufacturing these revenue site Prior Revenue result is We oil engineering the sale X.X of to preparation the perimeter million. We year three X.X the XX,XXX million, and believe XX, the X.X for this compared April in commercial, XXX.X of XXX,XXX a X.X year's million, non full year was in the segment, Customs security in of totaled emerging quarter XXX,XXX was decrease the a the industrial products. decrease last for XX.X need the to industrial fiscal and Revenue for XXXX. of market for XXXX. compared periods and XX% segments customer for our our revenue ended the product our Most decrease products modest for the was a compared used as million $XX XXXX. year and revenue products year recognized was COVID-XX

fourth reserved million lower of When liabilities, of the cash to adjustments product XXXX X analyzing XX% last The sales engineering previously full to excluding goodwill in and operating expenses XX.X due of value and fair year. for a factory Our demand XX% plant X.X last lower productivity XX.X respectively. fleet year. consolidated Year to the quarter The gas market in were and equal property due segments was our gross the rental profit marketing profit X.X our as accounts million, non-cash sales operating operating a and resulted equipment a quarter to the last to in recovery oil was XX.X capacity quarter manufacturing decrease million. our million effect expenses adjacent XXXX and contingent million our gross earn-out in million, XX.X for XX% due fourth Fiscal impairment, decrease virtually a to and expense the an year's year decline increase of and expenses, decline receivables, for of a decrease compared compared expenses operating result products of last XXXX XXXX and COVID-XX the was project million underutilized our XXXX in aged expenditures reduce significant year. XX.X the business XX.X for million, was expense. the to fourth of pandemic for and investments from decline profit $X into decreased year million of compared to the Gross operating million,

million. We our our Fiscal fleet. capital expect fiscal much in equipment and Year be investment plant year XXXX new as property, into will investment $X be unless minimal could rental additions rental fleet warrant contracts as our to capital XXXX

and was Our turn balance under We back of sheet that XX.X by We clear the debt holdings equivalents. had XX.X long-term Houston at any cash September own million. in to the I'll and That numerous world cash our call XX, without outstanding owned reflected XXXX agreement no around Rick. credit or available borrowings concludes free real million and the discussion. leverage. are and and estate

Walter Wheeler

like. continues Robert. a to way COVID-XX what consistently forecast of is you, look the recovery world a around successful and infection Thank tightly there's economies there the really grip rates will and countries vaccine to declined, until no

long by some largely COVID-XX delayed, our demand likely minimal Although of the and effects remain business negative impact destruction Seismic on the initially and of pandemic of demand, up. as was about the will the this oil segments gas outstrip supplies activity reinforces caught have condition. exploration brought as

As of market of from to certain demand. see the of will effects, our the businesses our continue products customers of many pandemic's some weaker adjacent suffer

we US to a and Patrol critical footing. Customs about go contract on Security to companies Border element and mission includes longer with Department major large as current Protection, looking us a of However, of and projects our solution gives further future. goals the This strategic oil focused good the technology our We our liquidity of strength and efforts the at borders term that customers are and gas much is into fundamental those OBX eager a assets is using your Also reserves, the fields protect new our Border emerge as PRM recoveries intending with from to on and pandemic ample systems, maximize weather find Homeland to strong large. provide existing balance sheet no systems. our debt fulfilling existing US of this pandemic new certainly society to believe our using this well as transcending

recognize from to de our attractive well engineering and for our pleasure homeland other perspectives CACI Government and our products of government makes and and contracts. aggregate shareholders. commercial for manufacturing In Kenneth stock and our to our to authorized various operation, Northrop authorized. of of purchases rapid volume $X announced comprehensive of let out loyal shareholders Thanksgiving fulfillment and to this Directors. in believe discretionary our depend manufacturing times. their of price, and fresh confidently national employees manufacturing trading for pursuit them Chris, Asbury, just our market own Board us the note supply of stock missions. Ashworth, in In withstand Sid to questions. general time thanks hearty leverage we program which of and to over season, me strategies and open former been market to million and enabled By and give partnership this customers recent Vice I'd of go significant to as value our closing, thanks special operation these President to continue highly by make industrial up our hard-working such, Margaret we our The remarks. new of prepared we're board who our And and in risked supporting Directors and And our I'll from future and of accomplishments new under former will value Grumman call ability additions This careers matters, to on who remarkable In chain also including new their our Board with conditions. creating for through additional market maintaining for all enter I transactions operations of take we factors welcoming diverse bring bring and the have purchases president all give security the to our turn in back customers. program specialized support in concludes positioned As experience business and my and CEO will Actual emerge accordance the repurchase uncertain our like and valued International. each Relations of program

Operator

Bill now is floor [Operator for Capital. comes first Instructions] Tieton our questions. question Please The Dezellem from ahead. go from And open

Bill Dezellem

you. thank Great,

to lots You've chew lot here. of on given a - us

an existing this let if with start customer tender new customer PRM that Is the Let's could we out? or tender. this that has a

Walter Wheeler

there's involved, this - experience all were, dealt might that have in one so there's of as with we've Well, certainly past. endeavors, it customer. we well they're this certainly but know, existing an is partners typically these as you the customer in customer, with I mean, many

Bill Dezellem

one the fields. the were but name be on that to final as that made partner Rick, announced the the decision public of one maybe was or so a they we the previously, would interpret And who was may not

know So capabilities they system? your would the of

Walter Wheeler

Well, all their all think make - much partners I these in names circumstances, known. the almost all pretty

work that was name So I an would certainly we've earlier mentioned. their say even done, that

Bill Dezellem

Understood. you. Great, thank

And that so go they at current at have the oil prices to with is at implies they're even view some a with That prices. a reason ahead have the ROI, I'm an oil uninspiring asking making real favorable of the the decision level, question –they a tender.

And - they so viewing customer are and they letting in guess would they've I be talk that's a how why just is to the my this? out the tender how And ROI now? you would what past had theory.

Walter Wheeler

that investment you're recovery decades two have reduced being the They you're than fundamentally were. as recognized their in and right, COVID-XX assets for they along don't These more think circumstances But what manner I've it aspects imbalances. the of where looking and lines allows makes be it pandemic mean, absolutely longer prior reserve in forward it have and sense of to get are looking before, where managed on have I But the you nonetheless, reveal term, return really what good now, mitigate is sense. there even explicit investments. the that maximizing really of already and been were productions a systems I the mentioned certain doing. news, - ROIs to again. certainly And it's the known return the existing if beautiful beyond Sure. the well that back to on supply The I mean, are to up them these there

temporal that that circumstances normal So for going action I looking the existing course we're very a right are of now. through just is term longer think those besides this

Bill Dezellem

were level. quite or oil And on British high the return that remembering they their when a that first first time equipment, if their white I'm they Rick, Petroleum indicated we $XX came acquisition that investment at of paper had with a a $XX do in And to remember prices correctly. the did out correctly made

Walter Wheeler

back was goes is to system had But Yeah, first we it That But far. you're that XXXX exactly way that. that when right. answer installed. created the yes, and yes,

Bill Dezellem

$XX Or oil barrel would be would be? So over the with could we time so What's that just calculation what number period? costs $XX $XX even at it And even $XX, that the of ROI that a there have that would surmise today. I a still barrel, me a better? difference let ROI? how in guess, good at pick changed be

Walter Wheeler

mentioned oil point was well the may recollection wrong, I in when that thought PRM be that system but put of time below you number price at actually that in. dipped My first

be a In but of be the have today's across that the right inflationary numbers that in it terms examining of don't world, establishing various I'm would market involves, just me. sure what front ROI matter aspects segments in certainly those of would I

Bill Dezellem

Great, evaluating And share the then are referenced insights PRM that additional to what companies like thank other the you the about that in you would release? press you.

Walter Wheeler

of I in I on have. future does. again, the been optimizing in with the looking think, that in ability service early life have being to PRM times make very eyes their money more the evaluated existing at systems PRM they mean, they assets recent the these for reserve. That's of are the what in fact, put on

cases, reservoir times, they're type been in optimizes These of how some the of their that much understanding days, they these circumstances. in earlier service earlier their after from because some time. in recoveries, systems placed quite considering So producing were for that have in

Bill Dezellem

of does the increase size Rick, the market for you? that

Walter Wheeler

specific a our them, or or large is almost that extent. out not one I That's very technology two has there's not a been a that we so I handful, ours are think in mean, sparse of and the there, in. hard to lot place to market I there's mean, all PRM that's systems ones say. always not very have of

so. the far That's for As out service not them that just I we to they we're technology and raise mean, that have there to is market say, needs a that do as the whether to burgeoning? allows trying me

Bill Dezellem

gears Directors table can going the I'm two what brought I the If may, that thank to thinking that bring you? new on, have for you Great, they they to entirely. you. switch are

Walter Wheeler

business great dealing to just I with credentials lot, whole rule. as a to besides government the their as experience relates respect government, A in other contracts additional overall services bring general mean, with the they and

pretty much their So and we that I'm looking much everything to do. input forward very

of their at see area So I any don't contribution all. limited

Bill Dezellem

why choose them. No, was them in they it very had they're - looked not would something like questioning each I certainly can they It a feeling if wondering qualified. in was you particular just that of company anything you. perspective, particular that with there the really particular useful for bring in a the And process, to in is appropriations Sid the from maybe, that larger fold there? much experience specifically

Walter Wheeler

Well, we that we I there same us helps that. to to strategies. be the mean, a develop lot remarkable. have I is help cases, And able and provide down the In fundamentally, believe that gone those going many is. us experience to our there's path in be just she's best that understand of guidance going to endeavors as

Bill Dezellem

do can Great, I thank you. questions, have additional or back which would prefer? either step some you I in

Walter Wheeler

That's up and moderator? you the to

Bill Dezellem

off, will The is Democratic comprehensive a plan. requesting believe it bill Elissa in Well, out continue. me moderator did Slotkin, a unless Michigan Patrol cuts September, I the put Border kind Congresswoman, I in of

and deploy integrate emerging and was identify, technologies. advanced I to the it think

end there also progress vein. in under such of any think been thing? has same bill this a And some this I What of Congress? have that made bills other kind implication the is

Walter Wheeler

know little a on and know border of that with bill information are bit security. He that regards is a may high Mark's all certainly certainly technology we intersects of It's reaches our she's the of and What provide The particular across those aisle and I implication the that status don't one the that there the referencing that on the really capabilities. technology solution. XXX% concerned that. line. is perimeter technology

Mark Tinker

solution it of Bill. both between to a balance I'm there we Yeah, our from more see would technological with of does borders. security sure approach either. I a incoming security bit new a the Hi, a is not status shift show might physical - that But balancing, a a administration and say that the physical to of securing

Bill Dezellem

one of border So favorable, anticipating to ability net-net further, Mark, more administration will you taking security new revenue? be kind that Quantum's are the to generate step that

Mark Tinker

good The we've that experienced so yet far. - not

add that is, very value seen funding. be the we'll how But Republican we balancing the support like on issues But So of we concerning said, in that our a bipartisan. this may or is out. of provide. not and beneficial Bill, I shakes Democrat see more We've what experience their value any this

So back versus from is would while we standpoint, budgetary better a have solutions balanced into from get a allow to budgets that the to that it technological to reflect that standpoint. potentially the bipartisan important support, be physical

Bill Dezellem

And I border implications need of you. security. then some the understanding relative help some to kind the of here, things Great, thank

So you have contract, of one-year or year, which a year, in early April the this was beginning early probably 'XX. last through contract going of April

border. were security on be think I SBIR aspects, mean the Phase US Mexican of record, the what that listed and the the Phase border may next program of also and and contract III of have You understand to program enough status. those fortunate as two don't SBR status III implications I or the of each record may not for the

Mark Tinker

points having that have government agency program recognizing they a means that your capability a are or is address. record that to they now attending need of into questions, Good the a

then have you if to up have be to program scope, will, elements they bucket you have first it. those course, established the a of to all lined But appropriately to that you element can so of funded. So funds. And do with the have record fund its defined is to that receive

And that we III significant It rights Phase uniquely that provide. have something for exclusive not that we our government. says It's - United was States across what technology funding they one data capabilities The and our of unique of doesn't SBIR breadth we customer. the those. serve are provides is need, so a it milestone to for that the to the

property or capabilities of like use kind intellectual our to not provided able by else, are if So it's they feel somebody protection.

they uniquely is use to So best it company. doesn't our our solution. solution use that else's they've by seen, addressed to ever our if then can't solution want proves mean be the somebody But if they

Bill Dezellem

that jump then because the starting nothing of is to will there for but the identified. problem - far is that have high ahead is simply too year the of part is because this guaranteed, our - implication want a they don't record, here, that that's April there I contract, of coming but additional an solution is probability So that be you program

Mark Tinker

living component I very I be that Geospace. of techniques. it's using in that, key wouldn't a that that's of the you go want wide new have and Quantum again, we're and in a isn't but administration address - variety it power United technologies of very record for for administration. transition And at as an States got certain We're or allows we're that middle class something history to threats looking outgoing far. time program first record them It's to a and clear milestone, to a a go a is dynamic government. our government in of a of to program forward. It between the of of

And dynamic there's that April. predict lot early in to would challenging so as as be a this

can that to - fair I we on look some looking somewhat these it's to would aggressive. might So are think that that put don't think favorable, be time so be but of I alignments that a

Bill Dezellem

I'll back into additional And you. queue. question, think thank then hop Great, I one

terms of which so beyond Patrol this in if those? now first one conference considered is. other for in on are that of being has you selected we the that Are referenced there that Border they have what are with at and process calls one recent is the are You the keeping application an where quiet application, applications

Mark Tinker

day The me of from being is has I And Geospace that as that government, applications. of a explore applications, And the being able are of speak it's beginning value engaged and every on of we stage but by we're mean, of combined acoustic one to possibility excited early the to are information the the And with It's - early we're the solution. there number applications. a data. deliver Quantum completely stage. exploration we in phases. keeps early There

So aware that be our years a but elsewhere. are can out few closes, they before capability of how valuable

Bill Dezellem

Okay, to going squeak in. I misspoke. one I am more actually question

quarter with. So the that on were call, talked had working you integrator about commercial systems you back the March

same sale one? commercial And the in the a release, ago. now to prior Is was several press to numbers right release the an that update it the even so And was was there But small. months the integrator. were since that referenced quite in are interested we

- thousands dollars numbers the we system? or to in of thousands millions business order do commercial in go how the dollars from So of the in with

Mark Tinker

good another requires observation patience. It's It Bill.

very, our go of those areas they sensitive require very into testing. some For sensitive And very applications, thorough areas.

any use before it into operations as flight the in whether certified decades F-XX, be something, for that it's that we've tested brought the completely or to analogy of Just system be operational. could development

We part that capability. part are overall we And of are team. that of

evaluation process, accepted. it stages are now has the this again, to point of and and evaluated kind single unit then we so systems selling understood, in because tiered of thoroughly then And be in the for

so how order go And you that's from a low potential. with something, high

Bill Dezellem

- fiscal given what that expected that that year timeline orders you today, the arena. would in be you the expect And see would meaningful

Mark Tinker

many we're out. it's out. years revenue sense because With for, that but sustain many ourselves years has it out, I a years many like it the - positioning of strategic gives it that

Bill Dezellem

time. the thank both you Great, for

Operator

is who Cooley, question comes Private a from Josh Investor. ahead. Please next go our And

Josh Cooley

your time. appreciate I Rick. Hey,

technology. I asked more me you border abroad little questioning you that think you seismic had maybe on internationally, opportunities guys thorough can before probably with guys I And the security. than have regarding speak the for any a potential gentleman bit

Walter Wheeler

out there, this topics. to. commentary interest in he's are wants circumstances, in internationally. certainly Well, continued what the welcome are have. there opportunities not there. other they - there or where make They already certainly mood development. of for some with those Mark have we purchase if they're busy to do either But Again, discussions on additional In point is some And there at those time

Mark Tinker

Yeah, the beneficial international garner attention to And that that and a important that's the or to to international the Border community able it's And our do to that. has performance one to international is now on And very be been operations. what into you very markets, arena in stage closure proven us. of strategy ourselves and Patrol. The systems with the coming to demonstrate market to provide we're past have it's very a is But our merged border first. we very together past end-to-end into that. and international that complex. deal look to of as teams, And deploying system. sure we're excited I'm them combined great this been the from effort performance taken can delivered the we system at to wanted space. about just complete And that on we've we bringing it's effort, an then the make

Josh Cooley

you. Thank

Operator

Rutabaga go comes Miley Please question from next from Capital. ahead. our Brent And

Brent Miley

got mentioned, $X morning, be you CapEx you. million. a Good on up for comments, I questions could One, few to the it

upon contingent be to that more kind you're there of Secondly, awarding sort other that there considering? of PRM or the proposal a contract investments is

Robert Curda

to PRM, opportunities related we think towards. to with comes that other not trigger pull certainly we're I it on there's is looking unless the opportunities revenue be And that. going related to Yeah, investment most think but of any and along it we're of some may

Walter Wheeler

type a what large further of to going a said, that equipment part mean normal is I CapEx and business property, through. just the referring Right, course we're just that Robert plant and to of you're

to everything's always We makes those there's projects again, in growth and actual and prior happen. a certain areas our revenue automation other Robert's drive manifest have aligned with point, to that But, that expenditure associated to do still those it sense. things continues of certainly for as them to the review

Brent Miley

guess, I into the OBX what next that growth revenue - main, really the been obviously, areas I main has that the driver. the mean, potential have are kind of year? in

understand you've could I mean, some what sales. what year kind some if coming some that that? be that are help of in might of investments into maybe small me the and of So the got that visibility of know automation, kind going provide, portion I is are the But rentals, you two? areas or rebound actually driven, to considering hopefully in you revenue

Walter Wheeler

of certainly COVID-XX continue that efforts constantly continuing COVID-XX. put date. going what's without endeavors seen as any been advantage in they other to of continue are going a pursue can't of of environment doubt metering function those take markets in COVID. hard those have to cases, it's And City the of a as adjacent taken to growth really of previous this many some and used we biggest the products smart grow. some because and every Certainly There the impact see in automation rebound has Smart have we any are place reductions, because things of an that in of with place whatsoever But some exhibited say that has those our to projects result to on. But those potential

that to you difficult no utility any timing represents, that companies. have these recover progressing industry very is growing just we continue very, on doubt the insight and is to on. overall of and to So what society and give going that just But it simply because into

Brent Miley

the utilization OBX you're what Okay, the forth know But of again, fair of things, growing the fleet's any? not kind what enough. I in on so side and But having is terms visibility to - currently. year if of coming

Walter Wheeler

think we're a that. in that I slowdown seeing

segments having on we mentioned much in the that. up earlier respect But with delayed an our had seen some As of impact I a a COVID-XX have on to early very effect. and catch statement how was

reduced. So largely, mean I we coming some extent. that have are quotes of OBX that that the think the to going are are number every that certainly to rentals expectation subside I in,

in of but all. the that's activity, as of capabilities, some different character demand of it the interesting. a there's the because for that also Many is quotes. going them its to reach much general, time We which terms different And be depths But believe of we in certainly continuing, a in see OBX highly product on. goes there to calling we have a deepwater of lessening are can

Brent Miley

Okay, fair enough.

five-year timeframe, side patrol process, current your administration investors, do as of and material, big look more the I'm sort of a or? testing, very the understand up potential terms in frame become financials to a as characterized kind - frame just changes When you're of is next, business. but border and all every I up external of sort things, want of that. horizon? to in Is and market it we're long-term for to to were - with might governments trying understand I the understand I bit P&L, dealing to time complex you that inserting sort being at the when the for of if you've it's sort the of your On as that over you of kind as core

Walter Wheeler

The time. take going No, to helping to it what's Appropriations now I that going far understand. matters through, as I that's goes. some going of think go were. round whole as probably another certainly deliberation a And of uncertainty delayed and is still on be as are not

notably it to doesn't unique. capability, are provide ears listening sight and provide in and that important well what we thing not and for need that's It's is performs in aspects terms information and certainly security that that the think we actionable a something has in line a providing provide us it I determine approach is technology It the and past. does existed technology most of What type of wrapped events that without that of detect things. is need. can intelligent the

the expect, we of uniqueness the the size grow So to little confidence take itself while every that a in for way it's have itself the technology business. in can do gas that represents given to we introduce the product, a going that but level of to oil that and our

Brent Miley

I'm guess, vast I date second current quarter, the the on - that given the be will recognized, that $XX contract. first correct? - the be is the that in majority Is either that assuming contract, million And that will end or

Walter Wheeler

right. that's yeah, Certainly,

Robert Curda

correct. absolutely That's

Brent Miley

way then had is as do beyond of budgeting about Okay, that of way again, sort this that, lot it of project to think and actually, the - think the if you and about complexities works, know is to best a I best testing. some to the

that are of the it additions biggest I be But near-term opportunities other rollout? if border to and there terms - assume a the of Otherwise, area it so of works have mile think is So of on fair of to In sort of kind basically work. you in times you a is words, sort many incremental contract. that if get traffic, wouldn't and that where even fencing the whatever did a opportunity you does layouts forth. and certain to similar - that would is, the is you in are there gotten X

XX% or penetrated, XXX% two, sorry, works, over that's chance a it's but I penetrated the and if have got three really really years? to to get thing do And think if big, you this basically, you've next X%

Walter Wheeler

all There near market of along putting even what opportunity more in is the not lines saturable of what point that It's absolutely now. at demands. the we're

that there's So so the of plenty answer yes, opportunity is in regard.

Brent Miley

guys. you, Thank it. Appreciate great. Okay,

Operator

Scott & question Cabot. Bundy next our ahead. comes And from from Moors Please go

Scott Bundy

Good morning. Rick. Hi,

Walter Wheeler

Hi, Scott.

Scott Bundy

Just think there's the out to customer I versus prior your there. of one value a system only OptoSeis quick technology, versus fiber technology? question What's prior

Walter Wheeler

There's significant in fiber the time. point at interest in this

permanent lie does just would monitoring that looking honest to towards interest as say reservoir The speak, a their the forth. the vacillate conversation systems, I fiber. to technology. be that So points seems in and bit we of interest certainly these in highest are But back

Scott Bundy

much. very you Thank

Operator

appear time. it Scott over and closing turn are this And at go it you any phone the comments. I'd that like further to ahead - to does questions no there for for Rick back

Walter Wheeler

of with let Chris. All thank With on encourage joined safe thanks And year that you everyone to February. a back today. our Thanksgiving XXXX we call you, up. first very right, to will have and quarter get me our well, everyone coming in And who happy fiscal

So Thanksgiving. have a bye. good bye, Thanks and

Operator

time Thank have XXXX disconnect you. full earnings Please line conference Geospace at This and day. wonderful call. and your a year quarter today's this conclude Technologies does fourth

Geospace Technologies (GEOS) 20 Nov 202020 Q4 Earnings call transcript