GEOS - Earnings call transcript Q3 2022 | Geospace Technologies Corporation

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Operator

Welcome to the Geospace Technologies Third Quarter 2022 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 subsidiary, Quantum Technology Sciences. Today's call is being recorded and will be available on the Geospace Technologies Investor Relations website following the call. Instructions]. [Operator my the now Rick over to Wheeler. pleasure is floor turn to It begin. you Sir, may

Walter Wheeler

Thank right. Technologies third year for Geospace morning, conference the XXXX. fiscal of All quarter Good call you. and welcome to

up the Wheeler, joined CEO And of Mark I'm Curda, also questions, which with initially Rick I'm I'll an us Robert mentioned, of company's Robert and morning Officer, provide financial by Financial Chief will Chief quarter, After company's the follow try Tinker, commentary Quantum this we'll Technology Sciences. our President answer. the with subsidiary, performance. and in-depth Executive the overview Officer. our then Dr. on open third As to that, line we'll is for

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

site the to XXXX, the of June to information we quarter Relations for convenience, replay. the our time website. time of closed, financial third sensitive and For browse results call listens XX, Yesterday, its this record fiscal learn we And not encourage we the products. market may will Geospace accurate is link our year and ended geospace.com this at page everyone that released be XXXX. very of which the morning after the the Investor more a on Note recording I about much to one

we to are X-month OBX marine decreases gas for demand revenue nonetheless experienced periods, our and nodes in ended pleased on ocean the segment climb. Although continue from periods and oil earlier that X- that bottom that date, recording

value to led rental of rental this growing OBX earlier far million, respectively. in of for announcements $X for of OBX million signed valued such, remain compared highest so million at Evidence in valued news strong. was million OBX separately increased year. now demonstrated to this in currently will $XX the recent demand our with contracts, far us rental fiscal activities the just the our $X.X figure this contracts Moreover, The OBX XXXX. year fiscal customers signed year and quarterly base X and so gives that demand exceeds As quoting $XX underway confidence revenue fiscal discussions XXXX

in Markets highlight important collection for this the smart Another third record meter Contributing driven U.S. a high Quarterly is to the revenue new our connectors, reached on projects. our this this spending the company by manufactured water of an segment. revenue cables products all-time domestic is segment. infrastructure growth greater strong setting performance for quarter, increasing demand of city quarter Adjacent of from and

water printing savings penetrate Aquana increase printers of to end before and cloud labor to rollout fiscal with customers arts Adjacent pre-press poised quarter computer-to-screen even contributing our to Our to automation screen These our added solutions. graphic solid industry, Other bring to the is third Markets these the helping include in presence Exile deeper factors year. time electronic printing customers revenues occur the valves efficiency. and reduce which market software, of smart to expected this the is control and

third want more their to content increase call Robert quarter. to I'll In as provide that, on turn and addition, more manufacturing With specialty our results, of manufacturing. domestic the is the control business to more and also now contract over seeing product positive the financial customers details

Robert Curda

Thanks, Rick. Good morning.

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

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

X-month Our period or year's share to net per $X compared diluted or was loss $X.XX $XX.X the $X.XX last per million million loss net for share. diluted of

for due XXXX the is an are same water sales a period increase in XXXX our sensor thermal and in cable revenue revenue of $XX.X products to revenue equipment in is contract product of Both fiscal and revenue XXXX year consumable is to revenue industrial over of XX%. higher increase segment both million, XXXX million. year revenue third an year XX% XX% quarter higher over same product to third million, our XXXX. Industrial for products. was the industrial an and for connector $X.X million, third The the follows: due quarter periods fiscal million, revenue X-month products, our last Markets services. products XX% quarter $X.X increases compared to The when $X.X the of increase $X.X year's of Adjacent revenue periods Our for period X-month products as was of compared imaging for increase demand XXXX. fiscal the increase of meter Imaging film manufacturing for is imaging for

revenue revenue same period year, a June market of XXXX. Now million for segment million This our XX, fiscal compares XX%. oil the of for X of market the of the segment ended and with $XX.X months gas prior oil and decrease $X.X gas revenue. produced The

of million land in of period and the wireless the contributed decrease a delivered the versus rental to equipment to our fleet. for offset utilization wireless ended equipment. The Fiscal For marine in GCL the increased and $XX.X a OBX are wireless a X-month for year $XX.X fiscal June periods XXXX, rental land to million, company's partially million due due customer revenue in lower equipment decrease segment XXXX. XXXX demand of revenue decrease X-month revenue The XX%. from revenue revenue included of year X-month by sale XX, $XX.X was higher

for year fiscal million third XXXX. $XX from Markets our to $XXX,XXX revenue the quarter was the in for revenue $X.X Emerging X-month the compared segment same for The period $XXX,XXX compared Finally, million was the for prior period. segment to year for XXXX same

the and the of costs partially by X-month due period The acquisitions. The expenses in expenses other increases increased personnel increased quarter favorable operating was marketing months increased million, adjustment third expenses period X% the quarter adjustment the increase costs, is Aquana million of to contingent period. and associated due operating incremental fiscal to when to X-month our increased acquisition excuse costs, to same project contingent expenses operating increase third with and related in X engineering related consideration associated by for to the in or XX was in the costs The offset our -- and OptoSeis favorable sales, of of recent with XXXX higher to general OptoSeis a $X.X Our and compared to costs, by Quantum Aquana compared an increase a personnel other me, operating XXXX. general a operating decrease Aquana, non-cash recent operating XX% year increased expenses. with expenses year sales, for noncash our consideration acquisitions. marketing and acquisition $X An prior incremental increased a

property, into our Our million our is investments and $X.X $XXX,XXX. cash into X-month fleet plant cash rental equipment is investment and

cash million $X.X balance credit end reflected short investments, million Our and we of liquidity at sheet third $X.X and the additional from in our quarter terms of the have facility.

that around owned any Houston free discussion, estate leverage. and clear the holdings call completes and addition, back world I'll In numerous are own the we That Rick. real to turn my in and without

Walter Wheeler

have years Thank geopolitical issues challenges you, Robert. supply are stemming issues And COVID-XX, these chain by turmoil. that and The remain. been derivative plagued past many there from X

improved continued divisions better our Adjacent Gas we of to as should are both in Oil we in segments. overall in each these market experiencing However, as the by well performance liquidity. quarters, encouraged lead improvements The improved and conditions future and Markets are

ongoing PRM our or In clients discussions future monitoring, productive. to continue reservoir potential addition, permanent systems, with very be for

with potential demonstration client, in I'd shareholders of we employees, thank to like OptoSeis of recently for technology concluded working in trusted valued In optic very successful a fiber the all coordination hard support. their PRM our fact, our real-world closing, In field and continued clients conditions.

Chelsea commentary, So turn this for any the back concludes I'll our to over from questions listeners. prepared our call and now

Operator

Instructions]. [Operator Cabot. & Scott from question come will Bundy with first Moors And our

Scott Bundy

activity. outpace both no years. industry there's Schlumberger So your X for will investment the and of in FID the XXXX been and a upcoming cycle depression has Recently, Transocean XXXX, believe that question cycle

where Rick, about we we trough prior So of do when think think versus are? you are you where the cycles,

Walter Wheeler

in being those equipment. demand seismic Well, the aspects you some The But is are of a just this of mentioned lags seeing and business that, how examples situation instrumentation fact, We, improving. they're contracts or things. We're improvements. OBX of the right. too, side from their as you're of and earlier are sort these bit of of business use people a our following absolutely definitely always signs and signed increasing for

So from trough. direction moving the considered what every improving things are right has have it been certainly and would indication that in a

Scott Bundy

prior -- customer using using the -- new or customer? this prior and a PRM a system, this Okay, test this recent is PRM real-life

Walter Wheeler

this sold Well, is customer have not past. a system the in we a to

customer. a that guess sense, it's I new So in

discussions time, are We with of them technology have the over one some been definitely and interested for certainly they the parties. more in going

Operator

Tieton from with comes question Capital. next Bill Our Dezellem

William Dezellem

Great.

what I Following you've sure business. a or you when talk up if real-world been trial, since won actually on that really a that done for you trial so you question. have not it's understand I'm Would prior in PRM past? the be that last customers about would explain long

Walter Wheeler

full I with I of still today. coming say not to processing customer system respect deployment some customers, in data, and various that with water, electrical in prior which how laid real that the back for examined exactly both is the those that. as exploitation sense done had it's Certainly, PRM data efforts To mean of always into I even are when being a systems mean, complete examination type actual the particular in and use by We've optic the customers. systems. fiber a has time is same end, in This real-world of both equipment conditions, respect. of

there it's not So deployed operation. bench out lab laid in getting what circumstance, and real-world really a on actually or somewhere, it's a is, saying I'm just to executed

William Dezellem

are that and deployed evaluating? that they executed a Is field on

Walter Wheeler

was systems them. coupled the for how examined That with performed they're PRM This setup then the thing. of examining with field sorts one's that and test circumstances access And a It the But it's as are to system. accomplished. respect in conjunction on these was in to the being earth, that not data of to what interested sort we of fashion all No. and had interests in how that coming deployed, recorded. that underwater, real-time a was back all

William Dezellem

fiscal you participate? all that that That's curious, helpful, prospective Rick. have a chose not I did that in. stand? then also And did award And to did tender Or this was year, that? not PRM earlier customer Where participate does PRM ultimately others you choose to

Walter Wheeler

I but have know, not don't not really that that there. an others not We we but factual that a of actually having award don't any pretty for heard did have anticipate information don't particular was that, offer, we provide tender. provided knowledge,

William Dezellem

to you back customer questions with And come and... has that

Walter Wheeler

in still tender sure. that I discussion is mean, Well, are customer we the over. with But for

really And to the they're with would that's prior that that competitor customer, process. would there. going still it not of be aren't so what there related we directly involved not questions the but reveal in were that us attempt, active have apply typically they're ones any part certainly, what if -- in conversations to as there conversation But a

William Dezellem

characterize Quantum? And lastly, various look near-term subjects when out changing entirely. at the opportunity Mark, has, opportunities what you then would for that Quantum as the Understood. you likely most

Walter Wheeler

on earlier, was Mark the Bill. Well, line

-- some sounds sure been he's it not I'm for disconnected like So reason.

Operator

you are He he be Tinker, is connected. showing muted. by chance? I'm muted may Mr.

Walter Wheeler

to about of answer point a opportunities are I'm opportunities would near-term question, and there particular Well, opportunities systems view, system it the relates particularly there an these Certainly, case. that of from the analytics not package, deployment. government to SEDAR not oil several couple be government. your for things, SEDAR, the sensing as that to are put component but rather are There not other deployment, deployed now has with discussions There related particular of in, perimeter been on it in system been development. where gas together. use side that package, going as there necessarily are that the a cases border have a active yet such some Bill, about uses the term which those in near relates in -- there and are highest this recent But the other way architectural their are that's and analytics the very talking discussions of similar algorithms nonetheless, is in of an

Mark Tinker

Hi, Rick.

Walter Wheeler

you go. there Oh,

Mark Tinker

I'm Bill, works different to sorry to me, an I'm if We the for know one our numbers and audio sorry and had only of with check and X all just I glitch, but she participants. me. did dial-in that was don't

what already. the to apologies my said call I again, So Bill, everyone And I'll that. on say for

agencies. in both federal our of SADAR space, into line the on well next focused adjacent energy taking Our strategy and very underway. now federal we're And is those

of Security, of Department in of the spectrum So to Department the we're now across Defense. addition Homeland

a As there. we everyone have of imagine, applications number might

of be set. the who specific It be So large asked the you customer. might question a or what next spans might

it's right singular responding So not customer that particular now. we're a to

Office are Secretary number the other we they to RFPs. from queue. We're excited But back the of Navy, of span a So be and that. Defense, good to to in of organizations. responding It's about

are by pleased and that. very moving I'm things So along

space. Bill, the of to the the led in there. but pleased think very the having we're up invited side, only energy has socialize power for seismic not now the with you're traction that passive so publications, to done arrays I'm well, phased again, we've across since On monitoring I as aware using and presentations Canada And energy effort

Another anticipate incurs we're Meeting International the And industry at which of that is those aware, will Houston. not soon. Energy, published Applied we and the who in giving be for month Geoscience end X for our presentations paper large be at might this interest meeting the for

William Dezellem

And drilling Texas. read helpful. something -- in then carbon BP sequestration you Is involved is a is have that all are I that have That I well that with?

Mark Tinker

now. to Back right back

Operator

Instructions]. [Operator

private question investor. from Our Cox, Michael come will next

Michael Cox

So just Good side wonderful. to lot of most just I a second a focus for to sort But there's OBX of want the on on that recent -- the couple just recognize like the is quarter of momentum and on financial a questions. specifics hear. And which I situation.

time in quality had increase the decrease that could balance of the million terms understand in deterioration in had in you And for in pretty And matching, I've expenses. significant guys unpack You maybe overall talked about below revenues, pretty operating why? to significant since overall little a we the you bit following just a Obviously, been sheet. of we quarter. balance first the sheet $XX cash the on a

And so that's troubling.

And so extent operating move the we driving to so still show exactly increase to quarter And up. what is many these year-over-year? TBD of the is in like that what are And -- understand I'd -- as containable forward? when better of things obviously, just terms expense revenues

Robert Curda

Yes.

slightly projects, things of base. from part COVID to our higher related during that customer. we to our employee-related activity, mostly the an associated generally costs, has like increased of a coming nature, where that of pressures this PRM we've and nature those of due had, Other benefits of costs, level that business, like a expenses, things also period with for and inflationary We're of expenses, we salary we're level of and conferences this could incurred with higher this out that, employee increases and engineering-related many because happen. trade test higher travel employee year, increase shows medical it did than So benefit-related things higher things costs general have come primarily

continue project don't these to over expect of grow the engineering particular time. I some to expense, expense, like So

Walter Wheeler

the costs you're a have comparing bearing of we ago, wouldn't to if quarter third Aquana. think, the of I for year too, any fact

causing did So the to recent providing strategy, we for to is Adjacent acquisition our for it's of span opportunities which of diversification actually other sure. is Aquana a part Markets expand is what or it the

product, impacted There which having to of in rolling ICs that available. just rollout and that efforts. were included and that that out some and generating chain really of every efforts were not That of where are supply everyone there some certain that certainly that is with, OpEx endeavor. contend particular that expectation increased chips product world there there the in new So revenue has issues R&D the were

in time kind them get couldn't You any frame. reasonable of

actually go were that our to challenged and that. engineers So redesign do and parts on some more available they to did

that don't to are recurring, I that So of all those is also going element those said, Like somewhat. Robert expenses be though. an increase think

Michael Cox

something in cash, have going you've alarming Okay. cash. it's on. and to $X I million mean, now all respect of we Well approaching -- of got that, I -- I But great terms all just more right? much that are

that incurred had which continues And because -- down? to just only are really XXXX the this about how there first calendar is not the pull you've about the baffle so back for not do one months timers, X efforts underway you of mean think rates environment, burn sustainable. not but that I

get you So control? under how that do

Robert Curda

that examined We that We're constantly. through every day. working

of One of is generate a cash liquidity been us at we're that the this us help the in to don't OBS our rate get the cash that and things that expect uptick we consume fiscal horizon year. same seeing into and view. flow related help better on we more rental cash to point position We continue expect this of through a to from the activity, have to rest

Michael Cox

Okay.

cost, you you PRM to certainly bore cost and for the of reimbursed So is XXX% which provide? the that something that's system, get of this exciting trial not

Walter Wheeler

as costs all these bear system, doing. certainly that not the again, we that But for cables, reveal the that together. construction of responsibility relationship are the did to, going costs, That certainly, the and putting we're of something was relates sensors to what No, took that there. prototype not building were then of we but it the entire alluded some is the

Michael Cox

Okay.

obviously, Okay. important. I a mean exciting it's Well, PRM -- And huge here. it's to is be

I'm horizon excited This are they hear you place. timing? have customer any you what of considering to -- just Do particular So that, on update test think this that their what took project? over

Walter Wheeler

Yes. always . That's the Michael. question, important

Michael Cox

Right.

Walter Wheeler

-- would be There's though, conversations the the calendar of facts year. that can't customers XXXX having. than But could the this a amount there out these systems, there's at The various necessary. a early lots considerable [indiscernible] getting expectation that, is is coming stake that time are producing we're production. you these a a with still ambitions before come manufacturing have by revenue they things, out from miss. would I mean in towards that's money that possibility. year. certain of It calendar of it, that dates these that end that of of from looking And fields high end an going in Other these and tender be each tender at

that out can stuff said, to certainly try think an there's time So this in they because much to as getting be I accelerate being there's know when part their tender attempt place. a to a as all would that on lead they

Michael Cox

exciting. a were Quantum project release its that's bidding I for you that one it was last of other a really of prove That's encouraging. terms more missing didn't This your agreed like so sort Well, sort year one-on-one, comments talked and new side, to just press in this hasn't wonderful. the while of saying talked opening of are in big own Good. the Good. about viability Quantum we you a Quantum mean, a about verticals. maybe really that -- market is was you times talk of comments sort that where your But about much but first time a and much. it, the I'm and

financials little one? update on you at of Just border of wave or getting revenues on company could sort next something the real has least timing a the the the a after that developing on a project significant meaningful of the maybe bit -- impact of

Robert Curda

the to sense markets won't major And line, into in energy but X federal that's difference costs, working. timing, Controls our the monitoring. strategy. common messaging, that I energy comment of product we're an with absolute is the the that key that and will in is I say sources of remain market as monitoring us fracturing. these strategy side, It's same Yes, pursuing passive on to that talking potential whether as the to the enthusiasm through geothermal for talks or allowed seismic constructive the test the we focused. those get and other and it's need to It's hydraulic for for bring who carbon feedback well applications, something us energy like markets, allowed

that It's mean well. fill because system. there not some be yet, offers. that to again a to be [indiscernible] And they're value we're It going well. unique may its monitoring very for there attachment appears it of traditional So the to going able doesn't going niche market those conversations but are SADAR

for come XX sustaining we On years, very high federal confidence the right is a confidence from I of and degree now. side, where over much that there, had

has every space remain a X But very requirements same, government, again, So two, we've election. United to have agencies, those the momentum conversations of like with when to right years proving continue occurring. it's The are be federal and been volatility into an States and those energy certain not targeted now. flow, budgets fruitful and aware much the is the you're dealing the It's the but than massive different space. federal organization with

Michael Cox

Or at on timing is that looking I we point to? calendar there on is something federal the the degree it. XXXX before comment but potentially 'XX, an side, year? reluctance high do you recognize confidence thinking there's material Got about this to we think side, is coming thing are of of that where before some Christmas your of meaningful your again, at sort announcement least that could

Robert Curda

can have able have says, always great, the and make provide. promises right end done." be it contract, contract And "This experience too all I the that an challenge get let's then We is with much the who what government user to to any working now.

or some promise this year. a of for make quarter have able quarter by to the little the me too being a end uncomfortable a there, calendar a So bars here to error on of gets magnitude

Michael Cox

with and apply energy said working -- sort it's them some for it. the then is it, similar that so in Any of of respects pretty timeframe side well? Got you as

Robert Curda

that on more is energy, of status quo. much think, the -- I we're -- a is unseating Anything

think the unseat take wow, realize, you for everybody to people an your got if is that's status this I you important realize. to effective. to quo, thing lumps Anytime start

trying we that And effectiveness we're what show something beat of publishing When Canada presentations and real-time about that footprint again, sensors giving to size for reduced be going so to papers doing in horse like the to you carbon and Additional in monitor will better for a gigaton to do think its viable. results. these is of these economically of that? a That's methods big field. are How not Houston. monitoring

and getting these side, we PRM we're message to out the similar start standpoint we to studies from an past are something we do looking just industry it prove Canada. just there did So that in what with then out to on where

Michael Cox

Got it.

again, almost it was revenues. and question recent issue, et products gross a, a quarter, cetera? cost a quarter more for last most But why quarter-over-quarter up. I'll of then what's basically products, just profit no -- a to basically, past call sort your sit gross this on product interesting particular, of you profit? all mean there sold revenue going on XX% it, the since on, in why is as I looking Just One reason mix Is This Okay. example, same an relative on the side, just and patterns.

Robert Curda

to the you're flow through in right? into don't effort we effect that's the because capacity of gas-related Certainly, an manufacturing have fixed has manufacturing phenomenon product predominantly Houston in statement, inventory. when for go is noticing then equipment our But reason get we on those I costs on the that. here have bigger they to excess income factory think our manufacturing oil the and And straight products. focused mix into I absorb activity don't manufacturing

Michael Cox

it. Got

maybe more that cost? amortization bit in products cash speaking this a then terms their fixed of side and a through So themselves of is little the of actual depreciation

Robert Curda

Yes.

Operator

with will Gate Melby from Michael question next come Capital. City Our

Michael Melby

million your paid one Fairfield thoughts comments could customers announced. over would or you provide like Magseis competitor. TGS Any on of be was It hoping appreciated? OBX competitive your then that price it have your involves on the the $XXX was I the might and largest was you looks deal on it impact and

Walter Wheeler

of don't increased activity go is I themselves bottom on is contractors to coming enough library in the really that domain that assets don't But into it as there going seismic vessels to in work Magseis into that's up taking ocean try that house, TGS things some available, and of that There's to, because went that No. premier capacity type with value a that with involved this what of piece of the maximize going those things of just going certainly Mike, action survey information about. respect know are want a number. that actions out place that. actual with a A I respect there's number. nature to share why something industry is acquisition is thing to of are I were. With There here. certainly pursue has place. to I have want the the we're TGS would any do taking completely very is itself, the their this entire to which reporting, mean, with to where understand the and equipment to lot

Our compared year plenty we a number escalating amount is that has now that much to lot last to it and somewhat That customers of has. work changes and the a that signed fact by to coming very contracts certainly the tenders gotten activity a do of basis, have still regular the represented have the up. of on

beneficial of a market I think work out in going is many be big of which respects, even There's this piece area. to the supply going definitely of to contractors. the limitation plenty share of us. of these new There's out coming contractors acquisition this with equipment, we're type be in there, to

Michael Melby

right the to a of has free environment with you it's caller's in to But improvements lot better, gone provide you first positive in the maybe cash terms And environment now or being asset the and team providing thus but see flow. I getting not not or maybe company question, the base that profitability And far, to certainly was it the the could, flow the path has or guidance, prior it. improving Got focus profitable management your without cash the Board level. led hoping dramatic free a improvements into to how of you have? translating

Walter Wheeler

extent increasing size think out we're products, cost that the doing with this in of certainly, side, events and we it. to the ramping component we we will for mean, address be company now. respects, be that's ourself there would organization. in this market PRM there's going to for always demand we're Certainly, and I think Well, appropriately. going the is respect that that many to major business be big and concerns our in opportunities particular as up to case, But that a our

in attempts what's So appropriately for ourselves by either we let those the can't size coming. go sort wayside our to of

at how discussions making the of we our forecasts those go Looking and part is customers a major with about decisions.

Michael Melby

can guess endpoint to number revenue and I cash to I additional see current provide you that has color. current environment the environment being -- more forward of a better, on kind path flow getting you the that Yes. expenses. the positive and the gotten the path the free but needed information think cover The if as is

Walter Wheeler

that the the one are has well. recent side these of and lot the Oil by certainly, product exacerbated Markets, the affected Adjacent A The that performed. got were, depressions and as Yes. has within the that progressing those mix COVID. been particularly been things depends on Gas most throughout But it services

that as consider it's capabilities what fundamentally, to think see -- for there coming. our the adapt an -- on, cost and will just I reductions and to we we be through going what's it's have we go adaptation

Michael Melby

something -- Yes, that could if in your fixed from yes. in could opportunity has utilize And ability that all like that. outside, been the strategy present that it someone deal environment kind that's beneficial proposed. so were by the things excess carve least maybe mix, It Fairfield to cover the technology be shareholders adjacent and just and capacity a this at has appears cover and businesses. look It itself. to of given advantageous have be Geospace like fixed bigger on out And that for to this like that it's cost acquiring the feels and deal they it able to costs, premium the

Walter Wheeler

Yes.

I at because manufacturing you industry with which not in closely lie, organization. case, a a is there are TGS, to same respect examine the where is business little more that looking really service in need a relates it to this as you component what as costs think to those

Michael Melby

fully someone I that. utilize just we're else utilized capacity without... if can with It's on not capacity that and agree Yes,

Walter Wheeler

or private contract the right, that's the capacity Oh, way your And bet. in see component of you're -- that's to in actually, expanded manufacturing And the contract point, growth too. provides and the utilization you has. absolutely it that manufacturing manufacturing activity, why has capacity. we exactly And better it definitely

Michael Melby

just Yes. like grow and feels our pulling Understood. It utilize whole back profitability capacity current going that to to then to the is have at time. our business lot a

Walter Wheeler

meet to and to grow the middle. in the needs Right. need No, X it definitely .

Operator

come Scott from question will Cabot. Bundy & Moors next with Our

Scott Bundy

Two I equipment? additional that $X to spent questions. on correct quick spend million are other OBX you going roughly Am or have

Robert Curda

year this spent deepwater $X have on million additional models. primarily in We equipment, OBX

Scott Bundy

Rick, lastly, then just to provide And of guidelines. some sort if --

in out past, dollar that seen million same revenue potential be range that and current the PRM the $XXX is I'm we're million, that customers, going the in to about? sort talking of With range $XX we've the throw to

Walter Wheeler

That's a see window we Yes. to definitely of what these good opportunities represent.

Operator

right. All Instructions]. [Operator

no at further this time. have We questions

any Wheeler Mr. Rick the to to I like or So would turn closing back additional over floor for remarks.

Walter Wheeler

the All us 'XX will year to for November. look XXXX, next of for occur again We thanks fiscal right. quarter our at to Chelsea, forward the -- fourth in thank today. conference you which here call speaking joined to everybody you, and call Well, who

goodbye. So thanks and again,

Operator

and Ladies lines at thank you. a gentlemen, Technologies wonderful day. XXXX today's This this Earnings does and time, Quarter Geospace Conference have your disconnect Call. Please conclude Third

Geospace Technologies (GEOS) 11 Aug 222022 Q3 Earnings call transcript