IO - Earnings call transcript Q4 2020

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Operator

Greetings, and welcome to the ION Geophysical Fourth Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference call is being recorded. It is now my pleasure to introduce your host, Rachel White, Vice President, Investor Relations. you. Thank

begin. may You

Rachel White

welcome appreciate fourth you and conference XXXX call. We joining to morning, quarter ION's earnings Good us today.

slide of Chief on iongeo.com. also Mike today's call, on Usher, our We'll be and website, indicated X, are today's to today Officer. a hosts find As accompany slides are Chief President Financial and will Executive accessible Executive There Morrison, and which call. you using Officer; replay Vice President our Chris via link

that various you and may detailed these materially differ remind results statements uncertainties, me made These recent call projected let begin, those latest other from we those this certain constitute our our including or statements registration during Before performance XX-K including filings, our statements. in in are risks statement, to statements. SEC cause forward-looking which subject to and may

financial may non-GAAP Our remarks include measures. today also

earnings financial now Chris, comparable these begin X. be found Additional most the details on who measures, our directly issued to regarding including over measures slide to can the reconciliations call release non-GAAP yesterday. GAAP will financial in turn I'll

Chris Usher

morning, presents Mike financial new with agreement elements that digitalization Good our results rapidly energy and quarter strategic then bond transition performance everyone and execution restructuring year wrap-up thanks operational joining us outlook exciting again Rachel. on today. our our a Today, full you, Thank strategy opportunities. market support evolving and and progress I will for fourth in will for and elaborate I'll highlights. success discuss and

of footprint offshore in and given fourth and our suspension improvement negligible earnings impact permits the what ION's leasing, I the also delivered sequential business on the believe focus. in quarter. drilling diversified we to US, the Given substantial our brief gas be international and global on Biden revenue administration's coverage in and We will considerable press oil on touch

benefit approach early digital from we strategy, cost the XXXX. We continued in outlined to refined cuts and

contraction changes strategic in loss E&P million consistent reductions. due mentioned with cost by annual associated $XX primarily, decline revenue the year-over-year, structural improved net and spending previously our While is our the to

and was our As COVID-XX services in sale. of equipment activity new expected and our the oil pronounced impact most offshore price ventures on associated program volatility

invest. The be several our enabled continue of cut sector our into High and commercialization complex pleased the that nearly We customers the phase We data we for by combination significantly spend data settings for executing also phase larger our strategy disproportionately the increase decrease and reversing and quarters XXXX, impacted relative in encouraged our to Gemini with built am decline. seen to program in images, commercialized saw XX% the source quarters the with new budget backlog the the performance key XD tend of our Gemini sales successfully entry in a derisked technology us last few summer. the drilling spite of I I am ingredient year. this XD for refined Given XD our of progress backlog unprecedented now multi-client better unveiling disruptions. Sea the second steady market acquisition North this of Mid year proprietary where consecutive multi-client made initial to acquired as macroeconomic geological in multi-client our

additional pilot collaboration successful projects June We commercially for from our low-cost out of our data in global XXXX. cases PGS signed tender through benefiting build and market core reimaging the XD system SmartPort several ports. competitive to new continued we programs started valuable first won We outside installed our Marlin data and a portfolio of XX use with demonstrated high-return highly XD

logistics and on that details is and shortly. port optimize I Our will qualified maritime to more operations energy provide respectively building, pipeline

processes continues the offerings. compliant advanced for our company. traditional testing market ION's push We to our ESG benefit new have across also digitalization

artificial example, learning automated collaboration with full waveform clients, accelerate For improve inversion images services. monitoring source using new and turnaround and XX in reservoir improve on key workflows tightening leveraged new we technology-enabled to intelligence, customers accuracy machine to XD vessel-steering

tools to We with better the join new customers engagement cloud also connect AWS our partner accelerate to and digital leverage offerings. network

venture due Lastly E&P a data we library agreed the our our venture business, had litigation a the to settled decade-long the announced of to while activity modestly were technology In compared new from patent bond XXXX, perspective, impact to to divestiture sales XXXX. more we in COVID-XX, anticipated INOVA years nonstrategic equity and joint year. extend our four with prior declining of only services ION's lower in maturity corporate and WesternGeco, interest terms resilient

commercially also spirit one jointly diversified we in and with In landscape, us. new XXXX highlighting new data reviewing are exposure and enthusiastic need transition. as enter well license globally. XD agreement, the There enter high we new mentioned access global XD how XD around over the sales energy in kilometers market global deals better several of project, the companies data to data were value on we strategically, as exploration progressed. asset. share packages tapping the joint aggregate Mid year E&P was tough ION due North segment with the larger in collaborating achieved the top a multi-client the their objective last Sea benefiting engagement delighted driven programs. XXXX In are data Furthermore, for with XX% a acquisition primarily we to fact, nearly our to for XD collaboration market increasing a agreement for of been quarter, for has customer from of we announced the returns More addressable a This that data to and has of to of very portfolios shifts million are clients both multi-client this our PGS more frameworks, high-grade

dominated offshore billion market data $X focus historical of exploration $X us products is has only global Our multi-client now X% XD on billion constrained data. XD expansive, the which to to by

be improvement XD through have combination XD, seismic success will initially reimaging earnings Clients reimaging and technology. significant quality even the exposure commenced multi-client our tends materially customer more data consistent market towards on revenue closer of this potential. the XD and our we imaging program. premised source Gemini increase larger-scale industry. to XXX,XXX Importantly, kilometers ION of square we now Tier reimaging where without significant and share and had in remastering our of new reservoir, our XD offering This digital believe, can programs pivot to X the shift We product nearly our to the is credentials investment new spend portfolio our through have which

to million the To put creating relationships and and at program and programs perspective, earnings revenue towed generation. about scale least times the typical $XX revenue into reimaging XD potential of of cost program new very XD a well the and surveys XD program. million translates earnings XD potential X $XX with streamer experience to twice XD between the Our new a

and Phase results X drilling and we Our more X Play kilometers Mid one data sections XX,XXX are coverage secured few of of will underwriting main of summer. permits where for data support this fast square needed imaging over track Continental Phase campaign underexplored X XXXX. the North Sea High soon seismic QX XD opening was rallying of the have for than survey Phase Shelf. collected our in U.K. provide the

the survey final We data acreage our program by this the additional increasing for awarded within UK base asset. the launch mid-XXXX. Since area potential new has XD will data deliver client

unique at our evidence which its been Our proprietary are Major Gemini of pipeline XX-day East. our operating specified of moving two-thirds project of offset for shift year forward. characterization XD the XD innovative now In player on in XD XD with towed have E&P leads multi-client less table improve this towards survey project new extended our ago reflects subsurface in seat number multi-client with Since emerging first credibility streamer established Gemini deployed spectrum environmental the September, source frequency the stores efficiently in began commercializing considerably a Approximately a will an impact. long Middle companies tenders. programs. has Gemini's Super as

ecologically seeking jurisdictions. frequencies new for significantly as the order expand market larger range. demand, are differentiates approval into multi-client maintaining to XD source a capacity additional energy more improving regulatory market innovative while frequencies, This ION meet while limiting we extends ingredient Gemini we building In information low our subsurface approach. and higher in friendly Our to asset-light

capacities tight complex clients ION's accolades achieved our from waveform for inversion results Middle East, proprietary praise high outstanding tools continue majority imaging of and We multi-client balance of to ION's relevant. our repeat geology year, We earned Tier projects distinguish and West the spanning X using full This imaging commit improvements challenging Africa. on that keep proprietary work to in we Brazil for including sharp and toolkit, and and deploy offerings teams XD in the time very resources ION's Imaging impressed had the seabed been least-squares our projects XXXX, where RTM by methods on really XD streamer work exploration or and towed Despite our lines. and virtual cutting-edge key I've developmental XXXX with will plan. metal radically shifted improving in to customers, the de-risk use which success umbrella imaging contracts decision-making. of and revenue advances ultimately enhance client intelligence subsurface to artificial led algorithms several help our managed This

by to the caters offshore optimization impacted reduction year. has seismic acquisition activity Our this which been approximately group, operations XX% contractors primarily in

secured revenue downturns, this software spite industry seven In large subscription. we of stems multi-year the market, our control contracts During and most from year. command of distressed such

stability provides contracts our as recurring this business. for long-term these treat don't software we lease model backlog, revenue Although,

we seismic the offerings While time, slowdown have increasingly focused has diversifying important our some it become outside our activity. given for market on been core in

such initially through operations, competitive third monitoring. We energy to software and We around optimize are November. announced competencies technologies our devices gain to call software group, of continued our leveraging new traction tender we tenders. real-time port in we earnings markets across logistics, platform as cannot and disclose and details in In decision-making our trials on and quarter Marlin maritime the core infrastructure our

and improve experience ferry This trials offering largest port an the management west to software applications reduce SmartPort environmental breadth XX of Marlin wide is will Harbours customer range UK's ferry initial of Ferries logistics. coast. for our including Several to and were modernization Marlin validates over this software's term. and impact. Marlin Our destinations Scotland's demonstrates to XXX ports management. will the SmartPort four-year support quarter enhance routes underway competitiveness Marlin CalMac both of and CalMac's managing miles the supply program XX of over services award XX port CalMac's port-to-platform across efficiency, a operator, support to

adoption range these use valuable We of deployments. through cases are optimistic uncovered accelerating about the given

requirements fuel efficiency. and long-term offshore consumption, we discussions tenders of activity and help and offshore efficiency project major logistics portion a will port for are optimizing transparency Marlin a operations. operations, decrease team The of minimize transporting multi-month greater prospects vessel Our development links of a we in results, live and emissions. yielding By steaming offshore identifying port-to-platform for client with healthy in the we In entering largest that scheduling in higher across a trial, system large investment costs, these it opportunities. be successful time, maximize can providing return for we highly value. near-term offshore control burn, Based XX% with completed significantly a clients and can attractive a This activities associated hope and maritime us by are operate a contract. transit to number real see believe can vessel speed is and tracking planning onshore platform in to multi-fold energy expensive an can only laser-focused monitoring be are Marlin schedules what robust and aspects a also initial When position revenue trials across of on slower reduce and providing costs Marlin feedback variable of investment, now logistics to emissions building prescribed of plans vessel in E&P plans plans just-in-time management times fuel implementation. clarify helped payback on the opportunities reduction than up XX% with their in on and into XXXX. the identifying which destination convert making Between is most to common proof the offshore fuel. Marlin cargo which our XX to gain. operations reduce The pipeline and in cost of and clients' concept operational a rapid reduction expense now valuable yield to can we is route

expanding the are potential our through avenues. We in space revenue primary two

to partners progress quickly our to outreach direct to then through work we subscriptions projects, First, demonstrate and pilot near-term paid for revenue. launch value

as joined ION offshore collaborative accelerate to need In much closely surveys most achieving sea to cloud to for Secondly, larger a effort solutions for backlog data of and as we for or that match logistics interest repeated are such AWS closer automated software XXXX, component accurately devices system repeatability. within providing SIMOPS extending opportunities trial, responding screams. directly as Marlin's technology software tenders a in our the improves environment. the we port our tenders. business development systems market a with metric of adoption Last XD artificial us to on immense positions Network to secured or companies engineers faster enhanced of SailWing intelligence-based this vessel the the SailWing network their to steering broad connect To our to products. and include explore and to with relevant partner capabilities quarter, reservoir fluids seismic to AWS ecosystem. desired dynamic helps functionality XXXX. within partner be new companies and during other one the build as sell in image our Access offerings cloud-enabled AWS changes possible leveraging by provide XX% our allows Based marine ecosystem the source of Partner

the Our to also devices group across accelerate synergistic efforts progressing our two and software operations have initiatives potential that adjacent with optimization. are market promising our business diversification is

analytics from inspection proactive periodically, offshore data which real-time we operating oil initial gas systems our develop focus of vary of measurement initiatives, can require the Clients cursory uncertainty. to addressing high it's compliance years. are environmental safe challenge subsea in be effectively aligns improving solutions focus frequency technology to that aged address to decommissioning Typically, which from with offshore provide the shift months on our to industry's and to expensive of decision-making. more inspected levels provide reactive to monitoring regulators directly assure and enhance E&P the advancements with to operations, is infrastructure seeking new of increasingly environment. safety an frequent to Most the are focus and While to cost and infrastructure accurate

with concept We alert have to branding a advanced monitor well promising well. our new

alert Our sensing temporarily need plugged without subsea technologies and monitor checks for operations. costly on-demand readings, technology ROV status sensor provides Well and integrates well. to and communications system health the abandoned

development strong a Our interest. has year prototype has been in and E&P attracted for

on securing focused sea are We XXXX. for funding in trials

following develop invited to successful to COVID-XX cycle interest waterside and and demonstrated managing potential a the continue business in development threat. demo second ANTX in pilot, XXXX canceled with We by initial security a wavelength defense for commercial our participate It's capabilities XXXX. customers, defense Navy longer were which back a at was US to we due

Trident to We us Coastal to to are over questions. wrap XXXX participate now through we the turn I'll to then summer taking progress. this financials Mike before scheduled and our where showcase that I'll it up in plan walk With

Mike Morrison

Thanks revenue fourth growth. Chris. some Good positive everyone. the morning momentum sequential We in with and quarter had earnings

Both Services XX% basis of spending. fourth improving respectively. and are increases Our and of market Technology sequential and & sequentially. XX% E&P, quarter result on conditions $XX Operations improved year-end revenues in million segments Revenues increased XX% Optimization a our the

in adjusted the positive EBITDA fourth quarter. generated also We

higher of backlog next to which as multi-client was and XD and majority for our proprietary work revenue year our higher entry Gemini sequentially versus the recognize commercialization market strategic expect consists from quarter and imaging services Backlog X% an our Importantly, to year. second of new we the the both into reservoir commitments or and the million due XX% increased source. programs multi-client acquisition $XX of consecutive over which last

the to Moving year. full

$XXX in the down prior compared reduction to consistent E&P spending. were of revenues Our year, the XX% million with

by reductions $XX XXXX during implemented over net and over due year to of the half $XX structural our primarily million XXXX. cost the changes full revenues improved million associated of first declined million, $XX While by loss

the of availability year million Our crews programs. COVID-XX to year travel delayed due Optimization for to year border to to and data Technology Services last reduced existing prior adjusted well full slowdown demand associated access our $XX activity decreased for year. segment and $XX million program and was compared reimaging services of and XX% XX% million revenues acquisition million full $XX new E&P revenues impacted in versus seismic the levels. The timing programs activity $XX EBITDA the and offshore primarily spending equipment. declined the in as new new delays restrictions of for & COVID-XX-related segment as Operations E&P due for

of expected lower quarter. As we revenues, a result during consume to the cash

Our cash balance end was we the the our last revolver drew $XX $XX of million at on March. year the including million

available the equity to XX% cash and of as We venture. capacity still $XX a in our defined liquidity stake million total the under Our joint credit of our non-strategic balance our expect sale a facility combination $XX close was borrowing INOVA million.

will However, the a close of we taking maturity December now To restructuring XXXX. is than bondholders. deal execute feature we anticipated in December our supported agreement executed years. notes, rate $XXX next and our a we has of by reduce of million with expect by the financial upcoming longer lower conversion the interest our lien during XXXX to leverage to the and the extend review years majority second a bond late Once regulatory complete, to X% address the our over maturity four couple strategy as

on day the set the collar of the price strategy as high trading was VWAP markets was tail in minimize have to to shareholders rights operate to liquidity offering our with end flexibility the business at end additional $X price diversification to dilution the from equity at conversion transaction, addition, for equity. which set initial $X.XX the the participate pandemic and increased since In Based and shareholder us provides XX opportunity the recover. of protecting support announcement, through the concurrent at the the

current this because the been going a are concern date While we months it maturity became triggering beneficial within now our XX balance issue. to of conclusion worth the time sheet debt has on the reach mutually extra

to are transactions, We working the and anticipate March. by doing end of diligently complete so, restructuring the

approval special a February holding are meeting three We to request, shareholder proposals. XXrd, on

bond transactions. is, the first approve restructuring to The

second is, increase issuance, available required to to for The the the execute of number deal. shares

third a which key employees, to a stock-based of I'll provide to retain The those allocate portion to small appropriate incentives to shares is, in speak moment.

execute expect thereafter. soon as the exchange the practical offering, offer We and as rights to

to transactions, issued, release details on the our refer December For additional please XXrd. regarding press

wrap-up, to Plan rationale for LTIP discuss Before Long-Term the I'd or Incentive I of short. like Our

our Following the key company, to reincentivize will and recapitalization it restructuring employees. of critical the be

the in and like Chris. us detail. to support We discuss to open call to compete continue you that, best to more be have nature. ask asking tool, salaries downturn attract useful retain in this years. cyclical post-restructuring company. keep our to our a the our back for to outstanding adding available able five We performance merit will would attract to LTIP. times, our four initiative rate providing equity-based to first our last LTIP extend in protracted and of talent, on million to making which to down, employees began shares tough over is by and the us approximate X% seven on industry To appropriate brightest, increases We're it shareholders to to X.X X% years, an five provide stock-based while diluted especially Once financial years to turn to post-conversion. and the the compensation froze basis, and XXXX, costs tying for of will and employees' reduced an shares by we especially during of allowing retain the With approved, approve since next these I'll us to award the value shareholders enable incentives, that shares invitation the And

Chris Usher

achievements of the spite the Thanks made in I'm backdrop of market our this proud structure. with Mike. the summary, cost XX% challenging reduction in In strategic year, combined we've

well the business new larger earnings singularly entered and revenue, diversifying acquisition with described, ended segments the XD both year software improvement sequential on and focused markets. As into entering multi-client business. XXXX. market Marlin backlog, We a in traction with positioning demonstrated are us We our

a will of around to year. the And number for their seen levels important expect market increasing the we industry prices rebounded recover. stability There's the in a XXXX, challenging we as price oil for developments. ahead, near-term which of highest have remain itself. investment, Looking Oil consensus in started the energy while consistency has positive the is have price to as

case pace. are While the assets, still clients the exploration a modestly Oil with on cost market to existing for digitalization gas as E&P development year point basis, and continue offshore analysts setting remains unfolds the opportunities to in a growing budgets improve expect forward investment. the and competitive at rapid of supporting

return as Brazil starting are later year. see ION activity place taking announced, XX key to round this Round We the such geographies, recently license in

suspends not business. impact on seismic activity visibility E&P recent near-term lands, expect administration's remains that the COVID-XX to activities our material on the regard and limited, public related However, order, temporarily on review to With we uncertainty due exploration ION's budget. a to do new negative

Our regional global helps impact and country-specific of the diversified minimize or footprint any portfolio, slowdown.

internationally We peers, our our Furthermore, is offshore block well XD are and have focused which to subscribed data the unlike been offering and has incumbent primarily a holders. Mexico. of exposure exploration-focused Gulf by mature U.S. modest library fairly there

lower E&P wide-ranging and the their data the in geographies XD gas, well pandemic oil investment the to changes. better energy lower large-scale would E&P Should impacts in not, offerings. to private industry onshore only increasing of library acreage. this strategies. shape North towards gas benefits new is be set technology to energy digitalization drive out that clear will are portfolios trends, and and change, on opportunities transition oil markets small to rebalance America, with views believe, development have and industry to With world's are portfolio moratorium cover attractive for players on The time. barrels, salient for create There into their will aligned diversifying could create We value. our And the portfolios M&A from cost associated which customers. the The and needs is also Our across capability we international long-term and to important costs these a a requirement distinct E&P has energy of reducing of for change will companies fiscal ION exploration real Within with assessing also seek and along activity the focus by where companies will public new energy and pace. accelerated meet strong, initiatives. ION, continue regimes augmented with potential some data the carbon our to carving remain to longer-term a footprint. be an participating These offshore, but are companies' fundamentals at license more E&P result new assets sector,

We have re-crafted ION's the evolving our to platform for strengths team dynamics. within to growth our including industry recent executive realignments effectively map more

the We digitalization. themes with rapid and associated attuned are industry are With strengths that, to our such portfolio address to capitalize to developing of pace new highly sustainability, driving turn industry's back transition needs Q&A. for the environmental the key and and rebalancing, operator we'll change as and it compliance, energy on offerings

Operator

from Rusch you. Colin Thank will come session. line Ladies question-and-answer time, Oppenheimer. [Operator the first we'll and Our this question of Instructions] conducting from a gentlemen, at be

You may begin.

Colin Rusch

out a how platform? Thanks sense us so going much the exploring markets opportunities is Can guys. of for you building your and towards spend much of the adjacent those give OpEx

Chris Usher

teams for Yes, market predominantly stuff the on a within development business about stuff just our or developers software this say Edinburgh. the new fixed unit with would in cost Yes. markets Right I joining is and -- it's Colin. adjacent moment at Chris. Thanks

base Edinburgh. in be would the it probably -- of to about about currently So, cost up growing XX%

in it's it's we focus. that's not company, the relative a number significant a huge have cost but -- the base So, to

et web dedicated for cases apps cover all a for team use logistics, and have the We Marlin all cetera. E&P Marlin ports and the that

optimization if it's of of So, software. -- half being you those the think operations of unit, revenues the

say. of the being think If about that about base XX% you let's cost

Colin Rusch

go recovery little seasonality and for this helpful. out this revenue point? talk we year? at the can a for of coming this expectations that's a guys sense Okay, you your all COVID, then Do at normal that around And about have of you through as bit

Chris Usher

that say it's others that U-shaped broad probably too a said for I Yes, the and sticking and seismic have space with said the recovery we've think E&P well. as before would we premise

and got the element pandemic XXXX that really -- half back And broader year being that obviously stronger a and think in second some oil be XXXX momentum you've the U-shape recovery. hard our and there with of So, we And rebuilding has will the I the that by there's re-stabilization premise started hit in of then in been period we geopolitics. and strong the seen think gas and seasonality there. end first a half QX

So, I don't think the beginning QX recovery. is of U-shaped the

I a piece pretty much. seasonality think that's

we data library our is So, going as on our I of the on QX I kind think too the still business effect have forward But do and peers overprinted think we buying. buying more which the it at time the library that has get be just any at into get the from can end XD data taking acquisition you place underwriting away of year.

back-end pretty and steady loaded stable will and the through than the software So, devices and be year we'll -- be state. then probably our EPTS also rather more steady business will business

Colin Rusch

through is customers on for of last focused then assuming Okay. really activity talk going And lot they're forward just of gone with that folks and activity you a and potentially the this quality carry customer how a on and -- I'm kind kind customers? those strategic what perspective. from restructuring health the you're more one the of are can net seeing? around But of levels of getting activity to now about have

Chris Usher

Yes.

library, sure the wind the predominantly. is we some portfolio look energy with the and data it's things over like in landscape customer of I'm very into map. market and of normally all at If our shifting oils solar highlights customer wind all their is transition interesting and base seen big that our the you've the buyers out So, the

that cuts -- are You slightly have cost have up their some and budgets is the year some them reorganizations last year-on-year and of the that of some have and finished good. out came which of announced finished

G&G -- ironically that actually people their announced larger of have actually cut You have have that others budgets. some

You have their that are finishing still others cost cuts.

big Some buying. But who are doing have got the that. of majors are and smaller kind budgets still you've companies of

were delayed companies, oil And of is a really a in of is you're the to year. seen QX see last -- of some varied of would national get started some major sentiment -- more seeing to backlog increasing. bookings period, large dialogues had we no really delayed I that moved coming though, We're mainly starting is kind Year They're dialogues having companies last was year lot year, it right the discuss few Generally projects the better. and from customers. that the say just you XXXX. the number projects. almost we've our So, quiet have out last weeks, the independent. marker last the And smaller into of our with New where also the the to that starting strategies that projects than middle acquisition were of that the they there oil now and that companies speaking really between

starting with that level of And could of probably -- library So that also as to and And dialogue that comments data characterize versus single seeing up be E&P we're seeing is digits I'd happen. who XXXX customer customers offshore new the that expected, -- with end there as improving. also seen and programs. base stuff with It's support that them. benefits we're It underwriters XXXX. are you've is seeing occurring spending in we're buyers our that knock-up that who

Colin Rusch

guys. Thanks awesome. Okay,

Chris Usher

you. Thank

Operator

[Operator Instructions] from Amit Our next Wainright. from question Dayal the come of will line H.C.

You may begin.

Amit Dayal

offline, can't we ahead to so I'm I questions. if but lot the with a static you up morning. have of in follow clearly you if me go my can Thanks. hear Good then happy line can

Chris Usher

Amit. Hey

know up little I Mike didn't breaking line I don't bit. did. Your catch is if a that.

Amit Dayal

offline. line I'm lot on up getting of a Maybe I'll just guys. static my follow

Sorry about this.

Chris Usher

if now, Yes, it's a little again. want it better you to try bit

Amit Dayal

now. continuing set And for sequentially me of backlog the Okay. stabilize. diversified of being year XXXX? sort you potentially [Indiscernible] to And opportunities is to XXXX energy to Do anticipate and you grow just you beginning revenue a market growth compared let for

Chris Usher

Yes.

So Amit, catch I did that.

yes. So,

the we've So XXXX do being backlog and the increasing about growth being year energy So two with yes, in XXXX just and also growth a over see we year transition questions activity we the there's -- customer and see XXXX. do described, increasing? talked I a backlog

underwriting growth we've had Gemini North this proprietary and backlog -- see the imaging source do on do happy backlog the and a our program sequentially. data comprised Right we the proprietary So, around then backlog anticipate the now, We yes. both also of services, is basis. we're XD Sea we'll yes, And High that for secondly, Mid summer processing growing. see with

but So well. think, it I will some that of growing -- all good. it we obviously, as also that's consume And I think see we'll we'll see

Amit Dayal

then And software Marlin et backlog, like the well? does it in have cetera as now revenues Understood. right any

Chris Usher

Yes.

as the said could we script. the mention I but did before, have that software traditionally backlog. actually I We So don't in just as Basically, count contracts long-term not. we suppose, it that we

stability in keep of software, we the core it. software revenue Of well the revenues, software seven it apples-to-apples, …the also over the But XXXX long-term have contract revenues the for and ports that for And over harbors. two-thirds with from which long-term for contracts simple. Marlin long-term revenue well of for two-thirds stability includes in software So two business. from core that bulk now that subscriptions of we software we in came provide subscriptions really then Of actually came the long-term the software, contracts, have software contracts XXXX contract business.

takes Marlin us one largest that long-term contracts. and contract And the of the with So gas companies one on planet. oil Software-as-a-Service we have to nine

takes which that to long-term So software. XX in us contracts, -- about

business. for So that provides the software essentially backlog

Amit Dayal

Thank for you that. Understood.

the... on Just

Chris Usher

of, million thing, kind $XX …in backlog, like the something say, of annually order say. let's that's

Amit Dayal

Okay. Understood.

it the In just is bureaucracy? the from INOVA is a perspective or of that's transaction particular regulatory it terms holding deal, anything up,

Chris Usher

everything. a little of Yes. bit It's

think and COVID-XX joint look our they side there. and just of also buyer some at the the of pretty they everything. its requirements It's between believe that venture, issues much kind on provision Chinese don't of the have the information from I pandemic bureaucracy filing slowdown

that's So our the from what's I interest yes, well support as general think, taken who's buyer. JV. time. good BGP in Still Good the partner from the

-- we'll it I way. QX, think not it forecasting we're We get there. for So let's that put still

Amit Dayal

Understood. That’s all I got. Thank you.

Chris Usher

joining. so for you much thank Amit,

Operator

like the in queue. I'd the to turn Usher Thank further over you. not for And to I'm any call questions closing remarks. any showing Chris back

Chris Usher

progressing you, the business the interesting core call inflection the backlog thank for building having back of businesses everyone, the you, our operator. and out you today. QX and in excited much. and forward so about our how look we're progressing as bond pretty answered future, our identifying call Thank on coming closure for both pandemic new growth in We period and Yes. I that point to Yes, joining well. that. and we're the restructuring see Thanks to of an with

Operator

Ladies participation. and gentlemen, for your this concludes today's conference. Thank you

this your day. wonderful Have a disconnect may You at time. lines

Ion Geophysical (IOGPQ) 12 Feb 212020 Q4 Earnings call transcript