Geospace Technologies (GEOS) 8-KGeospace Technologies Corporation Reports Profitable Third Quarter

Exhibit 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE

GEOSPACE TECHNOLOGIES CORPORATION REPORTS PROFITABLE THIRD QUARTER

AND NINE-MONTH 2023 EARNINGS

Q3 Produced Highest Quarterly Revenue Recorded in Nine Years

HOUSTON, TX – August 10, 2023 - Geospace Technologies Corporation (NASDAQ: GEOS) (the “Company”) today announced results for its third quarter ended June 30, 2023.  For the three-months ended June 30, 2023, Geospace reported revenue of $32.7 million, a 58% increase compared to revenue of $20.7 million for the comparable year-ago quarter. Net income for the three-months ended June 30, 2023 was $3.2 million, or $0.24 per diluted share, compared to a net loss of $6.6 million, or ($0.51) per diluted share, for the quarter ended June 30, 2022.

For the nine-months ended June 30, 2023, Geospace reported revenue of $95.2 million, a 50% increase compared to revenue of $63.4 million for the comparable year-ago period. Net income for the nine-months ended June 30, 2023 was $7.8 million, or $0.59 per diluted share, compared to a net loss of $14.8 million, or ($1.14) per diluted share, for the nine-months ended June 30, 2022.

Management’s Comments

Rick Wheeler, President, and Chief Executive Officer of Geospace Technologies said, “We’re very excited to see our third quarter performance further extend profitability for fiscal year 2023 by $0.24 per share. Moreover, total revenue for the quarter of $32.7 million represents the highest quarterly figure recorded in nine years. These results offer evidence of the intended positive impact our longstanding diversification efforts and recent cost control measures were designed to achieve.

A combination of increased demand for our Oil and Gas segment products and continued growth in our Adjacent Markets segment fueled both third quarter and nine-month results. In the Oil and Gas segment, our rental fleet of OBX ocean bottom nodes is near full utilization, reliably collecting high-resolution seismic data for clients around the globe. This growing demand and our innovation in this product domain were the impetus leading to our recently announced $20 million contract with a major contractor for the rental of our new shallow water Mariner® nodal system. Under current market conditions, we believe demand for our Oil and Gas segment products will remain strong into fiscal year 2024.

Our Adjacent Market segment had a notably great quarter, setting yet another record with the highest quarterly revenue figure ever reported. In just the first nine months of fiscal year 2023, revenue is just short of last year’s full total and beats all other prior fiscal year totals. Compared to last year, both the three-month and nine-month periods ended June 30, 2023, grew by almost 36%. The increase is driven largely by water meter cables and industrial sensor products. Also during the quarter, our Aquana subsidiary announced the release of its Actuator Valve Serial (AVS), a remote shut-off valve designed to reduce the cost of operations and enhance the safety of employees for water utilities. As domestic municipalities continue to update their smart water meter systems, we believe the long-term increase in demand for these Adjacent Markets products will persist.

Our Emerging Markets segment contributed a small portion of revenue during the three- and nine-month periods, primarily related to previously announced government and defense industry contracts. Further efforts remain ongoing to secure additional contracts in perimeter security and energy transition applications such as carbon storage, geothermal and mining. There may be more clarity on some of these endeavors in the near future.

As was noted, from a financial perspective, Geospace delivered its most successful quarter in many years, with quarterly revenue outpacing that of the past nine years. We not only achieved positive net income for the second consecutive quarter, but in addition, we strengthened our balance sheet, garnering approximately $27 million in cash and cash equivalents with approximately $42 million in total liquidity. Also, we recently completed a credit agreement with Woodforest National Bank that will provide borrowings to significantly boost our liquidity. However, we don’t anticipate a need for borrowing in the foreseeable future. We look forward to a continuation of favorable performance throughout fiscal year 2023 and into 2024, even though there may be lulls in some elements of our commerce.”

Oil and Gas Markets Segment

Revenue from the Oil and Gas Markets segment totaled $17.7 million for the three-month ended June 30, 2023.  Revenue from the same period of the prior fiscal year was $9.5 million, an increase of 85.7%.  Revenue for the nine-month period ended June 30, 2023, is $56.2 million, an increase of 63.9% over the equivalent prior year period.  The increase in revenue for both periods was due to higher rental revenue from increased utilization of our marine OBX rental fleet and higher demand for our seismic sensors.  In addition to ocean bottom node revenue, we recorded profitable revenue for our traditional seismic exploration products for the first time in nearly seven years due to the sale of marine streamer products.

Adjacent Markets Segment

Revenue from our Adjacent Markets products for the three months ended June 30, 2023, is $14.9 million an increase of $3.9 million, representing an increase of 35.9% from the corresponding period of the prior fiscal year.  The revenue for the nine-month period ended June 30, 2023, was $38.4 million, an increase of 35.6%, from the same period of the prior fiscal year.  The increase in revenue is attributable in part to a recent decision to increase manufacturing capacity to meet demand for our water meter cable and connector products. Revenue remains stable in our imaging product line where efforts are underway to introduce new products to market at strategically affordable price points for the multi-billion-dollar screen print industry.

Emerging Markets

For the three-and nine-month periods ended June 30, 2023, the Company’s Emerging Markets segment generated revenue of $0.1 million and $0.4 million respectively. For the similar periods from fiscal year 2022, the Emerging Markets segment produced revenue of $0.1 million and $0.6 million, respectively. Revenue from this segment consists of on-going service and maintenance related to our completed U.S. Customs and Border Protection contract as well as other government contracts.

Balance Sheet and Liquidity

For the nine-month period ended June 30, 2023, the Company generated $3.1 million in cash and cash equivalents from operating activities. The Company generated $8.3 million of cash from investing activities that included $11.1 million in proceeds from the sale of rental equipment and $4.4 million in proceeds from the sale of property and equipment.  These increases in cash are offset by $6.2 million invested in rental equipment and $1.9 million invested in property, plant and equipment.  The majority of additions to the Company’s rental equipment come as a result of the recently announced Mariner® rental agreement. As of June 30, 2023, the Company had $27.3 million in cash and cash equivalents with no borrowings outstanding.  Additionally, the Company recently completed a credit agreement with Woodforest National Bank that will provide borrowings of up to $15 million.   Effective July 26, 2023, the total liquidity was approximately $42 million. The Company additionally owns unencumbered property and real estate in both domestic and international locations.

Conference Call Information

The Company will host a conference call to review its third quarter fiscal year 2023 financial results on August 11, 2023, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). Participants can access the call at (800) 225-9448 (US) or (203) 518-9848 (International). Please reference the conference ID: GEOSQ323 prior to the start of the conference call. A replay will be available for approximately 60 days and may be accessed through the Investor Relations tab of the Company’s website at www.geospace.com.

About Geospace Technologies

Geospace Technologies is a global technology and instrumentation manufacturer specializing in vibration sensing and highly ruggedized products which serve energy, industrial, government and commercial customers worldwide. The Company’s products blend engineering expertise with advanced analytic software to optimize energy exploration, enhance national and homeland security, empower water utility and property managers, and streamline electronic printing solutions. With more than four decades of excellence, the Company’s more than 600 employees across the world are dedicated to engineering and technical quality. Geospace is traded on the U.S. NASDAQ stock exchange as GEOS. For more information, visit www.geospace.com.

Media Contact: Caroline Kempf, ckempf@geospace.com, 321.341.9305

Forward Looking Statements

This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by terminology such as “may”, “will”, “should”, “could”, “intend”, “expect”, “plan”, “budget”, “forecast”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “continue”, “evaluating” or similar words. Statements that contain these words should be read carefully because they discuss future expectations, contain projections of our future results of operations or of our financial position or state other forward-looking information. Examples of forward- looking statements include, statements regarding our expected operating results and expected demand for our products in various segments.  These forward-looking statements reflect our current judgment about future events and trends based on currently available information. However, there will likely be events in the future that we are not able to predict or control. The factors listed under the caption “Risk Factors” in our most recent Annual Report on Form 10-K which is on file with the Securities and Exchange Commission, as well as other cautionary language in such Annual Report, any subsequent Quarterly Report on Form 10- Q, or in our other periodic reports, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. Such examples include, but are not limited to, the failure of the Quantum or OptoSeis® or Aquana technology transactions to yield positive operating results, decreases in commodity price levels, the continued adverse impact of COVID-19, which could reduce demand for our products, the failure of our products to achieve market acceptance (despite substantial investment by us), our sensitivity to short term backlog, delayed or cancelled customer orders, product obsolescence resulting from poor industry conditions or new technologies, bad debt write-offs associated with customer accounts, inability to collect on promissory notes, lack of further orders for our OBX systems, failure of our Quantum products to be adopted by the border and security perimeter market or a decrease in such market due to governmental changes, and infringement or failure to protect intellectual property. The occurrence of the events described in these risk factors and elsewhere in our most recent Annual Report on Form 10-K or in our other periodic reports could have a material adverse effect on our business, results of operations and financial position, and actual events and results of operations may vary materially from our current expectations. We assume no obligation to revise or update any forward- looking statement, whether written or oral, that we may make from time to time, whether as a result of new information, future developments or otherwise, except as required by applicable securities laws and regulations.

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GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

(unaudited)

GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands except share amounts)

(unaudited)

GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES

SUMMARY OF SEGMENT REVENUE AND OPERATING INCOME (LOSS)

(in thousands)

(unaudited)