Geospace Technologies (GEOS) 18 Nov 222022 Q4 Earnings call transcript

Welcome to the Geospace Technologies Fourth 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

fiscal Technology CEO this year first questions, Thank Sciences. Afterwards, mentioned Financial is for follow right. in and Technologies line Quantum Mark fourth end commentary our Executive call performance. the company's Wheeler, end, and our for Geospace open morning, Chief in-depth on will I'll and Tinker, President an by quarter conference of we'll the I'm Chief of of the Robert morning Robert overview the year up the try company's and provide and All with also the answer. quarter Good joined we'll financial subsidiary, Dr. call fourth and to Officer. you. as And and Officer, XXXX. Rick I'm year welcome to Curda,

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

Note sensitive learn this browse the a And to not the record more listens the morning take Relations of website. time page accurate For at website may recording please our one Geospace we to is this and information Investor the to opportunity our convenience, of time be products. about replay. we will and call that link on the geospace.com the

the which results and So September XX, we of our fourth XXXX, year the XXXX. ended for yesterday, market closed, fiscal financial released end quarter after year

is to more the in continue first for grew demand same that steady fiscal attributable largely we year's period, year fiscal than XX% over This as and year revenue specialty year scheduled extends revenue expect geophone our excluding bottom And fourth deliveries we fiscal progressed. the saw oil boost increase of segment gas Fourth grow the nodes additional quarters XXXX. XXXX. quarter will an three Our into quarter this previously ocean last OBX began fulfillment a demand partial sensors in order announced to as XXXX. of of and year

fiscal missed However, to of by created the of implementation includes despite of low and in lead approved of and new the full growth year market have strategy leveraging improved we have includes total to revenue net margin, for plan segment. us plan dynamic profitability. the products that last raise adjacent revenue diversification The our costs facilities reconfiguring the lower our It manufacturer Board some a and production loss X% In the low also leading efficiencies. our year's to $XX.X QX the successes products for a shedding consistent begun year performance, revenue million. response, to intended the

applications remains through and being in with of a focus of technology and been annual we an plan non-cash for year as highly where charge on variety as to expected Note $X plan of targeted million. well savings fact As of reported as evaluations new costs of potential. already $X.X additional and than end year adjustments of opportunities, business is that And to reduced. the valuable related losses part The XXXX fiscal each the acquisition to made XXXX segment this year fourth are acquisition revenue areas quarter goodwill the workforce include a continues impairment gained of full fiscal million our revenue be promising for in Quantum. our the yield regular unfold, can have more since in our will

our However, met expectations Quantum not past performance acquisition the support has of necessary its required goodwill. to

also for write-off interfere Over additional machinery move. customers this facility cable system costs produced interest the Note heavy our utilization for not time, a they've should permanent to rental reservoir move certain cable a Recent operations reported any expect campus. the diminished monitoring from our cables no overall after in of $XXX,XXX will the of potential the with of conversations indicated and profitability. efficiency in from and the most with of This have time much that PRM the our ongoing system activities transition. and intentions timing build of intact its This electrical now will the with in reduce revenue recover remain consolidation main with although operations the both diminished. the it rental shop their include that factory us OBX better have when and satellite also non-cash delays and our space manufacturing PRM nearby is nor opportune OBX ongoing led us has to our increase in way means to cable provide approximately will charge to shop should tender, main of and optical ability our campus disrupt transformation Our losses goods removal shop. a greatly from equipment allow or our turn

the the almost are segment, Fourth revenue fiscal its our from set segment. we in quarter. the and product by trends are of Markets adjacent record our with pleased in expansion our we Gas third highest and market's year's became the encouraged quarter matching all-time Adjacent in certainly revenue history While especially growth products favorable second Oil

by that $XX.X and our last XXXX full year the XX% outperforms market fiscal record million. revenue This For result year's full adjacent segment. reached yet sets another year, for

first water dollar subscription-based products, new control of not In amount to the manufacturing the Within Markets very that years outside Overall, contract and of set year diversifications the shipment software. fourth profitable cables it selective toward meter Aquana strategy each beginning water the be of segment quarter significant, The the by the broadening and base marks included profitability. performance is will nonetheless segment, smart another on was our imaging revenue records but connectors path of their validation and cloud our our graphic Adjacent ramping in come. what oil services Exile full us our believe and strong another provides own. first, path of and a industry working our we the expansion of gas of moving valves forward

I'll call Now provide to more to the full detail year. on Robert the financial and fourth quarter over turn

Rick, good morning. Thanks, and

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

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

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

million and Oil and is level and increase increase ended the wireless XX, months of utilization segment to The revenue. for million due This $XX.X products of September prior same needed rental of of September period partially our the XX%. higher the for higher for seismic versus marine demand compares land of same XX-month period fleet for the lower fiscal XXXX, for parts and with a million revenue $XX.X XX, period repair prior and services marine market contributed Gas $XX.X products. our higher offset the dollars revenue Oil for The revenue of three-month an of The year, the is for marine the $XX.X seismic XX-month for demand our ended due our repairs year period. segment a wireless million the of and purchase is demand by in sensors. XXXX. higher customer-owned Here to decrease sensors of market wireless three The revenue produced segment Gas

as revenue segment Markets Adjacent follows. Our is

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

in quarter from compared period fiscal Border XXXX. compared is was contract to segment Protection fourth same and for prior XXXX. year for year was April obligations million with in for the Finally, period. the due to XXXX Customs in market decrease year meeting the to U.S. both for periods was a the XXXX revenue $XX.X The in revenue the month of that for $XXX,XXX revenue XX $XXX,XXX same emerging $XXX,XXX our The for contractual for fiscal segment awarded Border Patrol

other project goodwill company's period. compared fiscal compared Our charge to our for the three time or adjustment when related increase operating engineering The impairment decreased expenses increase expenses. sales, by favorable a costs increased already consideration and OptoSeis a in in non-cash same by related quarter This non-cash expenses of for mentioned, increased operating was April costs, expenses recent XXXX to personnel due acquisition acquisitions The year segments, offset prior operating associated incremental expenses. acquisitions. an million year XXXX to cost, due contingent the is increased was expenses XX-months engineering marketing contingent the operating increase XX, operating the of impairment The $X.X OptoSeis higher $X the XXXX. in Quantum fourth the months ended and with decrease quarter in to market fourth quarter increased the emerging higher to by Quantum the fourth and to one non-cash project million goodwill at XX% for consideration favorable and in adjustment business and partially or general Quantum

cash Our equipment XX-months $X.X fleet our investments million. was cash and plant and rental property into into $X.X million investment was

balance the million reflected liquidity fourth have we terms of $XX cash from of And sheet facilities. million at $X.X quarter in investments. end additional short Our and credit the of our

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

Thank supplies and created disarray the The of and you, Global war pandemic aftermath Ukraine threatened in the throughout are level prime the energy examples. the of Robert. broad inflation have a world.

and is these bolstered strong for for other us of prepared And is successful our industry confidence profitable latter shareholders the maintaining providing the This for critical responsibly and and we fully efficiencies, products. oil oil a the all a rationale offers is We issue. OBX and products and to our former segment evading for gas our gas in moves Solving for our forward. to adjacent the solve to concludes Coupled move engaged this structured means sheet trying revenue, commentary. of an the future. returns achieve our increase expansion and greater the markets and increasing demand and believe only believe provides balance in with our

So Ashley now back the listeners. to questions our from call I'll over for turn

Scott with Thank [Operator And Bundy from Please go Instructions] Cabot. & ahead. our question you. Moors comes first

Good morning, gentlemen.

Scott. Hi,

I'm very about you profitability. guys talking hear to pleased to getting

the OptoSeis OptoSeis. earn-out XXXX. signings XX-Q and things according regarding your earn-out to trying consideration any XXXX, expired bucks contingent for Quantum contract the Quantum money think a to of was and contingent for of X required of Quantum of for I Just for understand for a quarter bookkeeping OptoSeis. that the the couple consideration According to couple and XXX,XXX Also XX-Q November as I'm July third in

I all, correct? that of do have first So

the Yes, for we books on Quantum OptoSeis. contingent the to you then But the shareholders have payment consideration contingent that, have very and books for we correct? to have little on make consideration final former a no

related non-cash comment million Quantum is consideration in your benefit changes what referencing? contingent to related to that So OptoSeis release, and in for the $X

liability the need reducing the That's referencing on that didn't we sheet that of balance were we we large liability. a had because

So P&L. it's adjustment a the favorable to

indication million then the So I revenues an of wrong? indication $X before or I fact it do have -- that is from is nothing -- that is an in an anticipate that am indication -- you

potential be the a books, expired, that's obligation recorded off on as relinquished And that is Well, that now no that to a those it there, there. balance earn-out are all needed the being periods sheet was longer liability. on

the I interpret would it. think that's I way

missed Okay, thank you much. okay, -- I I -- very just

for And So, in Rick, is water something vicinity of highest shallow the that number the the XX final deepwater years, indicated Schlumberger investment in $XXX and decisions pipeline pretty extraordinary. CEO recently the over which billion. was for was provided the

you guys and are your people markets, that's the to favorable? where be let's these money So terms include a seems PRM discussions trend regarding in even quite of with lot because of

because decisions,, to some for to that's occur. about, is the streamer you're ocean before it's that seeing of improvement that extent largely marine nodes the order which place. we're provide these No, all is as preface I capabilities towed has this what see agree that bottom final to has GeoStreamer for we are see to we why talking that's that you investment it in continue these that's PGS's in sensors seeing announced and a Even fact growing. earlier operations as side, decisions XXX% demand our and high And driven OBX exploration demand and

there. it where on those of into final conversations I own includes they projects. As no issues I expressed highly that explain to kind in they the is need going relates about come front end to play But of of want PRM is difference have PRM, still some these is us with fact make the even row in would can initial And get some they interest ducks the their decisions. to do. surveys that before it a kind mean, way

better So they how go than what a as PRM. they forward idea to did they a with have before want

for as to of activity definitely see and the thing those That in our is. all intersects I of play think and oil are point, the So the gas it industry is we things part business. your same marine where

used plural word multiple at talking PRM. people the to correct? that You you that are Is

right. that's Yes,

if questions other talks? the impact contract two had on Has I And any may. stock valuation

Not to this at all. point, not

that be technology strong of space. think debt in that and and sheet, all got I plays fact no the to balance represented our the we've a well commercial into the ability

And this you real may the us guys Mark, in Mark, an can lastly, money interest regarding of in COX you sequestration, lots if of being moved discussion in are give on I level for the what that doing area. marketplace just for update space?

when Part be our Yes, establish started to COVID I'd system delighted using technology. reference to. of our long to SEDAR a plan we term was exit

SEDAR Canada. just year based there, the results with carbon and exceeded a for the indicator thanks presented actually being fill verification to we last year management to facility storage in even modeling and gap in own so a a anniversary to carbon my And Canada. number the small strong brand rise. see measurement deployed how very we associated are on associated have at and celebrated our And We a And thanks come our which function carbon throughout in can validation. papers storage. that that, putting expectations, that vastly on of and one in

there? going So is apply process are to in we do. the that time. what that component is to carbon the real it's when injected, to go ways stay says for that that permitting companies And that reservoir, we're have of to this once of near going how have this going There's full a is validating know they

all number so, the service those can how of for SEDAR majors the of requirements. a conversations some meet significant we And enjoying and across providers are

of we you're it this, Is outside someone us a these meaning versus look it of looking issue? else's at a technology give help your the just you when cost from us Mark flavor is to dynamics And When can technology, it's - in. - negotiations? competition the little

in what's an it's and going Classic - a to ways understand on you're which first disruptive of Sure, it's you some cannot foremost in trying conversation. environment see. when

the surface channel we earth, of to the counts the to on drill. they ways can't so We listen And sensors challenges. have into it. see or the that it. that have into benefits boreholes either sensors of are those and that listen Both deep we subsurface, large there's two in put to we put So have fundamental or techniques have their earth existing we their we to

in Our state deep approach neither earth. our the of is the difference. system or actually a It's It's shallowly splits meters the deployed nor a surface system. borehole it upper

permanent. its is is, thing other The

So a is that's we a by familiar its passive, That's Recall, is very technology. are what technical capabilities performance relative to giving this disruptive to mean with. monitoring why that conversation. I something industry show also we're papers

to used earth, layers of on clear that. to want the image image to reservoirs. very been I have be Traditional So techniques the

listing accurately to earthquakes. So of to in those, reflections have good simply it's have it right? is listening happening little looks energy what's image these carbon reservoir. based. locate groundwater earthquakes. indicative send creasing injecting might and and then hydrocarbon be, reservoirs for? When off it those going that expression going seismicly and or And interact is be reservoir going very we to cracks an earth, or listens to some and with something any expression if gives listen whatever understand injecting be hydrocarbons an pop that the of understanding technology and geometrically, injecting have to extracting interact are with subsurface. it might When can a the we to detect micro going those of us into the it, we're on in little micro we It's for we whether or what are what's earthquakes its And it passive micro form like with A capacity, what

time a passively value to are those response. our for And and listen propositions real so give

we're to selling going doing else for with that hardware reservoir. to that it's compliant me selling my system action, want ends storage be, compel my stay systems, selling we that is carbon or selling to regulations do to anything information, micro-seismic not up allows of Because algorithms. are going of So take I to I action what our take needing full that information? expression result me monitor that an That's information. Why for part the we're might is not I'm solution we're

So there perspective? of in tenth law from compliant is terms are here this - being a

can your go forming, must be carbon them years you so say reservoir law you to some cases. you there's going reservoir, Yes, upwards in these have regulations research and that XX are regulations Google of them that and inject that and monitor by when you -

And so is it a call carbon I what part is part capture kill of It complete, of chain. the process. that

So, all We're it value many put that's that that things starts pressure terms upfront, to into do don't these many, wells, in are below by apply and that proposition what How we can't rock? at. when as due looking what extent. to with you that the Is of the than do doing goes through fill do gigaton expanse that understand rock? want Houston, in many, called must it at of you And think and monitor We storage we to make where it to what size climate level for reservoir that our cap carbon breaking traditional an existing But economically? impact towards the know reservoir change. give you It's or first it push a something going its using to that's of city to to. has much A techniques. that bigger Is cap persistent that we reservoir is once that ground, coming lateral that something at How very doing, reservoir takes, seismic it example. miles gigaton is reservoirs significant plume it's store a plume the escaping says. we're as wells? We square it carbon. look the global escaping it enough carbon you're of other staying to

do. we understanding So that that's this as going plume as that give do expected to to required as out created us to why pushes forward we that it technology of is pressure

is put make go the sure the there there. to go to carbon So be to to effort stays we have going effort to to that there, it

you with regarding activity question or the optimistic about more border? less recent are Last elections the

driven for year What's driven It's been border but patrol towards our by process a frustratingly coming so. driving border next process of they the security that a somewhat very question. we're good end that been that in following. by is And technologies long process Congress, had now, more or the

So plan. to bipartisan doing, the presence working way maintain supportive a be we of on strong very patrol will follow are they we're technology upcoming hill. understand in our funds ensuring border in and the what of They the is capable a place that towards

you time it's guess? be If through - gone contracts you would were of first that were than the I successful to guess of process a guess would size terms you you these in understand and more having this that

a first guess so this process. to I'm positioned revenue we're we've that will Yes, our this the upcoming been I looking contract in It three-year was follow-on - so for part be designed to that years. strategic work going - is as the forward with was very of you

guys. thank very you Terrific, much

Thank you.

you, Thank Scott.

from Please And Bill question take our we'll Dezellem go ahead. with Tieton next Capital.

of I couple questions. Thank you. had a

from growth in that understand Did given we are demand demand business? industry, OBX, that that what Rick, had continue have of the believe mean as for though dynamics of increase relative that underlying growth it referenced correctly seen. OBX you term one I will for you you the a kind anticipating level First And to you rate here. appears that the longer of

through the relates various with amount as the companies It the that's way that we we examine who dealing see - We're customers. oil contractors not of OBX. jobs of proffering Bill. eyes to the, are the performed. certainly companies to and gas our Hi, that looks it And oil are this be when directly

we these some for getting try oil and is surveys the many number want the where the into don't that may jump coming hopes years, you on the in just demand the forward aware. our well those with on year. but that this enough past that out projects can projects and these with others of equipment to cases secure respect we're extrapolated for to something accommodate your to of sides tied these to is have some those world I these familiar there Many subsequent in we in to that of in go these quite would to equipment dime it's try and are there are this because demand to because and supply out companies of certainly industry Some contractors - all you're think see what But things not assets. a But this those. growing that nonetheless and change be looking there for prudent is nonetheless, to with enough as growing ways is honestly, out these of the actually of Quite turn sold. type projects

coming you'd cautious until another outside the in of indication saw this strength fleet. to since the see the year be strong just you've very that getting be that nodes of and that are to to us a that if large you growing said Is on of fleet And length anticipate rental number we historically, of of rental about the about you expanding portion the comment you and business sizes jobs or increasing number the are required in press release that only are the Not - the jobs CapEx longer. your fiscal real the demand? the think tied

in sorts We clients not still away. end of for that or and them and on right. will those The their of cautionary absolutely commitments be be financial have is a sorts about. that's certainly talking of be caution But it commitments but way to and what capital that has do demand many make No, cases it that's sure. certainly leading contractors gone forward. users, movements. the towards those things available And the in require commitment is to part caution the the made, we're to exactly These investment there

would system calls been that anticipating that that patrol the prior relative in place entities with are an order Mark, you in of conversation that be thank referenced then the the will some your or that likely be That's you. order anticipate border other you've first or And the helpful, to later? next next would they and will you

doing working. is - and strategy effect in federal Our is

I So control. the of the that we margin next on anticipate contracts other will before see federal border

the the could prior Mark, Is agency the of of or be order the I'm or And first, you anticipate first the remembering maybe that the another correctly to was military? one, reference federal I that think there a government you military. the or if segment next from there call guess last area that is before would the

We focus on our DHS and and DoD revenue. for DoD a key future so, area yes - is

order? size ask I'll DoD they one be And of expectation border if more What place relative the were to would patrol question relative sizing. your to an order to first the

approach. branches to headed, where what I of that military, and well. think And Defense phased the organization answer. DoD you'll It's office as the say but easy as secretary And year Scott. think you the see the when in - say. It's upcoming only while will it we're of large a see you'll is not a complex tough I'll to be an question across

going what's happen. sorry, see Oh to You'll Bill.

you. No worries, thank

sometime that prior to that see So followed year the XX questions a tying your questioner's patrol Department be likely kind something of comments within in may the it would process Security. - then Homeland Security DoD or you Homeland next or so in has by the that from comment of border the months

you from thinking know it cadence unfold. that would what Is the proper how interpretation? of right kind now Just that the you're

That's That's what looking for. at. what we're performing we're we've preparing so been for,

it I now. right way So interpret that's can the best

all questions. you thank for taking Great, the

Welcome Bill.

Thank you.

Please Capital. Miley to [Operator Brent go with Rutabaga Instructions] We'll next go ahead.

your a XXXX? of a for adoption of CapEx and and And about the bit it if for adoption? the comment the Quanta little first if good cash customer. could, the utility good was quarter Hi, see real wondered the on talk or expectations I cash Glad maybe questions the that. wondered a in I to actually you pacing flow morning. secondarily, you flow estate I fourth then curious couple might business was A on was in if

yes, flow for But cash view, the looking pleased point at for been to over monitor I the a we're we've cash see closely. that's quarter. something mean improve quite of flow and we very while

months. Going throughout next be the to there forward, we expect XX growth

I think in QX year the in dip return and early will QX. and it down

As lead of were sales far utility builds as the in the area. Quantum

then one And just I could. if Okay, great. one last

the any PRM And been incredibly ongoing. and sense mean, the there on any outside big things let? complicated using big reasonable. projects might obviously efficient been know is companies, in of get most there is complex. I for when - process these Is of are front, I efficient assets don't On sense the It's from of prices has actually up, timing incredibly here? sort desire looking sort our

up an that's been about and are confidence the by spending movements and in be mentioned where as the that in conditions market. I complication that based just jumped price timing case there's your of real space really ribbons. but implied making and not in would for earlier to too. on those teeth time another caller, and complicated oil going being That near any these all Capital talking not give difficult here -- guess, the and into. -- established that's term there is some instability, one of to here the gas technology sink time have see you of that of we're question excellent and just oil, our can we've work underlying sure sort do cetera. had the a promises case, heels do that tied issues et issue firmly not that were of and sit timing It's Brett, then got it -- anything. had that you of was that the of that to We've another and into changing we've in includes general that's PRM makes and Giving just represent we work that you on discussions the been as

putting that applications for too there's it it PRM in usable the So also case. other -- better and be we'll that forth make

those moving do. me it and hard you to I could wish really back some as to just what like. dates I it But aspects timing So about that makes give looks were seems forth better that

tests, there you enough. mentioned it guys in had pretty - call sounds guess, test… a comprehensive you had I And more Fair been I any think like last active

may have in future, the similar -- up which there none minor tests but way. what to may we been some tests coming be there before, in no, by well the No, right, field the went done be there had

in those seems some path recognizing ends be what moved with it as getting cases they're like the make important of of to that companies, they need in that tied many need matters are got they these very clear their best they've that field and the to the the there's they've going up those need decision where and what there things that to first. fundamentally these conversations we've go, up the configurations further towards they loose this maybe having and think look to done some are in investment to done on like, side. some oil deficits down identified get we're needs I so

timing in is my so not comment can something hands And on. I and really therefore that not

to on is sort to is Are a where and again me issues where it the a -- or design the and the get structure they're of construction more who for project kind to and the contractual technical scope going trying is issue contract and that. project this example, Or want be Okay. clear more those issues? technical And of of they deal folks of issue? actual it scope of it of lay cable more more forgive just are so is of

question. the the XD put are. science to permanent more that nature, of monitoring that any our specific with need the what broad of But technology that. overall ones right, aspects just are dealing scope so properly the reservoir have of a in for monitoring processes into goes And I'm determined make they the wise, technical they technical referring want to sure or clarity, that real to areas and No, and the have place they that not good be

a matter, So it's really contractual really technical a not matter.

Appreciate it. you. enough. Thank Fair

Capital And Partners. Glenn ahead. with we'll Kukla question take next Please our go Kukla from

morning. Hi, guys. Good

Good morning.

Hi, Glenn.

to million short going I be the physical investments. quarter, assets walk physical will lot of -- Quantum a have that. investments on got a it's coming you reduces liability about bit us it quarter Obviously, physical cash hand cash job, parts? you short sheet. physical plus hand job how looks like $X.X Good the that and from that's the last that this short term moving write-down from but the we a pat from out, on impact appreciate question million through I again, not little good cash assume can back. $XX in, cash $X.X OptoSeis, paper actual cash It's on term a $XX My on and increasing million Could million balance the on term the write-down.

in most going our we're our increase that sales the this in from Yes, increase adjacent OBX having related activity grew. on of markets rental and is to

We of in the - day I sold in fact, cash payments than and our would because the very increase helped earlier end with and of of in timely. received we Last increase that rental the say, that most large, some OBX is balance the activity. that equipment customer year in at also But of quarter the cash from by year.

you to short-term you that of implement structure, Great. impact cost forward-looking plan what on liquidity, information, that on but do want I the line to know based will cash will credit physical change don't investment not advice have give think liquidity? you or

be of of depend just there those make. whiteboarding - mean, We're type it's on at kind we I going point. really what will this I discussions to changes guess,

to don't I we're be we made have to some have but going associated the press in think expect discussed that changes combining like We significant in nature. specific costs facilities, I our release, with

give cash implement liquidity? the want forward-looking impact physical I short-term or think will that you based on know or have that cost on to to of don't advice change liquidity, information, do will you plan line structure. What Great. you not but investment credit

will make. point. mean really it's just to type guess, whiteboarding of of going those kind We're discussions this what -- depend I we changes on there at be I

changes our think I we combining we're significant discussed with made We press to in in expect to nature. facilities, going don't the some that have costs be like specific but have I release. associated I don't --

was you for correct? a CapEx then it 'XX. $X mentioned I fiscal predicting, million And great. Okay that think Is you're

sir. Yes,

Do so... you -

ahead. go sorry, I'm

go ahead. you No,

not to additions And we're our of or potential as going most commitments we've that kind of increases was customers additions. fleet. financial is say fund going from additions those to to said rental some those earlier, I help make unless to to related our we get

So $X come orders it's yet, to and we when not just spent that be in? just earmarked million CapEx scheduled is if say

exactly That's right.

setting come If the us, year compare 'XX that $X have and year's you're remind orders in it Okay great. expense? last But fiscal aside. you how does CapEx, million CapEx to total

million and on spent additions $X.X over property, a fleet Last and $X about plant equipment. million on rental year, little we

Okay.

'XX, in the have end likely So spent make fiscal if you million, and orders year spend we all because that's find money at an we've money. to of $X and ourselves to we've seen increase

it would that assume increase spent at the having versus revenue be result in So of is 'XX? 'XX $X million to fair end to an in likely

expect I absolutely that. Yes.

profitability? a That to coupled Okay. with path looks like reduction that cost

We believe so.

wonderful question day. only that's a guys have Well great. Okay,

you very Thank much.

Thanks Glenn.

Thank you.

Melby will ahead. with next go Gate Michael go Management. We Capital to Please City

Hi, taking for thanks my good morning questions. and

from the facility? operations is being With the moved facility, OBX satellite movement that from owned rental an of the

own that that yes be Yes, from own our facility. owned facility, would facility we and into moving it Pinemont we

And guess something I could going is facility a forward? source current that redundant then and sense. capital that be Makes of

sir. Yes,

Exactly.

facility sense for And that any just be the of might worth? Got it. call, what

that process of We're in now. evaluating right the

you significant fiscal Do on Got weren't be them significant you the to in Quantum XXXX? it. And in QX. revenues expect side, said

It's one. end kind, being ramp But was of things going as go introduction. how the it up, up a new a first to Mike, those

one to it's you things where of like those So that for happen.

clear well-known put a for problems very continuing, Many of had things overcome try in supply everyone. problems. of plagued of lot to have is make and them chain despite that the still One some going forward the to some of often And to around we've we've some elasticity things we've to that some worked these provide able supply and the but chain made of place those. being orders it

some prepared demand respect symbolic companies. certainly, going potential else. that amount we've for part partnered of but as know what plan with of step if products. nothing this much there's the how with going and forward be conversations going So to can't products ramping encouraged give There's development coming that's is issue other across. predictive you first to even taken we're to a and are for towards our orders some you be, revenue building are those we with see I we And those that a that there fact customers by

some for that putting resources good definitely it. progressing and looks that So us. on We're well behind

opportunity care it the the Quantum? do terms in frame of investors what with to set And you anymore is for,

to the asset there that where used can tieback detected, shutoffs a introduced of trucks there, reducing the markets, issue costs some meter there's, too, perform to ons, to companies don't are activities. a out are that's important when so That's Well, where respect companies major main protection. utility for be that's in their these but have initial going where automation roll we for valves even to off are one leaks they that conservation targets the more the water. are convenience, shutting utility fact, turn in and those The significant after are, certainly with aspects There's there. of be property could made gains one

an cost being So able their conservation to that issues people houses of things move they water see broad there, municipalities, as shut kind landscape, off It's just move in, all new save the fit. with sorts also where, there's have when also payment but before components maintaining to and do and regulatory those just of office. from they related to issues of out owners within they municipalities where of the clearly for a

it I here? on business, in Makes cases. set you frame $X he terms because $XX thought mean you be a million a opportunity of the Could use evaluate the how did business, sense could this buy it you million

put these are mean of I'm what will I software component to capable technology us mean of been it's smart in a there. that addition, opportunities that's also feel there's, doing. for But overall extends our I valves. going the stream. a city buy. a These Well, not is that be much on a as more is new service that aspects revenue historic - big a ceiling revenue of we and movement movement have the beyond not part

going an our that engineering systems platform that are other work. capabilities how guys that's putting other have platform from some IoT product together And in So is there's standpoint, fundamental development to to a these areas.

it. for your internationally Got XXXX? talk seismic the about the could land or And expectations in business for U.S. you either

market. It kind a We in of in see pieces there hasn't improvements that future, oil side too But really the - what to here land levels the some of were past, as is early for land any have don't plotting market in see, maybe little the with the seems will the it's just of the have but participation of what about, we goes, really ambitions coming there that marine that as don't manifested. great the mostly gas and and resurgence to other inactive we we of rather that overall, instrumentation are world. hasn't from the which course, in our be industry perspective,

Do were expect cash be XXXX? fiscal from flow participants, cash you free to positive in just it. in you flow free positive And to QX. other Got clarify

absolutely. Yes,

Thank you.

Mike. Thanks

Thank you.

Bundy ahead. we'll Cabot. a from Scott with follow-up Moors Please go & And take

My question Thanks just was guys. answered.

Thank you, Scott.

Thanks.

we'll ahead. follow-up with Rutabaga And take go another from Miley Brent Capital. Please

or I I incredibly if guess? us some obviously, give growth it. more, you from adjacent little against has if as of been of expect and bit for good I'd of eddies from or of could kind a that, kind appreciate Pre-COVID, one - be could. you say were kind Would had steady strong. do kind COVID, consistent kind commentary on there, And of you to those very you memory business, I markets of all. those Hi, The they've markets recovered serves

EXILE aspect events you're lot printing imaging we hit got products, thermal used which think businesses, Brent. I COVID did correctly, a reading the definitely No, things things shutdown. for it of some those and - major and and particularly, just for The screen that that

can that machinery, jostled and not a So through the of EXILE more doing things towards and expanding. labor. way sort of less oftentimes that, appears normalcy, types that working And with things that industry through the that, has in benefits have provide that levels, businesses. much ways it's at for the things such clearly, our better if of it's rebounded found pandemic machines those those involves normal It

had has impact. an that So

towards movements meter aspect over to water and a in time billing migrating cable course all are more going general take the utility city place of measured companies other business, the these we growth believe The be the just of area as in them smart connector meters that's and of almost more and automatically processes.

COVID stands behind now. right that I think market from us So it as is

Great, you. thank

over And Rick turn remarks. closing Wheeler there are no back any or floor further time. questions the for to I'll additional at this

thanks great All right, and all of well and ask to thank you, that questions. to Ashley, these call you were listening our

February. first in our fiscal you forward look conference be XXXX speaking will it year again quarter we to of the for call on with So

again, goodbye. thanks So and

And call. today's time, your lines earnings at and a day. this you. have Please fourth this Technologies Thank wonderful does conclude disconnect quarter conference Geospace XXXX