Geospace Technologies (GEOS) 17 Nov 232023 Q4 Earnings call transcript

Welcome to the Geospace Technologies Fourth Quarter and Full Year 2023 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. Today's call is being recorded and will be available on the Geospace Technologies Investor Relations website following the call. Instructions]. [Operator

my you the may now Rick over to Sir, Wheeler. begin. pleasure is floor turn to It

Thanks, Michael. of Good conference call morning, and welcome the quarter to fourth and year-end fiscal XXXX. for year Geospace Technologies

with and I'm we'll then provide and joined in-depth Financial an After the Officer, more Officer. overview mentioned, Chief company's prepared follow our questions. quarter Curda, I'm Rick President final of by company's some As our and open year-end the on remarks, will Executive line financial In the up for Robert the and Robert Chief Wheeler, commentary I'll fourth first performance. comments,

Some our considered Act today. from outcomes but These statements or of operations be forward-looking planned results Both affected as known recognition, are based we defined of lead XXXX. uncertainties on Private is on today's unknown Reform what actual markets, said in that predict. revenue Litigation by to cannot may risks implied and can capital control expenditures the and commentary differ present awareness, are or Securities

Form risks Some SEC in our and XX-Q are filings. discussed these and uncertainties of XX-K

at is geospace.com convenience, sensitive will which the link we of our recording call time I time not the our products. listens little the and accurate For company one information Investor to of today page and hope the a on everyone learn browse recorded visit Relations about to and this the a will website, bit be that replay. Note may

September full the We has the an incredibly figure to revenue year yet company of quarters for largest of the year successful closed fourth closed, Moreover, of recorded of income year, another with the since with announce quarter market fiscal $XX.X million $XXX.X the results XXXX. in million. Combined represents earnings. overall net XXXX earlier our XXXX. and after year-end were ended year which quarter we fiscal the to shareholders positive released financial our pleased XXXX, Yesterday, XX,

improved employees OBX well accelerated both fiscal of and in driver our the Market rentals by nodes efforts dedicated for operations, is Our ocean-bottom better Gas Oil the as our largest Adjacent in performance and as conditions year XXXX. costs our and reducing utilization our and Increases segments. of were market the revenue and result streamlining products in

In year's rentals fact, revenue the company's for than more from total doubled last figure.

advantage conservative balance continue sheet given us financial the this a maintain debt-free to ability our conditions, future. tools in our depressed take and segment. to believe evidenced strengthened recent We Our essential by we'll of in gas This improving these needed and is preservation management innovations oil do technology has strong of so strongly leadership in and even to market market markets. and have developments

is data the Mariner highly which seismic fourth quarter, a node. $X for our product, In shallow million seabed advanced acquisition water agreement we rental announced a

ocean-bottom we announcement of both rental international their specialized company was addition, a announcements for geophones million our a to these designed in Mariner of prior for In announced seismic contract nodes. use system. And in $X.X contract proprietary million with our $XX June for an

with the system term expect few next this thereafter. We commencing complete of weeks the delivery the in to rental

coming While rental OBX the remaining our anticipate in ocean-bottom we to do we over strong node some gaps expect contracts, occur the market year. of fiscal

record. new year Results million at fourth ending the equally for year $XX from in million, segment this and another The full $XX.X XX, revenue proved quarter our yet company Adjacent for came Markets amount total sets as and XXXX, compelling segment respectively. September fiscal full

outstanding fiscal the overall the XXXX. Our have was were the year efforts revenue the in meter seen success growth results. cables some the of XX% The segment's last performance records and toward of diversification from over our course new for factor demand Markets our stems the which greater Adjacent over segment industrial products connectors, several water pushing year's largely year quarterly revenue primary for where of set

segment in XXXX quarter million full Markets Emerging over company's generated the The $X.X fourth and year. million fiscal $X.X the

quarter, fiscal environments. known otherwise as acoustic Defense Research designed interest small to nearby sources the $X.X and million announced air with SADAR water monitor contract land, Phase the new Projects business research on Advanced we or a During contract DARPA. a a is second explore SBIR to innovative contract energy Agency, II of This capability

amounts Revenue year with well derived contract course separate this fulfillment as of contractor. as the from over contract fiscal for XXXX this unrelated a includes of segment a defense major

other agencies opportunities contracts unique private energy DARPA new for in sector as well analytics SADAR We with applications for Quantum's the governmental transition continue further as explore market. and to and

substantive success sheet. Complementing XXXX were balance operational the gains in fiscal company's year on our

to no more with under we In credit an equity in bank million, We and fiscal million unused XXXX maintained of ended $XX.X with by short-term year agreement total addition than borrowings stockholder a cash, equivalents availability investments. an additional increasing $XX borrowing $XX.X million outstanding. cash of further

liquidity result, a total million. was As as September XX, of XXXX, $XX.X our

addition, In international in estate we domestic in and both properties wholly own real locations. unencumbered

now call little the detail financial Robert quarter that, on the to more turn fourth over I'll year-end and bit With a to performance. give

good Rick, and Thanks, morning.

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

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

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

of for of the of for million the and fiscal increase $XX.X same XXXX. Oil the produced XX%. with three revenue segment revenue September Markets months XX, million period prior The of Gas $XX.X year, an compares This ended

our segment is utilization sales higher revenue versus XX-month prior the of $XX period. contributed of for our our revenue of increased The seismic wireless OBX same is in $XX.X and high-level of higher to rental fleet, seismic a of the X-month for fleet, utilization year sales due demand for increased sensor and due rental million to The marine marine products. OBX increase of the For XX-month period, products the million our products. period increase also our

as segment Markets Adjacent is Our follows. revenue

products. XXXX period the XXXX revenue revenue in of Both product to are an million, was XXXX water XXXX. fiscal of fourth for fiscal $X.X industrial was million, increases XX-month fourth products sales XX%. Our $XX.X of our for $X.X year periods quarter cable the and the connector revenue of year million to compared for quarter same due increase over Industrial meter higher

$XX.X the for was quarter a compared of fiscal revenue to fourth XXXX decrease product revenue XX% was for last million year's demand in year $XX.X revenue XX-month imaging Imaging imaging versus million, our equipment period periods The and consumable in $X of products thermal million. for decrease the due products. same million $X.X to film XXXX. for lower The both for revenue is for

compared for will for compared backlog quarter has prior million be $XXX,XXX Finally, the segment $XXX,XXX, revenue the the of The approximately million, that fiscal XX-month segment recognized XXXX. XXXX to fiscal year fourth in in the $X.X for XXXX. for a period. revenue same year year to our was $X Markets period for This $XXX,XXX for Emerging same was segment

for decreases $XXX,XXX of liabilities and goodwill fiscal quarter noncash XXXX, recorded Excluding modestly by of the noncash fourth our and fair impairment, the the to in by decreased expenses period XXXX. value earn-out for increased year both operating contingent $XXX,XXX XX-month

cash and fleet equipment. into investments $X.X into invest and XX-month and $X rental into Our plant In plant into $X XXXX, million $X cash million. million our fleet property, million was year investments we anticipate rental equipment fiscal our and property, was approximately

$XX Our balance end million the investments of credit sheet liquidity and and fourth our $XX from we of facility. the of quarter additional cash short-term at reflected million have

In leverage. addition, own the real free we are any around and estate world holdings in Houston clear numerous and without that

discussion. call I'll the concludes Rick. back turn And to That my

Thank you, Robert.

continue plans profitable. in the year, enthusiastic being enter we the fiscal As about set motion new we've to we're

of can part reduced. intend As focused with efforts revenue assessing we opportunities regularly and segment to business be evaluate on additional driving costs where a that, each our areas

that coming performing are revenue in industry However, uneven of seismic likely result contracts noted year. time our the it gaps in be proportions to must

during variability Despite leadership this encouraged year products our though, fiscal and activity pivotal expected for result balance be success market, will in demand and we an conjunction XXXX. the technological believe the sheet remain of create. exploration to with we of In volume our strong by year approved should our planned the it

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

[Operator Instructions].

from We Martin have Lorentzon, question Investor. our Private first a

volume think, I Itron about June this it the degree within on elaborate segment? collaboration please posted your drive you significance your To that year. does in, you revenue water Aquana of of Can what

development Well, is that very recent.

hard certainly valves a yet, revenue of So our but will. partnership. it distribution it Aquana really as manifested hasn't that healthy. we puts anticipate environment a be into It's It great very should that into

exact give look numbers it. but that, on you So to I can't forward

meter? hasn't yet of the a the how on life be long in I That's good cycle would materialized water to hear that And guess such the it side, numbers. product

as the these battery maybe is some are But were. it so, sometimes There quite these that typically. they're at a for operation, after to smart or systems a years be in decade a electronics duration. of drives a Actually, meters is for replaced designed component of XX needs designed least which long that

and to is So the product share over assume base erode sticky be customer market you that gain would relatively won't it that time there? safe once your

expansion really our and but throughout comes of expect to to as Well, initiative, and our this process has City competition as a we that water respect sort part length market Smart some is as there that up for always see types the water dynamics of instruments well valves with such are technology, an any metering. ongoing throughout the business these belief outside But the of in as to of world, approaches time. smart as change we of be the changed country, actually a

Okay.

it in underpenetrated or product? you out how market you roll that to do try so roll the And geographies where out certain is you think

Well, underpenetrated. it's definitely

in As your side that to in has as the the other and sort out marketing market been that the affair it lagger through of of is turns water The industry, meter efforts opposed the you in demonstrating way any sales efforts, through generally out and market deployment. penetration it technology. electricity smart your roll gas as

comes Dezellem with our Tieton Bill from And Capital. next question

the following revenue? the on does When contract quickly last meaningful producing up began Just question. Itron

in there I'm not reveal but not in Bill, things there place going to we tell with we're that partnership really it because you are relates privy Itron, our to as that, to shortly some Itron don't be time. deployments. already place contracts well-known anticipate lengthy place terms of and their is organization some period of will it's going that these has a certainly to in take

Not you to into you corner, to pin far fiscal a begin? but too Okay. 'XX, that anticipate would

right. Yes. do that expect year exactly to We fiscal on see in returns XXXX,

Okay. That's helpful.

if along, What you The QX? I rental think, the Robert, mentioned was in may. utilization I high. for rate the utilization was utilization, your fleet fiscal Moving offshore

very to similar not close similar very QX. to capacity. capacity, fiscal year full very -- If full It's to at

that that explain the will you additions And cautious have I very then all so to out that build may have question, about million been about, next fleet. $X rental yet which you've to rental you fleet you and talked will my your the think, spending

you are you terms is that? demand to of in what that would talk to leading So seeing

fiscal additions the year. Well, related this received specifically the Mariners contracts to are those for we

are we fulfill those -- So fleet. have the those those node units and add to to market new those we -- you as our to contracts, a type that's introduced to know, of

you're And rental that contract last long your million to of for Mariner, that going delivered speaking shortly, have the here initial how period? $XX

rental. a It's year-long

X nuances to meaningful to there completely And be going simply that that are million would by roughly it's divided $X quarter? $XX it math make a be quarters off million base? Or and correct take some

We're as some that not nuances slight going the quarter, Rick math units complete exactly this There's makes to of work that that said. during way. delivery

our first to that It an really going of begin of quarter 'XX. until have not quarter we're within doesn't for rent entire So contract.

it's roughly forward. per point, that going at $X then And quarter million

yes. would think so, Yes. I

Yes.

then this how contract versus much additional $X Okay. the tied And million of that business CapEx, that is you to building? anticipate

this for it contract. majority The is of

calendar additional So build then prior ramp the the year, of to end need to to up would if additional business wants next you course that up units? over 'XX, you with

That's exactly right.

nodes diligence of, our going before don't continue is this just and to We growing, build to market us. ensure kind go gather the to want additional We something that them. support that's build just to we

about really Robert and add very to you're color making we're mean what cautious I always what these capital some has asking, to answered, Bill, investments.

if where And come a and forthcoming numbers not exactly or now mean are that things we as does does so of reported are. not of That view we ourselves them won't the we static where business to investment today. of correct limit this a are us that and that the snapshot we will in to the opportunity. any make future, is But -- miss where

Great.

helpful. That's Okay.

using OBX of will a phrase, utilization looking and QX has I'm for that utilization full kind the because hitting full have So not QX you're and me if snapshot. kind March. in what correctly, Correct this essentially Mariner summarizing I'm had starting of

will So statements and with cetera disclaimers then, with full contract future? gaps, forward my X utilization are do that in question you roughly moving in et maintain the the if the into OBX those quarter is December that foreseeable accurate, here standard anticipate go

of occur. the in some the will or some that be be the other market strong, notable exactly mentioned contracts speak. is change do the will No, those gaps, with booked as being back and go gaps will the are revenue to there reason service, and even those will equipment as OBXs on year remaining different we gaps see we in we as not. those we portions But respect occur, those that of service currently into will they OBX though that that's do That overall

jump And questions. helpful. like to I I'd to is couple That quantum then of Okay. may, if a

Is The something is Or emerging the first business? backlog $X the with that one DARPA the million markets. else? is that

business and It's else. combination of a a DARPA something

on elaborate to like else? you Would something

and technical -- on maintenance assistance something else. related performed we past. I to don't It's on the in contracts some assistance the announced we've think

if Quantum with opportunities, Gaza? developing do what situation the then you And any, see for in

respect activity. didn't element and that as an approached some understand failure Clearly, now intelligence has its how yet in with of some were is to pronounced work to that's Well, It be necessarily there seen. that. some already that of monitoring Israel and records perimeter track been partly we this all of

to to that Quantum be on it -- an in remain will will have we'll impact So seen the future. have whether

was equipment equipment did the question. Rick, And quickly this versus they that was enough? itself it my it of work? intelligent the is part that Was misstep not a services did not an Yes, that that Or respond question. had human

That's an question, unfortunately, answer I but excellent one for. have no it's

We Scannell next Dennis from have our Rutabaga with question Capital.

Yes.

Just a couple for things of me. quick

been the about rental for business, performer questions a the has some on which really standout following So year.

I nice really the at on boy, the real margins improvement like basis, XX.X%, things sequential in did So that, one at XX.X%. gross at of notice quarter-by-quarter, looking a was a it year starting your exiting fiscal

kind different some just course I'm was curious, pricing because the so it if year? that And on you of just the taken light Yes, action that. through Was of shed could utilizations? of of because

on activities keep items when are things rent sitting of has on their a other us with it lot out here do Units in down don't that drag hands shelf. customer's have are out a profit think to that repair lot require to them, I for do that the gross charged utilization. the or them we

part of it. So that's

the a utilization going the whole, that customer's higher as of across hands. are we're company mariners because factory, building had, also these into out a We this

result we a have higher higher out fixed which as improved factory that, utilization gross of on So the floor, profit costs, absorption also. of

is which -- as a Pinemont the think of facility was over to gross cost-reducing mannerism bringing our contribute certainly going well, that made our I location margin. we into Langfield move to

the margin verification. production the the opposed and captured for rental the that But in margin? the Just overhead to from absorption gross wouldn't product consolidation, as plant be gross

on as they're there charge, view, things and of went those hands From being not them, touching in require Langfield. of are customers. our are what the the when costs keeping maintenance units in various when a maintenance they in Those hands that by point terms on pointed Robert then go out, of absorbed here, were at

here. on going they're Now

And so better control of them. that gives little a bit

Okay.

going that So performance just look can now gross is on was quarter? basis? a that And exiting a -- rental more go-forward at normal the that kind XX%, level Or of extraordinary again, we the in at and something for to XX% is XX% an fourth looking year mid-XXs, margins the forward?

factors have these the that affect be to coming going affect There's units fleet that new are affect to going fresh also. that's depreciation into that. utilization going have to to going we Obviously, is that that

has benefit this So expect wouldn't last just things I going I favorable and think happening, quarter forward. the of just really that

well, I we're have so think be back as rentals. of gaps the going to here, in expenses they're to going be That higher some we that. mentioned some there means that in and maintenance will of some the OBX

to some unpredictable. So there's to that it makes a be that, bit and flow going little ebb

fair. That's

is you do Mariner potential? see and nodes -- of OBX the kind So cannibalizing

activity market it's of the in is mean and at seems streamer market including the The any question. to good mode an industry the most is of at seismic expansive There growth be a the this where Well sort towed in is really ocean of node bottom marine overall -- some in is point. this yes, operations. I the the marine industry, point. improvements

them there's imply data quality seismic So the from surveys. do want oil But I that the extreme don't accustomed that ocean-bottom this I to to that think to these grown have now possible library houses preferred makes companies going do the method and whenever really on data nothing there. the

that So there's wouldn't know a I I don't really cannibalization, it call that.

capability and functional that will new is a an It extend expansion that it the going market. there OBX, into acceptance its the well. as as I serve market. of in technology doesn't in further have, Clearly, But so features should think it. the OBX displacing that it's on the same the role Mariner has has the

Yes.

you push a little to And Okay. then capital maybe bit allocation. Fair enough. just on

company. multiple. cash very look generation, income, GAAP relative year recent a attractive the great really net past flow a We've like got finished real you to a You nice

but value your above us sitting there is time with million demand you're spending capital market it in forward? to we're some on now, about, rental doing our book $XX going at could you stock? repurchasing And help Or if if allocation about cash. thinking kind and fleet, we're of looking You're think just about trading strong that strategy think

Board operational No, that where regular to that's before, which our debt sure be to to us certainly as something in are, want to on forward. we fund considers able make mentioned is our conservative do something we that management, keeps basis. be We components we a and free our go

that what But we similar a the stock very possibility it But be the before. will doesn't about be to we of always will the buyback, over that does of time. did Board So again, as preclude cautious that. considering course

have Scott Bundy We from Cabot. our question Moors with next &

associated minimum with with volume the there Are Itron? contract

don't in along volumes? arrangements. these or line anything any Minimum we think I terms that have anything, or conditions business

And jumped you noncurrent inventories noncurrent inventories bunch. explain Okay. a Robert, Can what are?

that indicator in inventory using which are within into expect the we to our what It's build historical to to is past. an be what frank, to to that usage of don't our fleet, going XX to components increase related go rental items And It's next could inventory. begin lot a in as months consume that happen the noncurrent with. of asset a

those going to likely are we're in components inventory. noncurrent as asset up a So noncurrent the that placing end

Mariner, that for example? So be would

For example, yes, sir.

it. Got Okay.

Quantum, related energy mining, et regarding to Rick, near future quarter, more carbon there fact cetera. to So that the clarity transition, on perimeter some made security, in of be the last geothermal endeavors the reference may you

some give there? Quantum. some So Can are job us -- give you Board allows that idea going visibility. of are you no guys kind Can the you of what's on without openings the at what's fascinating having us job openings to me

pass these we requirements some already one Well, certain had someone we've has talent unfortunately, in And we're on to away contracts it. had circumstance. that I mean, that working actually

need definite there So skills to put assess we place. some in and back are that technical

these So that I to think need are where for. these technical that's those we respect with matters scientists

areas? part, do clarity about more some And of more clarity the we have these

X can is but is. can't to have those not it at these that We some of but between it's I having just things then And enough We But way I the point. of yet sounds about months, mean discuss. the frustrating, not for discussions some the we pipeline is that and do, know deepening. definitely but things now talk really it's something we're manifest. just of these that this

PRM? PRM, do anything the we regarding outlook regarding hear

But We very revenue discussions more the any having going is, in those are do. to year Those of generate fact, we're And XXXX. in none are active. fiscal thing even some discussions.

some so fiscal There out tenders But And that be anticipate revenue not that's out is hear year come next for year. in within anything any you though, the going to they will some deployments. should year to be the anyone tenders future coming They're be case. not that to likely XXXX. generate likely will about in

tenders? multiple talking we are And

feel That at of is it that. relates it evaluating than it's those one. out. certainly think that be timing the point But might we case certainly with of the yes, in we capacities possibility, and our more when comfortable anticipate we time some could are tenders this as We to come the

last My question.

with So you risks one with the that one regarding we where the issues made not a like the of play. Are contract going may was about comfortable you comfortable the outstanding? issues weren't to some how and forward particular that contract feeling of can tender be associated with decided more I that we address was was guys a think

so. think I

of that really, some what business comprehension I were we think, And There's, of that. evaluated presenting unacceptable might sides there's top think other sort that of on accommodate that, think risks equation. I approaches we've better how of as I we to sort then movement there. on of both

I'm sorry, more. I do have one

event the it XXXX, contract, there that was a the to have let's up we would to current capacity which handle in is, it? So call

so. believe I Yes.

next have Donald with Ironwood. Collins question We our from

been for technologies. new challenging invested but capital experienced reserve have a oil persevere you downturn, years and as industry you ones the The gas past few in

results. seeing recovered, have the that Now some you're profitable good markets

So the team. Geos due congratulations you and to are entire

much. Thank you, very

from comes Michael Our next with question Gate Melby City Capital.

being on fiscal Could free you -- flow you do in cash XXXX? plan comment positive

Yes.

and on what to year. you looks see a on It expand you case capital the generating And plan this to bit return cash excess need if that's more have little maybe now like to shareholders? you could

may Well, out. mentioned tenders coming we there PRM some just be

the want we accommodate marine our we So wherewithal operational ocean-bottom to some Plus, up. they that customers, come other there will naturally to require that business some some way node within effort that but on as make require of potential additional of of in will could sorts these are those any commitment manifest, part have of aspects things the well. cash sure the

So a business it's really evaluation.

when equation So I you give can't that and that will occur might there tells an you be a buyback. stock

it sufficient. Okay. feels the balance cash Yes, with like should that be

I the provide if of shareholders. kind trade-offs forward, need you think criteria do could helpful some investing that returning or more you we in it'd to of terms between to cash you and what going in so that, potentially be business generate the color understand

a in comment do fiscal But XXXX a than of question. for expect forward, a meaningful Aquana company? more amount to going It's generate revenues you of the

so. think absolutely think We so. We

a from of general quarter in could we if any timing thought or contribution next the it. kind that's to And when that? see on expect Got

don't it's quarter year. far first the when it some relatively think it think of of be But know late that, if first the in soon. some fruits. as come as those I initial in I I will will don't we going see to be

have follow-up with from Tieton a And we Dezellem Capital. Bill

of the question, all. to pick up Aquana first I on actually want

relative was that was would Is in you're to a what as a You the did to in referring revenue. of the $XX revenue? revenue. language increase million just to that significant the a want revenue, And of used that I industrial increase significant expect in total $XX you million, use just products

see was that products contribution number, were industrial the compare it because The I'm but X, that. to little such that that, wasn't would into to any call it of not a going of the you what But and to certainly of went we that of this there's that estimation Aquana it Bill. driver. our in growth there's wasn't products -- pushed a what mixture up It very to was. notable But be went markets meaningful in into that do year. mixture it will XX% the be we Aquana overall adjacent coming products significant.

to then monitoring. reservoir And All right. a relative follow-up

I more same may be might think heard this than within you what you at or talk years think just the pure one in that that market there there within many, the first that many that Would random tender multiple it's are be may we space the have a year. time? is to or a coming if tenders time coincidence couple changing be

I don't it's think random.

that within come the companies gas, some when shoved manifest. direction I energy of source any managed, ill oil begins and going that think for to there's viable source and that of oil transition comprehension be in energy the to decades despite is required a words a their to properly as sort energy

they of So exploit can fields think reservoirs being changing how that they I are said, they complete with that discovered, know have of the as better lower they them. assessment if manage some that carbon footprints those they have a

market mindset for be think the of that stability just is what has made that to largely to I them consider. tractable of the So going the more

that But of And then business space your be was revenue? your higher-value it may because were finally, reduced that Or be manufacturing activities? silly or that function you revenues Was a down. a simply needed may us. question for this customers you intentionally insightful for having because lower contract just

has that, way. I We're think amount in so manufacturing. that on that an the by few of it's of been and affected a a timing have areas many has inflation issues There in been There's in impact. our supply a certain our working issue been that customers issues capacity and issue. respects, chain

we're does, I to going circumstances. those components it related forward, going think have that have are fact, exactly some that mitigated to in of what there. But So it most of you to referred

to fair some cases capacity the be because So the need business? for would it minimizing contract you in manufacturing say base that you activities the are

were those to manufacturing Only because we in important us way, that contract well. in a our as strategic customers service

out definitely we freeze issues don't way, in So address. that there get some and but are as as sometimes them the But that goes. far we capacity constraints

and the arena up? to those that Rick, energy will tend do but move asked, they I've at so ever the up unrelated And in will think your completely customers don't in are time that gas Or tending and revenues businesses? be same move industrial be revenues I their to oil

to some. We're I and and contract happy gas unrelated. that base circumstantial. more to work customer be oil our completely pads flows for there through than tend be the But that the think is to That's primary forthcoming, They not anyone and oil do are in related. gas manufacturing contract just industry

& Scott And another have Moors Cabot. follow-up we from with Bundy

that's are you and the ABS pilot valve doing? Is what why was guys programs, beyond Itron interested in

there's relationship might there, programs with goes, a try that in think is to so act causal commercially as pilot don't draw one. kind it independently. available, municipalities other is Scott, I as still those and far It one although of

I Itron the they're that the product some after want service. in of of to think going that contracts and value sees the

using valve Are wanted guys And any problems? the for there that so a component is programs are that question or past last on far, any you have in this there done there's the setbacks? been out that And product? this have there been everything component

get by at not those I time. redesigning of some There solved problem components in out. mean this we've are point that impossible to

and ensuring thing. of technology into manufacturing any the just that now standard So of the things processes issue refining work and falls sort

programs. small amounts seeing pilot just really it correct? the Is valve the marketplace, in of call ABS that we're So

date, that true. To is exactly

call I'm closing this additional at the in Wheeler time, And no to queue. over for I will further back questions remarks. turn currently Rick any the showing

XXXX, And Michael. look you first some our today all you, you questions to with good conference February. great Hopefully, we've for of have forward year the thank the fiscal to speaking you guys which for the Well, thanks occur quarter on right. point, asked. we answers. At will in this listening and to call given everybody All again call

thanks and So again, goodbye.

Technologies This Call. today's disconnect day. at Full XXXX Geospace your Thank lines Earnings wonderful time, does Year you. Quarter Fourth and this have Conference conclude Please a and