Ion Geophysical (IOGPQ) 6 Nov 212021 Q3 Earnings call transcript

Greetings, and welcome to the ION Geophysical Third Quarter Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Rachel White, Vice President, Investor Relations. Thank you.

begin. may You

welcome Call. and Third XXXX Quarter Good appreciate to your Conference We joining Earnings morning, ION's us today.

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

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

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

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

energy returns again the Good progress into thanks ION's higher everyone, segments and financial us. maritime and diversifying we joining industries target. you, Rachel. with we'll Thank results, Today, for morning, our outlook operations for market discuss and

revenues, due Our to from last finish the our largely quarter increase we third up of significantly results execution XXX% have improved $XX adjusted of $XX a strong million year. of to of expect million successful the an considerably, quarter. sequentially XD EBITDA, delivered to strategy, and and We

program of and was of extension phase our ahead a larger began. North schedule funded Mid High significantly second XD Sea The third fully completed

the climate-smart announced elaborate in diversification to continued we've the program through offshore our made evaluation the progress Mike shortly last will of Our strategic and quarter. and solutions. reduction additional logistics digitalization alternatives team strategy cost ports maritime and on also advance our

performance, the hard a been express third whole punch So our last and pleased has demonstration the of credit. work how with we over am disruption of due can to I quarter focus months ION deserves and through and this is lot their a team's above how Everyone XX transition, and good fulsome weight. juncture

So thank you.

our energy Brent with start maritime rising in dynamics succeed over operations crude prices and risen industries. increased the and market rapidly prices global about economy commodity barrel. evolving to Both exploration Historically, the has strategy the have In pre-pandemic $XX a correlated above Let's year, last the with closely XXX% to and levels. commodity spending. rebounded

exploration towards oil companies' has flow energy prices buybacks, However, investment is in strategies. from debt paying and cash despite energy near-record become decoupled accelerating generating transition-related as spending directed profits, dividends, share down

and spending has are supply anticipate budgets client discretionary projects have oil muted future the remain the a to expense decisions. Although gas at of as tightened, future focus developments near transition still and allocated precision which our The around investment profile. existing our energy will narrowed analysts importance of seismic term has magnified

gas. Brazil. investing that of continue energy approaching the oil rapidly stable regulatory largely programs in risk, aligned on will the transition, strategically is proven capital lower infrastructure-led return have Meanwhile, expect environments, for we where transition exploration such some that purchases Sea throughout we believe As be energy strategies nearby time, and with facilities. is leverages flowing data basins, North carbon lower higher in as the existing and will traditional ION we and focused said investment

the challenges, While created the industry. opportunities posing new also geophysical has clear transition energy for

develop with customers locate help sources renewable efficiently environmental or lower emissions traditional and will Our energy whether it's data impact, and resources more ones.

and geothermal carbon and seismic storage, potential are in For wind, applications capture example, offshore more. there

core that Gulf offshore of the impact data important at energy potential expected an climate storage Gulf mitigate of oil scenarios, to energy decades. emissions mix gas the carbon is evaluate helping in fairways with our next Coast and to business, X transition remain Our for across is aggressive the But global part already regional least change. demand identify respect and and to basin even required help span most the to to Mexico meet

select We acquisition with strategies, expect their expanding particular, the includes seismic oil into continue improve in enable share to strategic rapidly larger we we infrastructure XD near of capture energy market also even we on us the software said, as participate industry recurring geographies. diversifying much the decision settle stability with and revenue exploration That some our in recovery focused companies outside to major of will In where that our multiclient will ION increase market continue to are their national into share market, conditions. to the business. can differentiators, believe new new limited beyond continue which and in home markets

energy maritime markets. We and are targeting digitalization logistics management, port

environment, remastered offshore cost around opportunities. programs Our intelligence than generated new XD This actionable campaigns reimaging large to X strategy In quarter successful emissions on to environment XD due resources. XD approximately digitalization more with earnings client a is Sea focus this lower business, pivot Even assets. consistent improved execution our portfolio larger our of revenue scale revenue and the to operate with half sequentially purposeful reservoir over market from primarily through multiclient in potential. XXX% program the from immense new XX% and of empower XD be government the industrial their present maritime shifts to spend programs and share to Services Brazil. North investment a E&P in tends new More at and where sustainably stems Technology our revenues acquisition product capital-intensive our to & our from the closer These the challenging our ecosystems reduced artfully in the significant clients to have marine increased XD strategy.

our I'm team in especially this this North nearby. as season Sea Sea larger same allowed expand extension pleased also Mid new phase strategic sector third High Our only remaining the foothold fully low schedule second ahead shore phase North few but investment. areas completed future promising the that program the funded third development not in of for us to it our Phase the Sea covers to the launched collection square Mid The make attractive to of relatively of under-explored X for program program. wrap close costs Data expected is where XXX the kilometer mid-November. one offshore North U.K. aforementioned of High up

outstanding and quantify This in regional high-quality great to acreage. a perspective quality Over new the Zechstein unlock wells next provide potential Phase image on play. further with program demonstrated insights appraisal X, subsurface test we year, multiple discoveries. example of can new will exploration a U.K.'s and nearby the for the Based prospects developing how the new is entire data fresh of expect

successful to low of the remains reserves Picanha continuing reimaging with offshore to addition development to breaking Brazil. Brazil [$XX] its some our per XD spots expand even are we of In highly data cost offshore at one due the projects the hottest set North Sea, globally exploration barrel.

to sales X, the newest of asset. we addition Phase Picanha data this quarter, During strong our booked

data highly Now much software footprint remastering kilometers emphasis in peers. data. Picanha and the per one contiguous proprietary our less surveys largest our square the of revenue dollar and carbon reimaging our world, library of is to reimaged spans of any efficient Due of infrastructure, than seamlessly XXX,XXX

and are a will final computing in that software parallel development workflow. the breakthrough capacity native of computing geophysical access the will we also infrastructure proprietary Imaging have a affordable cost. data speed within ION Imaging reduced infrastructure. combined dollar new greatly high-performance overall AnyWare This delivering teams revenue compute to will flexible also imaging enables expertise compelling proprietary modern times. of an per customer partner processing compute platform to results cloud that Building computing, enable scientific in proven performance our AnyWare, superior integration turnaround at and petaflop and very with that on optimized due scalable technologies cloud phases software We and provide deliver

in AWS with exploring working XXXX, technology. bring while be through to models early market to excited are this this commercial deploying different to We

multiclient industry the frequency to However, converge source driver data. imaging that a challenged input and proprietary is to value projects. effort key the continues provides And on energy lower geophysically seismic to the

be source only proven position enhanced seems as full Gemini frequency solution technology in juncture. Our to at this commercially the

tenders control spec activity forward Seismic range Optimization, look energy tender Operations for soon. and the our continued from is existing routine We very capacity and during on are In and company revenues XXXX quarter. business early improving spares segment. our repairs sole technical redeploying increasing, this stability third subscriptions the equipment a for primarily and base to promising command to The of lend projects. production-focused business installed multiyear proprietary substantial

objectives, and increasingly and survey recovering meeting We a are operational customers across acquisition solutions towed field. integral those seismic our E&P configurations are devices the customers working to demands with end ever streamer efficiencies software and closely complex required in their the market. deliver address both to services seabed require flexibility and to than ION more in

markets advance and software to our in continue We diversification new across maritime strategy devices.

our As nature suspended recent long business given streamlining, the of in funding wavelength have devices part of in Naval and our sector. Defense development we cost the initiative

clients emerging as diversification We efforts XX WellAlert the have for requirements, to new the building solution software, ports offshore sales a momentum prototype that and and leads strategy In wide near-term We large also process pipeline to handle our accordingly. with close. and qualified active our pace wells send into an commitment plug-and-abandon volume to regulatory nearly is prospects. potential efficiently of of environments increasing assess added continue team our for presales to recently such monitoring ultimately offering variation and logistics our

The Americas, a expansion on predetermined first recognized to change. role development the criteria. U.S. ION port our recently I was will am performance secured for initial engagement reducing contract pending business impact has ION ports' in the XX-day trial satisfaction in our of its convert climate in customer commercial Following pleased

the grant operations global targets zero. on in was society study SmartPort, and to enables and and help by greener The Today, port to program their supports nearly Association safer the SmartPort. pilot emissions usage highlighting pathway grant stakeholders has client using XX% The the by September, Organization zero through Growth, data. decarbonization and on the be viewed Our critical emissions digitalizing testimonials our are sea, for can smarter, approximately featured validate connecting X% Marlin The contribution global be X-month reliably ports' of plan around and to accounts net carbon can website. global platform, goods will and and In fuel XXXX. dioxide to the British Gateways their Ports SmartPort COX had processes country's climate by address we program, of International impact advance achieve transported positive U.K.'s whether to vital on Marlin Maritime Marlin shipping to SmartPort vessel climate-smart a in ports standard. net be and received to change emissions. innovation estimated operations Marlin features the shaping

functionality. client-driven valuable new with platform our enhance to continue also We

launched automation automated team efficiency drive new wealth and partner and vessels information enables communication. enhanced increased directly and portal Our processes, X modules access efficiency. recently calls, agents real-time that to book The a and delivering of port

captures billing into a Our accurate that time stamp invoices. module existing automatically billable of integrated management to financial systems be port all generate can activities

port-by-port key challenges growth today, acquisition governments We and on but monitoring scale traffic to our economic is are fishing, more. that customer pleased for a illegal engage offshore our strategy their in maritime software across solutions ports, environmental with pillar zones address country

countries that digitalization alternatives Family continue in finance UAE signed the U.S. To agreement drive comprehensive third-party program. partnership a a to Africa Royal and our GCC to augment necessary. financing penetration we We customers Office work for business propose to where capacity the to for closely provide with to project digital government with and secure solutions strategy,

Our on focused initial engagement Africa. coastal is

with to it dollar submitted questions. before multimillion turn I first over proposal. financing African and financials, With digitalization will I'll have up Mike wrap and nations, walk taking multiple options third-party XX We us over the through our met to explored that, then

Good Chris. Thanks, morning, everyone.

XD consists XD multiclient execution third completion High the improved second approximately revenues $XX Backlog, X% our and due Optimization was which of second segment ago. revenues strategy, over the of for XXX% XXX% of tailwinds Sea the data services primarily of of quarter. commitments quarter XXX% million, was North offshore and at Operations end. of improved reimaged increased decline to our and our Sea the due proprietary reservoir of by year High E&P X phases multiclient work, X. imaging the and quarter $XXX,XXX of from largely efforts. and our to sequential by sequentially, third Adjusted up reduction million, $XX million sales acquisition $XX $X last modest Phase quarter Brazil XD programs Technology program. segment significantly EBITDA North Mid stage and from The was revenues sequentially $XX Our from & market strong million Services cost the operational newly million driven of Mid

as comfortable year. XD the is backlog of X to rate X current focus, we replenishing a at While to we new levels aim with a selectively key programs attractive secure are per

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

we Our was $XX $XX million at our drew cash balance year. end, on including revolver million last quarter

for defined credit mainly significantly improvements. liquidity, as our has quarter not meet tailwinds and capacity disclosed our facility, $XX fourth revenues, improved Even impact have to we to combination half other last though due the our had necessary to our second Last which quarter, the concern our improvement available million our experienced our revenues revolving quarter borrowing under significant third balance total to on quarter. obligations. going operations concern we a going Our changed million, fund and seeing a of we first and are fourth due base and cash half an a modest borrowing disclosed debt the cash issue quarter, collections lower in planned $X issue

We the the business. efforts our financial rightsize and to continue position diligent strengthen

process Holt all evaluate we strategic to and our alternatives is sheet. ongoing options with as liquidity Tudor, & address balance Our Company improve Pickering,

progress great the the we annualized with Nearly the on has been million million made reduction program has savings building while estate progress of $X approximately identified rationalization. XXXX. executed, savings $XX real million longer-term in team eliminated cost on Our short-term remaining in over $XX cost

in fourth With XXXX. savings the of some realized effect that, Although it take quarter, will will expect to savings in I'll short-term early be the back turn we the Chris. majority

seeing to their and landscapes. be the seismic improving. discretionary as navigate some gradually Thanks, market strategic most Mike. are to sector our spending therefore, new has the energy, and modest we been In tailwinds expect customers continue unpredictable Exploration highly continues always

recovery the the of confident remains While chronic market to pipeline. a we seismic strong that do believe backlog in year are critical about sales to we ultimately have We will a the due seismic on turn the and robust timing of finish conversion existing uncertain, times. a in underinvestment seen tide recent data

clients seismic focusing selective digitalization ION operate ultimate global whose as software inroads, are is positive opportunities. and can is an line insight. innovative, time for growing, technologies turn where Demand ESG-focused analytics strategy efficiently believe the Although sustainably. and we such data more information asset-light is we XD make recovery a technology company into data offshore empowering and our to we large-scale uncertain, software and

We technologies prior at leveraging are unaddressed pursuing scale, targeting sector projects needs, energy in customer ION partner replicate Africa. and aiming success to

continuing are on it turn digitalization laser-focused execute country-scale businesses. the to Q&A. existing is supporting our XD back initiatives solutions such while team With strategic multiclient market operator moving share and Our for results, to delivering to that improving maritime we'll that, the as

Instructions]. [Operator

Campbell first with Our is from question Jeffrey Alliance coming Global.

to in about reference a has Chris, code also could our And lower digitalization position if multimillion past of on the this ION discussions. argument. the our different Marlin wondering was emphasis a bit. emissions its you proposals and I costs seems country-scale talk the dollar first evolution than little for suggests really ZIP Marlin to refined

Yes.

So great well question observed. and Yes.

Europe success mainly So ports, we've with fairly smaller have having been port those now and customers. those in SmartPort, but are America been -- in

And subscription level. so our we're revenue lower the end at of

about only also that really California, the of ports improve help some and with happy reduce those operations, acquisition around we're So growing big ability ports Europe what we'd we're accolades you it in from way the emissions, XX penetration. start takes lot getting really and a ports And that the very the revenue like, of comments lot customer issues. are of but of saw also although to a our now. kind to We're which is not

we we're is opportunity ports. infrastructure decided ability in add validation But Marlin how like, revenues other maturing this just we're way, to in port. by the and what do with accelerate scale more is as we but the upscale as solutions that well So getting really which great, the partner and go modules do just bring to value of the to very the beyond delivering a

trials started that trafficking, off waters and information. more deal to and elsewhere, challenged, to in there sorts goods from only say, critical that China they they're with like small Guards fishing, those port larger and where went some like Coast then they getting not illegal SmartPort in needed struggle we beyond something efficiency have offshore hinterlands challenge in port their and things to out there. a the in, of things a larger that, that we with on, sovereign opportunity going doing and are huge ports the realized the as there's into But their require zones, Africa, of So economic all Africa countries in there's that ports

port infrastructure support going at the the installation on So your you, on a bridgehead given -- fishing, simultaneous their basically with also potential drain well, and ministry We've monitoring is we've Marlin been hey, from and use challenges. on zone, listened we general say, which Africa fishing. pitching XX monitoring infrastructure to to just huge a to resources surveillance, the also we and government level their this illegal for level, their with understand the in start can countries operations to your particularly a drain Embassy miss U.S. and revenues introductions offshore huge

kind have these Africa Kenya solution. financial maybe you're Bank South through Nigeria, whatever, secured countries don't the to EXIM of at budgets start we unless successful fine-tune to So at afford a the because of would their or a most that or financing financing donor as other we've least also been getting proposals, which table some around and problems with pretty or making sitting people these have the customers

our fully at And bigger capable to those that. and robust pulling things revenues Marlin enough problems kind of together scale. to So it's it's solve that to drive all of do and

pretty $XX small at mean, problems offshore depending what SmartPort the a annual now million thousand move that subscription port we're be for in maybe somewhere, we the are to of -- through the a a of like we're process. ports So give the in X-year proposals years. instead these and proposals, these countrywide and starting we're all multiple kind excited interest, kind country monitoring, stage I hundred then to would we're are. economic a $XX zone where sense, few -- just that be deployment to the over a have to these submitting just the to X- actually And on million of

So it's -- kind at of now. excited it pretty we're country approaching about a scale

Yes. progressing? any sounds really revenue meaningful a like way. is a logistics Marlin in that potential. effort offering are I if how better in the step-up That bit, just wondered back helping prices Stepping commodity from energy

And That's been has interest on trial demonstrated of supply that and I we've can vessels. been we've costs of mean operational an and had really which slow. area a save clearly we clearly on last year, big emissions But to that taking few been over actually logistics kind verbally to platform one. has port been revenues been of would a forever convert. have opportunity years awarded we've good with be chunky a we that pretty told

that's and worth these So offshore award. putting kind how several can proposals construction been end those And side too. in we've with bit, Gulf others we -- to we been been shaping for started the So moving that's come have starting Middle probably we've it's noting big to looking announce the Middle we're worked logistics the things have through East, -- of changed back percolating that states." And Arabian bids is pick that slowly exactly up. Those too. the Gulf QX, in with And we know that's that have of thing to little in get now of operators like by pipeline should saying, where up really reinstall opportunities, would operators. we've in East, before, of "Hey, hopefully, a logistics the to us Marlin but the the

starting oil gas that again. move economic the to So is actually and in slightly I think improved situation

they end Well, cost to the I I the still reduction it. can wherever get is, guess thought at that E&P industry the my when hear emphasize day, of needs

you're sort on savings with time, to in other you you fence? that's real to able think that if are some get actual cost ones some award of So the demonstrate this and help you of first do going the

well. from I with Absolutely. kind pilot, customers the also able mean we to have customer, without demonstrate what learned of other we the naming been potential as

at to looking to been that's So values, through things dashboards that. our be like able those demonstrate and great them

be That's So it's well. soon of lot that also engagement. which a demonstration. announce kind kind and of created got opportunity in another Alaska, able from more to We've that to come hope workflow we as

turn how wondered I'll for to back progressing. seismic. the And last question, I is XD my Kenya just program just

Kenya? we less we we that of Picanha or go to is and where continue I have our which like going would continue or sorry. back and out. Kenya, accrete new us more they to from buy phases -- you to government, to Picanha we oh, get large great. the telling customers tapes parts next, sold and I sorry, Kenya, asset, steering then thought the it us again mean very you we say are But did -- is -- go from the

Kenya.

Kenya.

on Yes, Kenya seismic Okay. the side. XD is

do really So we the there are rights but exploration, interest we the there. the have assessing XD to

at, was seem just an governmental talking area say, about. for doesn't I hot Although the be as investment we that have rights, Brazil to that

So on about very we're we where we I script said deploy XDs -- and do underwriting the those of going projects. and back what being is our customer use to where to selective kind

then it. interest, doing So not we're hot if not there's a

So is developing I on space customer this XDs watch company of money there. think and Kenya spend than kind rather money

really it's right Brazil we're is U.K. on So now. focusing the where and

investors Okay. appreciate discretion. I'm sure that Well,

Yes. Thank Cheers. you, Jeff.

next with Our from comes Dayal question H.C. Wainwright. Amil

could costs color year? come you relative next should what we us how year, this expect to Mike, to in lower operating on much for costs respect give operating With targets your XXXX, any could

Yes. No, I question. the appreciate

will, had -- date take or January million, of what we $X beginning of will of searching to We're to effect and at done said, the majority really that of and last really XXXX. is million was we've in as all will identified executed year, that that we it still date, fact, those of but cost. Reductions $X So in top on others, the our services. But operating of million executing in of that kind -- into come happen. That beginning expenses, $X play million cost including across the our $X really spread always -- of XXXX. -- of it's

Understood. respect And to line Chris, that strategic a with options present time is have the when are to Okay. alternatives considering, you you investors? may for there to

Yes. but -- trying There's any offset outside deadline, not cost are an pretty extra advisers. to extent do make savings there's it obviously given with kind to on focused we're question, we're costs. absolute your getting that cost quickly expenditure completed on of by we Building the some

professional we So have all can not help, it's to it's for free. I appreciate but think good

So as yes, as possibly hard that we we're can. pushing

kind process. that of a things our at looking of opportunity had divesting as is ION end homegrown assets, looking is the initiatives at broader We're and with of are there, major near at of are look middle kind at the and We the you looking a phase stronger process. -- we've in what noncore some of remember, we're the what of to those some of that and that probably now

to hopefully, we'll be on that report fairly So able soon.

improving other types those maritime address collection, that the your segment chain-related port-related to right cetera? respect of software does operations data and is that focused or on regular with of any news you're or Marlin issues et And the now, facing with software, Okay. supply in challenges more stuff,

the heavily, question. that's of so people in that's often question. And Yes, ask news people lot -- a great that a

But we L.A. se have through help that a down and to management schedule getting of out the now, anchorages. able offering, impact think believe per the relieving the to the bit facilities these unloaded guys ports SmartPort because of into the all port as well. possible distribution port is anchored right are. the which got I core soon things you're little those is having do with will that and to centers But other both the and congestion. the of they've ability of it's usually larger trains companies and get the say not are they've got and this. ports And with to issues optimally challenge logistics reloaded. why as there in the cargo some the and a congested. So and these elsewhere get outside within sitting of bottleneck from the and does berths really access and is an I problems it port the within getting stevedores move that on are the of They've see people as those vessels lot truckers our They're then the congestion are a inside berth like ports, we you also and got in all that area where bigger

gummed we really that's really up, it's will, So if that. distribution the you network and don't address

anchorage with could and knock-on people things Marlin, So anchor don't from change infrastructure those vessels send our mean be, near I and pipeline. the all in understanding thing, where oil is we actual use anchoring where GIS snag -- the the where part, not the you're too or snagging all those close but other anchor surveillance length can to help SmartPort, alert understand, case of pipelines a effects like but capabilities areas fixed a potential of understanding the of another we could address, I being kind that the that, mean, that are you've whatever. spills pipeline of Huntington and the got

each well the responsible of ports those the could kind you something for that part then as And are companies there like -- find got be benefit and as can infrastructure and the that to company could is you send customers. the pipeline And that So actually from. potential alerts. geofence out who

in They're environmental aspects -- our looking of operations other around to things that it. at So heavily we're interested the with ports. in port and engagement California

it. going we're the whether But solve to So at moment. logistics part looking huge hard the think don't -- of can we're working at quagmire yes, help on we I the that

now, Yes. basically, what benefits But and improvements catalyst sort consider right? efficiency of your these it a would still be given ports a from right has other offering little of for transpired to bit

absolutely. Yes, get different some with they discussions, the then more aren't benefits we their all can mean challenges. into for people the we have we helps -- explore I clogged ports all up than It operations exactly them. of And at in certainly what amazingly. actually ports California us in and have smaller

they're of where they the up month we a they to for in offshore. L.A. anchored same interested port as actually called Hueneme, had they're only still as a exercise super few have a kind their ago, get went And they through small And management. visit a port county get a all of SmartPort But vessels a municipal there the efficiently. kind way I a berth visit port. the they're military port coast their from about improving in -- well Just organized, is and stuff

but every -- port different is . interesting has is It So challenges. different. it that

Our next from comes with Oppenheimer. Colin question Rusch

to us as receivables flow just the with the unbilled those you Could well the walk timing through the receivables? going through as flow on And are collection . how cash statement?

Mike, take do you want to that?

question. QX. Latin those, with AR from saw increase take revenues I'll are Majority Brazil. our the our it. as No, in you American Good Obviously, associated you of Yes. the see, up,

big of little chunky. a have They're and bit kind of does that So timing.

later I'd this December are So really those time timed of the kind those month, expect frame. and to beginning

quarter. I be of into those would this expect harvested later So most

Okay. really That's meaning of are things investments as additional well a you and very what as along? sales to effort a perspective adopted getting ports, helpful. a the perspective from sort at And make look spending to these from into those you sales from some as then Marlin technology move of perspective, growing

Yes, question. a that's good

-- not community, I understand make European experts North that benefit subject come than different had for America think are from investments huge in we to right and matter X adding X arena large. the port adding area who a or it, the example, from the need is the we've They're which now port one.

person out mentioned ground on BD Our forward inroad there, out actually over organizing for commercial our huge that We been trial to has on has a we're X flip getting in months there, the should and offering demos the that made our moving the arrangements. and in message port.

pipeline. some So coming -- that's the and stuff other in

should -- X, -- we the and But BD with a We're about Africa, of those person having engagements a probably are have looking kind at more we're employee. is X, added talking which So now that's that, well. -- -- BD but Latin pleased as That America X, you're of is X are full-time very had those. been an driving really there. and really folks, in we're and which is government-level we agent those

They're a So those the and incremental question have in employee obviously, resources mature making big chunks. modest. product sure right so it's huge of phase, right we now the coverage balance reductions cost that the to difference phase core And the add And gone -- we've in you're right through again, making and also is actually in a of development up not are those really places. with investments smaller functionality. that really, its investing all are trying to because the

it's So the see that thing. yes, chasm and we -- to need crossing

got we've a Now stable platform.

government time, absolutely well same cetera, media, to to what other be at people, more that brand. the out invest marketing new we're accelerate level We marketing. getting in into digital get be some to need our have is QX. We offer to thing ability kind message new in market the message we And on reduced overhead of coming the until the a more BD to don't out through a revenues in these because But have the want we those the would stuff the I relatively but we new communities to spaces. things quarter need focused to see on of It's markets. mean, lot unknown a online. stuff et we've people processes, quickly. we Certainly, add SG&A as

you and problems us grateful commerce have introductions getting these responsible embassy-level level. actually this for with solving get -- that a government people decisions and office the to to foreign all supporting for at U.S. really where and So can the are we're make high-level been these right

-- So would without that, wouldn't brand Africa. we our unknown be in

process inexpensive a it's there, we're step relatively And dollars that's being and that. So well. a leveraging as spent taxpayer well it's huge been change but

us of allocation. just basis just down versus looks quarter some the but a been It and that around at perspective to Can that budget give and spend organic of in nuance starting to year? just you that. trying the the get on Historically, some around there's through of thinking bit. profile sense break there what you know me spending Excellent. seems that's don't like guys and the fourth out how I seasonal an happening budget as follow-on look flowing you're guess early around guide, some next a guys from I you fourth like for demand multiyear then little a And the what's is flush dynamics. that's quarter.

Yes.

saw spare E&Ps you've buying If drilling think of then use in last a always big little data. couple the had use So And spare over I funds, up we their a didn't would the they past, that years. last bit the all their budget. budget on

and little just IOCs that this huge a don't that think of the back. is that energy and going some departments transition, I energy some from coming exploration wells to to now because that people bit through haven't are some all on up budget. have getting what of reconfiguring core of services to might which again fired hearing all chain they they drill level gone are large leading IOCs. and flushing is issues will still I able do back And out be be real also we of from supply sorts they or the in to side EVP the group whether been staffing the year their a a spare spent there the traditional the seeing believe that and them it's be of bought, seismic, of transition. that's that there. people know trend of that But we're the And

been even a also we're we And that that seeing be the upside seen also of And QX But our might is modest seeing where do has there outside think really home in lot in in in NOCs as from have what interest that we've geographies there slow countries. with I much A have forecast new QX. strategic steady. that's who QX. the is see come didn't have and things the buying probably that majors we're So for activity yet. QX. we But which in together we our don't activity NOCs, of

strong things a confidence So few it's optimism coming that QX not together in gives the guidance, about there's the -- I quarter. think but it's us

higher will think I our next imprint so hope on And it been will into has than shape There's first be and profile a of that, a us the year, be it's half the shape? at I the imprint peers, Beyond it second that's forth. always but same in and revenue bit still half. level a lower than -- XXXX

but do -- that that year. bit this So effect, I be on will think, there little least of QX at a

in remarks. are the Chris no to hand to like further questions call I'd closing Usher There the back for queue.

really Yes. much. things so quarter our up. Pleased the and I today. Thank with joining some the of call you are that everyone respects third in appreciate shaping many

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

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