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Geospace Technologies Closes $10M Sale of Deepwater Ocean Bottom Nodes
Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
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Rhea-AI Summary
Geospace Technologies (NASDAQ: GEOS) has secured a $10M contract for over half of its OBX series deepwater ocean bottom nodes from an international seismic contractor. This sale stems from a rental agreement and occurred before the conclusion of its second quarter of fiscal year 2022. CEO Walter R. Wheeler expressed satisfaction with the customer's decision to convert rental to purchase, highlighting the company's strong marine seismic equipment design and delivery capabilities. The company markets these instruments primarily to the oil and gas sector.
Positive
Secured a $10M contract for deepwater ocean bottom nodes.
Sale indicates strong demand for marine seismic equipment.
Conversion of rental contract to purchase enhances revenue predictability.
Negative
None.
HOUSTON--(BUSINESS WIRE)--
Geospace Technologies Corporation (NASDAQ: GEOS) today announced a $10M contract for the purchase of the Company’s OBX series of deepwater ocean bottom nodes from an international seismic contractor. The rental customer exercised an option in the Company’s rental agreement to purchase more than half of the nodes under this contract. The sale of the nodes occurred prior to the end of the Company’s second quarter of fiscal year 2022.
“We’re pleased our valued customer took advantage of the opportunity to convert a portion of this rental contract to a sale,” said Walter R. Wheeler, President and CEO, Geospace Technologies. “Our company’s strengths lie in the design, manufacture and delivery of some of the world’s most robust marine seismic equipment. Incentives we provide, such as the rental equity accrual toward purchase, streamline the path for our customer to choose our quality products to deliver trusted, actionable information to their clients.”
Geospace principally designs and manufactures seismic instruments and equipment. The company markets seismic products to the oil and gas industry to locate, characterize and monitor hydrocarbon-producing reservoirs. The company also markets seismic products to other industries for vibration monitoring, border and perimeter security and various geotechnical applications. Geospace designs and manufactures other products of a non-seismic nature, including water meter products, imaging equipment and offshore cables.
What is the significance of Geospace Technologies' $10M contract announced in 2022?
The $10M contract signifies strong demand for Geospace's deepwater ocean bottom nodes and showcases the company's ability to convert rental agreements into sales.
When did the sale of Geospace Technologies' ocean bottom nodes take place?
The sale occurred prior to the end of Geospace's second quarter of fiscal year 2022.
What products does Geospace Technologies focus on?
Geospace Technologies designs and manufactures seismic instruments primarily for the oil and gas industry, as well as products for vibration monitoring and security applications.
