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Geospace Technologies Secures Long-Term Ocean Bottom Node Rental Contract With Estimated Value Of $12M
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Rhea-AI Summary
Geospace Technologies (NASDAQ: GEOS) reported significant growth in its OBX product line, surpassing $25M in bookings for fiscal year 2022. The company secured a new long-term rental contract with SAExploration valued at approximately $12M. This follows another contract worth $4M. President Walter R. Wheeler emphasized the effectiveness of their investment in a robust fleet of seabed seismic nodes, leading to increased utilization rates approaching pre-pandemic levels.
Positive
OBX product line bookings exceeded $25M in fiscal year 2022.
New long-term rental contract with SAExploration valued at $12M.
OBX Product Line Rental Contracts Exceed $25M in Bookings for Fiscal Year 2022
HOUSTON--(BUSINESS WIRE)--
Geospace Technologies Corporation (NASDAQ: GEOS) today announced an extended duration rental contract with SAExploration, an international marine geophysical services provider who will rent OBX-750E seabed ocean bottom wireless seismic data acquisition nodes. Based on current contract terms, the value of the agreement is estimated at $12M.
“Following our recent good news of a separate $4M OBX rental contract, we’re pleased to announce this sizeable, long-term contract with another trusted customer,” said Walter R. Wheeler, President and CEO, Geospace Technologies. “We’re realizing the benefit of our earlier investments to build and maintain a sizable fleet of seabed seismic nodes. Combined with our recently announced OBX rentals, the minimum value from OBX product rental contracts executed during the fiscal year exceed $25M. Additionally, our shallow water units are nearly at pre-pandemic utilization levels. Sales and rentals of our OBX product line have been a reliable revenue workhorse for the company and we are encouraged by the current resurgence.”
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 smart water connectivity tools, imaging equipment and specialty contract manufactured products.
What is the recent news about Geospace Technologies (GEOS)?
Geospace Technologies announced that its OBX product line has exceeded $25M in bookings for fiscal year 2022, including a new $12M contract with SAExploration.
How much is the new rental contract announced by Geospace Technologies?
The new rental contract with SAExploration is valued at approximately $12M.
What factors contributed to Geospace Technologies' $25M in bookings?
Factors include a strong demand for their OBX product line and recent contract signings, including a $4M contract alongside the $12M deal.
How has Geospace Technologies' utilization rates changed?
Geospace Technologies' shallow water units are nearing pre-pandemic utilization levels, reflecting a resurgence in demand.
