Revenue during the quarter surged 37.69 percent to $20.56 million from $14.93 million in the previous year period. Gross margin for the quarter stood at negative 12.44 percent as compared to a negative 30.77 percent for the previous year period. Operating margin for the quarter stood at negative 53.80 percent as compared to a negative 93.68 percent for the previous year period.

Operating loss for the quarter was $11.06 million, compared with an operating loss of $13.99 million in the previous year period.

Walter R. (“Rick”) Wheeler, president and chief executive officer of Geospace Technologies said, “In the second quarter of fiscal year 2017, our revenue reflected a sequential improvement of 35% over the first quarter. From an expanded perspective, the three-month and six-month periods ended March 31, 2017 observed revenue increases of 38% and 28% respectively when compared to the same periods last year. For both periods, the increase stems primarily from higher demand for our wireless seismic products, in particular reflecting revenue from rental contracts for our OBX marine systems. These improvements are certainly well received, and while they may offer cautious optimism for an improving seismic industry, we do not believe they constitute a pervasive trend. Our seismic revenue has long been known to exhibit volatility in comparisons of one specific period to another, and in our opinion there is significant recovery left to be accomplished before the seismic equipment market returns to stability. Until then, our revenue will continue to fluctuate and our operations and profits will continue to be burdened by unabsorbed factory overhead, rental fleet depreciation, and inventory obsolescence expenses. In our efforts to adapt to these industry conditions, we are pleased to have reduced our operating expenses for the three-month and six-month periods ended March 31, 2017 by almost 10% and 7% respectively compared to last year. These decreased operating expenses for both periods are largely the result of our cost reduction efforts implemented in last year’s second fiscal quarter.”

Cash flow from investing activities was $0.52 million for the first half, down 74.78 percent or $1.54 million, when compared with the last year period.

Cash flow from financing activities was almost stable for the quarter at $0.05 million, when compared with the previous year period.

Cash and cash equivalents stood at $19.31 million as on Mar. 31, 2017, down 32.11 percent or $9.13 million from $28.44 million on Mar. 31, 2016.

Working capital declines
Geospace Technologies Corporation has witnessed a decline in the working capital over the last year. It stood at $153.60 million as at Mar. 31, 2017, down 10.32 percent or $17.68 million from $171.28 million on Mar. 31, 2016. Current ratio was at 21.25 as on Mar. 31, 2017, down from 24.43 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 287 days for the quarter from 670 days for the last year period. Days sales outstanding went down to 115 days for the quarter compared with 132 days for the same period last year.

Days inventory outstanding has decreased to 179 days for the quarter compared with 546 days for the previous year period. At the same time, days payable outstanding was almost stable at 8 days for the quarter, when compared with the previous year period.