Ion Geophysical Corporation (IO) saw its loss widen to $6.49 million, or $0.55 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $5.54 million, or $0.51 a share. On an adjusted basis, net loss for the quarter stood at $11.49 million, or $0.99 a share.
Revenue during the quarter plunged 54.34 percent to $35.37 million from $77.47 million in the previous year period. Gross margin for the quarter contracted 586 basis points over the previous year period to 23.59 percent. Operating margin for the quarter stood at negative 23.52 percent as compared to a negative 0.49 percent for the previous year period.
Operating loss for the quarter was $8.32 million, compared with an operating loss of $0.38 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $8.32 million.
Brian Hanson, the Company’s president and chief executive officer, commented, "As anticipated, 2016 was another challenging year for us and our industry. Oil prices remained low and E&P spending decreased approximately 22% from 2015 levels. While the revenue we recognized during the fourth quarter was below our expectations, we closed a significant amount of new deals related to our 3D multi-client Campeche reimaging program in partnership with Schlumberger, increasing our backlog as we move into 2017. Our multi-client new venture programs and data processing backlog increased to $34 million at year-end, compared to $19 million at year-end 2015. This increase in backlog should translate to higher new venture revenues in the first quarter 2017, compared to the first quarter 2016.
Operating cash flow turns positiveIon Geophysical Corporation has generated cash of $1.57 million from operating activities during the year as against cash outgo of $16.52 million in the last year. The company has spent $13.64 million cash to meet investing activities during the year as against cash outgo of $63.54 million in the last year.
The company has spent $21.59 million cash to carry out financing activities during the year as against cash outgo of $9.51 million in the last year period.
Cash and cash equivalents stood at $52.65 million as on Dec. 31, 2016, down 38.01 percent or $32.28 million from $84.93 million on Dec. 31, 2015.
Debt comes down
Ion Geophysical Corporation has recorded a decline in total debt over the last one year. It stood at $158.79 million as on Dec. 31, 2016, down 13.23 percent or $24.20 million from $182.99 million on Dec. 31, 2015.
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