Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Dec. 31, 2014 | Jan. 30, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Dec-14 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | GEOS | |
Entity Registrant Name | GEOSPACE TECHNOLOGIES CORP | |
Entity Central Index Key | 1001115 | |
Current Fiscal Year End Date | -21 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 13,146,416 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | $30,290 | $33,357 |
Short-term investments | 19,655 | 19,861 |
Trade accounts receivable, net | 13,365 | 24,602 |
Notes receivable, net | 4,075 | 3,786 |
Inventories, net | 147,274 | 145,890 |
Deferred income tax assets | 7,286 | 7,244 |
Prepaid expenses and other current assets | 10,107 | 9,268 |
Total current assets | 232,052 | 244,008 |
Rent equipment, net | 51,180 | 53,873 |
Property, plant and equipment, net | 52,457 | 49,205 |
Goodwill | 1,843 | 1,843 |
Non-current deferred income tax assets | 54 | 75 |
Non-current notes receivable, net | 24 | 28 |
Prepaid income taxes | 5,396 | 5,848 |
Other assets | 105 | 106 |
Total assets | 343,111 | 354,986 |
Current Liabilities: | ||
Accounts payable trade | 5,724 | 4,964 |
Accrued expenses and other current liabilities | 10,546 | 14,590 |
Deferred revenue | 3,544 | 3,752 |
Deferred income tax | 60 | 23 |
Income tax payable | 251 | 22 |
Total current liabilities | 20,125 | 23,351 |
Non-current deferred income tax liability | 1,658 | 2,377 |
Total liabilities | 21,783 | 25,728 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock | ||
Common stock | 131 | 131 |
Additional paid-in capital | 70,873 | 70,704 |
Retained earnings | 255,474 | 260,919 |
Accumulated other comprehensive loss | -5,150 | -2,496 |
Total stockholders' equity | 321,328 | 329,258 |
Total liabilities and stockholders' equity | $343,111 | $354,986 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Revenues: | ||
Total revenues | $21,166 | $101,348 |
Cost of revenues: | ||
Total cost of revenues | 21,187 | 54,257 |
Gross profit (loss) | -21 | 47,091 |
Operating expenses: | ||
Selling, general and administrative | 5,869 | 6,702 |
Research and development | 3,301 | 4,375 |
Bad debt expense | 697 | 347 |
Total operating expenses | 9,867 | 11,424 |
Income (loss) from operations | -9,888 | 35,667 |
Other income (expense): | ||
Interest expense | -112 | -132 |
Interest income | 59 | 31 |
Foreign exchange gains (losses) | 1,589 | -21 |
Other, net | -90 | -26 |
Total other income (expense), net | 1,446 | -148 |
Income (loss) before income taxes | -8,442 | 35,519 |
Income tax expense (benefit) | -2,997 | 11,343 |
Net income (loss) | -5,445 | 24,176 |
Basic earnings (loss) per share | ($0.41) | $1.86 |
Diluted earnings (loss) per share | ($0.41) | $1.85 |
Weighted average shares outstanding - Basic | 12,977,913 | 12,947,195 |
Weighted average shares outstanding - Diluted | 12,977,913 | 13,000,113 |
Products | ||
Revenues: | ||
Total revenues | 18,463 | 97,820 |
Cost of revenues: | ||
Total cost of revenues | 18,613 | 51,239 |
Rental equipment | ||
Revenues: | ||
Total revenues | 2,703 | 3,528 |
Cost of revenues: | ||
Total cost of revenues | $2,574 | $3,018 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income (loss) | ($5,445) | $24,176 |
Other comprehensive income (loss): | ||
Change in unrealized losses on available -for-sale securities (net of taxes) | -2 | |
Foreign currency translation adjustments | -2,652 | -97 |
Other comprehensive income (loss): | -2,654 | -97 |
Total comprehensive income (loss) | ($8,099) | $24,079 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Cash flows from operating activities: | ||
Net income (loss) | ($5,445) | $24,176 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Deferred income tax expense (benefit) | -702 | 248 |
Depreciation and amortization | 3,933 | 3,474 |
Accretion of discounts on short-term-investments | 57 | |
Stock-based compensation expense | 1,220 | 810 |
Bad debt expense | 697 | 347 |
Inventory obsolescence expense | 777 | 904 |
Gross loss (profit) from sale of used rental equipment | 5 | -5,331 |
Gain on disposal of property, plant and equipment | -31 | |
Effects of changes in operating assets and liabilities: | ||
Trade accounts and notes receivable | 10,099 | -2,243 |
Inventories | -3,953 | 13,717 |
Costs and estimated earnings in excess of billings | 9,266 | |
Prepaid expenses and other current assets | -2,671 | -4,157 |
Prepaid income taxes | 452 | -2,031 |
Accounts payable trade | 794 | -1,086 |
Accrued expenses and other | -6,766 | -2,146 |
Deferred revenue | -163 | 4,496 |
Income taxes payable | 257 | 12,321 |
Net cash provided by (used in) operating activities | -1,409 | 52,734 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | -1,147 | -1,382 |
Investment in rental equipment | -29 | -17,717 |
Proceeds from sale of used rental equipment | 244 | 8,092 |
Purchase of short-term investments | -1,550 | |
Proceeds from the sale of short-term investments | 1,715 | |
Net cash used in investing activities | -767 | -11,007 |
Cash flows from financing activities: | ||
Net payments under line of credit | -931 | |
Excess tax (expense) benefit from share-based compensation | -1,051 | 661 |
Proceeds from exercise of stock options | 212 | |
Net cash used in financing activities | -1,051 | -58 |
Effect of exchange rate changes on cash | 160 | -2 |
Increase (decrease) in cash and cash equivalents | -3,067 | 41,667 |
Cash and cash equivalents, beginning of period | 33,357 | 2,726 |
Cash and cash equivalents, end of period | $30,290 | $44,393 |
Significant_Accounting_Policie
Significant Accounting Policies | 3 Months Ended | ||||
Dec. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
Significant Accounting Policies | 1. Significant Accounting Policies | ||||
Basis of Presentation | |||||
The consolidated balance sheet of Geospace Technologies Corporation and its subsidiaries (the “Company”) at September 30, 2014 was derived from the Company’s audited consolidated financial statements at that date. The consolidated balance sheet at December 31, 2014 and the consolidated statements of operations and statements of comprehensive income (loss) for the three months ended December 31, 2014 and 2013, and the consolidated statements of cash flows for the three months ended December 31, 2014 and 2013 were prepared by the Company without audit. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the consolidated financial position, results of operations and cash flows were made. The results of operations for the three months ended December 31, 2014 are not necessarily indicative of the operating results for a full year or of future operations. | |||||
Certain information and footnote disclosures normally included in financial statements presented in accordance with accounting principles generally accepted in the United States of America were omitted pursuant to the rules of the Securities and Exchange Commission. The accompanying consolidated financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended September 30, 2014. | |||||
Reclassifications | |||||
Certain amounts previously presented in the consolidated financial statements have been reclassified to conform to the current year presentation. During the three months ended December 31, 2014, the Company reclassified $4.2 million in deposits made for equipment in the prior fiscal year from prepaid and other current assets to property, plant and equipment on its consolidated balance sheet. The equipment has not yet been placed into service. Such reclassification had no effect on net income (loss), stockholders’ equity or cash flows. | |||||
Use of Estimates | |||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The Company considers many factors in selecting appropriate operational and financial accounting policies and controls, and in developing the estimates and assumptions that are used in the preparation of these financial statements. The Company continually evaluates its estimates, including those related to bad debt reserves, inventory obsolescence reserves, percentage-of-completion revenue recognition, self-insurance reserves, product warranty reserves, long-lived assets, intangible assets and deferred income tax assets. The Company bases its estimates on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different conditions or assumptions. | |||||
Cash and Cash Equivalents | |||||
The Company considers all highly liquid investments purchased with an original or remaining maturity at the time of purchase of three months or less to be cash equivalents. | |||||
Short-term Investments | |||||
The Company classifies its short-term investments consisting of corporate bonds, government bonds and other such similar investments as available-for-sale securities. Available-for-sale securities are carried at fair market value with net unrealized holding gains and losses reported each period as a component of accumulated other comprehensive income (loss) in stockholders’ equity. See note 2 for additional information. | |||||
Inventories | |||||
The Company records a write-down of its inventories when the cost basis of any manufactured product, including any estimated future costs to complete the manufacturing process, exceeds its net realizable value. Inventories are stated at the lower of cost or market value. Cost is determined on the first-in, first-out method, except that the Company’s subsidiary in the Russian Federation uses an average cost method to value its inventories. | |||||
Impairment Review of Goodwill and Long-lived Assets | |||||
At December 31, 2014, the Company had $1.8 million of goodwill reflected in its consolidated balance sheet. In accordance with FASB ASC 350, “Intangibles – Goodwill and Other,” we perform goodwill impairment testing at least annually, unless indicators of impairment exist in interim periods. In recent months, business conditions have significantly deteriorated and the market value of the Company’s stock has declined. In light of the aforementioned, we concluded that it was appropriate for us to perform an interim goodwill impairment test as of December 31, 2014. The impairment test for goodwill uses a two-step approach. Step one compares the estimated fair value of a reporting unit with goodwill to its carrying value. If the carrying value exceeds the estimated fair value, step two must be performed. Step two compares the carrying value of the reporting unit to the fair value of all of the assets and liabilities of the reporting unit (including any unrecognized intangibles) as if the reporting unit was acquired in a business combination. If the carrying amount of a reporting unit’s goodwill exceeds the implied fair value of its goodwill, an impairment loss is recognized in an amount equal to the excess. Based on the results of our step one test as of December 31, 2014, management concluded that goodwill was not impaired; however, given overall market conditions, management will continue to monitor this situation. In connection with our goodwill impairment test, management also reviewed the recoverability of the carrying value of the Company’s rental equipment and property, plant and equipment based on future undiscounted cash flows and determined that no such impairment of these assets was necessary at December 31, 2014. | |||||
Revenue Recognition – Products and Services | |||||
The Company primarily derives revenue from the sale of its manufactured products, including revenues derived from the sale of its manufactured rental equipment. In addition, the Company generates revenue from the short-term rental under operating leases of its manufactured products. Except for revenues recognized using the percentage-of-completion method discussed below, the Company recognizes revenue from product sales, including the sale of used rental equipment, when (i) title passes to the customer, (ii) the customer assumes the risks and rewards of ownership, (iii) the product sales price has been determined, (iv) collectability of the sales price is reasonably assured, and (v) product delivery occurs as directed by the customer. Except for certain of the Company’s reservoir characterization products, the Company’s products are generally sold without any customer acceptance provisions and the Company’s standard terms of sale do not allow customers to return products for credit. The Company recognizes rental revenues as earned over the rental period. Rentals of the Company’s equipment generally range from daily rentals to rental periods of up to six months or longer. Revenues from engineering services are recognized as services are rendered over the duration of a project, or as billed on a per hour basis. Field service revenues are recognized when services are rendered and are generally priced on a per day rate. | |||||
Revenue Recognition – Percentage of Completion | |||||
The Company utilizes the percentage-of-completion method (the “POC Method”) to recognize revenues and costs on contracts having the following characteristics: | |||||
· | the order/contract requires significant custom designs for customer specific applications; | ||||
· | the product design requires significant engineering efforts; | ||||
· | the order/contract requires the customer to make progress payments during the contract term; and | ||||
· | the order/contract requires at least 90 days of engineering and manufacturing effort. | ||||
The POC Method requires the Company’s senior management to make estimates, at least quarterly, of the (i) total expected costs of the contract, (ii) manufacturing progress against the contract and (iii) the estimated cost to complete the contract. These estimates impact the amount of revenue and gross profit the Company recognizes for each reporting period. Significant estimates that may affect the future cost to complete a contract include the cost and availability of raw materials and component parts, engineering services, manufacturing equipment, labor, manufacturing capacity, factory productivity, contract penalties and disputes, product warranties and other contingent factors. Change orders are included in the total estimated contract revenue when it is probable that the change order will result in additional value that can be reliably estimated and realized. The Company defers recognition of the entire amount of revenue or portion thereof associated with unapproved change orders if there is substantial uncertainty as to amounts involved or ultimate realization. The cumulative impact of periodic revisions to the future cost to complete a contract will be reflected in the period in which these changes become known, including, to the extent required, the recognition of losses at the time such losses are known and estimable. Due to the various estimates inherent in the POC Method, actual final results at the conclusion of a contract could differ from management’s previous estimates. | |||||
The Company analyzes a variety of indicators to determine manufacturing progress, including actual costs incurred to date compared to total estimated costs and actual quantities produced to date compared to total contract quantities. | |||||
Cost of sales includes direct contract costs, such as materials and labor, and indirect costs that are attributable to a contract’s production activity. The timing of when the Company invoices its customer is dependent upon the completion of certain production milestones as defined in the contract. Cumulative contract costs and estimated earnings to date in excess of cumulative billings are reported as a current asset on the consolidated balance sheet as “costs and estimated earnings in excess of billings”. Cumulative billings in excess of cumulative costs and estimated earnings are reported as a current liability on the consolidated balance sheet as “billings in excess of costs and estimated earnings”. Any uncollected billed revenue, including contract retentions, is included in “trade accounts receivable, net”. | |||||
The Company currently has no contracts accounted for under the POC Method. | |||||
Research and Development Costs | |||||
The Company expenses research and development costs as incurred. Research and development costs include salaries, employee benefit costs, department supplies, direct project costs and other related costs. | |||||
Product Warranties | |||||
Most of the Company’s products do not require installation assistance or sophisticated instructions. The Company offers a standard product warranty obligating it to repair or replace equipment with manufacturing defects. The Company maintains a reserve for future warranty costs based on historical experience or, in the absence of historical product experience, management’s estimates. Reserves for future warranty costs are included within accrued expenses and other current liabilities on the consolidated balance sheets. Changes in the warranty reserve are reflected in the following table (in thousands): | |||||
Balance at October 1, 2014 | $ | 951 | |||
Accruals for warranties issued during the period | 199 | ||||
Settlements made (in cash or in kind) during the period | (325 | ) | |||
Balance at December 31, 2014 | $ | 825 | |||
Recent Accounting Pronouncements | |||||
In August 2014, the FASB issued ASU 2014-15 which provides guidance on management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable) and to provide related footnote disclosures. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is currently assessing the impact of this ASU on its consolidated financial statements. | |||||
In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customer (Topic 606).” The amendment applies a new five-step revenue recognition model to be used in recognizing revenues associated with customer contracts. The amendment requires disclosure sufficient to enable readers of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill the contract. The standard is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently evaluating the new guidance to determine the impact on its consolidated financial statements |
Shortterm_Investments
Short-term Investments | 3 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Investments Debt And Equity Securities [Abstract] | |||||||||||||||||
Short-term Investments | 2. Short-term Investments | ||||||||||||||||
As of December 31, 2014 (in thousands) | |||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | ||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||
Short-term investments: | |||||||||||||||||
Corporate | $ | 14,977 | $ | — | $ | (35 | ) | $ | 14,942 | ||||||||
Government | 4,720 | — | (7 | ) | 4,713 | ||||||||||||
Total | $ | 19,697 | $ | — | $ | (42 | ) | $ | 19,655 | ||||||||
As of September 30, 2014 (in thousands) | |||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | ||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||
Short-term investments: | |||||||||||||||||
Corporate | $ | 14,262 | $ | — | $ | (27 | ) | $ | 14,235 | ||||||||
Government | 5,638 | — | (12 | ) | 5,626 | ||||||||||||
Total | $ | 19,900 | $ | — | $ | (39 | ) | $ | 19,861 | ||||||||
Accumulated other comprehensive loss on the consolidated balance sheets at December 31, 2014 and September 30, 2014 included unrealized losses (net of tax) of $28,000 and $26,000, respectively. | |||||||||||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||||||||||
Derivative Financial Instruments | 3. Derivative Financial Instruments | ||||||||||
At December 31, 2014 and September 30, 2014, the Company’s Canadian subsidiary had $25.9 million and $26.6 million, respectively, of Canadian dollar denominated intercompany accounts payable owed to the Company’s U.S. subsidiary. In order to mitigate its exposure to movements in foreign currency rates between the U.S. dollar and Canadian dollar, the Company routinely enters into foreign currency forward contracts to hedge a portion of its exposure to changes in the value of the Canadian dollar. At December 31, 2014, the Company was a party to a $28.0 million foreign currency forward contract. This contract reduces the impact on cash flows from movements in the Canadian dollar/U.S. dollar currency exchange rate, but has not been designated as a hedge for accounting purposes. At December 31, 2014, the Company had an accrued unrealized foreign exchange gain of $0.6 million under this contract. | |||||||||||
The following table summarizes the gross fair value of all derivative instruments, which are not designated as hedging instruments and their location in the consolidated balance sheets (in thousands): | |||||||||||
Derivative Instrument | Location | December 31, 2014 | September 30, 2014 | ||||||||
Foreign Currency Exchange Contracts | Prepaid Expenses and | ||||||||||
Other Current Assets | $ | 641 | $ | 795 | |||||||
The following table summarizes the impact of the Company’s derivatives on the consolidated statements of operations for the three month periods ended December 31, 2014 and 2013 (in thousands): | |||||||||||
Location of (Loss) | |||||||||||
Gain on Derivative | Three Months Ended | ||||||||||
Derivative Instrument | Instrument | December 31, 2014 | December 31, 2013 | ||||||||
Foreign Currency Exchange Contracts | Other Income (Expense) | $ | 925 | $ | (862 | ) | |||||
Amounts in the above table include realized and unrealized derivative gains and losses. | |||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value of Financial Instruments | 4. Fair Value of Financial Instruments | ||||||||||||||||
At December 31, 2014, the Company’s financial instruments included cash and cash equivalents, short-term investments, foreign currency forward contract, trade and notes receivables and accounts payable. Due to the short-term maturities of cash and cash equivalents, trade and other receivables and accounts payable, the carrying amounts approximate fair value on the respective balance sheet dates. | |||||||||||||||||
The Company measures its short-term investments and derivative instruments at fair value on a recurring basis. The fair value measurement of the Company’s short-term investments and derivative instruments was determined using the following inputs (in thousands): | |||||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||
Active Markets for | Other | Significant | |||||||||||||||
Identical Assets | Observable | Unobservable | |||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Short-term investments: | |||||||||||||||||
Corporate bonds | $ | 14,942 | $ | 14,942 | $ | — | $ | — | |||||||||
Government bonds | 4,713 | 4,713 | — | — | |||||||||||||
Foreign currency forward contract | 641 | — | 641 | — | |||||||||||||
Total | $ | 20,296 | $ | 19,655 | $ | 641 | $ | — | |||||||||
As of September 30, 2014 | |||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||
Active Markets for | Other | Significant | |||||||||||||||
Identical Assets | Observable | Unobservable | |||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Short-term investments: | |||||||||||||||||
Corporate bonds | $ | 14,235 | $ | 14,235 | $ | — | $ | — | |||||||||
Government bonds | 5,626 | 5,626 | — | — | |||||||||||||
Foreign currency forward contract | 795 | — | 795 | — | |||||||||||||
Total | $ | 20,656 | $ | 19,861 | $ | 795 | $ | — | |||||||||
Accounts_and_Notes_Receivable
Accounts and Notes Receivable | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Receivables [Abstract] | |||||||||
Accounts and Notes Receivable | 5. Accounts and Notes Receivable | ||||||||
Current trade accounts are reflected in the following table (in thousands): | |||||||||
December 31, 2014 | September 30, 2014 | ||||||||
Trade accounts receivable | $ | 14,974 | $ | 25,727 | |||||
Allowance for doubtful accounts | (1,609 | ) | (1,125 | ) | |||||
$ | 13,365 | $ | 24,602 | ||||||
The allowance for doubtful accounts represents the Company’s best estimate of probable credit losses. The Company determines the allowance based upon historical experience and a review of its balances. Accounts receivable balances are charged off against the allowance whenever it is probable that the receivable will not be recoverable. The Company does not have any off-balance-sheet credit exposure related to its customers. | |||||||||
Notes receivable, net are reflected in the following table (in thousands): | |||||||||
December 31, 2014 | September 30, 2014 | ||||||||
Notes receivable | $ | 4,099 | $ | 3,814 | |||||
Allowance for doubtful notes | — | — | |||||||
4,099 | 3,814 | ||||||||
Less current portion | 4,075 | 3,786 | |||||||
Non-current notes receivable | $ | 24 | $ | 28 | |||||
Inventories
Inventories | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | 6. Inventories | ||||||||
Inventories consist of the following (in thousands): | |||||||||
December 31, 2014 | September 30, 2014 | ||||||||
Finished goods | $ | 48,872 | $ | 42,473 | |||||
Work-in-process | 20,764 | 28,582 | |||||||
Raw materials | 86,108 | 82,599 | |||||||
Obsolescence reserve | (8,470 | ) | (7,764 | ) | |||||
$ | 147,274 | $ | 145,890 | ||||||
During the three months ended December 31, 2014 and 2013, the Company made non-cash inventory transfers of $0.1 million and $2.8 million, respectively, to its rental equipment fleet. |
LongTerm_Debt
Long-Term Debt | 3 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 7. Long-Term Debt |
The Company had no long-term debt at December 31, 2014 and September 30, 2014. | |
On March 2, 2011, the Company entered into a credit agreement with a bank. On September 27, 2013, the Company amended the credit agreement and increased its borrowing availability to $50.0 million (as amended, the “Credit Agreement”). The Company’s borrowings are principally secured by its accounts receivable, inventories and equipment. In addition, certain domestic subsidiaries of the Company have guaranteed the obligations of the Company under the Credit Agreement and such subsidiaries have secured the obligations by the pledge of certain of the assets of such subsidiaries. The Credit Agreement expires on April 27, 2016 and all borrowed funds are due and payable at that time. The Company is required to make quarterly interest payments on borrowed funds. The Credit Agreement limits the incurrence of additional indebtedness, requires the maintenance of certain financial ratios, restricts the Company and its subsidiaries’ ability to pay cash dividends and contains other covenants customary in agreements of this type. The interest rate for borrowings under the Credit Agreement is a LIBOR based rate with a margin spread of 250 to 325 basis points depending upon the maintenance of certain ratios. At December 31, 2014, the Company was in compliance with all covenants. At December 31, 2014 and September 30, 2014, the Company had standby letters of credit outstanding in the amount of $42,000 and $51,000, respectively. Additional borrowings available under the Credit Agreement at December 31, 2014 were approximately $50.0 million. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 3 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Stockholders Equity Note [Abstract] | |||||||||||||
Accumulated Other Comprehensive Loss | 8. Accumulated Other Comprehensive Loss: | ||||||||||||
Accumulated other comprehensive loss consisted of the following (in thousands): | |||||||||||||
Unrealized | Foreign | ||||||||||||
Losses on | Currency | ||||||||||||
Available-for- | Translation | ||||||||||||
Sale Securities | Adjustments | Total | |||||||||||
Balance at September 30, 2014 | $ | (26 | ) | $ | (2,470 | ) | $ | (2,496 | ) | ||||
Change in unrealized losses on available-for-sale securities | (2 | ) | — | (2 | ) | ||||||||
(net of tax) | |||||||||||||
Foreign currency translation adjustments | — | (2,652 | ) | (2,652 | ) | ||||||||
Balance at December 31, 2014 | $ | (28 | ) | $ | (5,122 | ) | $ | (5,150 | ) | ||||
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended |
Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 9. Stock-Based Compensation: |
On November 21, 2013, the Company issued 184,000 shares of restricted stock under the 1997 Key Employee Stock Option Plan, as amended. The fair value of the Company’s common stock on the date of grant was $98.68 per share, and the unrecognized compensation cost on the date of grant related to these awards, net of estimated forfeitures, was $17.3 million and will be charged to expense over four years as the restrictions lapse. During fiscal year 2014, the Company issued a total of 13,000 shares of restricted stock under the 2014 Long Term Incentive Plan, as amended. The weighted average grant date fair value of the Company’s common stock for the fiscal year 2014 issuances was $45.68 per share. No restricted stock has been issued to date during fiscal year 2015. Recipients of restricted stock awards are entitled to vote such shares and are entitled to dividends if paid. | |
Compensation expense for restricted stock awards is determined based on the closing market price of the Company’s stock on the date of grant applied to the total number of shares that are anticipated to fully vest. As of December 31, 2014, we had unrecognized compensation expense of approximately $12.7 million, all of which was related to restricted stock awards. |
Earnings_Loss_Per_Common_Share
Earnings (Loss) Per Common Share | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings (Loss) Per Common Share | 10. Earnings (Loss) Per Common Share | ||||||||
The Company applies the two-class method in calculating per share data. The following table summarizes the calculation of net earnings (loss) and weighted average common shares and common equivalent shares outstanding for purposes of the computation of earnings (loss) per share (in thousands, except share and per share data): | |||||||||
Three Months Ended | |||||||||
December 31, 2014 | December 31, 2013 | ||||||||
Net income (loss) | $ | (5,445 | ) | $ | 24,176 | ||||
Less: Income (loss) allocable to unvested restricted stock | 70 | (152 | ) | ||||||
Income (loss) available to common shareholders | (5,375 | ) | 24,024 | ||||||
Reallocation of participating earnings | — | 1 | |||||||
Income (loss) attributable to common shareholders for | $ | (5,375 | ) | $ | 24,025 | ||||
diluted earnings per share | |||||||||
Weighted average number of common share equivalents: | |||||||||
Common shares used in basic earnings (loss) per | 12,977,913 | 12,947,195 | |||||||
share | |||||||||
Common share equivalents outstanding related to | — | 52,918 | |||||||
stock options | |||||||||
Total weighted average common shares and common | 12,977,913 | 13,000,113 | |||||||
share equivalents used in diluted earnings (loss) per | |||||||||
share | |||||||||
Earnings (loss) per share: | |||||||||
Basic | $ | (.41 | ) | $ | 1.86 | ||||
Diluted | $ | (.41 | ) | $ | 1.85 | ||||
There were no stock options excluded from the computation of weighted average shares outstanding due to anti-dilution. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies |
The Company is involved in various pending or potential legal actions in the ordinary course of our business. Management is unable to predict the ultimate outcome of these actions, because of the inherent uncertainty of litigation. However, management believes that the most probable, ultimate resolution of these matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. |
Segment_Information
Segment Information | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Segment Reporting [Abstract] | |||||||||
Segment Information | 12. Segment Information | ||||||||
The Company’s Seismic product lines include land and marine wireless data acquisition systems, seabed reservoir characterization products and services, geophones and geophone strings, hydrophones, leader wire, connectors, telemetry cables, marine streamer retrieval and steering devices and various other products. The Non-Seismic product lines include thermal imaging products and industrial products. The Company typically has a minor amount of Seismic product sales to its Non-Seismic customers. | |||||||||
The following table summarizes the Company’s segment information (in thousands): | |||||||||
Three Months Ended | |||||||||
December 31, 2014 | December 31, 2013 | ||||||||
Net revenues: | |||||||||
Seismic | $ | 15,593 | $ | 95,227 | |||||
Non-Seismic | 5,431 | 5,912 | |||||||
Corporate | 142 | 209 | |||||||
Total | $ | 21,166 | $ | 101,348 | |||||
Income (loss) from operations: | |||||||||
Seismic | $ | (7,385 | ) | $ | 38,543 | ||||
Non-Seismic | 858 | 774 | |||||||
Corporate | (3,361 | ) | (3,650 | ) | |||||
Total | $ | (9,888 | ) | $ | 35,667 | ||||
Income_Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes |
The United States statutory tax rate for the three months ended December 31, 2014 and 2013 was 35%. The Company’s effective tax rates for the three months ended December 31, 2014 and 2013 were 35.5% and 31.9%, respectively. The lower effective tax rate for the period ended December 31, 2013 primarily resulted from a manufacturers’/producers’ deduction available to U.S. manufacturers. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 3 Months Ended | ||||
Dec. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
Basis of Presentation | Basis of Presentation | ||||
The consolidated balance sheet of Geospace Technologies Corporation and its subsidiaries (the “Company”) at September 30, 2014 was derived from the Company’s audited consolidated financial statements at that date. The consolidated balance sheet at December 31, 2014 and the consolidated statements of operations and statements of comprehensive income (loss) for the three months ended December 31, 2014 and 2013, and the consolidated statements of cash flows for the three months ended December 31, 2014 and 2013 were prepared by the Company without audit. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the consolidated financial position, results of operations and cash flows were made. The results of operations for the three months ended December 31, 2014 are not necessarily indicative of the operating results for a full year or of future operations. | |||||
Certain information and footnote disclosures normally included in financial statements presented in accordance with accounting principles generally accepted in the United States of America were omitted pursuant to the rules of the Securities and Exchange Commission. The accompanying consolidated financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended September 30, 2014. | |||||
Reclassifications | Reclassifications | ||||
Certain amounts previously presented in the consolidated financial statements have been reclassified to conform to the current year presentation. During the three months ended December 31, 2014, the Company reclassified $4.2 million in deposits made for equipment in the prior fiscal year from prepaid and other current assets to property, plant and equipment on its consolidated balance sheet. The equipment has not yet been placed into service. Such reclassification had no effect on net income (loss), stockholders’ equity or cash flows. | |||||
Use of Estimates | Use of Estimates | ||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The Company considers many factors in selecting appropriate operational and financial accounting policies and controls, and in developing the estimates and assumptions that are used in the preparation of these financial statements. The Company continually evaluates its estimates, including those related to bad debt reserves, inventory obsolescence reserves, percentage-of-completion revenue recognition, self-insurance reserves, product warranty reserves, long-lived assets, intangible assets and deferred income tax assets. The Company bases its estimates on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different conditions or assumptions. | |||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||
The Company considers all highly liquid investments purchased with an original or remaining maturity at the time of purchase of three months or less to be cash equivalents. | |||||
Short-term Investments | Short-term Investments | ||||
The Company classifies its short-term investments consisting of corporate bonds, government bonds and other such similar investments as available-for-sale securities. Available-for-sale securities are carried at fair market value with net unrealized holding gains and losses reported each period as a component of accumulated other comprehensive income (loss) in stockholders’ equity. See note 2 for additional information. | |||||
Inventories | Inventories | ||||
The Company records a write-down of its inventories when the cost basis of any manufactured product, including any estimated future costs to complete the manufacturing process, exceeds its net realizable value. Inventories are stated at the lower of cost or market value. Cost is determined on the first-in, first-out method, except that the Company’s subsidiary in the Russian Federation uses an average cost method to value its inventories. | |||||
Revenue Recognition | |||||
Impairment Review of Goodwill and Long-lived Assets | |||||
At December 31, 2014, the Company had $1.8 million of goodwill reflected in its consolidated balance sheet. In accordance with FASB ASC 350, “Intangibles – Goodwill and Other,” we perform goodwill impairment testing at least annually, unless indicators of impairment exist in interim periods. In recent months, business conditions have significantly deteriorated and the market value of the Company’s stock has declined. In light of the aforementioned, we concluded that it was appropriate for us to perform an interim goodwill impairment test as of December 31, 2014. The impairment test for goodwill uses a two-step approach. Step one compares the estimated fair value of a reporting unit with goodwill to its carrying value. If the carrying value exceeds the estimated fair value, step two must be performed. Step two compares the carrying value of the reporting unit to the fair value of all of the assets and liabilities of the reporting unit (including any unrecognized intangibles) as if the reporting unit was acquired in a business combination. If the carrying amount of a reporting unit’s goodwill exceeds the implied fair value of its goodwill, an impairment loss is recognized in an amount equal to the excess. Based on the results of our step one test as of December 31, 2014, management concluded that goodwill was not impaired; however, given overall market conditions, management will continue to monitor this situation. In connection with our goodwill impairment test, management also reviewed the recoverability of the carrying value of the Company’s rental equipment and property, plant and equipment based on future undiscounted cash flows and determined that no such impairment of these assets was necessary at December 31, 2014. | |||||
Revenue Recognition – Products and Services | |||||
The Company primarily derives revenue from the sale of its manufactured products, including revenues derived from the sale of its manufactured rental equipment. In addition, the Company generates revenue from the short-term rental under operating leases of its manufactured products. Except for revenues recognized using the percentage-of-completion method discussed below, the Company recognizes revenue from product sales, including the sale of used rental equipment, when (i) title passes to the customer, (ii) the customer assumes the risks and rewards of ownership, (iii) the product sales price has been determined, (iv) collectability of the sales price is reasonably assured, and (v) product delivery occurs as directed by the customer. Except for certain of the Company’s reservoir characterization products, the Company’s products are generally sold without any customer acceptance provisions and the Company’s standard terms of sale do not allow customers to return products for credit. The Company recognizes rental revenues as earned over the rental period. Rentals of the Company’s equipment generally range from daily rentals to rental periods of up to six months or longer. Revenues from engineering services are recognized as services are rendered over the duration of a project, or as billed on a per hour basis. Field service revenues are recognized when services are rendered and are generally priced on a per day rate. | |||||
Revenue Recognition – Percentage of Completion | |||||
The Company utilizes the percentage-of-completion method (the “POC Method”) to recognize revenues and costs on contracts having the following characteristics: | |||||
· | the order/contract requires significant custom designs for customer specific applications; | ||||
· | the product design requires significant engineering efforts; | ||||
· | the order/contract requires the customer to make progress payments during the contract term; and | ||||
· | the order/contract requires at least 90 days of engineering and manufacturing effort. | ||||
The POC Method requires the Company’s senior management to make estimates, at least quarterly, of the (i) total expected costs of the contract, (ii) manufacturing progress against the contract and (iii) the estimated cost to complete the contract. These estimates impact the amount of revenue and gross profit the Company recognizes for each reporting period. Significant estimates that may affect the future cost to complete a contract include the cost and availability of raw materials and component parts, engineering services, manufacturing equipment, labor, manufacturing capacity, factory productivity, contract penalties and disputes, product warranties and other contingent factors. Change orders are included in the total estimated contract revenue when it is probable that the change order will result in additional value that can be reliably estimated and realized. The Company defers recognition of the entire amount of revenue or portion thereof associated with unapproved change orders if there is substantial uncertainty as to amounts involved or ultimate realization. The cumulative impact of periodic revisions to the future cost to complete a contract will be reflected in the period in which these changes become known, including, to the extent required, the recognition of losses at the time such losses are known and estimable. Due to the various estimates inherent in the POC Method, actual final results at the conclusion of a contract could differ from management’s previous estimates. | |||||
The Company analyzes a variety of indicators to determine manufacturing progress, including actual costs incurred to date compared to total estimated costs and actual quantities produced to date compared to total contract quantities. | |||||
Cost of sales includes direct contract costs, such as materials and labor, and indirect costs that are attributable to a contract’s production activity. The timing of when the Company invoices its customer is dependent upon the completion of certain production milestones as defined in the contract. Cumulative contract costs and estimated earnings to date in excess of cumulative billings are reported as a current asset on the consolidated balance sheet as “costs and estimated earnings in excess of billings”. Cumulative billings in excess of cumulative costs and estimated earnings are reported as a current liability on the consolidated balance sheet as “billings in excess of costs and estimated earnings”. Any uncollected billed revenue, including contract retentions, is included in “trade accounts receivable, net”. | |||||
The Company currently has no contracts accounted for under the POC Method. | |||||
Impairment Review of Goodwill and Long-lived Assets | Impairment Review of Goodwill and Long-lived Assets | ||||
At December 31, 2014, the Company had $1.8 million of goodwill reflected in its consolidated balance sheet. In accordance with FASB ASC 350, “Intangibles – Goodwill and Other,” we perform goodwill impairment testing at least annually, unless indicators of impairment exist in interim periods. In recent months, business conditions have significantly deteriorated and the market value of the Company’s stock has declined. In light of the aforementioned, we concluded that it was appropriate for us to perform an interim goodwill impairment test as of December 31, 2014. The impairment test for goodwill uses a two-step approach. Step one compares the estimated fair value of a reporting unit with goodwill to its carrying value. If the carrying value exceeds the estimated fair value, step two must be performed. Step two compares the carrying value of the reporting unit to the fair value of all of the assets and liabilities of the reporting unit (including any unrecognized intangibles) as if the reporting unit was acquired in a business combination. If the carrying amount of a reporting unit’s goodwill exceeds the implied fair value of its goodwill, an impairment loss is recognized in an amount equal to the excess. Based on the results of our step one test as of December 31, 2014, management concluded that goodwill was not impaired; however, given overall market conditions, management will continue to monitor this situation. In connection with our goodwill impairment test, management also reviewed the recoverability of the carrying value of the Company’s rental equipment and property, plant and equipment based on future undiscounted cash flows and determined that no such impairment of these assets was necessary at December 31, 2014. | |||||
Research and Development Costs | Research and Development Costs | ||||
The Company expenses research and development costs as incurred. Research and development costs include salaries, employee benefit costs, department supplies, direct project costs and other related costs. | |||||
Product Warranties | Product Warranties | ||||
Most of the Company’s products do not require installation assistance or sophisticated instructions. The Company offers a standard product warranty obligating it to repair or replace equipment with manufacturing defects. The Company maintains a reserve for future warranty costs based on historical experience or, in the absence of historical product experience, management’s estimates. Reserves for future warranty costs are included within accrued expenses and other current liabilities on the consolidated balance sheets. Changes in the warranty reserve are reflected in the following table (in thousands): | |||||
Balance at October 1, 2014 | $ | 951 | |||
Accruals for warranties issued during the period | 199 | ||||
Settlements made (in cash or in kind) during the period | (325 | ) | |||
Balance at December 31, 2014 | $ | 825 | |||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||||
In August 2014, the FASB issued ASU 2014-15 which provides guidance on management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable) and to provide related footnote disclosures. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is currently assessing the impact of this ASU on its consolidated financial statements. | |||||
In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customer (Topic 606).” The amendment applies a new five-step revenue recognition model to be used in recognizing revenues associated with customer contracts. The amendment requires disclosure sufficient to enable readers of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill the contract. The standard is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently evaluating the new guidance to determine the impact on its consolidated financial statements |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 3 Months Ended | ||||
Dec. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
Changes in Warranty Reserve | Changes in the warranty reserve are reflected in the following table (in thousands): | ||||
Balance at October 1, 2014 | $ | 951 | |||
Accruals for warranties issued during the period | 199 | ||||
Settlements made (in cash or in kind) during the period | (325 | ) | |||
Balance at December 31, 2014 | $ | 825 | |||
Shortterm_Investments_Tables
Short-term Investments (Tables) | 3 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Investments Debt And Equity Securities [Abstract] | |||||||||||||||||
Short-term Investments | |||||||||||||||||
As of December 31, 2014 (in thousands) | |||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | ||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||
Short-term investments: | |||||||||||||||||
Corporate | $ | 14,977 | $ | — | $ | (35 | ) | $ | 14,942 | ||||||||
Government | 4,720 | — | (7 | ) | 4,713 | ||||||||||||
Total | $ | 19,697 | $ | — | $ | (42 | ) | $ | 19,655 | ||||||||
As of September 30, 2014 (in thousands) | |||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | ||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||
Short-term investments: | |||||||||||||||||
Corporate | $ | 14,262 | $ | — | $ | (27 | ) | $ | 14,235 | ||||||||
Government | 5,638 | — | (12 | ) | 5,626 | ||||||||||||
Total | $ | 19,900 | $ | — | $ | (39 | ) | $ | 19,861 | ||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||||||||||
Gross Fair Value of all Derivative Instruments | The following table summarizes the gross fair value of all derivative instruments, which are not designated as hedging instruments and their location in the consolidated balance sheets (in thousands): | ||||||||||
Derivative Instrument | Location | December 31, 2014 | September 30, 2014 | ||||||||
Foreign Currency Exchange Contracts | Prepaid Expenses and | ||||||||||
Other Current Assets | $ | 641 | $ | 795 | |||||||
Company's Derivatives on Consolidated Financial Statements of Operations | The following table summarizes the impact of the Company’s derivatives on the consolidated statements of operations for the three month periods ended December 31, 2014 and 2013 (in thousands): | ||||||||||
Location of (Loss) | |||||||||||
Gain on Derivative | Three Months Ended | ||||||||||
Derivative Instrument | Instrument | December 31, 2014 | December 31, 2013 | ||||||||
Foreign Currency Exchange Contracts | Other Income (Expense) | $ | 925 | $ | (862 | ) | |||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurement of Company's Short-term Investments and Derivative Instruments | The fair value measurement of the Company’s short-term investments and derivative instruments was determined using the following inputs (in thousands): | ||||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||
Active Markets for | Other | Significant | |||||||||||||||
Identical Assets | Observable | Unobservable | |||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Short-term investments: | |||||||||||||||||
Corporate bonds | $ | 14,942 | $ | 14,942 | $ | — | $ | — | |||||||||
Government bonds | 4,713 | 4,713 | — | — | |||||||||||||
Foreign currency forward contract | 641 | — | 641 | — | |||||||||||||
Total | $ | 20,296 | $ | 19,655 | $ | 641 | $ | — | |||||||||
As of September 30, 2014 | |||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||
Active Markets for | Other | Significant | |||||||||||||||
Identical Assets | Observable | Unobservable | |||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Short-term investments: | |||||||||||||||||
Corporate bonds | $ | 14,235 | $ | 14,235 | $ | — | $ | — | |||||||||
Government bonds | 5,626 | 5,626 | — | — | |||||||||||||
Foreign currency forward contract | 795 | — | 795 | — | |||||||||||||
Total | $ | 20,656 | $ | 19,861 | $ | 795 | $ | — | |||||||||
Accounts_and_Notes_Receivable_
Accounts and Notes Receivable (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Receivables [Abstract] | |||||||||
Current Trade Accounts Receivable | Current trade accounts are reflected in the following table (in thousands): | ||||||||
December 31, 2014 | September 30, 2014 | ||||||||
Trade accounts receivable | $ | 14,974 | $ | 25,727 | |||||
Allowance for doubtful accounts | (1,609 | ) | (1,125 | ) | |||||
$ | 13,365 | $ | 24,602 | ||||||
Notes Receivable | Notes receivable, net are reflected in the following table (in thousands): | ||||||||
December 31, 2014 | September 30, 2014 | ||||||||
Notes receivable | $ | 4,099 | $ | 3,814 | |||||
Allowance for doubtful notes | — | — | |||||||
4,099 | 3,814 | ||||||||
Less current portion | 4,075 | 3,786 | |||||||
Non-current notes receivable | $ | 24 | $ | 28 | |||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | Inventories consist of the following (in thousands): | ||||||||
December 31, 2014 | September 30, 2014 | ||||||||
Finished goods | $ | 48,872 | $ | 42,473 | |||||
Work-in-process | 20,764 | 28,582 | |||||||
Raw materials | 86,108 | 82,599 | |||||||
Obsolescence reserve | (8,470 | ) | (7,764 | ) | |||||
$ | 147,274 | $ | 145,890 | ||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Stockholders Equity Note [Abstract] | |||||||||||||
Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consisted of the following (in thousands): | ||||||||||||
Unrealized | Foreign | ||||||||||||
Losses on | Currency | ||||||||||||
Available-for- | Translation | ||||||||||||
Sale Securities | Adjustments | Total | |||||||||||
Balance at September 30, 2014 | $ | (26 | ) | $ | (2,470 | ) | $ | (2,496 | ) | ||||
Change in unrealized losses on available-for-sale securities | (2 | ) | — | (2 | ) | ||||||||
(net of tax) | |||||||||||||
Foreign currency translation adjustments | — | (2,652 | ) | (2,652 | ) | ||||||||
Balance at December 31, 2014 | $ | (28 | ) | $ | (5,122 | ) | $ | (5,150 | ) | ||||
Earnings_Loss_Per_Common_Share1
Earnings (Loss) Per Common Share (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Calculation of Weighted Average Common Shares and Common Equivalent Shares Outstanding | The following table summarizes the calculation of net earnings (loss) and weighted average common shares and common equivalent shares outstanding for purposes of the computation of earnings (loss) per share (in thousands, except share and per share data): | ||||||||
Three Months Ended | |||||||||
December 31, 2014 | December 31, 2013 | ||||||||
Net income (loss) | $ | (5,445 | ) | $ | 24,176 | ||||
Less: Income (loss) allocable to unvested restricted stock | 70 | (152 | ) | ||||||
Income (loss) available to common shareholders | (5,375 | ) | 24,024 | ||||||
Reallocation of participating earnings | — | 1 | |||||||
Income (loss) attributable to common shareholders for | $ | (5,375 | ) | $ | 24,025 | ||||
diluted earnings per share | |||||||||
Weighted average number of common share equivalents: | |||||||||
Common shares used in basic earnings (loss) per | 12,977,913 | 12,947,195 | |||||||
share | |||||||||
Common share equivalents outstanding related to | — | 52,918 | |||||||
stock options | |||||||||
Total weighted average common shares and common | 12,977,913 | 13,000,113 | |||||||
share equivalents used in diluted earnings (loss) per | |||||||||
share | |||||||||
Earnings (loss) per share: | |||||||||
Basic | $ | (.41 | ) | $ | 1.86 | ||||
Diluted | $ | (.41 | ) | $ | 1.85 | ||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Segment Reporting [Abstract] | |||||||||
Summary of Company's Segment Information | The following table summarizes the Company’s segment information (in thousands): | ||||||||
Three Months Ended | |||||||||
December 31, 2014 | December 31, 2013 | ||||||||
Net revenues: | |||||||||
Seismic | $ | 15,593 | $ | 95,227 | |||||
Non-Seismic | 5,431 | 5,912 | |||||||
Corporate | 142 | 209 | |||||||
Total | $ | 21,166 | $ | 101,348 | |||||
Income (loss) from operations: | |||||||||
Seismic | $ | (7,385 | ) | $ | 38,543 | ||||
Non-Seismic | 858 | 774 | |||||||
Corporate | (3,361 | ) | (3,650 | ) | |||||
Total | $ | (9,888 | ) | $ | 35,667 | ||||
Significant_Accounting_Policie3
Significant Accounting Policies - Additional Information (Details) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Sep. 30, 2014 | |
Accounting Policies [Abstract] | ||
Reclassification of prior year deposit made for equipment from prepaid and other current assets to property, plant and equipment | $4,200,000 | |
Goodwill | 1,843,000 | 1,843,000 |
Impairment of property plant and equipment | $0 |
Changes_in_Warranty_Reserve_De
Changes in Warranty Reserve (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Changes in product warranty reserve | |
Balance at the beginning of the period | $951 |
Accruals for warranties issued during the period | 199 |
Settlements made (in cash or in kind) during the period | -325 |
Balance at the end of the period | $825 |
Shortterm_Investments_Details
Short-term Investments (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Short-term Investments, Amortized Cost | $19,697 | $19,900 |
Short-term Investments, Unrealized Losses | -42 | -39 |
Short-term Investments, Estimated Fair Value | 19,655 | 19,861 |
Corporate | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Short-term Investments, Amortized Cost | 14,977 | 14,262 |
Short-term Investments, Unrealized Losses | -35 | -27 |
Short-term Investments, Estimated Fair Value | 14,942 | 14,235 |
Government | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Short-term Investments, Amortized Cost | 4,720 | 5,638 |
Short-term Investments, Unrealized Losses | -7 | -12 |
Short-term Investments, Estimated Fair Value | $4,713 | $5,626 |
Shortterm_Investments_Addition
Short-term Investments - Additional Information (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 |
Short Term Investments [Abstract] | ||
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss), Net of Tax | $28 | $26 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 |
Derivative Financial Instruments [Line Items] | ||
Accrued unrealized foreign exchange gain | $0.60 | |
Foreign Currency Forward Contract | ||
Derivative Financial Instruments [Line Items] | ||
Foreign currency forward contract to hedge | 28 | |
Canadian Subsidiary | ||
Derivative Financial Instruments [Line Items] | ||
Denominated intercompany accounts payable | $25.90 | $26.60 |
Gross_Fair_Value_of_all_Deriva
Gross Fair Value of all Derivative Instruments (Details) (Foreign Currency Forward Contract, Prepaid Expenses and Other Current Assets, USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Foreign Currency Forward Contract | Prepaid Expenses and Other Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Assets | $641 | $795 |
Companys_Derivatives_on_Consol
Company's Derivatives on Consolidated Financial Statements of Operations (Details) (Foreign Currency Forward Contract, Other Income (Expense), USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Foreign Currency Forward Contract | Other Income (Expense) | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of (Loss) Gain Recognized in Income | $925 | ($862) |
Fair_Value_Measurement_of_Comp
Fair Value Measurement of Company's Short-term Investments and Derivative Instruments (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investment fair value disclosure | $19,655 | $19,861 |
Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 20,296 | 20,656 |
Fair Value, Measurements, Recurring | Corporate bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investment fair value disclosure | 14,942 | 14,235 |
Fair Value, Measurements, Recurring | Government bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investment fair value disclosure | 4,713 | 5,626 |
Fair Value, Measurements, Recurring | Foreign Currency Forward Contract | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Net Derivatives | 641 | 795 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 19,655 | 19,861 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investment fair value disclosure | 14,942 | 14,235 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investment fair value disclosure | 4,713 | 5,626 |
Fair Value, Measurements, Recurring | Significant Other Observable (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 641 | 795 |
Fair Value, Measurements, Recurring | Significant Other Observable (Level 2) | Foreign Currency Forward Contract | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Net Derivatives | $641 | $795 |
Current_Trade_Accounts_Receiva
Current Trade Accounts Receivable (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Current trade accounts receivable | ||
Trade accounts receivable | $14,974 | $25,727 |
Allowance for doubtful accounts | -1,609 | -1,125 |
Total current trade accounts receivable | $13,365 | $24,602 |
Notes_Receivable_Details
Notes Receivable (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Notes receivable | ||
Notes receivable | $4,099 | $3,814 |
Total | 4,099 | 3,814 |
Less current portion | 4,075 | 3,786 |
Non-current notes receivable | $24 | $28 |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Finished goods | $48,872 | $42,473 |
Work-in-process | 20,764 | 28,582 |
Raw materials | 86,108 | 82,599 |
Obsolescence reserve | -8,470 | -7,764 |
Total | $147,274 | $145,890 |
Inventories_Additional_Informa
Inventories - Additional Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Inventory Disclosure [Abstract] | ||
Inventories transferred to rental equipment | $0.10 | $2.80 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Details) (USD $) | 3 Months Ended | ||
Dec. 31, 2014 | Sep. 30, 2014 | Sep. 27, 2013 | |
Long-Term Debt [Abstract] | |||
Total long-term debt | $0 | $0 | |
Line of credit borrowing capacity | 50,000,000 | ||
Line of credit facility expiration date | 27-Apr-16 | ||
Line of credit borrowing availability | 50,000,000 | ||
New Agreement | |||
Long-Term Debt [Abstract] | |||
Credit agreement date | 2-Mar-11 | ||
Line of Credit | Minimum | LIBOR | |||
Long-Term Debt [Abstract] | |||
Marginal interest rate | 2.50% | ||
Line of Credit | Maximum | LIBOR | |||
Long-Term Debt [Abstract] | |||
Marginal interest rate | 3.25% | ||
Standby Letters of Credit | |||
Long-Term Debt [Abstract] | |||
Standby letters of credit outstanding | $42,000 | $51,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated other comprehensive income (loss) | ($2,496) | |
Change in unrealized losses on available-for-sale securities (net of tax) | -2 | |
Foreign currency translation adjustments | -2,652 | -97 |
Accumulated other comprehensive income (loss) | -5,150 | |
Unrealized Losses on Available-for-Sale Securities | ||
Accumulated other comprehensive income (loss) | -26 | |
Change in unrealized losses on available-for-sale securities (net of tax) | -2 | |
Accumulated other comprehensive income (loss) | -28 | |
Foreign Currency Translation Adjustments | ||
Accumulated other comprehensive income (loss) | -2,470 | |
Foreign currency translation adjustments | -2,652 | |
Accumulated other comprehensive income (loss) | ($5,122) |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Details) (Restricted Stock, USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Nov. 21, 2013 |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Restricted shares issued | 0 | ||
Unrecognized compensation expense | $12.70 | ||
2014 Long Term Incentive Plan Member | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Restricted shares issued | 13,000 | ||
Fair value of the Companybs common stock on the date of grant | $45.68 | ||
1997 Key Employee Stock Option Plan Member | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Restricted shares issued | 184,000 | ||
Fair value of the Companybs common stock on the date of grant | $98.68 | ||
Unrecognized compensation expense | $17.30 | ||
Expected period for recognition of unrecognized compensation expense | 4 years |
Earnings_Loss_Per_Common_Share2
Earnings (Loss) Per Common Share - Additional Information (Details) | 3 Months Ended |
Dec. 31, 2014 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Split of common stock ratio | 2 |
Stock Options | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Number of Stock options | 0 |
Calculation_of_Weighted_Averag
Calculation of Weighted Average Common Shares and Common Equivalent Shares Outstanding (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Earnings Per Share [Abstract] | ||
Net income (loss) | ($5,445) | $24,176 |
Less: Income (loss) allocable to unvested restricted stock | 70 | -152 |
Income (loss) available to common shareholders | -5,375 | 24,024 |
Reallocation of participating earnings | 1 | |
Income (loss) attributable to common shareholders for diluted earnings per share | ($5,375) | $24,025 |
Weighted average number of common share equivalents: | ||
Common shares used in basic earnings (loss) per share | 12,977,913 | 12,947,195 |
Common share equivalents outstanding related to stock options | 52,918 | |
Total weighted average common shares and common share equivalents used in diluted earnings (loss) per share | 12,977,913 | 13,000,113 |
Basic | ($0.41) | $1.86 |
Diluted | ($0.41) | $1.85 |
Summary_of_Companys_Segment_In
Summary of Company's Segment Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | ||
Net Revenues | $21,166 | $101,348 |
Income (loss) from operations | -9,888 | 35,667 |
Seismic | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 15,593 | 95,227 |
Income (loss) from operations | -7,385 | 38,543 |
Non-Seismic | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 5,431 | 5,912 |
Income (loss) from operations | 858 | 774 |
Corporate | Corporate, Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 142 | 209 |
Income (loss) from operations | ($3,361) | ($3,650) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Details) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||
United States statutory tax rate | 35.00% | 35.00% |
Company's effective tax rates | 35.50% | 31.90% |