Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2018 | Jan. 31, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | GEOS | |
Entity Registrant Name | GEOSPACE TECHNOLOGIES CORP | |
Entity Central Index Key | 1,001,115 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 13,632,791 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 17,111 | $ 11,934 |
Short-term investments | 9,495 | 25,471 |
Trade accounts receivable, net | 12,399 | 14,323 |
Financing receivables | 3,843 | 4,258 |
Inventories | 17,565 | 18,812 |
Prepaid expenses and other current assets | 3,336 | 1,856 |
Total current assets | 63,749 | 76,654 |
Rental equipment, net | 52,394 | 39,545 |
Property, plant and equipment, net | 33,302 | 33,624 |
Non-current inventories | 31,003 | 31,655 |
Goodwill | 5,980 | 4,343 |
Other intangible assets, net | 12,163 | 8,006 |
Deferred income tax assets, net | 264 | 246 |
Non-current financing receivables, net | 3,793 | 4,740 |
Prepaid income taxes | 57 | 54 |
Other assets | 225 | 213 |
Total assets | 202,930 | 199,080 |
Current liabilities: | ||
Accounts payable trade | 8,338 | 4,106 |
Accrued expenses and other current liabilities | 6,391 | 6,826 |
Deferred revenue | 4,620 | 3,752 |
Income tax payable | 96 | 51 |
Total current liabilities | 19,445 | 14,735 |
Contingent earn-out liabilities | 12,055 | 7,713 |
Deferred income tax liabilities | 33 | 45 |
Total liabilities | 31,533 | 22,493 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity: | ||
Preferred stock, 1,000,000 shares authorized, no shares issued and outstanding | ||
Common stock, $.01 par value, 20,000,000 shares authorized, 13,632,791 and 13,600,541 shares issued and outstanding | 136 | 136 |
Additional paid-in capital | 86,933 | 86,116 |
Retained earnings | 100,101 | 105,954 |
Accumulated other comprehensive loss | (15,773) | (15,619) |
Total stockholders’ equity | 171,397 | 176,587 |
Total liabilities and stockholders’ equity | $ 202,930 | $ 199,080 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Dec. 31, 2018 | Sep. 30, 2018 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 13,632,791 | 13,632,791 |
Common stock, shares outstanding | 13,600,541 | 13,600,541 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue: | ||
Products | $ 10,459 | $ 13,274 |
Type of Revenue [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember |
Rental | $ 7,416 | $ 1,370 |
Total revenue | 17,875 | 14,644 |
Cost of revenue: | ||
Products | $ 11,220 | $ 13,096 |
Type of Revenue [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember |
Rental | $ 3,565 | $ 2,516 |
Total cost of revenue | 14,785 | 15,612 |
Gross profit (loss) | 3,090 | (968) |
Operating expenses: | ||
Selling, general and administrative | 6,085 | 5,129 |
Research and development | 3,171 | 3,158 |
Bad debt expense (recovery) | (103) | 350 |
Total operating expenses | 9,153 | 8,637 |
Loss from operations | (6,063) | (9,605) |
Other income (expense): | ||
Interest expense | (34) | (64) |
Interest income | 272 | 263 |
Foreign exchange gains (losses), net | 67 | (43) |
Other, net | (88) | (25) |
Total other income, net | 217 | 131 |
Loss before income taxes | (5,846) | (9,474) |
Income tax expense | 7 | 6 |
Net loss | $ (5,853) | $ (9,480) |
Loss per common share: | ||
Basic | $ (0.44) | $ (0.72) |
Diluted | $ (0.44) | $ (0.72) |
Weighted average common shares outstanding: | ||
Basic | 13,339,408 | 13,202,384 |
Diluted | 13,339,408 | 13,202,384 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (5,853) | $ (9,480) |
Other comprehensive income (loss): | ||
Change in unrealized gains (losses) on available-for-sale securities, net of tax | 64 | (51) |
Foreign currency translation adjustments | (218) | (205) |
Total other comprehensive loss | (154) | (256) |
Total comprehensive loss | $ (6,007) | $ (9,736) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance at Sep. 30, 2017 | $ 194,803 | $ 134 | $ 83,733 | $ 125,166 | $ (14,230) |
Beginning Balance, Shares at Sep. 30, 2017 | 13,438,616 | ||||
Net loss | (9,480) | (9,480) | |||
Other comprehensive loss | (256) | (256) | |||
Issuance of restricted stock | $ 2 | (2) | |||
Issuance of restricted stock, Shares | 138,650 | ||||
Forfeiture of restricted stock, Shares | (16,675) | ||||
Stock-based compensation | 826 | 826 | |||
Ending Balance at Dec. 31, 2017 | 185,893 | $ 136 | 84,557 | 115,686 | (14,486) |
Ending Balance, Shares at Dec. 31, 2017 | 13,560,591 | ||||
Beginning Balance at Sep. 30, 2018 | $ 176,587 | $ 136 | 86,116 | 105,954 | (15,619) |
Beginning Balance, Shares at Sep. 30, 2018 | 13,600,541 | 13,600,541 | |||
Net loss | $ (5,853) | (5,853) | |||
Other comprehensive loss | (154) | (154) | |||
Issuance of restricted stock, Shares | 8,000 | ||||
Forfeiture of restricted stock, Shares | (250) | ||||
Issuance of common stock pursuant to the exercise of stock options | 215 | 215 | |||
Issuance of common stock pursuant to the exercise of stock options, Shares | 24,500 | ||||
Stock-based compensation | 602 | 602 | |||
Ending Balance at Dec. 31, 2018 | $ 171,397 | $ 136 | $ 86,933 | $ 100,101 | $ (15,773) |
Ending Balance, Shares at Dec. 31, 2018 | 13,600,541 | 13,632,791 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (5,853,000) | $ (9,480,000) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Deferred income tax benefit | (61,000) | (55,000) |
Rental equipment depreciation | 2,711,000 | 2,247,000 |
Property, plant and equipment depreciation | 919,000 | 1,095,000 |
Amortization of intangible assets | 362,000 | 0 |
Accretion of discounts on short-term investments | (7,000) | 13,000 |
Stock-based compensation expense | 602,000 | 826,000 |
Bad debt expense (recovery) | (103,000) | 350,000 |
Inventory obsolescence expense | 1,428,000 | 1,434,000 |
Gross profit from sale of used rental equipment | (2,566,000) | |
Realized loss on short-term investments | 59,000 | |
Effects of changes in operating assets and liabilities: | ||
Trade accounts receivable | 1,824,000 | 2,562,000 |
Income tax receivable | 10,000 | |
Inventories | (6,302,000) | (2,865,000) |
Prepaid expenses and other current assets | (1,472,000) | (329,000) |
Prepaid income taxes | (12,000) | 41,000 |
Accounts payable trade | 4,240,000 | 723,000 |
Accrued expenses and other | 2,008,000 | 267,000 |
Deferred revenue | 879,000 | (65,000) |
Income tax payable | 50,000 | |
Net cash provided by (used in) operating activities | 1,272,000 | (5,792,000) |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (717,000) | (218,000) |
Investment in rental equipment | (10,164,000) | |
Proceeds from the sale of used rental equipment | 728,000 | 997,000 |
Purchases of short-term investments | (1,905,000) | |
Proceeds from the sale of short-term investments | 16,081,000 | 5,898,000 |
Business acquisition | (1,819,000) | |
Payments for damages related to insurance claim | (118,000) | |
Proceeds from insurance claim | 78,000 | |
Net cash provided by investing activities | 4,069,000 | 4,772,000 |
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 215,000 | |
Net cash provided by financing activities | 215,000 | |
Effect of exchange rate changes on cash | (379,000) | (149,000) |
Increase (decrease) in cash and cash equivalents | 5,177,000 | (1,169,000) |
Cash and cash equivalents, beginning of fiscal year | 11,934,000 | 15,092,000 |
Cash and cash equivalents, end of fiscal period | $ 17,111,000 | $ 13,923,000 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2018 | |
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, 2018 was derived from the Company’s audited consolidated financial statements at that date. The consolidated balance sheet at December 31, 2018 and the consolidated statements of operations, comprehensive loss, stockholders’ equity and the consolidated statements of cash flows for the three months ended December 31, 2018 and 2017 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, 2018 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, 2018. Reclassifications Certain amounts previously presented in the consolidated financial statements have been reclassified to conform to the current year presentation. Such reclassifications had no effect on previously reported net 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 consolidated financial statements. The Company continually evaluates its estimates, including those related to bad debt reserves, inventory obsolescence reserves, self-insurance reserves, product warranty reserves, impairment of long-lived 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. At December 31, 2018, cash and cash equivalents included $7.6 million held by the Company’s foreign subsidiaries and branch offices. If the Company were to repatriate the cash held by its foreign subsidiaries, it would be required to accrue and pay taxes on any amount repatriated under rates enacted by The Tax Cuts and Jobs Act (“2017 Tax Act”). Recently Adopted Accounting Pronouncements In November 2016, the Financial Accounting Standards Board (“FASB”) issued guidance which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance was adopted by the Company in its first quarter of fiscal year 2019. The adoption had no effect on the Company’s consolidated financial statements as it holds no restricted cash balances. In May 2014, the FASB issued guidance requiring entities to recognize revenue from contracts with customers by applying a five-step model in accordance with the core principle to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this guidance specifies the accounting for some costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. In August 2015, the FASB issued guidance deferring the effective date of this guidance to annual periods beginning after December 15, 2017, including interim reporting periods therein. This new standard supersedes existing revenue guidance and affected the Company's revenue recognition process and the presentations or disclosures of the Company's consolidated financial statements and footnotes. The Company adopted this standard on October 1, 2018 using the modified retrospective method. The adoption of this standard did not (i) result in a cumulative adjustment as of October 1, 2018 or (ii) have any impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements In August 2018, the FASB issued guidance requiring certain existing disclosure requirements in ASC Topic 820, Fair Value Measurements and Disclosures In January 2017, the FASB issued guidance simplifying the current two-step goodwill impairment test by eliminating Step 2 of the test. The guidance requires a one-step impairment test in which an entity compares the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, if any. This guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, and should be applied on a prospective basis. Early adoption is permitted for the interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. In June 2016, the FASB issued guidance surrounding credit losses for financial instruments that replaces the incurred loss impairment methodology in generally accepted accounting principles (“GAAP”). The new impairment model requires immediate recognition of estimated credit losses expected to occur for most financial assets and certain other financial instruments. For available-for-sale debt securities with unrealized losses, credit losses will be recognized as allowances rather than reductions in the amortized cost of the securities. The standard is effective for annual reporting periods beginning after December 15, 2019 and interim periods within those annual periods. Early adoption for a fiscal year beginning after December 15, 2018 is permitted. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first effective reporting period. The Company expects to adopt this standard during the first quarter of its fiscal year ending September 30, 2021 and is currently evaluating the impact of this new guidance on its consolidated financial statements. In February 2016, the FASB issued guidance requiring a lessee to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement and presentation of expense and cash flows arising from a lease by a lessee primarily will depend on its classification of the lease as a finance or operating lease. However, unlike current GAAP, which requires only capital leases to be recognized on the balance sheet, the new guidance will also require operating leases of the lessee to be recognized on the balance sheet if the operating lease term is more than 12 months. The guidance also requires disclosures to help investors and other financial statement users to better understand the amount, timing and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2018 and is to be applied using the modified retrospective approach. The Company expects to adopt this standard in its first quarter of its fiscal year ending September 30, 2020. The Company currently is not a lessee under any lease agreements with a term longer than one year. The Company is routinely a lessor in its rental contracts with customers. The term of these rental contracts is generally short-term in nature, and the Company believes these rentals would be treated as operating leases under the new guidance; however, the Company has not completed a detailed review of its various lease and rental arrangements, and these conclusions are subject to change. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 2. Revenue Recognition On October 1, 2018, the Company adopted ASC Topic 606, Revenue from Contracts with Customers. Under the new standard, the Company recognizes revenue when performance of contractual obligations are satisfied, generally when control of the promised goods or services is transferred to its customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. The Company primarily derives product revenue from the sale of its manufactured products and from the sale of its manufactured rental equipment. Revenue from these product sales, including the sale of used rental equipment, is recognized when all of the following have occurred: (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. 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. Revenue from engineering services is recognized as services are rendered over the duration of a project, or as billed on a per hour basis. Field service revenue is recognized when services are rendered and is generally priced on a per day rate. The Company also generates revenue from short-term rentals under operating leases of its manufactured products. Rental revenue is recognized 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. The Company has determined that the new standard does not apply to rental contracts, which are within the scope of other revenue recognition accounting standards. The cumulative effect of the changes made to the Company’s consolidated balance sheet as of October 1, 2018 resulting from the adoption of the new standard was not material and did not impact opening retained earnings. The impact on the timing of sales and services for the three months ended December 31, 2018 resulting from the application of the new standard was not material. As permissible under the new standard, sales and transaction-based taxes are excluded from revenue. Also, the Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Additionally, the Company expenses costs incurred to obtain contracts when incurred because the amortization period would have been one year or less. These costs are recorded in selling, general and administrative expenses. As of December 31, 2018 and September 30, 2018 the Company had deferred contract liabilities of $0.1 million and $0.2 million included in deferred revenue and deferred contract assets of $36,000 and $27,000 included in prepaid expenses and other current assets on its consolidated balance sheets. During the three months ended December 31, 2018, the Company recognized revenue of $0.1 million included in its deferred contract liability balance and $8,000 included in its prepaid expenses and other current asset balance at the beginning of the period. For each of the Company’s operating segments, the following table presents revenue from the sale of products and services under contracts with customers. The table excludes all revenue earned from rental contracts (in thousands): Three Months Ended December 31, 2018 December 31, 2017 Oil and Gas Markets Traditional exploration product revenue $ 2,726 $ 3,599 Wireless exploration product revenue 144 2,623 Reservoir product revenue 888 618 Total revenue 3,758 6,840 Adjacent Markets Industrial product revenue 3,562 3,676 Imaging product revenue 3,051 2,758 Total revenue 6,613 6,434 Emerging Markets Revenue 88 — Total $ 10,459 $ 13,274 See note 13 for more information on the Company’s operating segments. For each of the geographic areas where the Company operates, the following table presents revenue from the sale of products and services under contracts with customers. The table excludes all revenue earned from rental contracts (in thousands): Three Months Ended December 31, 2018 December 31, 2017 Asia $ 1,558 $ 1,006 Canada 288 365 Europe 915 3,419 United States 6,610 8,023 Other 1,088 461 Total $ 10,459 $ 13,274 Revenue is attributable to countries based on the ultimate destination of the product sold, if known. If the ultimate destination is not known, revenue is attributable to countries based on the geographic location of the initial shipment. |
Business Acquisition
Business Acquisition | 3 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Acquisition | 3. Business Acquisition On November 13, 2018, the Company acquired all of the intellectual property and related assets of the OptoSeis ® In connection with the acquisition the Company recorded goodwill and other intangible assets of $6.1 million and established an initial contingent earn-out liability of $4.3 million. No current assets and liabilities were acquired in the transaction. The contingent earn-out payments will be derived from certain eligible revenue generated during the five-and-a-half year earn-out period. Acquisition related legal costs of $0.2 million are included in selling, general and administrative expenses in the Company’s consolidated financial statements. Due to the limited amount of time since the acquisition transaction, the valuation of the OptoSeis assets and liabilities and the determination of the fair value of the contingent consideration are considered by the Company as preliminary and subject to change. |
Short-term Investments
Short-term Investments | 3 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Short-term Investments | 4. Short-term Investments As of December 31, 2018 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Corporate bonds $ 6,289 $ — $ (25 ) $ 6,264 Government bonds 3,224 7 — 3,231 Total $ 9,513 $ 7 $ (25 ) $ 9,495 As of September 30, 2018 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Corporate bonds $ 17,851 $ — $ (60 ) $ 17,791 Government bonds 7,702 — (22 ) 7,680 Total $ 25,553 $ — $ (82 ) $ 25,471 The Company’s short-term investments have contractual maturities ranging from February 2019 to November 2020. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 5. Derivative Financial Instruments At December 31, 2018 and September 30, 2018, the Company’s Canadian subsidiary had CAN$19.6 million and CAD$20.4 million, respectively, of Canadian dollar denominated intercompany accounts payable owed to one of the Company’s U.S subsidiaries. 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. On December 28, 2018, the Company entered into a CAD$15.0 million 90-day hedge contract with a United States bank to reduce 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. 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, 2018 September 30, 2018 Foreign Currency Forward Contracts Prepaid Expenses and Other Assets $ 2 $ — Foreign Currency Forward Contracts Accrued Expenses and Other Current Liabilities — 270 The following table summarizes the Company’s realized gains on derivative instruments included in the consolidated statements of operations for the three months ended December 31, 2018 and 2017 (in thousands): Three Months Ended Derivative Instrument Location December 31, 2018 December 31, 2017 Foreign Currency Forward Contracts Other Income (Expense) $ 856 $ 158 |
Trade Accounts and Financing Re
Trade Accounts and Financing Receivables | 3 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Trade Accounts and Financing Receivables | 6. Trade Accounts and Financing Receivables Trade accounts receivable, net are reflected in the following table (in thousands): December 31, 2018 September 30, 2018 Trade accounts receivable $ 13,385 $ 15,776 Allowance for doubtful accounts (986 ) (1,453 ) $ 12,399 $ 14,323 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 current review of its accounts receivable balances. Accounts receivable balances are charged off against the allowance whenever it is probable that the receivable balance will not be recoverable. Trade accounts receivable at December 31, 2018 includes $6.8 million due from a single customer. Financing receivables are reflected in the following table (in thousands): December 31, 2018 September 30, 2018 Promissory notes $ 5,170 $ 5,646 Sales-type lease 4,590 5,533 Total financing receivables 9,760 11,179 Unearned income: Promissory notes (95 ) (95 ) Sales-type lease (180 ) (237 ) Total unearned income (275 ) (332 ) Total financing receivables, net of unearned income 9,485 10,847 Allowance for doubtful promissory notes (1,849 ) (1,849 ) Less current portion (3,843 ) (4,258 ) Non-current financing receivables $ 3,793 $ 4,740 |
Inventories
Inventories | 3 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 7. Inventories Inventories consist of the following (in thousands): December 31, 2018 September 30, 2018 Finished goods $ 14,712 $ 18,802 Work in process 7,405 7,926 Raw material 57,099 54,290 Obsolescence reserve (30,648 ) (30,551 ) 48,568 50,467 Less current portion 17,565 18,812 Non-current portion $ 31,003 $ 31,655 During the three months ended December 31, 2018 and 2017, the Company made non-cash inventory transfers of $7.4 million and $2.0 million, respectively, to rental equipment. Raw materials include semi-finished goods and component parts totaled approximately $26.7 million and $29.0 million at December 31, 2018 and September 30, 2018, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 8. Goodwill and Other Intangible Assets In connection with the acquisition of all of the intellectual property and related assets of the OptoSeis fiber optic sensing technology business from PGS Americas, Inc. in November 2018, the Company recorded goodwill of $1.6 million and other intangible assets of $4.5 million. As a result of this acquisition and the acquisition of Quantum Technology Sciences (“Quantum”) in July 2018, the Company’s consolidated intangible assets consisted of the following (in thousands): Weighted- Average Remaining Useful Lives (in years) December 31, 2018 September 30, 2018 Goodwill $ 5,980 $ 4,343 Other intangible assets: Developed technology 17.7 6,419 4,200 Customer relationships 3.7 4,200 2,500 Trade names 4.7 1,930 1,400 Non-compete agreements 3.7 170 100 Total other intangible assets 10.9 12,719 8,200 Accumulated amortization (556 ) (194 ) $ 12,163 $ 8,006 Intangible assets amortization expense was $0.4 million for the three months ended December 31, 2018. The Company had no intangible asset amortization expense for the three months ended December 31, 2017. As of December 31, 2018, future estimated amortization expense of other intangible assets is as follows (in thousands): For fiscal years ending September 30, 2019 $ 1,376 2020 1,835 2021 1,835 2022 1,727 2023 751 Thereafter 4,639 $ 12,163 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Dec. 31, 2018 | |
Stockholders Equity Note [Abstract] | |
Accumulated Other Comprehensive Loss | 9. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consisted of the following (in thousands): Unrealized Losses on Available-for-Sale Securities Foreign Currency Translation Adjustments Totals Balance at October 1, 2018 $ (82 ) $ (15,537 ) $ (15,619 ) Changes in unrealized gain on available-for-sale securities, net of tax 64 — 64 Foreign currency translation adjustments — (218 ) (218 ) Balance at December 31, 2018 $ (18 ) $ (15,755 ) $ (15,773 ) |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 10. Stock-Based Compensation During the three months ended December 31, 2018, the Company issued 8,000 shares of restricted stock awards (“RSAs”) under its 2014 Long Term Incentive Plan, as amended (the “Plan”). The weighted average grant date fair value of each RSA was $14.59 per share. The total grant date fair value of all RSAs issued was $0.1 million, which will be charged to expense over the next four years as the RSA vesting restrictions lapse. Compensation expense for the RSAs was 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. Recipients of RSAs are entitled to vote such shares and are entitled to any dividends paid. As of December 31, 2018, the Company had unrecognized compensation expense of $3.7 million relating to RSAs that is expected to be recognized over a weighted average period of 2.5 years. During the three months ended December 31, 2018, the Company issued 147,800 restricted stock units (“RSUs”) under the Plan. The RSUs issued include both time-based and performance-based vesting provisions. The weighted average grant date fair value of each RSU was $15.17 per unit. The grant date fair value of the RSUs was $2.2 million, which will be charged to expense over the next four years as the restrictions lapse. Compensation expense for the RSUs was determined based on the closing market price of the Company’s stock on the date of grant applied to the total number of units that are anticipated to fully vest. Each RSU represents a contingent right to receive one share of the Company’s common stock upon vesting. As of December 31, 2018, the Company had unrecognized compensation expense of $2.2 million relating to RSUs that is expected to be recognized over a weighted average period of 3.9 years. The Company had $0.1 million of unrecognized compensation expense related to nonqualified stock option awards that is expected to be recognized over a weighted average period of 0.8 years. As of December 31, 2018, 236,562 RSAs, 147,800 RSUs and 165,600 nonqualified stock options were unvested and outstanding. |
Loss Per Common Share
Loss Per Common Share | 3 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Loss Per Common Share | 11. Loss Per Common Share The Company applies the two-class method in calculating per share data. The following table summarizes the calculation of net loss and weighted average common shares and common equivalent shares outstanding for purposes of the computation of loss per share (in thousands, except share and per share data): Three Months Ended December 31, 2018 December 31, 2017 Net loss $ (5,853 ) $ (9,480 ) Less: Loss allocable to unvested restricted stock — — Loss available to common shareholders (5,853 ) (9,480 ) Reallocation of participating earnings — — Loss attributable to common shareholders for diluted earnings per share $ (5,853 ) $ (9,480 ) Weighted average number of common share equivalents: Common shares used in basic loss per share 13,339,408 13,202,384 Common share equivalents outstanding related to stock options and RSUs — — Total weighted average common shares and common share equivalents used in diluted loss per share 13,339,408 13,202,384 Loss per share: Basic $ (0.44 ) $ (0.72 ) Diluted $ (0.44 ) $ (0.72 ) For the calculation of diluted loss per share for the three months ended December 31, 2018 and 2017, 165,600 and 201,800 stock options and 147,800 and zero non-vested RSUs, respectively, were excluded in the calculation of weighted average shares outstanding since their impact on diluted loss per share was antidilutive. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Contingent Earn-out Liabilities The Company established an initial earn-out liability of $7.7 million in connection with its July 2018 acquisition of Quantum. The contingent earn-out payments, if any, which at the Company’s option may be paid in the form of cash or Company stock, will be derived from eligible revenue that may be generated by Quantum during a four-year earn-out period. The maximum amount of contingent payments is $23.5 million over the earn-out period. The fair value of the contingent earn-out liability has not significantly changed since September 30, 2018. For the recent acquisition of the intellectual property and related assets of the OptoSeis fiber optic sensing technology in November 2018, the Company established an initial earn-out liability of $4.3 million. The contingent earn-out payments, if any, will be derived from eligible revenue generated during a five-and-a-half year earn-out period. The maximum amount of contingent payments is $23.2 million over the earn-out period. The Company reviews and accesses the fair value of its contingent earn-out liabilities on a quarterly basis. The fair value of its contingent earn-out liabilities has not changed Legal Proceedings The Company is involved in various pending legal actions in the ordinary course of its business. Management is unable to predict the ultimate outcome of these actions, because of the inherent uncertainty such actions. However, management believes that the most probable, ultimate resolution of these pending 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, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 13. Segment Information The Company reports and evaluates financial information for three operating segments: Oil and Gas Markets, Adjacent Markets and Emerging Markets. The Oil and Gas Markets segment products include wireless seismic data acquisition systems, reservoir characterization products and services, and traditional seismic exploration products such as geophones, hydrophones, leader wire, connectors, cables, marine streamer retrieval and steering devices and various other seismic products. The Adjacent Markets segment products include graphic imaging equipment, water meter products, offshore cables, and seismic sensors used for vibration monitoring and geotechnical applications such as mine safety applications and earthquake detection. The Emerging Markets segment was added in conjunction with the Company’s acquisition of Quantum, which designs and markets seismic products targeted at the border and perimeter security markets. The following table summarizes the Company’s segment information (in thousands): Three Months Ended December 31, 2018 December 31, 2017 Revenue: Oil and Gas Markets $ 11,004 $ 8,039 Adjacent Markets 6,635 6,454 Emerging Markets 88 — Corporate 148 151 Total $ 17,875 $ 14,644 Income (loss) from operations: Oil and Gas Markets $ (2,601 ) $ (7,673 ) Adjacent Markets 982 1,029 Emerging Markets (1,192 ) — Corporate (3,252 ) (2,961 ) Total $ (6,063 ) $ (9,605 ) |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes The 2017 Tax Act was enacted in December 2017. The 2017 Tax Act, among other things, reduces the U.S. federal corporate tax rate from 35% to 21%, effective January 1, 2018, creates new taxes on certain foreign earnings and may require companies to pay a one-time transition tax on undistributed earnings of certain foreign subsidiaries that were previously tax deferred. The Company is not required to pay a one-time transition tax on earnings of our foreign subsidiaries since the Company had no accumulated foreign losses on a consolidated basis. As a result of the 2017 Tax Act, during the three months ended December 31, 2017, the Company revalued its U.S. deferred tax assets based on the new U.S. federal tax rate of 21%, which resulted in a reduction to its deferred tax assets of approximately $8.1 million. The reduction in deferred tax assets was completely offset by a like reduction to the valuation allowance. The Company’s effective tax rates for the three months ended December 31, 2018 and 2017 were (0.1)% and (0.1)%, respectively. The United States statutory rate for the three months ended December 31, 2018 and 2017 was 21% and 24.5% (blended), respectively. Compared to the United States statutory tax rate, the lower effective tax rates resulted primarily from the provision of a valuation allowance against the Company’s U.S. and Canadian deferred tax assets, due to the uncertainty surrounding the Company’s ability to utilize such deferred tax assets in the future to offset taxable income. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2018 | |
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, 2018 was derived from the Company’s audited consolidated financial statements at that date. The consolidated balance sheet at December 31, 2018 and the consolidated statements of operations, comprehensive loss, stockholders’ equity and the consolidated statements of cash flows for the three months ended December 31, 2018 and 2017 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, 2018 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, 2018. |
Reclassifications | Reclassifications Certain amounts previously presented in the consolidated financial statements have been reclassified to conform to the current year presentation. Such reclassifications had no effect on previously reported net 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 consolidated financial statements. The Company continually evaluates its estimates, including those related to bad debt reserves, inventory obsolescence reserves, self-insurance reserves, product warranty reserves, impairment of long-lived 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. At December 31, 2018, cash and cash equivalents included $7.6 million held by the Company’s foreign subsidiaries and branch offices. If the Company were to repatriate the cash held by its foreign subsidiaries, it would be required to accrue and pay taxes on any amount repatriated under rates enacted by The Tax Cuts and Jobs Act (“2017 Tax Act”). |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In November 2016, the Financial Accounting Standards Board (“FASB”) issued guidance which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance was adopted by the Company in its first quarter of fiscal year 2019. The adoption had no effect on the Company’s consolidated financial statements as it holds no restricted cash balances. In May 2014, the FASB issued guidance requiring entities to recognize revenue from contracts with customers by applying a five-step model in accordance with the core principle to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this guidance specifies the accounting for some costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. In August 2015, the FASB issued guidance deferring the effective date of this guidance to annual periods beginning after December 15, 2017, including interim reporting periods therein. This new standard supersedes existing revenue guidance and affected the Company's revenue recognition process and the presentations or disclosures of the Company's consolidated financial statements and footnotes. The Company adopted this standard on October 1, 2018 using the modified retrospective method. The adoption of this standard did not (i) result in a cumulative adjustment as of October 1, 2018 or (ii) have any impact on the Company’s consolidated financial statements. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In August 2018, the FASB issued guidance requiring certain existing disclosure requirements in ASC Topic 820, Fair Value Measurements and Disclosures In January 2017, the FASB issued guidance simplifying the current two-step goodwill impairment test by eliminating Step 2 of the test. The guidance requires a one-step impairment test in which an entity compares the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, if any. This guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, and should be applied on a prospective basis. Early adoption is permitted for the interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. In June 2016, the FASB issued guidance surrounding credit losses for financial instruments that replaces the incurred loss impairment methodology in generally accepted accounting principles (“GAAP”). The new impairment model requires immediate recognition of estimated credit losses expected to occur for most financial assets and certain other financial instruments. For available-for-sale debt securities with unrealized losses, credit losses will be recognized as allowances rather than reductions in the amortized cost of the securities. The standard is effective for annual reporting periods beginning after December 15, 2019 and interim periods within those annual periods. Early adoption for a fiscal year beginning after December 15, 2018 is permitted. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first effective reporting period. The Company expects to adopt this standard during the first quarter of its fiscal year ending September 30, 2021 and is currently evaluating the impact of this new guidance on its consolidated financial statements. In February 2016, the FASB issued guidance requiring a lessee to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement and presentation of expense and cash flows arising from a lease by a lessee primarily will depend on its classification of the lease as a finance or operating lease. However, unlike current GAAP, which requires only capital leases to be recognized on the balance sheet, the new guidance will also require operating leases of the lessee to be recognized on the balance sheet if the operating lease term is more than 12 months. The guidance also requires disclosures to help investors and other financial statement users to better understand the amount, timing and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2018 and is to be applied using the modified retrospective approach. The Company expects to adopt this standard in its first quarter of its fiscal year ending September 30, 2020. The Company currently is not a lessee under any lease agreements with a term longer than one year. The Company is routinely a lessor in its rental contracts with customers. The term of these rental contracts is generally short-term in nature, and the Company believes these rentals would be treated as operating leases under the new guidance; however, the Company has not completed a detailed review of its various lease and rental arrangements, and these conclusions are subject to change. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenue from the Sale of Products and Services Under Contracts with Customers Excludes All Revenue Earned from Rental Contracts by Operating Segments | For each of the Company’s operating segments, the following table presents revenue from the sale of products and services under contracts with customers. The table excludes all revenue earned from rental contracts (in thousands): Three Months Ended December 31, 2018 December 31, 2017 Oil and Gas Markets Traditional exploration product revenue $ 2,726 $ 3,599 Wireless exploration product revenue 144 2,623 Reservoir product revenue 888 618 Total revenue 3,758 6,840 Adjacent Markets Industrial product revenue 3,562 3,676 Imaging product revenue 3,051 2,758 Total revenue 6,613 6,434 Emerging Markets Revenue 88 — Total $ 10,459 $ 13,274 |
Summary of Revenue from the Sale of Products and Services Under Contracts with Customers Excludes All Revenue Earned from Rental Contracts by Geographic Areas | For each of the geographic areas where the Company operates, the following table presents revenue from the sale of products and services under contracts with customers. The table excludes all revenue earned from rental contracts (in thousands): Three Months Ended December 31, 2018 December 31, 2017 Asia $ 1,558 $ 1,006 Canada 288 365 Europe 915 3,419 United States 6,610 8,023 Other 1,088 461 Total $ 10,459 $ 13,274 |
Short-term Investments (Tables)
Short-term Investments (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Short-term Investments | As of December 31, 2018 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Corporate bonds $ 6,289 $ — $ (25 ) $ 6,264 Government bonds 3,224 7 — 3,231 Total $ 9,513 $ 7 $ (25 ) $ 9,495 As of September 30, 2018 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Corporate bonds $ 17,851 $ — $ (60 ) $ 17,791 Government bonds 7,702 — (22 ) 7,680 Total $ 25,553 $ — $ (82 ) $ 25,471 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
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, 2018 September 30, 2018 Foreign Currency Forward Contracts Prepaid Expenses and Other Assets $ 2 $ — Foreign Currency Forward Contracts Accrued Expenses and Other Current Liabilities — 270 |
Company's Derivatives on Consolidated Financial Statements of Operations | The following table summarizes the Company’s realized gains on derivative instruments included in the consolidated statements of operations for the three months ended December 31, 2018 and 2017 (in thousands): Three Months Ended Derivative Instrument Location December 31, 2018 December 31, 2017 Foreign Currency Forward Contracts Other Income (Expense) $ 856 $ 158 |
Trade Accounts and Financing _2
Trade Accounts and Financing Receivables (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Trade Accounts Receivable, Net | Trade accounts receivable, net are reflected in the following table (in thousands): December 31, 2018 September 30, 2018 Trade accounts receivable $ 13,385 $ 15,776 Allowance for doubtful accounts (986 ) (1,453 ) $ 12,399 $ 14,323 |
Financing Receivables | Financing receivables are reflected in the following table (in thousands): December 31, 2018 September 30, 2018 Promissory notes $ 5,170 $ 5,646 Sales-type lease 4,590 5,533 Total financing receivables 9,760 11,179 Unearned income: Promissory notes (95 ) (95 ) Sales-type lease (180 ) (237 ) Total unearned income (275 ) (332 ) Total financing receivables, net of unearned income 9,485 10,847 Allowance for doubtful promissory notes (1,849 ) (1,849 ) Less current portion (3,843 ) (4,258 ) Non-current financing receivables $ 3,793 $ 4,740 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following (in thousands): December 31, 2018 September 30, 2018 Finished goods $ 14,712 $ 18,802 Work in process 7,405 7,926 Raw material 57,099 54,290 Obsolescence reserve (30,648 ) (30,551 ) 48,568 50,467 Less current portion 17,565 18,812 Non-current portion $ 31,003 $ 31,655 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Other Intangible Assets | As a result of this acquisition and the acquisition of Quantum Technology Sciences (“Quantum”) in July 2018, the Company’s consolidated intangible assets consisted of the following (in thousands): Weighted- Average Remaining Useful Lives (in years) December 31, 2018 September 30, 2018 Goodwill $ 5,980 $ 4,343 Other intangible assets: Developed technology 17.7 6,419 4,200 Customer relationships 3.7 4,200 2,500 Trade names 4.7 1,930 1,400 Non-compete agreements 3.7 170 100 Total other intangible assets 10.9 12,719 8,200 Accumulated amortization (556 ) (194 ) $ 12,163 $ 8,006 |
Future Estimated Amortization Expense of Other intangible Assets | As of December 31, 2018, future estimated amortization expense of other intangible assets is as follows (in thousands): For fiscal years ending September 30, 2019 $ 1,376 2020 1,835 2021 1,835 2022 1,727 2023 751 Thereafter 4,639 $ 12,163 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Stockholders Equity Note [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consisted of the following (in thousands): Unrealized Losses on Available-for-Sale Securities Foreign Currency Translation Adjustments Totals Balance at October 1, 2018 $ (82 ) $ (15,537 ) $ (15,619 ) Changes in unrealized gain on available-for-sale securities, net of tax 64 — 64 Foreign currency translation adjustments — (218 ) (218 ) Balance at December 31, 2018 $ (18 ) $ (15,755 ) $ (15,773 ) |
Loss Per Common Share (Tables)
Loss Per Common Share (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Calculation of Net Loss and Weighted Average Common Shares and Common Equivalent Shares Outstanding for Computation of Loss Per Share | The following table summarizes the calculation of net loss and weighted average common shares and common equivalent shares outstanding for purposes of the computation of loss per share (in thousands, except share and per share data): Three Months Ended December 31, 2018 December 31, 2017 Net loss $ (5,853 ) $ (9,480 ) Less: Loss allocable to unvested restricted stock — — Loss available to common shareholders (5,853 ) (9,480 ) Reallocation of participating earnings — — Loss attributable to common shareholders for diluted earnings per share $ (5,853 ) $ (9,480 ) Weighted average number of common share equivalents: Common shares used in basic loss per share 13,339,408 13,202,384 Common share equivalents outstanding related to stock options and RSUs — — Total weighted average common shares and common share equivalents used in diluted loss per share 13,339,408 13,202,384 Loss per share: Basic $ (0.44 ) $ (0.72 ) Diluted $ (0.44 ) $ (0.72 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
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, 2018 December 31, 2017 Revenue: Oil and Gas Markets $ 11,004 $ 8,039 Adjacent Markets 6,635 6,454 Emerging Markets 88 — Corporate 148 151 Total $ 17,875 $ 14,644 Income (loss) from operations: Oil and Gas Markets $ (2,601 ) $ (7,673 ) Adjacent Markets 982 1,029 Emerging Markets (1,192 ) — Corporate (3,252 ) (2,961 ) Total $ (6,063 ) $ (9,605 ) |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Details) | Dec. 31, 2018USD ($) |
Accounting Policies [Abstract] | |
Cash and cash equivalents held by foreign subsidiaries and branch offices | $ 7,600,000 |
Restricted cash | $ 0 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2018 | Sep. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Deferred contract liability revenue recognized | $ 100,000 | |
Prepaid expenses and other current asset revenue recognized | 8,000 | |
Deferred Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Deferred contract liabilities | 100,000 | $ 200,000 |
Prepaid Expenses and Other Current Assets | ||
Disaggregation Of Revenue [Line Items] | ||
Deferred contract assets | $ 36,000 | $ 27,000 |
Summary of Revenue from the Sal
Summary of Revenue from the Sale of Products and Services Under Contracts with Customers Excludes All Revenue Earned from Rental Contracts by Operating Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 10,459 | $ 13,274 |
Operating Segments | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 10,459 | 13,274 |
Operating Segments | Oil and Gas Markets | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 3,758 | 6,840 |
Operating Segments | Oil and Gas Markets | Traditional Exploration Product Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 2,726 | 3,599 |
Operating Segments | Oil and Gas Markets | Wireless Exploration Product Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 144 | 2,623 |
Operating Segments | Oil and Gas Markets | Reservoir Product Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 888 | 618 |
Operating Segments | Adjacent Markets | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 6,613 | 6,434 |
Operating Segments | Adjacent Markets | Industrial Product Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 3,562 | 3,676 |
Operating Segments | Adjacent Markets | Imaging Product Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 3,051 | $ 2,758 |
Operating Segments | Emerging Markets | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 88 |
Summary of Revenue from the S_2
Summary of Revenue from the Sale of Products and Services Under Contracts with Customers Excludes All Revenue Earned from Rental Contracts by Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 10,459 | $ 13,274 |
Operating Segments | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 10,459 | 13,274 |
Operating Segments | Asia | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 1,558 | 1,006 |
Operating Segments | Canada | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 288 | 365 |
Operating Segments | Europe | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 915 | 3,419 |
Operating Segments | United States | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 6,610 | 8,023 |
Operating Segments | Other | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 1,088 | $ 461 |
Business Acquisition - Addition
Business Acquisition - Additional Information (Details) - USD ($) | Nov. 13, 2018 | Dec. 31, 2018 | Sep. 30, 2018 |
Business Acquisition [Line Items] | |||
Acquisition purchase price | $ 1,819,000 | ||
Contingent earn-out liability | $ 12,055,000 | $ 7,713,000 | |
Optoseis Technology | |||
Business Acquisition [Line Items] | |||
Business acquisition date | Nov. 13, 2018 | ||
Acquisition purchase price | $ 1,800,000 | ||
Contingent payments maximum earn-out amount | $ 23,200,000 | ||
Contingent payments earn-out period | 5 years 6 months | ||
Goodwill and other intangible assets | $ 6,100,000 | ||
Contingent earn-out liability | 4,300,000 | ||
Current assets acquired | 0 | ||
Current liabilities acquired | 0 | ||
Acquisition related legal costs | $ 200,000 |
Short-term Investments (Details
Short-term Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Short-term Investments, Amortized Cost | $ 9,513 | $ 25,553 |
Short-term Investments, Unrealized Gains | 7 | |
Short-term Investments, Unrealized Losses | (25) | (82) |
Short-term Investments, Estimated Fair Value | 9,495 | 25,471 |
Corporate bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Short-term Investments, Amortized Cost | 6,289 | 17,851 |
Short-term Investments, Unrealized Losses | (25) | (60) |
Short-term Investments, Estimated Fair Value | 6,264 | 17,791 |
Government bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Short-term Investments, Amortized Cost | 3,224 | 7,702 |
Short-term Investments, Unrealized Gains | 7 | |
Short-term Investments, Unrealized Losses | (22) | |
Short-term Investments, Estimated Fair Value | $ 3,231 | $ 7,680 |
Short-term Investments - Additi
Short-term Investments - Additional Information (Details) | 3 Months Ended |
Dec. 31, 2018 | |
Short Term Investments [Abstract] | |
Short-term investments, contractual maturity period range start | 2019-02 |
Short-term investments, contractual maturity period range end | 2020-11 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) - CAD ($) $ in Millions | Dec. 28, 2018 | Dec. 31, 2018 | Sep. 30, 2018 |
Canadian Dollar Forward Contract | |||
Derivative [Line Items] | |||
Foreign currency forward contract to hedge | $ 15 | ||
Foreign currency forward contract term | 90 days | ||
Canadian Subsidiary | |||
Derivative [Line Items] | |||
Denominated intercompany accounts payable | $ 19.6 | $ 20.4 |
Gross Fair Value of all Derivat
Gross Fair Value of all Derivative Instruments (Details) - Foreign Currency Forward Contracts - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Prepaid Expenses and Other Assets | ||
Derivatives Fair Value [Line Items] | ||
Derivatives Liabilities | $ 2 | |
Accrued Expenses and Other Current Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivatives Liabilities | $ 270 |
Company's Derivatives on Consol
Company's Derivatives on Consolidated Financial Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Foreign Currency Forward Contracts | Other Income (Expense) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amount of (Loss) Gain Recognized in Income | $ 856 | $ 158 |
Trade Accounts Receivable, Net
Trade Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Current trade accounts receivable | ||
Trade accounts receivable | $ 13,385 | $ 15,776 |
Allowance for doubtful accounts | (986) | (1,453) |
Total current trade accounts receivable | $ 12,399 | $ 14,323 |
Trade Accounts and Financing _3
Trade Accounts and Financing Receivables - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Accounts Notes And Loans Receivable [Line Items] | ||
Trade accounts receivable | $ 13,385 | $ 15,776 |
Single Customer | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Trade accounts receivable | $ 6,800 |
Financing Receivables (Details)
Financing Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total financing receivables | $ 9,760 | $ 11,179 |
Total unearned income | (275) | (332) |
Total financing receivables, net of unearned income | 9,485 | 10,847 |
Allowance for doubtful promissory notes | (1,849) | (1,849) |
Less current portion | (3,843) | (4,258) |
Non-current financing receivables | 3,793 | 4,740 |
Promissory Notes | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total financing receivables | 5,170 | 5,646 |
Total unearned income | (95) | (95) |
Sales Type Lease | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total financing receivables | 4,590 | 5,533 |
Total unearned income | $ (180) | $ (237) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 14,712 | $ 18,802 |
Work in process | 7,405 | 7,926 |
Raw material | 57,099 | 54,290 |
Obsolescence reserve | (30,648) | (30,551) |
Total | 48,568 | 50,467 |
Less current portion | 17,565 | 18,812 |
Non-current portion | $ 31,003 | $ 31,655 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |||
Inventories transferred to rental equipment | $ 7.4 | $ 2 | |
Raw materials include semi-finished goods and component parts | $ 26.7 | $ 29 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Nov. 30, 2018 | Sep. 30, 2018 | |
Goodwill And Other Intangible Assets [Line Items] | ||||
Goodwill | $ 5,980,000 | $ 4,343,000 | ||
Amortization expense | 362,000 | $ 0 | ||
Optoseis Technology | ||||
Goodwill And Other Intangible Assets [Line Items] | ||||
Goodwill | 5,980,000 | $ 1,600,000 | 4,343,000 | |
Other intangible assets | $ 12,719,000 | $ 4,500,000 | $ 8,200,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2018 | Nov. 30, 2018 | Sep. 30, 2018 | |
Goodwill And Other Intangible Assets [Line Items] | |||
Goodwill | $ 5,980 | $ 4,343 | |
Other intangible assets, net | 12,163 | 8,006 | |
Optoseis Technology | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Goodwill | 5,980 | $ 1,600 | 4,343 |
Total other intangible assets | 12,719 | $ 4,500 | 8,200 |
Accumulated amortization | (556) | (194) | |
Other intangible assets, net | $ 12,163 | 8,006 | |
Weighted-Average Remaining Useful Lives (in years) | 10 years 10 months 24 days | ||
Optoseis Technology | Developed Technology | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Total other intangible assets | $ 6,419 | 4,200 | |
Weighted-Average Remaining Useful Lives (in years) | 17 years 8 months 12 days | ||
Optoseis Technology | Customer Relationships | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Total other intangible assets | $ 4,200 | 2,500 | |
Weighted-Average Remaining Useful Lives (in years) | 3 years 8 months 12 days | ||
Optoseis Technology | Trade Names | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Total other intangible assets | $ 1,930 | 1,400 | |
Weighted-Average Remaining Useful Lives (in years) | 4 years 8 months 12 days | ||
Optoseis Technology | Non-compete Agreements | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Total other intangible assets | $ 170 | $ 100 | |
Weighted-Average Remaining Useful Lives (in years) | 3 years 8 months 12 days |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Future Estimated Amortization Expense Of Other intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2,019 | $ 1,376 | |
2,020 | 1,835 | |
2,021 | 1,835 | |
2,022 | 1,727 | |
2,023 | 751 | |
Thereafter | 4,639 | |
Other intangible assets, net | $ 12,163 | $ 8,006 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Beginning Balance | $ 176,587 | $ 194,803 |
Changes in unrealized gain on available-for-sale securities, net of tax | 64 | (51) |
Foreign currency translation adjustments | (218) | (205) |
Ending Balance | 171,397 | 185,893 |
Unrealized Losses on Available-for-Sale Securities | ||
Beginning Balance | (82) | |
Changes in unrealized gain on available-for-sale securities, net of tax | 64 | |
Ending Balance | (18) | |
Foreign Currency Translation Adjustments | ||
Beginning Balance | (15,537) | |
Foreign currency translation adjustments | (218) | |
Ending Balance | (15,755) | |
Accumulated Other Comprehensive Loss | ||
Beginning Balance | (15,619) | (14,230) |
Ending Balance | $ (15,773) | $ (14,486) |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Sep. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 0.1 | |
Expected period for recognition of unrecognized compensation expense | 9 months 18 days | |
Nonqualified stock options unvested and outstanding | 165,600 | |
Restricted Stock Awards | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share unvested and outstanding | 236,562 | |
Restricted Stock Awards | 2014 Long Term Incentive Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares issued | 8,000 | |
Weighted average grant date fair value of the restricted stock | $ 14.59 | |
Grant date fair value of restricted stock issued | $ 0.1 | |
Restricted stock restriction period | 4 years | |
Unrecognized compensation expense | $ 3.7 | |
Expected period for recognition of unrecognized compensation expense | 2 years 6 months | |
Restricted Stock Units (RSUs) | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share unvested and outstanding | 147,800 | |
Restricted Stock Units (RSUs) | 2014 Long Term Incentive Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares issued | 147,800 | |
Weighted average grant date fair value of the restricted stock | $ 15.17 | |
Restricted stock restriction period | 4 years | |
Unrecognized compensation expense | $ 2.2 | |
Expected period for recognition of unrecognized compensation expense | 3 years 10 months 24 days | |
Grant date fair value of restricted stock | $ 2.2 | |
Restricted stock units vesting rights | Each RSU represents a contingent right to receive one share of the Company’s common stock upon vesting. |
Loss Per Common Share - Additio
Loss Per Common Share - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2018shares | Dec. 31, 2017shares | Jun. 30, 2018 | |
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 excluded from calcuation of weighted average shares outstandiing | 165,600 | 201,800 | |
Non-Vested RSUs | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Number of stock excluded from calcuation of weighted average shares outstandiing | 147,800 | 0 |
Calculation of Net Loss and Wei
Calculation of Net Loss and Weighted Average Common Shares and Common Equivalent Shares Outstanding for Computation of Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (5,853) | $ (9,480) |
Loss available to common shareholders | (5,853) | (9,480) |
Loss attributable to common shareholders for diluted earnings per share | $ (5,853) | $ (9,480) |
Weighted average number of common share equivalents: | ||
Common shares used in basic loss per share | 13,339,408 | 13,202,384 |
Total weighted average common shares and common share equivalents used in diluted loss per share | 13,339,408 | 13,202,384 |
Loss per share: | ||
Basic | $ (0.44) | $ (0.72) |
Diluted | $ (0.44) | $ (0.72) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | Nov. 13, 2018 | Jul. 27, 2018 | Dec. 31, 2018 | Sep. 30, 2018 |
Commitments And Contingencies [Line Items] | ||||
Contingent earn-out liability | $ 12,055,000 | $ 7,713,000 | ||
Quantum | ||||
Commitments And Contingencies [Line Items] | ||||
Contingent earn-out liability | $ 7,700,000 | |||
Contingent payments earn-out period | 4 years | |||
Contingent payments maximum earn-out amount | $ 23,500,000 | |||
Optoseis Technology | ||||
Commitments And Contingencies [Line Items] | ||||
Contingent earn-out liability | $ 4,300,000 | |||
Contingent payments earn-out period | 5 years 6 months | |||
Contingent payments maximum earn-out amount | $ 23,200,000 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Dec. 31, 2018Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Summary of Company's Segment In
Summary of Company's Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 17,875 | $ 14,644 |
Income (loss) from operations | (6,063) | (9,605) |
Operating Segments | Oil and Gas Markets | ||
Segment Reporting Information [Line Items] | ||
Revenue | 11,004 | 8,039 |
Income (loss) from operations | (2,601) | (7,673) |
Operating Segments | Adjacent Markets | ||
Segment Reporting Information [Line Items] | ||
Revenue | 6,635 | 6,454 |
Income (loss) from operations | 982 | 1,029 |
Operating Segments | Emerging Markets | ||
Segment Reporting Information [Line Items] | ||
Revenue | 88 | |
Income (loss) from operations | (1,192) | |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Revenue | 148 | 151 |
Income (loss) from operations | $ (3,252) | $ (2,961) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
United States statutory tax rate | 21.00% | 24.50% | 21.00% | 35.00% |
Decrease in deferred tax asset due to Tax Act | $ 8.1 | |||
Company's effective tax rates | (0.10%) | (0.10%) |