Net income increased 50% to $40.3 million (or $0.45 per diluted share), bolstered by record fourth-quarter revenue and operating income performance. Excluding one-time expenses*, full-year earnings per diluted share rose to $0.52 from $0.33 in 2006.

We believe our momentum will continue into 2008. Driven by a continuation of the current up-cycle in the E&P industry and our ongoing commercialization of game-changing geophysical products and services, ION’s 2008 consolidated revenues are expected to range between $780 and $830 million and earnings to range from $0.70 to $0.85 per diluted share.

We believe industry spending will remain robust as E&P firms move to capitalize on high prices for crude oil and natural gas, and attempt to replace their hydrocarbon reserves in an era characterized by both increased competition for resource access and emboldened sovereign asset holders.

We entered 2007 by reorganizing around our two main customer segments. ION Systems focuses on the seismic acquisition contractors. Our Systems group is the home of the hardware and software products used by contractors during acquisition in both land and marine operations, and includes offerings such as energy source systems, recording systems, sensors, and command & control software.

ION Solutions focuses on the oil & gas companies. Our Solutions group is the home of the products and services used by oil & gas companies during exploration, development, and production, and includes offerings such as data processing, seismic data libraries, and advanced reservoir analysis services. Our Solutions group is also chartered to work directly with the oil & gas companies on their most difficult imaging challenges. Technical professionals from ION Solutions collaborate with frontier explorationists and asset team geoscientists in the E&P companies to identify customized packages of geophysical hardware, software, and services from both ION and a network of third-party partners.