HOUSTON, Jan. 4 /PRNewswire-FirstCall/ — Input/Output, Inc. (NYSE: IO)
today announced that fourth quarter results will be significantly below the
low end of the Company’s guidance of $0.08 per share primarily because two
high margin GXT data library sales were not completed as expected.
Additionally, I/O announced 2005 earnings guidance in the range of $0.15 to
$0.40 per share.
I/O Chief Executive Officer, Bob Peebler said, “Events in the last two
weeks of 2004 significantly affected our fourth quarter expectations. A
customer involved in a year-end acquisition imposed a freeze on spending while
the approval process of another customer extended the transaction into 2005.
These two significant GXT transactions were in our original forecast and
amounted to approximately $10 million in revenue and earnings per share of
$0.10. These events could result in the Company incurring a loss for the
Final fourth quarter results remain subject to management and independent
auditors completing their customary year-end closing and review procedures.
The Company will include a review of 2004 financial results and a discussion
of key business drivers for 2005 in its normal quarter end conference call
scheduled for February 9, 2005.
“Integration of two major acquisitions has proved more challenging than
expected. Specifically, GXT fourth quarter income was highly dependent on
data sales in contrast to their historically balanced mix of data acquisition
projects, data processing and data sales. We look forward to 2005 with a
growing backlog of client projects and expansion in our proprietary processing
business, which should give us a more balanced portfolio with less dependency
on data sales. In general, we have seen less year-end spending in the
geophysical area by the larger oil companies than expected but are seeing
positive indications of increases in planned spending in 2005.
“While our earnings have fallen short for the last half of 2004, we
continue to make progress on the foundation of our business. Regarding GXT,
we have made significant strides related to supporting VectorSeis Full Wave
processing and other strategic goals that over time we believe will be proven
out by our business results. We enter 2005 with the expectation to deliver
profitable growth across our business lines and, as importantly, make
significant progress in introducing our new technologies including VectorSeis
Full Wave,” concluded Peebler.
I/O has scheduled a conference call for tomorrow, Wednesday, January 5,
2005, at 9:00 a.m. eastern time to discuss this release. To participate in
the conference call, dial 303-262-2142 at least 10 minutes before the call
begins and ask for the Input/Output conference call. A replay of the call
will be available approximately two hours after the live broadcast ends and
will be accessible until January 12, 2005. To access the replay, dial
303-590-3000 and use pass code 11020526.
Investors, analysts and the general public will also have the opportunity
to listen to the conference call live over the Internet by visiting
http://www.i-o.com . Also, an archive of the web cast will be available
shortly after the call on the company’s website for approximately 90 days.
I/O is the world’s leading, technology-only seismic services provider.
The company provides cutting-edge seismic acquisition equipment, software, and
planning and seismic processing services to the global oil and gas industry.
The company’s technologies are applied in both land and marine environments,
in traditional 2D and 3D surveys, and in rapidly growing areas like time-lapse
(4D) reservoir monitoring and full-wave imaging. I/O has offices in the
United States, Canada, Europe, China, Russia and the Middle East. Additional
information is available at http://www.i-o.com .
The information included herein contains certain forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These forward-looking
statements include statements concerning capital outlays by E&P companies and
seismic contractors, future VectorSeis revenues, and fourth quarter revenues,
gross margin, and net income per share. Actual results may vary materially
from those described in these forward-looking statements. All forward-looking
statements reflect numerous assumptions and involve a number of risks and
uncertainties. These risks and uncertainties include the timing and
development of the company’s products and services and market acceptance of
the company’s new and revised product offerings; risks associated with the
company’s restructuring program; risks associated with competitor’s product
offerings and pricing pressures resulting there from; the company’s inability
to produce products to preserve and increase market share; and technological
and marketplace changes affecting the company’s product line. Additional risk
factors, which could affect actual results, are disclosed by the company from
time to time in its filings with the Securities and Exchange Commission.
CONTACTS: J. Michael Kirksey
Chief Financial Officer
Jack Lascar, Partner
Karen Roan, Sr. Vice President
DRG&E / (713) 529-6600
SOURCE Input/Output, Inc.
CONTACT: J. Michael Kirksey, Chief Financial Officer of Input-Output,
Inc., +1-281-879-3672; or Jack Lascar, Partner, or Karen Roan, Sr. Vice
President, both of DRG&E, +1-713-529-6600, for Input-Output, Inc