Share this page with someone.

Facebook Twitter LinkedIn Print Email

HOUSTON, Apr 25, 2002 /PRNewswire-FirstCall via COMTEX/ — Input/Output, Inc.
(NYSE: IO) today announced a net loss applicable to common shareholders for the
first quarter ended March 31, 2002 of $(6.0) million, or $(0.12) per share, on
revenue of $30.2 million, compared to a net loss applicable to common
shareholders of $(1.2) million, or $(0.02) per share, on revenue of $42.4
million for the same period a year ago. Land and marine division revenues during
the first quarter were $17.6 million and $12.6 million, respectively, compared
to land division revenue of $27.8 million and marine division revenue of $14.6
million for the same period a year ago.

“We indicated as early as last October that the first half of this year could be
challenging,” said Tim Probert, the Company’s President and Chief Executive
Officer. “North American drilling activity declined over 27% this quarter
compared to last year’s first quarter, while international drilling activity was
essentially flat. Correspondingly, seismic activity softened substantially this
quarter compared to last year. We have responded to this industry weakness by
aggressively cutting costs while maintaining our core infrastructure and key
technology initiatives. We have reduced the number of full-time and temporary
employees at March 31, 2002 by over 300 since the end of last year, to about 820
employees. We will take additional steps to reduce expenses commensurate with
near-term revenue expectations.”

“Looking forward,” Mr. Probert continued, “despite improving commodity prices
and indications that an industry recovery may be in sight, we do not currently
anticipate a meaningful improvement in sales or earnings in our second quarter.
We are optimistic that strengthening fundamentals will produce the
widely-anticipated second half recovery, although today we cannot predict the
timing or strength of any such recovery.”

“On a more positive note, we successfully completed our first commercial
VectorSeis(R) survey with Veritas this quarter. This proprietary survey utilized
approximately 3,400 VectorSeis stations to acquire multicomponent land surface
seismic data. Based on product performance and oil company responses, we are
increasingly optimistic about the commercial prospects for this technology

Input/Output, Inc. is an industry leader in seismic acquisition imaging
technology for land, marine, transition zone exploration, production and
reservoir monitoring. The Company specializes in technology that creates value
for the energy industry in the areas of 2D, 3D, 4D and multi-component seismic
data. Additional information on Input/Output, Inc. is available on the Internet
at or contact us at .

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 the Company’s revenue and earnings projections for 2002,
any statement concerning future business fundamentals for the seismic industry,
and acceptance of new product offerings. 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 a continuation in trends
for energy industry demand for seismic services and products; 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 competitors’
product offerings and pricing pressures resulting therefrom; the Company’s
inability to produce products to preserve and increase market share;
technological and marketplace changes affecting the Company’s product line;
risks associated with sales of products to customers outside the United States;
losses of significant customers; dependence on key technical and other
personnel; payment defaults under sales credit arrangements with the Company’s
customers; future performance from acquired businesses and units falling below
projected expectations; the success of future acquisitions and strategic
alliances by the Company; future energy exploration industry conditions and
future prices worldwide for oil and natural gas. 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.

(In thousands, except share and per share data)

Three Months Ended
March 31,
2002 2001
Net sales $ 30,213 $ 42,409
Cost of sales 23,252 26,168
Gross profit 6,961 16,241

Operating expenses:
Research and development 7,021 7,537
Marketing and sales 2,530 2,850
General and administrative 4,627 4,893
Amortization and impairment of
intangibles 316 1,136
Total operating expenses 14,494 16,416

Loss from operations (7,533) (175)

Interest expense (35) (207)
Interest income 491 1,291
Other income (expense) (136) 307
Earnings (loss) before income taxes (7,213) 1,216
Income tax expense (benefit) (2,671) 1,026
Net earnings (loss) (4,542) 190
Preferred dividend 1,455 1,390
Net loss applicable to common shares $ (5,997) $ (1,200)

Basic loss per common share $ (0.12) $ (0.02)
Weighted average number of common
shares outstanding 50,890,836 50,851,239

Diluted loss per common share $ (0.12) $ (0.02)

Weighted average number of diluted
common shares outstanding 50,890,836 50,851,239


SOURCE Input/Output, Inc.

CONTACT:          C. Robert Bunch, Chief Administrative Officer of Input-Output,
Inc., +1-281-933-3339
/Photo: NewsCom:
AP Archive:
PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840