Share this page with someone.

Facebook Twitter LinkedIn Print Email
Input/Output Reports First Quarter Results

HOUSTON
– (September 11, 1998) – Input/Output, Inc. (NYSE: IO) today announced net
income of $2.3 million, or $0.05 per share, on revenue of $67.0 million for the fiscal
first quarter ended August 31, 1998.

During the quarter the company sold 7,590 channels of its seismic data acquisition
recording equipment including three new recording systems, as compared to 25,574 channels
and 15 new systems in the first quarter of the previous year. A first-quarter total of
5,142 I/O SYSTEM TWO® channels, including two new recording
systems were shipped during the quarter, as were 2,448 channels of the I/O SYSTEM MSX®
marine recording system, including one new MSX system.

"The change in commodity prices finally had an adverse impact on the spending
habits of our customers and end-users," said W.J. "Zeke" Zeringue,
I/O’s chairman and chief executive officer. "As a result, oil and gas companies
delayed exploration spending during the quarter, resulting in several projects that were
postponed or canceled."

The company also said that its product mix resulted in a lower gross profit margin, as
the majority of product shipments were marine streamers, cables and auxiliary equipment to
support its customer installed base.

"Coming off a record year, we continued our rate of investment in developing new
products, including software applications, and augmenting our customer service
organization," said Zeringue. "We also continued to strengthen our land and
marine product offerings to increase our market leadership. We will introduce the first of
these new products, a new central electronics unit for land-based systems, next week.

"While we believe these investments will ultimately lessen the impact of volatile
commodity prices on our performance, we are keenly aware of the short-term challenges of
the external environment and will manage our internal business accordingly," said
Zeringue.

This press release contains forward-looking information, including statements relating
to the company’s performance for its current fiscal year, and is subject to certain
risks and uncertainties that could cause actual results to differ materially from those
projected. Some of the factors which could affect actual results are described in the
section entitled "Cautionary Statement for Purposes of Forward-Looking
Statements" contained in the company’s report on Form 10-K for the year ended
May 31, 1998.

Input/Output is a world leader in seismic acquisition technology for land, transition
zone and marine exploration and production.

MORE

 

INPUT/OUTPUT,
INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)

For the three months ended

August 31,

1998

1997

Net sales and other revenues

$66,995

$82,970

Cost of sales

45,032

49,656

Gross profit

21,963

33,314

Operating expenses:
Research and development

9,061

7,388

Marketing and sales

3,962

2,884

General and administrative

6,335

6,068

Amortization of identified intangibles

1,860

1,187

Total operating expenses

21,218

17,527

Earnings from operations

745

15,787

Interest expense

(242)

(322)

Other income

2,843

1,119

Earnings before income taxes

3,346

16,584

Income taxes

1,071

5,307

Net earnings

$2,275

$11,277

Basic earnings per common share

$0.05

$0.26

Weighted average number of

common shares outstanding

44,585,501

43,383,059

Diluted earnings per common share

$0.05

$0.26

Weighted average number of
diluted common shares outstanding

44,702,268

43,793,884