Net income for the third quarter ended June 30, 2013 was the second highest in the company’s history, with revenues and net income up 42% and 58%, respectively, from last year’s third quarter. When compared to the fiscal year 2013 second quarter’s results, the third quarter’s consolidated revenues and net income were only marginally improved. The third quarter’s results reflected a substantially larger revenue contribution from the Statoil permanent reservoir monitoring system than originally anticipated and when compared to the second quarter, the larger Statoil revenue contribution was partially offset by a decrease in demand for traditional products due to slower worldwide seismic activity. However, the company reported that subsequent to the end of the third quarter, the company delivered a 1,200-station OBX marine nodal system to a customer under a rental agreement and also that quoting activity is high for both land and marine wireless products.
Nevertheless consensus forecasts on Yahoo Finance remain bullish and point to strong growth. Similarly, the company expects to recognize approximately $25-$30 million of additional revenue from the Statoil order in the fourth quarter with all remaining revenue falling into fiscal year 2014.
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