Mitcham Industries Inc. has a market cap of $55.6 million; its shares were traded at around $5.66 with a P/E ratio of 113.2 and P/S ratio of 1. MIND is in the portfolios of John Rogers of ARIEL CAPITAL MANAGEMENT LLC.
Highlight of Business Operations:During fiscal 2009 and 2008, we responded to the increased demand for our services and products by adding new equipment to our lease pool and by introducing new products from our Seamap segment. During fiscal 2009 and 2008, we added approximately $34.9 million and $26.0 million, respectively, of equipment to our lease pool. During fiscal 2010, we added approximately $19.6 million of new lease pool equipment, despite the decline in demand for equipment during this period. Although we did experience an overall decline in demand, there was an increase in demand for certain types of equipment, such as downhole seismic tools and three-component digital sensors. We responded to this demand by acquiring more of this equipment, as well as other equipment for which we had specific demand or anticipated demand in the near future. In the three months ended April 30, 2010, we added approximately $3.7 million of new lease pool equipment. We may acquire additional downhole, three-component digital sensors and other equipment in fiscal 2011; however, we do not currently expect our expenditures for lease pool equipment to reach the same level as in fiscal 2010.
Revenues for the three-month periods ended April 30, 2010 and 2009 were approximately $16.5 million and $10.6 million, respectively. This increase was due to increased leasing revenues and higher Seamap sales. For the three months ended April 30, 2010, leasing revenues began to recover from the lower levels experienced in the prior year. For the three months ended April 30, 2010, we generated operating income of approximately $2.5 million as compared to approximately $16,000 for the three months ended April 30, 2009. The increase in operating profit was due primarily to the increase in revenues. A more detailed explanation of these variations follows.
SAP regularly sells new hydrographic and oceanographic equipment and provides system integration services to customers in Australia and throughout the Pacific Rim. For the fiscal quarter ended April 30, 2010, SAP generated a gross profit of approximately $151,000 from these transactions as compared to a gross profit of approximately $385,000 in the fiscal quarter ended April 30, 2009. In May 2008, SAP entered into a contract with the Royal Australian Navy to provide certain equipment to the Republic of the Philippines. We account for this contract using the percentage of completion method. In the three months ended April 30, 2010, we did not recognize any revenue or costs related to this contract. The contract is essentially complete pending final documentation approval and billing of the final contract milestone of approximately $400,000. In the three months ended April 30, 2009, we recognized approximately $900,000 in revenues related to this contract. We have incurred approximately $200,000 in unexpected costs in the fulfillment of this contract and have submitted claims for reimbursement of these costs. However, until our claims are approved and accepted, we have not included the benefit from these claims in our calculation of expected profits from the contract. We expect to recognize additional contract revenues of approximately $340,000 upon final completion of the contract, excluding the effect of the pending claims, and gross profit of approximately $46,000. The sales of hydrographic and oceanographic equipment by SAP are generally not related to oil and gas exploration activities and are often made to governmental entities. Accordingly, these sales are not impacted by global economic and financial issues to the same degree as are other parts of our business.
Net interest expense for the first three months of fiscal 2011 amounted to approximately $94,000, compared to approximately $89,000 in the first three months of fiscal 2010. The fiscal 2011 amount represents interest expense of approximately $149,000, primarily related to borrowings under our revolving line of credit, offset by interest income of approximately $55,000. For the fiscal 2010 period interest expense and interest income was approximately $112,000 and $23,000, respectively.
As of April 30, 2010, we had working capital of approximately $26.8 million, including cash and cash equivalents and restricted cash of approximately $13.1 million, as compared to working capital of approximately $23.2 million including cash and cash equivalents and restricted cash of approximately $6.7 million at January 31, 2010. Our working capital increased during the three months ended April 30, 2010 primarily due to working capital generated from operations and borrowings under our revolving credit agreement.
Net cash flows used in investing activities for the three months ended April 30, 2010 included purchases of seismic equipment held for lease totaling approximately $4.7 million. There were approximately $3.9 million in accounts payable at April 30, 2010 related to lease pool purchases made during the first three months of fiscal 2011, or earlier. At January 31, 2010, there was approximately $4.7 million in accounts payable related to lease pool purchases. Accordingly, addit
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