Geospace Technologies Corp (GEOS) 2025 Q2 法說會逐字稿

Welcome to the Geospace Technologies second quarter 2025 earnings conference call. Hosting the call today from Geospace is Mr. Rich Kelley, President and Chief Executive Officer. He is joined by Robert Curda, the company's Chief Financial Officer.

歡迎參加 Geospace Technologies 2025 年第二季財報電話會議。今天主持電話會議的是 Geospace 總裁兼執行長 Rich Kelley 先生。該公司財務長羅伯特‧庫爾達 (Robert Curda) 也與他一同出席。

Today's call is being recorded and will be available on the Geospace Technologies investor relations website following the call. At this time, all participants have been placed in a listen-only mode, and the floor will be open for your questions following the presentation.

今天的電話會議已被錄音，會議結束後將在 Geospace Technologies 投資者關係網站上發布。目前，所有參與者都處於只聽模式，演講結束後將開放提問環節。

(Operator Instructions) It is now my pleasure to turn the floor over to Rich Kelley. Sir, you may begin.

（操作員指示）現在我很高興將發言權交給 Rich Kelley。先生，您可以開始了。

Thank you, Bill. Good morning, and welcome to Geospace Technologies conference call for the second quarter of fiscal-year 2025. I am Rich Kelley, the company's Chief Executive Officer and President. I'm joined by Robert Curda, the company's Chief Financial Officer.

謝謝你，比爾。早安，歡迎參加 Geospace Technologies 2025 財年第二季電話會議。我是 Rich Kelley，公司執行長兼總裁。與我一起參加的是公司財務長羅伯特‧庫爾達 (Robert Curda)。

In our prepared remarks, I will first provide an overview of the second quarter, and Robert will then follow up with more in-depth commentary on our financial performance, as well as an overview of our financials.

在我們的準備好的演講中，我將首先概述第二季度，然後羅伯特將對我們的財務業績進行更深入的評論，並概述我們的財務狀況。

I will then give some final comments before opening the line for questions. Today's commentary on markets, revenue, planned operations, and capital expenditures may be considered forward-looking as defined in the Private Securities Litigation Reform Act of 1995.

在開始回答問題之前，我將發表一些最後的評論。今天對市場、收入、計畫營運和資本支出的評論可能被視為《1995 年私人證券訴訟改革法案》中定義的前瞻性評論。

These statements are based on what we know now, but actual outcomes are affected by uncertainties beyond our control or prediction.

這些陳述是基於我們現在所知的內容，但實際結果受到我們無法控製或預測的不確定性的影響。

Both known and unknown risk can lead to results that differ from what is said or implied today. Some of these risks and uncertainties are discussed in our SEC Form 10-K and 10-Q filings. For convenience, we will link a recording of this call on the investor relations page of our Geospace.com website, which I invite everyone to browse through and learn more about Geospace, our subsidiaries, and our products.

已知和未知的風險都可能導致與今天所說或暗示不同的結果。我們在提交給美國證券交易委員會的 10-K 和 10-Q 表格中討論了其中一些風險和不確定性。為了方便起見，我們將在 Geospace.com 網站的投資者關係頁面上連結本次電話會議的錄音，我邀請大家瀏覽並了解有關 Geospace、我們的子公司和我們的產品的更多資訊。

Note that today's recorded information is time sensitive. It may not be accurate at the time one listens to the replay.

請注意，今天記錄的資訊具有時間敏感性。聽重播時可能不準確。

Yesterday, after the market closed, we released our financial results for the period ended March 31st, our second quarter of the fiscal year. For the three months ending March 31, 2025, we reported revenue of $18 million with a net loss of $9.8 million.

昨天，市場收盤後，我們發布了截至 3 月 31 日的本財年第二季的財務表現。截至 2025 年 3 月 31 日的三個月，我們報告的收入為 1,800 萬美元，淨虧損為 980 萬美元。

For the first half of our fiscal year, we had $55.2 million in revenue with a net loss of $1.4 million. Like many companies, the second quarter provided volatility for our company.

本財年上半年，我們的營收為 5,520 萬美元，淨虧損為 140 萬美元。與許多公司一樣，第二季度為我們公司帶來了波動。

We had record performance in our Smartwater segment with our hydrocon universal connectors continuing to outperform year over year.

我們的 Smartwater 部門取得了創紀錄的業績，我們的水力發電機通用連接器的表現連續多年優於其他產品。

We're also experiencing increased interest in our anaa product offerings. We anticipate continued organic growth in this market segment offsetting that is the ongoing uncertainty in the energy solution segment.

我們對 anaa 產品的興趣也日益濃厚。我們預計該市場領域將繼續有機成長，以抵消能源解決方案領域持續存在的不確定性。

Global trade concerns, tariffs, and decreasing oil prices have impacted project decisions for our customers, resulting in delayed and canceled opportunities. The Obion rental market and land equipment sales continued to underperform previous years. That being said, we recently announced a mariner contract and have ongoing inquiries for possible future requirements for OBM solutions.

全球貿易問題、關稅和油價下跌影響了我們客戶的專案決策，導致專案機會延遲和取消。Obion 租賃市場和陸域設備銷售表現持續遜於前幾年。話雖如此，我們最近宣布了一項海員合同，並正在持續調查 OBM 解決方案未來可能的需求。

Combined with the ongoing PRM studies, this reinforces the market's interest in our technology and possible future resilience. Our intelligent industrial segment is negatively impacted by tariff concerns, especially for our exile products. Recognizing those external factors, we are working to optimize our supply chains to minimize the impact to our company and our customers.

結合正在進行的 PRM 研究，這增強了市場對我們的技術和未來可能的彈性的興趣。我們的智慧工業部門受到關稅問題的負面影響，尤其是我們的流放產品。認識到這些外部因素，我們正在努力優化我們的供應鏈，以盡量減少對我們公司和客戶的影響。

Our industrial center products remain steady and with increased interest in American made products, there are more inquiries into our contract manufacturing business. We are well positioned to exploit the tremendous potential we have created with our innovative IoT technologies, our talented staff, and our continuing diversification into new high margin markets in the smart water and intelligent industrial segments.

我們的工業中心產品保持穩定，隨著人們對美國製造產品的興趣增加，對我們的合約製造業務的詢問也越來越多。我們已做好準備，充分利用我們憑藉創新的物聯網技術、優秀的員工隊伍以及在智慧水務和智慧工業領域不斷向新的高利潤市場多元化發展所創造的巨大潛力。

Additionally, our current backlog places us in a strong position going into the second half of the year.

此外，我們目前的積壓訂單使我們在進入下半年時處於有利地位。

Importantly, the long standing strength of our balance sheet with no debt and $19.8 million in cash and short-term investments illustrate our conservative approach to managing the business.

重要的是，我們的資產負債表長期保持強勁，沒有債務，擁有 1,980 萬美元的現金和短期投資，這反映了我們管理業務的保守態度。

Executive leadership continues to address workforce costs and development expenses on our path to sustained profitability. Beyond our traditional conservative fiscal management in our profitability plan, we continue to pursue growth through acquisition and immediately accretive additions to our top line revenue. Overall, I have continued optimism that our company is well positioned to perform in our newer markets.

在實現持續獲利的道路上，管理層將繼續致力於解決勞動成本和開發費用問題。除了獲利計畫中傳統的保守財務管理之外，我們還繼續透過收購來追求成長，並立即增加我們的營業收入。總體而言，我仍然樂觀地認為，我們公司已做好準備，在新市場中取得良好表現。

I will now turn the call over to Robert to provide more detail in our financial performance.

現在我將把電話轉給羅伯特，讓他提供更多有關我們財務表現的細節。

Thanks, Rich. Good morning. Before I begin, I'd like to remind everyone that we will not provide any specific revenue or earnings guidance during our call this morning. In yesterday's press release for our second quarter ended March 31, 2025, we reported revenue of $18 million compared to last year's revenue of $24.3 million.

謝謝，里奇。早安.在開始之前，我想提醒大家，我們不會在今天上午的電話會議上提供任何特定的收入或盈利指導。在昨天發布的截至 2025 年 3 月 31 日的第二季新聞稿中，我們報告的收入為 1,800 萬美元，而去年的收入為 2,430 萬美元。

The net loss for the quarter was $9.8 million or $0.77 per diluted share compared to last year's net loss of $4.3 million or $0.32 per diluted share.

本季淨虧損為 980 萬美元，即每股攤薄虧損 0.77 美元，而去年淨虧損為 430 萬美元，即每股攤薄虧損 0.32 美元。

For the six months ended March 31, 2025, we reported revenue of $55.2 million compared to revenue of $74.3 million last year. Our net loss for the six month period was $1.4 million or $0.11 per diluted share compared to last year's net income of $8.4 million or $0.06 per diluted share.

截至 2025 年 3 月 31 日的六個月，我們的報告收入為 5,520 萬美元，而去年的收入為 7,430 萬美元。我們六個月的淨虧損為 140 萬美元，即每股攤薄虧損 0.11 美元，而去年的淨收入為 840 萬美元，即每股攤薄虧損 0.06 美元。

Our Smart Water segment generated revenue of $9.5 million for the three month period ended March 31, 2025. In comparison, revenue for the same prior year period was $6.4 million, an increase of 48%.

截至 2025 年 3 月 31 日的三個月內，我們的智慧水務部門創造了 950 萬美元的收入。相比之下，去年同期的營收為 640 萬美元，成長了 48%。

Revenue for the six month period of 2025 was $16.8 million compared to $10.6 million from the same period of fiscal year 2024. This marks a record high level of second quarter and first half revenue for our Smart Water segment. Our energy solution segment, second quarter revenue totaled $2.6 million. This compares to $11 million in revenue for the same period of fiscal year 2024, representing a decrease of 77%.

2025 年六個月的營收為 1,680 萬美元，而 2024 財年同期的營收為 1,060 萬美元。這標誌著我們的智慧水務部門第二季和上半年營收創下歷史新高。我們的能源解決方案部門第二季營收總計 260 萬美元。相較之下，2024 財年同期的營收為 1,100 萬美元，下降了 77%。

Revenue for the six month period of 2025 is $26.9 million, a decrease of 47% over the equivalent prior year period of $50.9 million.

2025 年六個月的收入為 2,690 萬美元，比去年同期的 5,090 萬美元下降了 47%。

The decrease in revenue for the three month and six month periods was due to lower demand for our marine wireless products and lower utilization of our marine ocean bottom node rental fleet. The three-month period was also impacted by concerns of collectibility of receivables from an OBM rental customer.

三個月和六個月期間收入的減少是由於我們的海上無線產品需求下降以及我們的海上海底節點租賃船隊的利用率下降。這三個月期間也受到對 OBM 租賃客戶應收帳款可收回性的擔憂的影響。

Our concern resulted in rent receivable in the rent receivable balance due from this customer $2.2 million to be reversed against rental revenue.

我們的擔憂導致該客戶應收租金餘額中的 220 萬美元租金被沖銷租金收入。

Any future cash we receive from this customer will be recognized as rental revenue. The intelligent industrial segment revenue total $5.9 million for the three month period. This compares with $6.7 million from the equivalent year ago period, representing a decrease of 13%.

我們從該客戶收到的任何未來現金都將確認為租金收入。智慧工業部門三個月的總收入為 590 萬美元。相比之下，去年同期為 670 萬美元，下降了 13%。

Revenue for the six month period of fiscal year 2025 was $11.5 million. This compares to the same prior year period revenue of $12.6 million a decrease of 9%.

2025 財年六個月的收入為 1,150 萬美元。相比之下，去年同期的營收為 1,260 萬美元，下降了 9%。

The decrease in revenue for both periods was primarily due to revenue recognized for the 3 and 6 months ended March 30, 2024 on a government contract that we completed in the 4th quarter of fiscal year 2024 and lower demand for our imaging products. The decrease for both periods was partially offset by an increase in demand for our sensor products.

兩個期間的收入減少主要是由於我們在 2024 財年第四季度完成的政府合約中截至 2024 年 3 月 30 日的第 3 個月和第 6 個月確認的收入以及我們成像產品的需求下降。這兩個時期的下降被我們感測器產品需求的增加部分所抵消。

Our operating expenses increased by $1.6 million or 16% for the second quarter of 2025 and increased $4.6 million or 23% for the six month period ended March 31, 2025. The increase in operating expenses for both periods is due to higher personnel costs, increased research and development project costs, and higher higher sales and marketing expenses.

2025 年第二季我們的營運費用增加了 160 萬美元，即 16%，截至 2025 年 3 月 31 日的六個月期間增加了 460 萬美元，即 23%。兩個期間的營業費用增加是由於人員成本增加、研發項目成本增加以及銷售和行銷費用增加。

Our 6 month cash investments into our rental fleet is $900,000 and property and property plant equipment investments is $4.4 million. Our balance sheet at the end of the second quarter reflected $19.8 million of cash in short-term investments, and our credit facility has available borrowings of $15 million as of March 31, 2025. Additionally, the company's working capital is $71 million which includes 36 million of trade accounts and financing receivables.

我們對租賃車隊的 6 個月現金投資為 90 萬美元，對財產和房地產工廠設備的投資為 440 萬美元。我們第二季末的資產負債表顯示短期投資現金為 1,980 萬美元，截至 2025 年 3 月 31 日，我們的信貸額度可提供借款 1,500 萬美元。此外，該公司的營運資金為 7,100 萬美元，其中包括 3,600 萬美元的貿易帳款和融資應收款。

Lastly, we own real estate holdings in Houston and around the world that are owned free and clear without any leverage. This concludes my discussion and I'll turn the call back to Ridge.

最後，我們在休士頓和世界各地擁有房地產，這些房地產的所有權是自由且明確的，沒有任何槓桿。我的討論到此結束，我將把電話轉回給里奇。

Thank you, Robert. This concludes our prepared commentary, and I will now turn the call back to the moderator for any questions from our listeners.

謝謝你，羅伯特。我們的準備好的評論到此結束，現在我將把電話轉回給主持人，以便聽眾提出任何問題。

(Operator Instructions)

（操作員指示）

[Bill Donohue], Teton Capital.

[比爾·多諾霍]，Teton Capital。

Thank you. First of all, you'd mentioned the cost cutting that you all continue to work on. How are you thinking about a target breakeven level, or is that even the way in which you're approaching the exercise?

謝謝。首先，您提到了你們正在繼續努力削減成本。您如何考慮目標損益平衡水平，或者這就是您實現這一目標的方法嗎？

Good morning, Bill. It's a good question. We're really more focused on strategic cost cutting. So as we evaluate our overall, individual business units, which ones continue to make sense, which ones are we going to invest in going forward versus which ones we we're considering, possible making changes. So it's more strategic, and really just trying to focus on what makes the best sense for the business.

早安，比爾。這是個好問題。我們確實更加重視戰略成本削減。因此，當我們評估我們的整體、各個業務部門時，哪些是繼續有意義的，哪些是我們將在未來投資的，哪些是我們正在考慮的，可能會改變的。因此，它更具策略性，實際上只是試圖專注於對業務最有意義的事情。

That's helpful. Thank you. And then the mariner contract, I believe in the press release you have a phrase similar to interest in possible future requirements, something to that effect. Would you please discuss what that means? It sounds like that's code for something more interesting.

這很有幫助。謝謝。然後是海員合同，我相信在新聞稿中有一個類似於對未來可能的需求的興趣的短語，大意如此。您能討論一下這意味著什麼嗎？這聽起來像是某種更有趣的東西的程式碼。

That's a good question. So that's a new customer for us over in the Caspian area, and there, I think they have a business strategy where they anticipate increased activity in that area. So once they're operational, I think that they'll be evaluating what their future business might look like.

這是個好問題。所以這對我們里海地區來說是一個新客戶，而且我認為他們有一個商業策略，預計該地區的活動會增加。因此，一旦他們開始運營，我認為他們會評估未來的業務會是什麼樣子。

So we, we're definitely having discussions to be a partner with them going forward to help them grow and develop their business.

因此，我們肯定會與他們進行討論，成為他們的合作夥伴，幫助他們發展壯大業務。

That is that is helpful.

那是有幫助的。

Thank you. And then The federal government has, is working on a budget.

謝謝。然後聯邦政府正在製定預算。

What do you know about the implications of that budget for you all and from the various businesses?

您對這個預算對你們所有人以及各個企業的影響了解多少？

I wish my crystal ball was more clear on that. I don't think Congress even knows what they're doing sometimes.

我希望我的水晶球能對此更加清晰。我認為國會有時甚至不知道他們在做什麼。

I will say that we we are pretty bullish for our border security products. I think there, as you as you read in the press, there's lots of interest in border security, border protection. And they're going to be looking at technologies and solutions that help them secure the border. So I think that's all positive for us. We, we've not gotten any news or any indication that from them specifically, I think we just feel fairly bullish about it.

我想說的是，我們對我們的邊境安全產品非常看好。我認為，正如您在媒體上看到的，人們對邊境安全和邊境保護非常感興趣。他們將研究有助於確保邊境安全的技術和解決方案。所以我認為這對我們來說都是正面的。我們還沒有從他們那裡得到任何消息或任何跡象，我認為我們只是對此感到相當樂觀。

The same could be said on the defense side, the, they are focused on growing the defense part of the business, the defense part of the country, and again, even though we don't today know of any specific opportunities, I, we feel pretty good about it and the conversations we are having with our partners. So, overall, if Congress can actually reconcile and pass a budget, I think it's going to be positive for us as a company.

在國防方面也是如此，他們專注於發展業務的國防部部分、國家的國防部分，儘管我們今天還不知道任何具體的機會，但我對此以及與合作夥伴的對話感到非常滿意。因此，總的來說，如果國會能夠真正協調並通過預算，我認為這對我們公司來說是有利的。

And Rich, do we understand correctly that the continuing resolution that the budget seems to have perpetually been under that that has negative implications or had negative implications for you all, whereas passing an actual budget, even if it is at the end of the year, does have some positive potential positives for you all. Is that correct?

里奇，我們是否正確理解了，預算似乎永遠處於持續決議之下，這對你們所有人都有負面影響，而通過實際預算，即使是在年底，也會對你們所有人都有一些積極的潛在積極影響。對嗎？

It's interesting You know who you speak to in regards to the continuing resolution because even though it was a CR. It does seem that Congress administration are reshuffling those dollars.

有趣的是，您知道與誰談論繼續決議，因為即使它是一個 CR。看起來國會政府確實正在重新分配這些資金。

So there are possibilities that some of our projects get funded as they try to divert more money to border security. So we are following that closely and we're talking to our partners both our our lobbying partners and our our commercial partners.

因此，當他們試圖將更多資金轉移到邊境安全時，我們的一些項目有可能獲得資助。因此，我們正在密切關注此事，並與我們的合作夥伴（包括我們的遊說夥伴和商業夥伴）進行溝通。

So it's going to be interesting to see what happens over the coming months.

因此，看看未來幾個月會發生什麼將會很有趣。

And funds may be favorably diverted, do you sense that those are for different applications and you have been testing for up to this point, or is it a continuation of what the Border Patrol has been evaluating for for many quarters now?

資金可能會被有利地轉移，您是否覺得這些資金用於不同的用途並且您到目前為止一直在測試，或者這是邊境巡邏隊已經評估了多個季度的延續？

So we went to the border security expo a few weeks ago over in Phoenix and I would say the message is it's an all in approach. So whether it's boots on the ground, whether it's a technology, whether it's support functionality, I think the message from Homan and Nome was it's all in to try to secure the border.

因此，幾週前我們去了鳳凰城的邊境安全博覽會，我想說的是，這是一種全力以赴的方法。因此，無論是地面部隊，還是技術，還是支援功能，我認為霍曼和諾姆傳達的訊息是，一切都是為了確保邊境安全。

So I think if you have an interesting solution that meets their mission that you're going to have an opportunity in that space. So if we think about what we offer today I think you know it's an interesting technology with regards to tunnel detection and tunnel prevention so I I feel pretty good about that.

因此我認為，如果你有一個有趣的解決方案，能夠滿足他們的使命，那麼你將在該領域獲得機會。因此，如果我們考慮我們今天所提供的產品，我想您知道這是一項有關隧道檢測和隧道預防的有趣技術，所以我對此感覺很好。

Great, thank you. And then one additional question on the PRM front that you referenced in the release and your remarks, the ongoing discussions, what implications, if any?

太好了，謝謝。然後，關於您在新聞稿和您的評論中提到的 PRM 方面還有一個問題，正在進行的討論有什麼影響（如果有的話）？

Have you heard from those that you were in discussions with about lower oil prices and or tariffs negatively impacting their decision process?

與您討論過油價下跌和/或關稅對他們的決策過程產生負面影響的人是否說過？

That's a good question and one that we're obviously monitoring closely. Our ongoing discussions, as we said in the past are mostly with national oil companies, not necessarily the independence, and so their decision making is more strategic long term than possible short term impacts with regards to tariffs and things like that. So, they are still, we're still having conversations, they're still interested in the technology. They look at it as how to maximize the return on their investment on their overall reservoirs over the life of the reservoir.

這是個好問題，我們顯然正在密切關注。正如我們過去所說，我們正在進行的討論主要是與國家石油公司進行的，不一定是與獨立石油公司進行的，因此他們的決策更具長期戰略性，而不是在關稅等問題上可能產生的短期影響。所以，他們仍然，我們仍在交談，他們仍然對這項技術感興趣。他們將其視為如何在油藏的整個使用壽命中最大化其投資回報。

And they look at the PRM technology versus nodal technology and if you do a total cost of ownership over the life of a reservoir, PRM starts to make sense. And so I think that there's still interest in the technology. The feed studies are still ongoing and so ultimately that the national company has to make the decision on how they want to proceed, but it certainly is a short term concern, but I think long term in their decision making process. It's not as much of a weight as what the what they can gain overall from the technology.

他們將 PRM 技術與節點技術進行比較，如果計算出水庫整個生命週期的總擁有成本，PRM 就開始變得有意義了。所以我認為人們仍然對這項技術感興趣。飼料研究仍在進行中，因此最終國家公司必須決定如何進行，但這當然是一個短期問題，但我認為在他們的決策過程中會有長期影響。這比他們從這項技術中所能獲得的整體利益更重要。

Great, that's helpful. I'll I'll step back and cue and let someone else ask abouti quana and others. Thank you very much.

太好了，很有幫助。我會退後一步並提示，讓其他人詢問我 quana 和其他人。非常感謝。

Thanks Bill, appreciate it.

謝謝比爾，非常感謝。

(Operator Instructions)

（操作員指示）

Sheldon Grodsky, Grodsky Associates.

謝爾頓·格羅德斯基（Sheldon Grodsky），格羅德斯基聯合公司（Grodsky Associates）。

Yes, good morning everybody. Back on February 17, you announced that you had this $7.6 million contract for Mariner Ocean Bottom nodes. Did, was that all received in the quarter or was any of that received in the quarter?

是的，大家早安。早在 2 月 17 日，您就宣布與 Mariner Ocean Bottom 節點簽訂了價值 760 萬美元的合約。這些是本季收到的全部款項嗎？還是本季只收到了部分款項？

No.

不。

Okay. Now to which.

好的。現在來說說哪一個。

That we made the announcement, but the delivery was always planned for later in the year.

我們發布了公告，但交付一直計劃在今年稍後進行。

Okay, so so that that was not in there. Okay, well, I think I, I'm kind of hoping you guys have touched bottom in this quarter. This is rather dramatically poor, results, especially in terms of the revenues, and is there any expectation that the revenues will continue at this low level? I know you had some odd items in the quarter and then now you've just mentioned that some things didn't happen in the quarter. But I I would think.

好的，所以那個不在那裡。好的，嗯，我想我有點希望你們在本季已經觸底。這是相當糟糕的結果，特別是從收入方面來看，是否有人預期收入會繼續維持在這種低水準？我知道本季發生了一些奇怪的事情，而現在您剛剛提到本季沒有發生一些事情。但我會這麼想。

That go ahead go ahead. Yeah, so Sheldon, I appreciate the question. I think if you look historically at Geospace, the second quarter has always been a challenge for for the business, just from the cyclical nature of how we operate.

那就繼續吧。是的，謝爾頓，我很感謝你的提問。我認為，如果回顧 Geospace 的歷史，第二季對於業務來說始終是一個挑戰，這僅僅是因為我們營運的周期性。

We do anticipate with our backlog that we're going to be much stronger in Q3 and Q4.

我們確實預計，憑藉積壓訂單，我們在第三季和第四季將會變得更加強大。

And you know the our our indicators that we're looking at, point in that direction as well so I think, as I mentioned, there's some push out on some schedules but no significant cancellations we have some small things but no significant cancellations. Our customers are still engaged. They're monitoring very closely what's going on in the market space, as everybody knows it's very volatile right now, especially on the oil and gas side.

而且您知道，我們正在關注的指標也指向了那個方向，所以我認為，正如我提到的那樣，一些時間表有所推遲，但沒有重大取消；我們有一些小事情，但沒有重大取消。我們的客戶仍然參與其中。他們正在密切關注市場動態，因為大家都知道現在市場非常不穩定，尤其是石油和天然氣市場。

But a lot of these investments that our partners and our customers are making, they're more longer term decisions.

但我們的合作夥伴和客戶所做的許多投資都是更長期的決策。

So I, yeah, I think there's risk there, but it's, we're not, overly pessimistic at this point.

所以，是的，我認為這裡有風險，但目前我們還不是太悲觀。

Sheldon, also with that announcement gave you the impression we expected that revenue to happen in Q2, we'll do a much better job of communicating when we expect that to happen in the future because it was never planned for Q2.

謝爾頓，這一聲明也給你留下了這樣的印象：我們預計收入將在第二季度實現，我們將在未來更好地溝通我們預計收入何時實現，因為這從未計劃在第二季度實現。

Yeah, that's we announced the partnership, but the customer always anticipated taking delivery in the later quarter.

是的，我們宣布了合作關係，但客戶一直期待在下個季度交貨。

Thank.

感謝。

You.

你。

(Operator Instructions)

（操作員指示）

Scott Bundy, Moors & Cabot.

史考特邦迪，《摩爾與卡伯特》。

Morning guys, just a couple of quick questions, Robert, the sale of the 17 acres you guys anticipate that we will, that will be completed in the current quarter?

早安，大家好，我只想問幾個簡單的問題，羅伯特，你們預計這 17 英畝土地的出售會在本季完成嗎？

Yes sir.

是的，先生。

That's our anticipation as of today.

這是我們今天的預期。

And. It was originally discussed that was sort of in the $7 million to $10 million range. Is that still accurate?

和。最初討論的金額大約在 700 萬至 1000 萬美元之間。這仍然準確嗎？

That's, it's in that range, yes, sir.

是的，它就在那個範圍內，是的，先生。

And.

和。

There was a discussion in your 10 last time that the national company would make a final investment decision for PRM sometime in the current quarter. Is that still the case?

您上次討論過，國家公司將在本季某個時候對 PRM 做出最終投資決定。現在還是這樣嗎？

So and there may be a little bit of confusion got the the decision with regards to the the the feed study is due in the current quarter, how they make a decision based on that feed study would come later on.

因此，關於飼料研究的決定將在本季度做出，他們可能會有一點困惑，他們如何根據飼料研究做出決定將在稍後公佈。

Okay, and lastly.

好的，最後。

Can you give us a rough idea of.

您能給我們一個大概的印象嗎？

What sort of revenue number you need from the water business to begin making money?

您需要從水務業務中獲得多少收入才能開始賺錢？

Given your allocated costs.

給出您分配的成本。

From the, from our Smartwater division?

來自我們的 Smartwater 部門？

Correct.

正確的。

Is that what you're asking?

這就是你要問的嗎？

I mean we had you when you say start making money, are you talking about profitability for the entire company or profitability for that division?

我的意思是，當您說開始賺錢時，您指的是整個公司的盈利能力還是該部門的盈利能力？

I mean we we last it has operating income for the quarter.

我的意思是，我們最後公佈的是本季的營業收入。

So last operating income for the year.

這是今年的最後一筆營業收入。

Yeah, so in the 10Q last quarter we increased revenues pretty dramatically, but the cost associated with those revenues were also pretty substantial. It didn't look like you were making any money. That's what I'm trying to understand.

是的，上個季度的第 10 季度，我們的收入大幅增加，但與這些收入相關的成本也相當高。看起來你並沒有賺到錢。這就是我想要理解的。

Yeah, we made money. We had operating income from their last quarter. I, We're going to continue to make money from that segment going forward, even with the change in our allocation methodology for the new business segments.

是的，我們賺錢了。我們從他們上個季度獲得了營業收入。我，即使我們對新業務部門的分配方法發生了變化，我們也將繼續從該部門獲利。

Yeah, I got this. I think, I think last quarter was, a result of how we allocate our overhead expenses, not so much the business segment itself.

是的，我明白了。我認為，上個季度是我們分配管理費用的結果，而不是業務部門本身的結果。

That's exactly right, and I don't anticipate the scenarios that generated that to reoccur this fiscal year. That doesn't mean the scenarios can't reoccur in the future, but it won't happen again this fiscal year.

完全正確，我預計本財年不會再有這種情況。這並不意味著將來不會再發生這種情況，但本財年不會再發生。

And last, my last question, regarding Aquana, can you give us an idea of what percentage of quanna is of the revenues?

最後，我的最後一個問題，關於 Aquana，您能否告訴我們 Quanna 佔收入的百分比是多少？

It still continues to be an insignificant portion.

它仍然只是微不足道的一部分。

Single digits, Scott.

個位數，史考特。

And Do you anticipate that to change over the course of the next 9 months in terms of people testing and using the product?

您預計未來 9 個月內人們測試和使用該產品的情況會改變嗎？

So what I would say is, over the next 9 months, probably not we're not going to see that kind of significant growth over compared to the overall revenue of the corporation. I would say that as a percentage of our water segment, we will see that to increase over the coming period.

所以我想說的是，在接下來的 9 個月裡，與公司的整體收入相比，我們可能不會看到如此顯著的成長。我想說的是，作為我們水務部門的一部分，我們將看到這一比例在未來一段時間內增加。

We talked about this in the past. The water municipalities are slow to adopt technology, but we're getting great positive feedback from the pilots that we have. And so that that that distribution pipeline is 12 to 18 months from initial pilot to decision making and then of course then they phase that in over time so I would say that in our in our business plan we're looking at 24 to 36 months what what a quantum is going to look like with regards to significant impact on the corporation.

我們過去討論過這個問題。水務市政當局採用技術的速度較慢，但我們從現有的試點計畫中獲得了非常積極的回饋。因此，從最初的試點到決策，分銷管道需要 12 到 18 個月的時間，然後當然，他們會隨著時間的推移逐步實施，所以我想說，在我們的商業計劃中，我們預計 24 到 36 個月後，量子效應會對公司產生什麼重大影響。

And what do you determined to be significant?

您認為什麼事情是重要的？

More than 10%.

超過10%。

Okay great thanks for your current.

好的，非常感謝您的當前資訊。

Yeah, I just one last comment on that. Remember, any large energy solutions sale can significantly change the ratios. So we have to look at base business versus those kind of one-off sales that we do get from time to time.

是的，我對此只想說最後一句話。請記住，任何大型能源解決方案銷售都可能顯著改變比例。因此，我們必須專注於基礎業務，而不是我們不時獲得的一次性銷售。

No I I understand thanks.

不，我明白，謝謝。

Guys.

夥計們。

Thanks Scott. I appreciate it, Scott.

謝謝斯科特。我很感激，斯科特。

Thank you. We'll take a follow-up question now from Bill Deelam. Bill, please go ahead.

謝謝。我們現在來回答比爾·迪拉姆的後續問題。比爾，請繼續。

Thank you. I actually want to continue down the the smart water path because I realized that I have a tendency to jump to the what's exciting and new, which in this case is kana and and pass over kind of where the the real bulk of activity is, which is in the hydrocon connectors.

謝謝。我實際上想繼續沿著智慧水路前進，因為我意識到我傾向於直接關注那些令人興奮和新鮮的事物，在這種情況下就是假名，而忽略了真正的主要活動所在，即水力耦合器。

So You've talked about I think 20 million connectors, and I think in response to the last questioner's question, you said that it takes time for essentially the flywheel to to get moving.

所以您談到了我認為有 2000 萬個連接器，我想在回答上一個提問者的問題時，您說飛輪基本上需要時間才能開始轉動。

So the question is relative to the hydrocon connectors.

所以問題與水力連接器有關。

Are you at some point where you anticipate an increasing rate of growth and and essentially where there's just a massive momentum behind that behind that business now and and whether the answer is yes or no, would you provide some more more feedback and and color around kind of how that business has developed.

您是否預期該業務的成長率會不斷提高，並且目前該業務背後的發展勢頭非常強勁？無論答案是肯定的還是否定的，您能否提供更多回饋並進一步說明該業務的發展？

Right now it feels like you're an overnight success and what the opportunities and risks are, and I jokingly say overnight success because it's taken you years to get here.

現在感覺你一夜成名，機會和風險都在那裡，我開玩笑地說你是一夜成名，因為你花了數年時間才達到今天的成就。

I appreciate that though because 10 year cycle is is not really considered overnight for most people, but yeah, I mean Hydrocon has been a part of Geospace's history. It was organically developed over 10 years ago and we've been partnered with our strategic partner Nycore for a number of years. And between the two of us, we've done a great job building the inertia within the municipalities as making that connector, the connector of choice. And what we're seeing today is, and we have seen for the last few years is that continued 10% to 15% growth year on year adoption, we work directly with the OEMs now with regards to smart meters, so all the major players are customers of ours now. I, even the ones that have their own connectors, you see, pressure from the municipalities to adopt the Hydrocon as the solution of choice and. So yeah, it's been a very bright spot for Geospace for the last number of years. We make good margins on that. It drives a good portion of our production here in Houston and we're producing, around 5 million connectors a year now, and generating a, significant you say significant, a good portion of our revenue, and margins are coming out of that business.

我很欣賞這一點，因為對大多數人來說， 10 年的周期並不是一夜之間發生的，但是是的，我的意思是 Hydrocon 已經成為 Geospace 歷史的一部分。它是在 10 多年前有機開發的，我們已經與策略合作夥伴 Nycore 合作多年。我們兩人在市政當局內部建立了慣性，使這種連接器成為首選連接器，這方面我們做得非常出色。我們今天看到的是，以及過去幾年我們看到的，採用率每年持續以 10% 到 15% 的速度增長，我們現在就智慧電錶直接與 OEM 合作，因此現在所有主要參與者都是我們的客戶。我，甚至那些擁有自己的連接器的人，你看，來自市政當局的壓力要求採用 Hydrocon 作為首選解決方案。是的，過去幾年這對 Geospace 來說一直是個非常光明的未來。我們由此獲得了豐厚的利潤。它推動了我們在休士頓的很大一部分生產，現在我們每年生產約 500 萬個連接器，並且產生了很大一部分收入，利潤也來自這項業務。

And is there anything?

還有什麼嗎？

I guess are you seeing an increased level of adoption so that 10% to 15% growth becomes a larger number as you as you move forward? And if we look at this this particular quarter, the numbers were significantly greater than 10% to 15%, pushing up over 40%.

我想您是否看到了採用水準的提高，以便隨著您的前進，10％到15％的增長率成為更大的數字？如果我們看一下本季的情況，就會發現這一數字遠遠超過 10% 至 15%，甚至超過了 40%。

Yeah, and we're very happy about that. I don't, I tend not to be overly optimistic because the water municipality space, there is a certain level, not that we're anywhere close to that, but there is a level of saturation where the larger municipalities that buy in very large chunks once they're adopted. Then it transitions to kind of the medium and smaller municipalities where you don't get the same volume, larger number of customers, smaller volumes, and so, we still continue to expect growth. We're planning around growth. We have lots of flexibility on our manufacturing capacity. We see economic economies of scale at larger volumes, so we're able to adapt and be flexible with regards to market requirements. So I mean, that is one of our best performing business segments for us today and product lines.

是的，我們對此感到非常高興。我不會，我傾向於不要過於樂觀，因為水務市政領域存在一定的水平，雖然我們還沒有接近這個水平，但存在一定的飽和度，較大的市政當局一旦採用這些技術就會大量購買。然後它過渡到中型和小型城市，這些城市的數量不一樣，客戶數量更多，數量更少，因此，我們仍然預計會繼續增長。我們正在圍繞成長進行規劃。我們的製造能力具有很大的靈活性。我們看到規模經濟的規模效應，因此我們能夠靈活地適應市場需求。所以我的意思是，這是我們目前表現最好的業務部門和產品線之一。

Bill, I also want to remind you that we had a very good year in 2023 and unfortunately, at the first half of 2024, our customers had overbought in the prior fiscal year, which led to a very poor first half in 2024. So the, this growth that we're seeing now. In in those two comparative periods as a result of overbuying from 2 years ago.

比爾，我還想提醒你，2023 年是我們表現非常好的一年，但不幸的是，在 2024 年上半年，我們的客戶在上一財年購買量過大，導致 2024 年上半年表現非常糟糕。這就是我們現在看到的成長。在這兩個比較時期中，這是由於兩年前的過度購買所造成的。

Yeah, we have to kind of go back to the supply chain crunch of 2023, 2022, 2023, where our customers were really nervous about being able to meet their customers' demands and so they bought our capacity as much as they could to make sure they can meet their requirements. And as Robert said, it's moved out through the first part of 2024 and I think we're back into kind of a normal growth now. So I think if we see, we'll we'll be monitoring closely, you're on your growth Q3 and Q4 just to see if we're seeing that same sort of trend. But for sure we're, we get lots of inquiries and this whole AMI smart meter movement, now that there's proven business cases at large and middle sized municipalities. The other municipalities who have been hesitant to make the decision, they're starting to see the ROI on that and starting to make decisions on investment.

是的，我們必須回顧 2023 年、2022 年、2023 年的供應鏈緊縮時期，當時我們的客戶非常擔心能否滿足其客戶的需求，因此他們盡可能多地購買我們的產能，以確保能夠滿足其客戶的要求。正如羅伯特所說，它已經進入了 2024 年上半年，我認為我們現在已經恢復了正常成長。所以我認為，如果我們看到，我們就會密切關注你們第三季和第四季的成長情況，看看我們是否看到同樣的趨勢。但可以肯定的是，我們收到了很多詢問，整個 AMI 智慧電錶運動現在已經在大中型城市有了經過驗證的商業案例。其他一直猶豫不決的市政當局也開始看到投資報酬率，並開始做出投資決策。

Well, first of all, I want to say keep your pessimism so that we can continue to have 40% growth. That's fantastic.

嗯，首先，我想說，保持悲觀態度，這樣我們才能繼續保持 40% 的成長。太棒了。

But would you say that you've shifted from the early adopters now to kind of the mainstream? Is that where we're essentially at in the in the cycle?

但您是否會說您現在已經從早期採用者轉變為主流？這就是我們本質上所處的周期嗎？

Yeah, absolutely, that's, as I said, those early adopters, everyone was waiting to see a business case and a true ROI for making the investment in AMR AMI. Those cases are well published now, well communicated. If you, we attend several conferences and conventions throughout the year in this space. It's not a question of if they're going to make an investment, it's a question of when they're going to make the investment now.

是的，絕對如此，正如我所說，那些早期採用者，每個人都在等待看到商業案例和對 AMR AMI 進行投資的真正投資回報率。這些案例現在已廣泛公佈和傳播。如果您願意，我們全年都會在這個空間參加幾次會議和大會。問題不在於他們是否要進行投資，而是他們何時進行投資。

That's that's helpful. One additional question then. Recognizing that the Aqua smart valves are not truly not a market of any size today, but as you look out in terms of what the quana market size could be versus the size of the hydrocon market, how would you how would you relate those two to each other?

這很有幫助。那麼還有一個問題。認識到 Aqua 智慧閥門目前實際上並沒有任何規模的市場，但是當您觀察 Aqua 市場規模與水力調節器市場規模的關係時，您會如何將這兩者聯繫起來？

That's a good question. So if we look at the The opportunity, the total addressable market in this space, there's roughly 60 million.

這是個好問題。因此，如果我們看一下這個領域的機會，那麼總可尋址市場大約有 6000 萬。

Water control valves in the nation, just the dumb curves stop, turn the water on, turn the water off for a resident or for a company.

全國的水控制閥，只是愚蠢的曲線停止，為居民或公司打開水，關閉水。

And of that, there's still a lot of municipalities that don't actually install meters or don't measure water. And so I think that's the real op there's some of the opportunity of the ones that have it. They put, they're putting smart meters in. Now the next question is how do I save money by being able to remotely shut off the water at the actual pit or at the actual water control valve. And that's the part that's now gaining traction is if you look at the operating cost to send a person in a truck out to a residence to turn the water off for nonpayment or move in, move out, and then back. You know today that's somewhere between $150 to $250 each time they do that.

其中，仍有許多城市實際上沒有安裝水錶或不計量水量。所以我認為這是真正的行動，擁有它的人會獲得一些機會。他們正在安裝智慧電錶。現在的下一個問題是，如何透過遠端關閉實際坑或實際水控制閥的水來省錢。如果你看一下派一個人開著卡車去某個住所，因欠費而切斷水源或搬進、搬出，然後再回來的運營成本，就會明白這一點現在變得越來越重要。你知道，今天他們每次這樣做的費用大約在 150 到 250 美元之間。

So there is a business case for making an investment in a remote shutoff valve where they can sitting at the municipal office, turn that valve off and then turn that valve back on fairly quickly without having to pay overtime or have HSE risk for sending someone out there. So that's the business case. We do have some, practitioners of that, some examples to point to now. So it's similar to Hydroon, you had early adopters of Hydrocon.

因此，投資遠端關閉閥是有商業意義的，他們可以坐在市政辦公室，關閉該閥門，然後相當快地重新打開該閥門，而不必支付加班費或承擔派人去那裡的 HSE 風險。這就是商業案例。我們確實有一些這樣的實踐者，有一些現在可供參考的例子。因此它與 Hydroon 類似，Hydrocon 有早期採用者。

Now it's not a question of if but when. We see that same, mentality playing out in the municipalities for a waa. So we're in the if period right now, it doesn't make sense. If we install it, and I think in the next couple of years you're going to see it's not necessarily if but when there's actually a business case for it there's actually a cost savings model for it for the municipalities.

現在，問題不再是是否發生，而是何時發生。我們看到，同樣的心態在各市鎮中盛行。所以我們現在處於「如果」時期，這沒有意義。如果我們安裝它，我認為在未來幾年內你會看到它不一定是如果，但當它實際上有一個商業案例時，它實際上為市政當局提供了一個成本節約模型。

Great, thank you both and I appreciate the extra time.

太好了，謝謝你們兩位，我很感謝你們抽出時間。

Thanks Bill. You have a good day.

謝謝比爾。祝你今天過得愉快。

Thank you and gentlemen, it appears we have no further questions this morning, Mr. Kelley, I'd like to turn things back to you, sir, for any closing comments.

謝謝您，先生們，看來我們今天早上沒有其他問題了，凱利先生，先生，我想把話題轉回給您，請您做最後的評論。

Thank you, Beau, and thanks to all of you who joined our call today. We look forward to speaking to you again on our conference call for the third quarter of fiscal year 2025. Goodbye and have a great day.

謝謝你，博，也感謝今天參加我們電話會議的所有人。我們期待在 2025 財年第三季的電話會議上再次與您交談。再見，祝你有美好的一天。

Thank you, Mr. Kelley. Again, ladies and gentlemen, I will conclude the Geospace Technology second quarter 2025 earnings conference call. Again, thanks so much for joining us, everyone, and again, we wish you a great day. Goodbye.

謝謝你，凱利先生。女士們、先生們，我再次結束地球空間技術 2025 年第二季財報電話會議。再次感謝大家的參與，再次祝福大家有美好的一天。再見。