Input/Output Reports First Quarter Results

Apr 25, 2001, 01:00 ET from Input/Output, Inc.

    HOUSTON, April 25 /PRNewswire/ -- Input/Output, Inc. (NYSE:   IO) today
 announced a net loss applicable to common stockholders for the first quarter
 ended March 31, 2001 of $(1.2) million, or $(0.02) per share, on revenue of
 $42.4 million, compared to a net loss applicable to common stockholders of
 $(10.4) million, or $(0.21) per share, on revenue of $40.0 million for the
 same period a year ago.
     "The first quarter operating results reflect our steady progress toward
 restoring Input/Output to acceptable levels of operating performance," said
 Tim Probert, the Company's President and Chief Executive Officer.
     Probert continued, "The seismic industry continues to recover from the
 very depressed levels of activity over the past several years, with land
 activity leading the recovery.  There are also signs on the horizon that
 marine seismic activity may be in the nascent stages of recovery.  We are
 especially pleased to see renewed interest in ocean bottom systems.  However,
 we believe that the recovery in marine activity continues to lag land activity
 recovery by several quarters."
     Probert added, "This quarter reflects the Company's commitment to execute
 on three key strategies:  (1) optimizing the performance of our core business,
 (2) developing and bringing innovative seismic imaging technology to the
 marketplace, and (3) expanding our business through acquisitions and
 alliances.  Our operating results improved both sequentially and year-to-year,
 with first quarter EBITDA of $4.6 million, or 11% of revenues.  We made steady
 progress toward the commercialization of our VectorSeis(TM) line of multi-
 component products, completing five pilot jobs in North America this quarter
 with our commercialization partner, Veritas DGC.  Finally, Pelton Company,
 which we acquired in January, made a positive contribution to our consolidated
 operating results in line with our expectations.
     "Looking forward to the balance of the year, we continue to believe that
 Input/Output is on track to be profitable for the year, with revenue growth of
 35-40% compared to last year," Probert concluded.
     Land and marine division revenues during the first quarter were
 $27.8 million and $14.6 million, respectively, compared to land division
 revenue of $17.6 million and marine division revenue of $22.4 million for the
 same period a year ago.
     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 www.i-o.com or contact us at ir@i-o.com.
     "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 timing and stages of recovery in
 the land and marine seismic industries, Company profitability for Fiscal 2001,
 revenue growth in 2001, any continuation in improvement of business
 fundamentals for the seismic industry, expected continued weak performance by
 the Company's marine operations, and expected continued investment in new
 technology.  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 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; the continuing downturn in demand for
 seismic services worldwide; 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 unites 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."
 
 
                      INPUT/OUTPUT, INC. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                (In thousands, except share and per share data)
                                  (unaudited)
 
                                                        Three Months Ended
                                                              March 31,
                                                        2001           2000
     Net sales                                        $42,409        $40,041
     Cost of sales                                     25,699         41,602
         Gross profit (loss)                           16,710         (1,561)
 
     Operating expenses:
       Research and development                         7,537          7,260
       Marketing and sales                              3,319          2,684
       General and administrative                       4,893         (2,737)
       Amortization and impairment of intangibles       1,136          2,058
         Total operating expenses                      16,885          9,265
 
     Loss from operations                                (175)       (10,826)
 
     Interest expense                                    (207)          (195)
     Interest income                                    1,291          1,916
     Other income (expense)                               307            (60)
     Income (loss) before income taxes                  1,216         (9,165)
     Income tax expense                                 1,026            124
     Net earnings (loss)                                  190         (9,289)
     Preferred dividend                                 1,390          1,158
     Net loss applicable to common stock              $(1,200)      $(10,447)
 
     Basic loss per common share                       $(0.02)       $(0.21)
     Weighted average number of
      common shares outstanding                    50,851,239     50,784,775
 
     Diluted loss per common share                     $(0.02)        $(0.21)
 
     Weighted average number of diluted
      common shares outstanding                    50,851,239     50,784,775
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X67148479
 
 

SOURCE Input/Output, Inc.
    HOUSTON, April 25 /PRNewswire/ -- Input/Output, Inc. (NYSE:   IO) today
 announced a net loss applicable to common stockholders for the first quarter
 ended March 31, 2001 of $(1.2) million, or $(0.02) per share, on revenue of
 $42.4 million, compared to a net loss applicable to common stockholders of
 $(10.4) million, or $(0.21) per share, on revenue of $40.0 million for the
 same period a year ago.
     "The first quarter operating results reflect our steady progress toward
 restoring Input/Output to acceptable levels of operating performance," said
 Tim Probert, the Company's President and Chief Executive Officer.
     Probert continued, "The seismic industry continues to recover from the
 very depressed levels of activity over the past several years, with land
 activity leading the recovery.  There are also signs on the horizon that
 marine seismic activity may be in the nascent stages of recovery.  We are
 especially pleased to see renewed interest in ocean bottom systems.  However,
 we believe that the recovery in marine activity continues to lag land activity
 recovery by several quarters."
     Probert added, "This quarter reflects the Company's commitment to execute
 on three key strategies:  (1) optimizing the performance of our core business,
 (2) developing and bringing innovative seismic imaging technology to the
 marketplace, and (3) expanding our business through acquisitions and
 alliances.  Our operating results improved both sequentially and year-to-year,
 with first quarter EBITDA of $4.6 million, or 11% of revenues.  We made steady
 progress toward the commercialization of our VectorSeis(TM) line of multi-
 component products, completing five pilot jobs in North America this quarter
 with our commercialization partner, Veritas DGC.  Finally, Pelton Company,
 which we acquired in January, made a positive contribution to our consolidated
 operating results in line with our expectations.
     "Looking forward to the balance of the year, we continue to believe that
 Input/Output is on track to be profitable for the year, with revenue growth of
 35-40% compared to last year," Probert concluded.
     Land and marine division revenues during the first quarter were
 $27.8 million and $14.6 million, respectively, compared to land division
 revenue of $17.6 million and marine division revenue of $22.4 million for the
 same period a year ago.
     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 www.i-o.com or contact us at ir@i-o.com.
     "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 timing and stages of recovery in
 the land and marine seismic industries, Company profitability for Fiscal 2001,
 revenue growth in 2001, any continuation in improvement of business
 fundamentals for the seismic industry, expected continued weak performance by
 the Company's marine operations, and expected continued investment in new
 technology.  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 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; the continuing downturn in demand for
 seismic services worldwide; 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 unites 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."
 
 
                      INPUT/OUTPUT, INC. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                (In thousands, except share and per share data)
                                  (unaudited)
 
                                                        Three Months Ended
                                                              March 31,
                                                        2001           2000
     Net sales                                        $42,409        $40,041
     Cost of sales                                     25,699         41,602
         Gross profit (loss)                           16,710         (1,561)
 
     Operating expenses:
       Research and development                         7,537          7,260
       Marketing and sales                              3,319          2,684
       General and administrative                       4,893         (2,737)
       Amortization and impairment of intangibles       1,136          2,058
         Total operating expenses                      16,885          9,265
 
     Loss from operations                                (175)       (10,826)
 
     Interest expense                                    (207)          (195)
     Interest income                                    1,291          1,916
     Other income (expense)                               307            (60)
     Income (loss) before income taxes                  1,216         (9,165)
     Income tax expense                                 1,026            124
     Net earnings (loss)                                  190         (9,289)
     Preferred dividend                                 1,390          1,158
     Net loss applicable to common stock              $(1,200)      $(10,447)
 
     Basic loss per common share                       $(0.02)       $(0.21)
     Weighted average number of
      common shares outstanding                    50,851,239     50,784,775
 
     Diluted loss per common share                     $(0.02)        $(0.21)
 
     Weighted average number of diluted
      common shares outstanding                    50,851,239     50,784,775
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X67148479
 
 SOURCE  Input/Output, Inc.