Geospace Technologies Corporation

Welcome to the Geospace Technologies Second Quarter 2025 Earnings Conference Call. Hosting the call today from Geospace is Mr. Rich Kelly, President and Chief Executive Officer. He is joined by Robert Curda, the Chief Company's Chief Financial Officer. 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. If you would like to ask a question at that time, please press star 1 on your telephone keypad. If at any point your question has been answered, you may remove yourself from the queue by pressing star 2. We ask that you please pick up your handset to allow optimal sound quality. Lastly, if you should require operator assistance, press star 0. It is now my pleasure to turn the floor over to Rich Kelly. Sir, you may begin.

Thank you, Bill.

Good morning, and welcome to Geospace Technologies Conference Call for the second quarter of fiscal year 2025. I am Rick Kelly, the company's Chief Executive Officer and President. I am joined by Robert Curta, the company's Chief Financial Officer. 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. 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. These statements are based on what we know now, but actual outcomes are affected by uncertainties beyond our control or prediction. Both known and unknown risks 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. Note that today's recorded information is time-sensitive and may not be accurate at the time one listens to the replay. 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 ended March 31st, 2025, we reported revenue of $18 million with a net loss of $9.8 million. 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. We had record performance in our smart water segment, with our Hydrocon universal connectors continuing to outperform year over year. We are also experiencing increased interest in our Kona product offerings. We anticipate continued organic growth in this market segment. Offsetting that is the ongoing uncertainty in the energy solution segment. Global trade concerns, tariffs, and decreasing oil prices have impacted project decisions for our customers, resulting in delayed and canceled opportunities. The OVN rental market and land equipment sales continue to underperform previous years. That being said, we recently announced a Mariner contract and have ongoing inquiries for possible future requirements for OVN solutions. 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 tariffs concerns, especially for our exile products. Recognizing those external factors, we are working to optimize our supply chain to minimize the impact to our company and our customers. 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. Additionally, our current backlog places us in a strong position going into the second half of the year. Importantly, the longstanding 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. 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 acquisitions, 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. I will now turn the call over to Robert to provide more detail on our financial performance.