ION Geophysical Corporation (IO) saw its loss narrow to $23.34 million, or $1.98 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $35.01 million, or $3.30 a share.
Revenue during the quarter surged 43.64 percent to $32.56 million from $22.66 million in the previous year period. Gross margin for the quarter period stood at positive 18.74 percent as compared to a negative 39.40 percent for the previous year period.
Operating loss for the quarter was $13.91 million, compared with an operating loss of $30.13 million in the previous year period.
Adjusted EBITDA for the quarter stood at negative $0.04 million compared to negative $17.20 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 0.14 percent for the quarter compared to negative 75.88 percent in the last year period.
Brian Hanson, ION's president and chief executive officer, commented, "As indicated in our year-end earnings call, our first quarter revenues were up compared to one year ago, driven in part by our 3D multi-client Campeche reimaging program. We continue to receive very positive feedback on the unprecedented turnaround time and significant imaging improvements we have made in both subsalt and above-salt imaging. We are seeing a significant increase in the sales pipeline for this program, as customers are looking to evaluate the data to help them make informed decisions in advance of the upcoming bid rounds scheduled later this year."
Operating cash flow declines
ION Geophysical Corporation has generated cash of $1.98 million from operating activities during the quarter, down 20.01 percent or $ 0.50 million, when compared with the last year period. The company has spent $3.41 million cash to meet investing activities during the quarter as against cash outgo of $6.59 million in the last year period.
The company has spent $1.99 million cash to carry out financing activities during the quarter as against cash outgo of $4.48 million in the last year period.
Cash and cash equivalents stood at $49.64 million as on Mar. 31, 2017, down 35.25 percent or $27.03 million from $76.67 million on Mar. 31, 2016.
Working capital drops significantly
ION Geophysical Corporation has witnessed a decline in the working capital over the last year. It stood at $1.77 million as at Mar. 31, 2017, down 96.13 percent or $43.84 million from $45.60 million on Mar. 31, 2016. Current ratio was at 1.02 as on Mar. 31, 2017, down from 1.41 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 27 days for the quarter from 83 days for the last year period. Days sales outstanding went down to 46 days for the quarter compared with 66 days for the same period last year.
Days inventory outstanding has decreased to 26 days for the quarter compared with 48 days for the previous year period. At the same time, days payable outstanding went up to 45 days for the quarter from 30 for the same period last year.
Debt comes down
ION Geophysical Corporation has recorded a decline in total debt over the last one year. It stood at $157.34 million as on Mar. 31, 2017, down 13.24 percent or $24 million from $181.34 million on Mar. 31, 2016. Total debt was 52.78 percent of total assets as on Mar. 31, 2017, compared with 47.90 percent on Mar. 31, 2016. Debt to equity ratio was at 4.95 as on Mar. 31, 2017, up from 2.41 as on Mar. 31, 2016.
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