OYO Geospace Wins New Seismic Contracts

OYO Geospace has recently received several orders totaling more than $18 million. The company expects these product deliveries to occur throughout the remaining months of calendar year 2009.

"We have been very busy the last few weeks responding to numerous customer inquiries and closing deals which have been in the works for several months. These new orders span a variety of seismic products, including geophone and hydrophone sensors, cables, GSR units, and borehole products," said Gary D. Owens, OYO Geospace's Chairman, President and CEO.

"We are particularly pleased about two new orders for the GSR system, our new wireless data acquisition system. One of the orders is from a new customer, and the other order is to an existing oil company customer, doubling their GSR channel count.

"Separately, we recently announced the receipt of an order for a 3,000 channel GSR system. We have now delivered that system and the customer expects to begin deployment of these GSR channels in the coming weeks. In addition, we were recently requested by two potentially new customers to demonstrate our highly-efficient GSR system, and we expect to provide these demonstrations in the next 60 days. Customer interest in the GSR system has been outstanding.

"As a result of these new product orders, our backlog has increased substantially in recent weeks. However, we expect that a majority of these orders will be delivered to customers during the fourth quarter of calendar year 2009 (the first quarter of our fiscal year 2010). In this regard, we continue to believe that our near term operating results will be challenged. Nevertheless, we are pleased with this flurry of activity."