ION Earnings Call Q2 2013 Earnings Call Presentation August 8, 2013
Earnings Call Introduction Corporate Participants & Contact Information BRIAN HANSON GREG HEINLEIN President and Senior Vice President and Chief Executive Officer Chief Financial Officer CONTACT INFORMATION If you have…
ION Q2 13 Highlights Revenue Growth Solid revenue growth, Q2 Revenues M revenues up 15% 180 160 Results impacted by a few factors 140 Morocco 3D program 120 Slower than expected start to Seabed JV, GeoRXT 100 Customer…
Solutions Segment GeoVentures Solutions revenues up 29% 1H GeoVentures Revenues 1H 13 2013, up 23% in Q2 Led by New Venture revenues, up 54% in Q2 Completed acquisition of first major 3D marine program long-term strategic…
Solutions Segment Data Processing Record revenues of 34 million, up 35 Revenues M 20% Y/Y 30 25 20 Strong demand in Europe, the 15 Middle East and Gulf of Mexico 10 5 - Increasing demand for WiBandTM Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1…
Financial Overview Q2 13 Revenue M Op. Margin % Total revenues up 15% Y/Y 150 125 12% Solutions up 23% 100 75 8% Systems up 5% 50 25 4% Software down 19% - Q2 12 Q2 13 0% Q2 12 Q2 13 Solutions Systems Software Overall…
Solutions Segment Financial Overview Q2 13 Revenue by Type M Solutions segment revenues up 100 90 23% Y/Y 80 70 New Ventures up 54% 60 50 Data Processing up 20% - record 40 quarter 30 20 10 Operating margins hampered by…
Software Segment Financial Overview Q2 13 Revenue by Type M Software segment revenues down 12 19% Y/Y 10 8 6 Demand for 4D optimization 4 services continues to grow near- 2 record services revenues - Q2 12 Q2 13 Software…
Systems Segment Financial Overview Q2 13 Revenue by Type M Systems segment revenues up 5% 30 Y/Y 20 Operating margins increased due to 10 reductions in R&D spend - Q2 12 Q2 13 Continue to invest in our seabed Towed…
INOVA Geophysical Financial Overview 60 Revenues M Q1 2013 In ION Q2 Results 50 Revenues of 22.1 million with an operating loss of (8.5) million 40 30 Delivered 15,000 channels of G3i 20 Sold 12 UniVibs 10 BGP represented 64%…
Financial Overview Cash Flow SUMMARIZED CASH FLOW Thousands Q2 12 Q2 13 Cash from Operations 28,698 23,542 Working Capital 4,835 (29,461) Multi-client Investment (28,054) (20,233) PP&E Capital Expenditures (3,122) (4,994)…
Financial Overview Balance Sheet as of June 30, 2013 Capital Employed* M Capital Book Value M 700 700 600 600 500 500 227M 400 400 225M 300 300 200 200 100 100 184M 110M 105M 67M 38M 74M 0 0 Q1 13 Q2 13 Q1 13 Q2 13…
Summary of Legal Contingency Millions In June, the Judge entered Order: 125 Rejected jurys finding of willfulness and 14 denied WGs motion for enhanced damages. 105 13 Denied IONs post-verdict motions that 85 challenged…
GeoVentures Growing in New Markets Announced alliance with Polarcus for 3D multi-client programs ION access to world-class seismic fleet & Leverages IONs 400,000 km of 2D BasinSPANS Alliance complements Polarcus budding…
Data Processing Geographic growth in Southeast Asia, the Middle East and Russia Organic growth in Northern Europe, Houston and Denver ResSCAN 3D processing to drive organic growth in North America Global Data Processing…
Software Adapting to a Changing Market Limited growth in traditional software revenue due to reductions in vessels in operation Continue to grow services actively planning 2014 4D services projects New growth will come from…
Systems Segment Changing Marine Seismic Landscape Big 3 with 75% of streamer capacity Consolidation of the Marine Seismic Fleet Streamers by Co. (3D6+) 250 Operating Newbuild 75% of market controlled by top 3 225 200 players,…
Seabed Market Update 2013 -16 Seabed Seismic Outlook Remain committed to Seabed product line Seabed market continues to grow -- over 300M of contracts recently awarded Assisting GeoRXT JV to expand internationally * Un-awarded…
Conclusion Strategy remains sound Focused on shifting from equipment sales to leveraging our technologies for the benefit of oil companies Growth to be led by Solutions segment Software segment growth to come from E&P…
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