Mitcham Industries sees revenue increase nearly 50% as the technology company decreases oil and gas exposure

Mitcham Industries Inc (NASDAQGS:MIND) posted higher revenues in its 4Q 2019 financials reported on Wednesday as the technology company takes steps to reposition itself to be less dependent on the oil and gas industry.

Fourth quarter revenues increased over 50%, led by a much better performance of both Marine Technology Products and Equipment Leasing segments, according to the company. 

READ: Eco Atlantic Oil & Gas Ltd raises US$17mln in anticipation of expanded drill campaign offshore Guyana

“Our fourth quarter results unfolded very much as we had anticipated except for the approximately two million dollars of marine technology products, the delivery of which is now expected during the first quarter of the current fiscal year,” said Rob Capps, Mitcham’s Co-CEO said in a statement.

 “We believe our improved performance in the second half of fiscal 2019 was the result of the strategic steps we have taken over the past several years to reposition the company to be less dependent on the oil and gas industry,” Capps said.

The Huntsville, Texas-based company posted a net loss of $4.2 million for the period or $0.38 per share on revenues of $12.3 million, compared to a loss of $7.8 million or $0.66 on revenues of $10.4 million during the year-ago period.

Analysts were expecting the company to post a quarterly loss at $0.09 per share on revenue of $14 million.

Main business lines

Mitcham Industries Inc provides technology to the oceanographic, hydrographic, defense, seismic and maritime security industries worldwide through a network of subsidiaries. The company operates in two segments, Marine Technology Products, and Equipment Leasing.

The Marine Technology Products segment develops, manufactures, and sells proprietary products. The Equipment Leasing segment leases seismic equipment for short-term primarily to seismic data acquisition contractors and oil field service providers.

Shares of Mitcham closed at $3.79 on Wednesday.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

Story by ProactiveInvestors