Geospace Technologies Corporation (NASDAQ:GEOS) Q2 2024 Earnings Call Transcript

Rick Wheeler: Well, as mentioned, we don’t expect these to turn into significant revenue, larger revenue opportunities this fiscal year. So any of the larger opportunities are not going to manifest until, at the earliest, fiscal year 2025. As far as timing goes, I mean, this is related to the government budgetary cycles things that are way out of our control and that have other factors that are playing into that. Some of the others that are ongoing with the energy space, represent — using technology that is brand new to the extent that these capabilities have not existed in those areas before. So there’s still a lot of discussion in bringing those technical people on board with what the technology can do.

Bill Dezellem: And then picking up on that, if I may. Relative to the energy arena, would the passive monitoring that Quantum provides actually create revenue for the energy companies? Or are these conversations really more centered around carbon capture, which, I mean, the challenge there, of course, is that it’s an expense as opposed to revenue generating?

Rick Wheeler: That’s an excellent point. And in fact, they apply to both categories. Certainly, the carbon capture is one that is an ongoing discussion, and you’ll perhaps see some movements there sooner than later. But many of these other uses of the passive monitoring technologies are, in fact, related to the revenue side of the energy business, but we really can’t discuss how they would be applied, because there’s significant intellectual property involved in what we’re trying to do there.

Bill Dezellem: Okay, great. Thank you. Appreciate the time.

Operator: [Operator Instructions] At this time, we have no additional questions. I’d like to turn the call over to Rick Wheeler for closing remarks.

Rick Wheeler: All right. Well, thank you, Jamie, and thanks to all of you who joined our call today, and we look forward to speaking with you again on our conference call for the third quarter of fiscal year 2024, and that will be in August. So thanks, everyone, and goodbye.

Operator: Thank you. This does conclude today’s Geospace Technologies second quarter 2024 earnings conference call. Please disconnect your lines at this time, and have a wonderful day.