Mitcham Industries Inc. (NASDAQ:MIND) Q3 2019 Earnings Conference Call Transcript
Dec 06, 2018 • 09:00 am ET
Greetings, and welcome to Mitcham Industries' Third Quarter Fiscal 2019 Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation.
(Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host Mark Roberson with Dennard Lascar, IR. Thank you, Mr. Roberson, you may begin.
Thank you, Sherry. Good morning and welcome to the Mitcham Industries fiscal 2019 third quarter conference call. We appreciate all of you joining us today. Your hosts are Rob Capps, Co-CEO and CFO; and Guy Malden, Co-CEO and EVP of Marine Systems.
Before I turn the call over to management, I have a few items to cover. If you would like to listen to a replay of today's call, it will be available for 90 days, via webcast by going to the IR section of the Company's website at mitchamindustries.com or via a recorded instant replay until, December, 13. Information on how to access the replay was provided in today's earnings release. Information reported on this call speaks only as of today, Thursday, December 6, 2018, and therefore, you are advised that time-sensitive information may no longer be accurate, at the time of any replay.
(Forward-Looking Cautionary Statements)
Now I would like to turn the call over to Guy Malden.
Thanks Mark and good morning everyone. We would like to thank you for joining us today for our fiscal 2019 third quarter conference call. I'll start by making some general comments about the quarter. Rob, will then discuss our financial results in more detail and briefly address our business outlook.
I will close with a few final comments and we will then open the call for questions. Looking at our third quarter results, we saw broad-based improvement in both our Marine Technology Products segment and our Leasing segment. This improved performance is slightly better than originally anticipated and reflects the positive impact from the strategic steps we have taken over the past several years.
Our Marine Technology Products segment, continued to build on the momentum set through the first half of the year, as revenues were up 55% both sequentially and year-over-year. As we've emphasized in the past, the timing of system orders can have a sizable impact on our results. This played in our favor during this past quarter, as we had a Seamap digital source controller delivery in the quarter and we continue to experience healthy demand for spare parts and repairs at Seamap, as customers are increasing their operating capacity in response to improved backlog in their business.
Finally, our new SeaLink marine data acquisition system began contributing revenues in the quarter and should gain greater traction going forward. We expect our SeaLink repair activity to continue to ramp-up in the fourth quarter and beyond. In addition, increased marine exploration activity, including ocean bottom node surveys, is resulting in a greater number of inquiries for source controller and RGPS positioning systems. Klein continues to gain