Segment Information (Tables)

6 Months Ended

Jun. 30, 2012

Segment Information

Schedule of financial information with respect to reportable segments

   The following table sets forth financial information with respect to our reportable segments (in thousands)(1):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Revenue:
Data Acquisition
North America proprietary	$	9,066		$	37,984		$	73,470		$	76,673
International proprietary		100,689			84,638			175,732			201,779
Multi-Client		22,937			21,475			44,432			50,560
Subtotal Data Acquisition		132,692			144,097			293,634			329,012
Data Processing & Integrated Reservoir Geosciences		3,345			2,578			7,359			6,408
Eliminations		(1,250	)		(1,127	)		(2,708	)		(2,235	)
Total	$	134,787		$	145,548		$	298,285		$	333,185
Direct Operating Expenses:
Data Acquisition
North America proprietary	$	15,700		$	29,676		$	55,287		$	59,206
International proprietary		75,532			89,389			156,061			208,085
Multi-Client		320			52			5,630			218
Subtotal Data Acquisition		91,552			119,117			216,978			267,509
Data Processing & Integrated Reservoir Geosciences		3,113			2,906			6,084			5,913
Eliminations		(1,250	)		(1,127	)		(2,708	)		(2,235	)
Total	$	93,415		$	120,896		$	220,354		$	271,187
Depreciation and Amortization:
Data Acquisition
North America proprietary	$	3,043		$	3,624		$	6,810		$	7,214
International proprietary		13,134			13,845			25,578			27,555
Multi-Client		14,327			17,698			29,834			39,387
Subtotal Data Acquisition		30,504			35,167			62,222			74,156
Data Processing & Integrated Reservoir Geosciences		436			367			859			653
Corporate		1,199			1,258			2,400			2,520
Total	$	32,139		$	36,792		$	65,481		$	77,329
Adjusted EBITDA(2):
Data Acquisition
North America proprietary	$	(8,033	)	$	6,373		$	15,749		$	14,298
International proprietary		17,166			(12,229	)		6,640			(21,204	)
Multi-Client		22,373			20,909			38,045			49,336
Subtotal Data Acquisition		31,506			15,053			60,434			42,430
Data Processing & Integrated Reservoir Geosciences		223			(369	)		1,260			406
Corporate		(10,749	)		(5,842	)		(21,403	)		(14,941	)
Total	$	20,980		$	8,842		$	40,291		$	27,895
Reconciliation of Adjusted EBITDA to Net Loss
Adjusted EBITDA	$	20,980		$	8,842		$	40,291		$	27,895
Provision for income taxes		(6,202	)		(2,194	)		(7,142	)		(2,828	)
Interest expense, net of interest income		(12,836	)		(12,941	)		(25,575	)		(24,090	)
Other (income) expense (as defined below)		2,731			3,649			7,217			8,145
Depreciation and amortization		(32,139	)		(36,792	)		(65,481	)		(77,329	)
Net loss	$	(27,466	)	$	(39,436	)	$	(50,690	)	$	(68,207	)
Identifiable Assets: (at end of period)
Data Acquisition
North America proprietary							$	66,161		$	115,851
International proprietary								254,954			410,430
Multi-Client(3)								49,302			87,821
Subtotal Data Acquisition								370,417			614,102
Data Processing & Integrated Reservoir Geosciences								8,140			8,147
Corporate								32,289			56,377
Total(4)(5)							$	410,846		$	678,626

(1)

During the fourth quarter of 2011, the Company re-assessed its operating segments and concluded that its multi-client data library business is a separate reporting unit. Accordingly, prior periods have been restated.

(2)

The Company defines Adjusted EBITDA as net income (loss) (the most directly generally accepted accounting principle or "GAAP" financial measure) before Interest, Taxes, Other Income (Expense) (including foreign exchange gains/losses, loss on early redemption of debt, gains/losses from changes in fair value of derivative liabilities and other income/expense), Asset Impairments and Depreciation and Amortization. The Chief Operating Decision Maker ("CODM") primarily evaluates operating segment profitability through the use of this measure. However, as the majority of operating costs directly associated with acquiring and processing multi-client data are capitalized and amortized based on a specific formula, the CODM also considers the impact of amortization expense when specifically evaluating multi-client's segment profitability.

(3)

The North America proprietary segment shares certain productive assets used in its operations with the multi-client segment. Those productive assets are presented as part of the North America segment. Multi-client assets presented in the table above only include those assets specifically identified with the multi-client seismic data acquisition business such as cash, accounts receivable and the multi-client seismic data library.

(4)

During the six months ended June 30, 2012, capital expenditures, including capitalized leases and capitalized depreciation to multi-client, totaled $5.4 million, $4.6 million, $31.5 million and $1.1 million for North America proprietary, international proprietary, multi-client and data processing & integrated reservoir geosciences, respectively.

(5)

During the third and fourth quarters of 2011, the Company recorded goodwill impairment charges totaling $132.4 million. Accordingly, since December 31, 2011, the Company had no goodwill.