Segment Information

3 Months Ended

Mar. 31, 2020

The Company evaluates and reviews its results of operations based on two reporting segments: E&P Technology & Services and Operations Optimization. Refer to Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for information about each business segment’s business, products and services.

The segments represent components of the Company for which separate financial information is available that is utilized on a regular basis by the Chief Operating Decision Maker in determining how to allocate resources and evaluate performance. The Company measures segment operating results based on income (loss) from operations.

The following table is a summary of segment information (in thousands):



	Three Months Ended March 31,
	2020				2019
Net revenues:
E&P Technology & Services:
New Venture	$	1,441			$	13,471
Data Library	40,131				9,948
Total multi-client revenues	41,572				23,419
Imaging and Reservoir Services	4,942				3,684
Total	46,514				27,103
Operations Optimization:
Optimization Software & Services	4,427				5,033
Devices	5,473				4,820
Total	9,900				9,853
Total net revenues	$	56,414			$	36,956
Gross profit (loss):
E&P Technology & Services	$	23,730		^(a)	$	5,440
Operations Optimization	4,614				4,516
Segment gross profit	28,344				9,956
Other	—				(44		)
Total gross profit	$	28,344			$	9,912
Gross margin:
E&P Technology & Services	51		%		20		%
Operations Optimization	47		%		46		%
Total gross margin	50		%		27		%
Income (loss) from operations:
E&P Technology & Services	$	17,952		^(a)	$	(1,615	)
Operations Optimization	(3,259		)	^(b)	170
Support and other	(8,367		)		(14,492		)
Income (loss) from operations	6,326				(15,937		)
Interest expense, net	(3,221		)		(3,112		)
Other income (expense), net	429				(792		)
Income (loss) before income taxes	$	3,534			$	(19,841	)


^(a)	Includes impairment of multi-client data library of $1.2 million for the three months ended March 31, 2020.


^(b)	Includes impairment of goodwill of $4.2 million for the three months ended March 31, 2020.

Intersegment sales are insignificant for all periods presented.