Segment Information

9 Months Ended

Sep. 30, 2011

Segment Information [Abstract]

Segment Information

(2) Segment Information

     The Company evaluates and reviews its results based on four segments: Systems, Software, Solutions and Legacy Land Systems (INOVA). The Company measures segment operating results based on income from operations. The Legacy Land Systems (INOVA) segment represents the Company’s disposed land division operations through March 25, 2010, the date of the formation of the INOVA Geophysical joint venture.

     A summary of segment information is as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2011		2010		2011		2010
Net revenues:
Systems:
Towed Streamer	$	22,219	$	20,185	$	60,000	$	50,096
Ocean Bottom		—		510		509		1,821
Other		10,065		5,036		25,210		19,721
Total	$	32,284	$	25,731	$	85,719	$	71,638
Software:
Software Systems	$	9,476	$	8,567	$	27,444	$	25,824
Services		715		561		1,545		1,409
Total	$	10,191	$	9,128	$	28,989	$	27,233
Solutions:
Data Processing	$	22,416	$	27,943	$	63,349	$	79,661
New Venture		35,597		49,971		67,819		62,314
Data Library		15,166		8,821		48,862		28,342
Total	$	73,179	$	86,735	$	180,030	$	170,317
Legacy Land Systems (INOVA)	$	—	$	—	$	—	$	16,511
Total	$	115,654	$	121,594	$	294,738	$	285,699

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Gross profit:
Systems	$	13,397		$	11,202		$	40,752		$	29,141
Software		8,061			6,074			20,970			18,254
Solutions		22,600			31,672			47,106			52,965
Legacy Land Systems (INOVA)		—			—			—			(984	)
Total	$	44,058		$	48,948		$	108,828		$	99,376
Gross margin:
Systems		41	%		44	%		48	%		41	%
Software		79	%		67	%		72	%		67	%
Solutions		31	%		37	%		26	%		31	%
Legacy Land Systems (INOVA)		—	%		—	%		—	%		(6	%)
Total		38	%		40	%		37	%		35	%
Income from operations:
Systems	$	6,852		$	5,693		$	21,989		$	13,833
Software		7,117			5,451			18,409			16,513
Solutions		13,897			22,556			22,751			30,669
Legacy Land Systems (INOVA)		—			—			—			(9,623	)
Corporate and other		(9,370	)		(10,331	)		(29,782	)		(33,016	)
Income from operations		18,496			23,369			33,367			18,376
Interest expense, net		(1,382	)		(1,861	)		(4,184	)		(28,877	)
Loss on disposition of land division		—			—			—			(38,115	)
Fair value adjustment of warrant		—			—			—			12,788
Equity in losses of INOVA Geophysical		(4,811	)		(8,004	)		(9,844	)		(8,183	)
Other income (expense)		199			(3,229	)		(2,303	)		(811	)
Income (loss) before income taxes	$	12,502		$	10,275		$	17,036		$	(44,822	)

     In September 2011, INOVA Geophysical announced the launch of its next-generation products. These products are in process of field testing with plan of commercial introduction in 2012. The Company expects to see a one-time write-down of inventory based upon previous technologies to occur in INOVA Geophysical’s third quarter and then reflected in the Company’s fourth quarter results, as the Company records its share of earnings of INOVA Geophysical on a one fiscal quarter lag. The Company estimates that its 49% share of this one-time write-down to be in the range of $6 million to $8 million.