EX-99.1 3 h05780exv99w1.txt PRESS RELEASE DATED MAY 8, 2003 EXHIBIT 99.1 [INPUT/OUTPUT, INC. LOGO] PRESS RELEASE For further information contact: Brad Eastman Chief Administrative Officer, Input/Output Tel: (281) 933-3339 Email: Brad.Eastman@i-o.com INPUT/OUTPUT CANCELS MARINE SOLID STREAMER RESEARCH & DEVELOPMENT PROJECT HOUSTON, Texas (May 8, 2003)... Input/Output, Inc. (NYSE: IO) today announced that it has cancelled research and development efforts related to solid marine streamers. I/O commenced research and development efforts when it acquired S/N Technologies, Inc. in May, 2002. As a result of the cancellation, I/O took an additional charge of $1.3 million to its previously announced first quarter results. The charge includes the write-off of approximately $0.5 million of machinery and equipment, $0.2 million of inventory related to the development efforts, and $0.6 million of intellectual property acquired from S/N Technologies. Revised results for first quarter 2003 are included with this press release. "During my first six weeks as Input/Output's Chief Executive Officer, I have focused on our strategic position in all of the markets we serve," stated Robert P. Peebler. "Considering the time and cost required to develop a solid streamer product utilizing the S/N RIM process, market opportunity, and continued success of our liquid-filled streamers, I have decided to focus our development efforts on other promising marine technologies and projects that accelerate the adoption of VectorSeis(R) in all phases of a reservoir life cycle. We will seek alternative strategies to provide a solid streamer solution to our marine customers." Input/Output, Inc. is a major provider of seismic acquisition imaging technology for the land, marine and transition zone exploration, production and reservoir monitoring. The Company specializes in technology that creates value for the energy industry in the areas of 2D, 3D, 4D and multicomponent seismic data. Additional information on Input/Output, Inc. is available on the Internet at www.i-o.com or contact us at ir@i-o.com. The information included herein contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include statements concerning future product offerings and expected continued investment in new technology. Actual results may vary materially from those described in these forward-looking statements. All forward-looking statements reflect numerous assumptions and involve a number of risks and uncertainties. These risks and uncertainties include the timing and development of the Company's products and services and market acceptance of the Company's new and revised product offerings; risks associated with competitor's product offerings and pricing pressures resulting therefrom; the Company's inability to produce products to preserve and increase market share; and technological and marketplace changes affecting the Company's product line. Additional risk factors which could affect actual results are disclosed by the Company from time to tine in its filings with the Securities and Exchange Commission. INPUT/OUTPUT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) (UNAUDITED)
THREE MONTHS ENDED MARCH 31, -------------------------------- 2003 2002 -------------- -------------- Net sales...................................... $ 41,177 $ 30,213 Cost of sales.................................. 32,416 23,252 -------------- -------------- Gross profit.......................... 8,761 6,961 -------------- -------------- Operating expenses: Research and development.................... 5,518 7,021 Marketing and sales......................... 2,811 2,530 General and administrative.................. 4,065 4,627 Amortization of intangibles................. 304 316 Impairment of long-lived assets............. 1,120 - -------------- -------------- Total operating expenses............. 13,818 14,494 -------------- -------------- Loss from operations........................... (5,057) (7,533) Interest expense............................... (1,345) (35) Interest income................................ 591 491 Fair value adjustment of warrant obligation.... 871 - Other income (expense)......................... 249 (136) -------------- -------------- Loss before income taxes....................... (4,691) (7,213) Income tax expense (benefit)................... 588 (2,671) -------------- -------------- Net loss....................................... (5,279) (4,542) Preferred dividend............................. - 1,455 -------------- -------------- Net loss applicable to common shares............................... $ (5,279) $ (5,997) ============== ============== Basic loss per common share.................... $ (0.10) $ (0.12) ============== ============== Weighted average number of common shares outstanding................... 51,194,690 50,890,836 ============== ============== Diluted loss per common share.................. $ (0.10) $ (0.12) ============== ============== Weighted average number of diluted common shares outstanding................... 51,194,690 50,890,836 -------------- --------------
INPUT/OUTPUT, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
MARCH 31, 2003 DECEMBER 31, (UNAUDITED) 2002 ------------ ------------- ASSETS Current assets: Cash and cash equivalents........................ $ 56,317 $ 77,144 Restricted cash.................................. 252 247 Accounts receivable, net......................... 30,560 18,745 Current portion notes receivable, net............ 12,483 6,137 Inventories...................................... 47,561 50,010 Prepaid expenses and other current assets........ 2,030 3,136 ------------ ------------- Total current assets..................... 149,203 155,419 Notes receivable.................................... 6,131 12,057 Property, plant and equipment, net.................. 38,764 39,255 Goodwill, net....................................... 33,758 33,758 Other assets, net................................... 6,966 7,956 ------------ ------------- Total assets............................. $ 234,822 $ 248,445 ============ ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt............. $ 1,787 $ 2,142 Accounts payable................................. 13,387 18,927 Accrued expenses................................. 17,898 19,410 ------------ ------------- Total current liabilities................ 33,072 40,479 Long-term debt, net of current maturities........... 50,979 51,430 Other long-term liabilities......................... 4,934 5,199 Stockholders' equity: Common stock..................................... 521 519 Additional paid-in capital....................... 296,267 296,002 Accumulated deficit.............................. (141,811) (136,534) Accumulated other comprehensive loss............. (2,538) (2,380) Treasury stock................................... (5,859) (5,929) Unamortized restricted stock compensation........ (743) (341) ------------ ------------- Total stockholders' equity.................... 145,837 151,337 ------------ ------------- Total liabilities and stockholders' equity.... $ 234,822 $ 248,445 ============ =============
CALCULATION OF EBIT AND EBITDA (NON-GAAP MEASURES) (IN THOUSANDS) (UNAUDITED) EBITDA is a Non-GAAP measurement that is presented as an additional indicator of operating performance and is not a substitute for net income (loss) or earnings (loss) per share calculated under generally accepted accounting principals (GAAP). The calculation of EBITDA shown below is based upon amounts derived from the company's financial statements prepared in conformity with GAAP.
THREE MONTHS ENDED MARCH 31, ---------------------- 2003 2002 --------- --------- Loss before income taxes ...................... $ (4,691) $ (7,213) Interest expense .............................. 1,345 35 Interest income ............................... (591) (491) Fair value adjustment of warrant obligation.... (871) - --------- --------- Earnings before net interest expense and taxes (EBIT) ............................... (4,808) (7,669) Total depreciation and amortization expense.... 3,574 2,992 --------- --------- Earnings before net interest expense, taxes, depreciation and amortization (EBITDA) ................................... $ (1,234) $ (4,677) ========= =========
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