ION Earnings Call –

Q4 2011

Earnings Call Presentation

February 16, 2012

Exhibit 99.2

Earnings Call Introduction

Corporate Participants & Contact Information

CONTACT INFORMATION

If

you

have

technical

problems

during

the

call,

please

contact

DRG&L

at

713

529

6600.

If

you

would

like

to

listen

to

a

replay

of

today's

call,

it

will

be

available

via

webcast

in

the

Investor

Relations

section

of

the

Company's

website

-

www.iongeo.com

for

approximately

12

months. 

BRIAN HANSON

Chief Executive Officer

GREG HEINLEIN

Chief Financial Officer

2

Earnings Call Introduction

FORWARD-LOOKING STATEMENTS

The information included herein contains 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.

Actual results may vary fundamentally 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 risk factors that are disclosed by ION

from time to time in its filings with the Securities and Exchange Commission.

3

Market Outlook

Oil Prices

4

•

Expect oil prices to remain in the $80 -

$100 range, supporting continued

frontier exploration in challenging environments, including deepwater and

Arctic.

•

Expect natural decline of large global oil reserves.

Market Outlook

Natural Gas Prices

5

•

Expect

depressed

natural

gas

prices

to

cause

shift

to

liquids

in

North

America.

•

Creating increased pressure on shale operators to locate, complete and

produce shale gas more efficiently.

Market Outlook

Marine Seismic --

Towed Streamer

6

Source: ODS Petrodata, Company Analysis

•

Seismic fleet expected to grow, with majority of new vessels 3D.

•

Expect streamer count and length to continue to increase with market move to

higher-end 12-

to 14-streamer vessels.

7

•

Seabed spending has increased 150%, driven by need for higher resolution

imaging.

•

Seeing increased OBC activity for 3D/4D surveys.

Source: ODS Petrodata, Company Analysis

Market Outlook

Marine Seismic –

Ocean Bottom Cable

Market Outlook

Summary

8

•

Land equipment spending slowly

improving.

•

North American shale-based seismic

equipment spending may be negatively

impacted in 2012.

•

Trend toward larger land surveys and

increased channel count, requiring higher

resolution images in the Middle East.

Market Outlook

Summary

9

•

Expanding exploration cycle.

•

Continued growth in global shale

exploration and production.

•

Continued E&P investment in frontier

exploration.

•

Slow recovery of land seismic.

ION Areas of Focus

Challenging Environments

Arctic, Shallow/Obstructed Water, Transition Zone and Desert

Complex Geologies 

Subsalt, Sub Basalt, Thrust Belt and Carbonates

Unconventional Reservoirs

Shales, Tight Gas and Oil Sands

Basin Exploration

BasinSPAN™

Data Library

10

2011 Highlights

11

•

Systems segment revenues increased 34%,

including 12-streamer sale to BGP.

•

Continued BasinSPAN traction in Arctic,

Brazil, East and West Africa.

•

Good

progress

on

ResSCAN

TM

3D

multi-

client acquisitions in Marcellus shale.

•

Record Solutions backlog of $134M.

•

Record multi-client investment in 2011 -

$144M.

•

Continued improving GOM trends.

•

Expect profitable INOVA Q4 results.

ION delivers fourth quarter diluted EPS of $0.15 on net income of $23 million (excluding special items).

Consolidated revenues of $160 million for the fourth quarter consistent with the prior year period.

Systems revenues of $67 million for Q4 increased 58% over the prior period due to continued strong

demand for marine towed streamer equipment.

Solutions revenues of $83 million for Q4 decreased 22% compared to the prior period.

–

New venture revenues increased more than 60% for Q4 related to projects in the North American

shales, East Africa and the Arctic.

–

Data library revenues decreased 54% for Q4 compared to the prior-year, which included

exceptionally strong data library sales in Q4 2010.

–

Data processing revenues decreased 10% for Q4 compared to the prior-year attributable to the

lagging effects of the Gulf of Mexico oil spill.

–

Solutions backlog reached a record level of $134 million due to increased demand for data

processing services.

Software segment revenues of $9 million for Q4 were essentially flat compared to the prior-year period

with a steady stream of software subscription sales.

–

Total of 51 Orca

®

installations as of year end.

Strong momentum heading into 2012.

12

Q4 2011 Highlights

Financial Overview

Year-over-Year Revenue Comparison

Including Legacy Land Systems

Excluding Legacy Land Systems

Software

Systems

Solutions

13

Systems Segment

Financial Overview

Revenue by Type

Towed Streamer Equipment

Other

14

Solutions Segment

Financial Overview

Revenue by Type

Multi-client Investments

Solutions Backlog

Q4 2011                                             $134 M

Actual Investment

Data

Processing

Data

Libraries

New

Ventures

Q2 2011                               $117 M

15

Q3 2011                       $106 M

Q4 2010        $81 M

$150 M

$130 M

Solutions –

Revenue vs Backlog

Quarterly Trends

16

Solutions historically has a 1 –

2 quarter delay from backlog to revenue.

ION Data Library Investment Relative to Revenue

Average Per Year

17

FY’06 -

FY’11 MCDL Revenue vs MCDL Investment

ION Data Library Investment Relative to Revenue

Average Per Quarter (’06 –

’11)

18

Multi-Client Data Library Revenue vs. Average Investment

Software Segment

Financial Overview

Revenue by Type (GBP)

Services

Software Systems

% of Seismic Vessels with Orca

Orca Vessel Conversion

51

vessels

2011

Orca-Permanent

Other

44

vessels

2010

19

Financial Overview

Adjustments in Q4

Results for 2011 include three special pre-tax items incurred in the fourth quarter:

•

The

first

item

is

a

$7.7

million

charge

representing

ION’s

49%

share

of

a

write-down

of

excess

inventory

by

INOVA

Geophysical; 

•

The

next

item

is

a

$2.9

million

restructuring

related

our

Sensor

geophone

business;

and 

•

The

last

item

is

a

$1.3

million

impairment

on

an

investment.

Total Q4 adjustments of approximately $0.07 per diluted share

20

EPS Reported $0.08                     EPS Adjusted $0.15

Financial Overview

Balance Sheet as of December 31, 2011

Capital Employed

Financing

Cash & ST Investments

Net Fixed Assets

Multi-Client Data Library

Goodwill & Equity in INOVA

Equity

LT Debt

Net Debt of $35M*

* Net Debt = Total Debt ($99M LT & $6M ST) less Cash & ST Investments

$99M

$176M

$70M

Remaining Working Capital

21

Financial Overview

Liquidity & LT Debt as of December 31, 2011

Liquidity of $170M

LT Debt of $99M

Cash & ST Investments

Undrawn Revolver

Term Loan

Facility & Equipment Leases

6%

Revolver and Term A both mature in March 2015

22

Financial Overview

Cash Flow

Year Ended

December 31,

SUMMARIZED CASH FLOW

2011

2010

Cash from operations

135,307

181,490

Working capital

(5,506)

(48,050)

Multi-client investment

(143,782)

(64,426)

PP&E Capital Expenditures

(11,060)

(7,372)

Free Cash Flow*

(25,041)

61,642

•

Cash from operations was impacted by $14 million higher tax payments in 2011 and $24.5

million of cash received from a legal settlement in 2010.

•

2011 multi-client investment up $79 million over 2010.

*Non-GAAP Measure

23

INOVA Geophysical

Q4 2011 Financial Overview*

FY10 vs FY11 Forecasted Revenues

•

Estimated Q4 revenues of $58 to $62 million with

operating income of $5 to $8 million.

•

Revenue 39% ahead of the same period last year.

•

Inventory further reduced in Q4 to lowest level in a

year.

•

Credit line capacity of $27 million in place to support

2012 growth.

24

*   ION

to

share

in

49%

of

these

estimated

results.

These

estimates

are

unaudited.

INOVA Geophysical

General Market Observations/Operational Highlights

•

High vibrator sales  in Q4 (70 units), including Saudi deliveries for BGP and the first 6

units built in China.

•

Strong ARIES

®

sales in Q4 totaling $13 million.

•

Continued BGP purchases totaling $19 million for Q4.

•

2 FireFly

®

rental projects ongoing in the Marcellus: one with ION’s GeoVentures™

group.

•

1,000

Km²

FireFly

project

in

Mexico

also

progressing

with

good

production

rates.

•

Field testing of new products in process to support 2012 sales opportunities.

25

Solid Momentum Heading into 2012

26

Expect the following assumptions for 2012:

•

All business units to see year-over-year growth in 2012.

•

¼

or more of annual earnings in the front half of the year.

•

Data processing business to benefit by largest backlog and    

grow at normal historical rates.

•

Annual data library investment to remain in the range of

$130 to $150 million.

•

Marine to sell at least two large ticket systems (either

towed streamer or OBC).

•

Continued progress at INOVA, resulting in break even full-

year results for 2012.

•

Operating expenses to remain flat as a percentage of

revenue.

•

Interest expense to be in the range of $4 to $7 million.

•

Effective tax rate to range from 22% to 25%.

27