Segment Information

6 Months Ended

Jun. 30, 2012

Segment Information [Abstract]

Segment Information

(2) Segment Information

The Company evaluates and reviews its results based on four segments: Solutions, Systems, Software and INOVA Geophysical. The Company measures segment operating results based on income from operations. The Company accounts for its 49% interest in INOVA Geophysical as an equity method investment and records its share of earnings and losses of INOVA Geophysical on a one fiscal quarter lag basis.

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Net revenues:
Solutions:
Data Processing	$	28,190	$	20,634	$	55,055	$	40,933
New Venture		21,544		9,772		50,538		32,222
Data Library		22,235		18,552		32,503		33,696
Total	$	71,969	$	48,958	$	138,096	$	106,851
Systems:
Towed Streamer	$	13,727	$	20,234	$	29,531	$	37,781
Ocean Bottom		1,616		507		5,135		509
Other		7,476		8,734		24,859		15,145
Total	$	22,819	$	29,475	$	59,525	$	53,435
Software:
Software Systems	$	9,551	$	9,541	$	17,921	$	17,968
Services		875		558		1,382		830
Total	$	10,426	$	10,099	$	19,303	$	18,798
Total	$	105,214	$	88,532	$	216,924	$	179,084
Gross profit:
Solutions	$	28,904	$	11,190	$	47,889	$	24,506

Systems		9,234			15,110			25,046			27,355
Software		7,805			7,331			14,164			12,909
Total	$	45,943		$	33,631		$	87,099		$	64,770
Gross margin:
Solutions		40	%		23	%		35	%		23	%
Systems		40	%		51	%		42	%		51	%
Software		75	%		73	%		73	%		69	%
Total		44	%		38	%		40	%		36	%
Income from operations:
Solutions	$	17,434		$	3,042		$	27,040		$	8,854
Systems		995			9,057			9,735			15,137
Software		6,879			6,439			12,361			11,292
Corporate and other		(12,336	)		(9,738	)		(24,521	)		(20,412	)
Income from operations		12,972			8,800			24,615			14,871
Interest expense, net		(1,364	)		(1,187	)		(2,882	)		(2,802	)
Equity in earnings (losses) of INOVA Geophysical		3,777			(4,173	)		6,245			(5,033	)
Other income (expense)		895			497			209			(2,502	)
Income before income taxes	$	16,280		$	3,937		$	28,187		$	4,534

The following table reflects the summarized financial information for INOVA Geophysical for the three months ended March 31, 2012 and 2011 and the six-month periods from October 1 to March 31 of 2012 and 2011 (in thousands):

	Three Months Ended March 31,					Six Month Period from October 1 – March 31,
	2012		2011			2012		2011
Net revenues	$	56,779	$	32,452		$	115,777	$	77,991
Gross profit	$	19,502	$	3,708		$	33,466	$	14,924
Income (loss) from operations	$	8,910	$	(6,657	)	$	15,419	$	(9,867	)
Net income (loss)	$	8,654	$	(8,090	)	$	14,371	$	(10,771	)