OYO Geospace Reports Fiscal Year 2010 Second Quarter Results

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Company Announces Four New Land Nodal Data Acquisition System Orders Totaling
6,420 Channels
HOUSTON--(Business Wire)--
OYO Geospace (NASDAQ:OYOG) today announced net income of $2.8 million, or $0.45
per diluted share, on revenues of $30.8 million for its quarter ended March 31,
2010. This compares with a net income of $1.2 million, or $0.20 per diluted
share, on revenues of $23.5 million in the comparable quarter last year.

For the six months ended March 31, 2010, OYO Geospace recorded sales of $57.1
million and net income of $3.9 million, or $0.63 per diluted share. For the
comparable period last year the company recorded sales of $49.4 million and net
income of $2.6 million, or $0.42 per diluted share.

"Our financial results improved sequentially and also year-over-year, but the
market conditions remain challenging. Our traditional products still face
significant pricing pressure and subdued demand. As a result, we continue to
operate our factories at less than full capacity which hurts our profitability.
However, we had better than expected demand for our marine products and for the
GSR, our land nodal data acquisition system. During the quarter we delivered an
8,000-channel GSR system to Dawson Geophysical for their U.S. seismic
operations. We also delivered 3,200 additional GSR channels to Viking
Geophysical`s seismic operations in Turkey bringing Viking`s total GSR channel
count to 6,200 channels. Another 700 channels were sold to Seismic Equipment
Solutions to increase their worldwide rental fleet of land nodal data
acquisition equipment. Our non-seismic industrial product line also performed
well, although the impact is relatively small at this time. Our operations in
Canada and Russia continue to struggle due to difficult local market conditions,
but we are beginning to see signs of improvement in both markets," said Gary D.
Owens, OYO Geospace`s Chairman, President and CEO.

"We are pleased to announce four recently received orders for our GSR land nodal
data acquisition system. The first order is for 1,700 additional channels for
BP`s existing GSR crew in Libya. This latest order will bring that crew`s
channel count to over 3,700 channels. Tullow Oil and Gas ordered a GSR system to
be initially used in Uganda. This is a 720-channel crew utilizing our 3-channel
GSR configuration with our 3-component sensor package. We also received a
1,000-channel order from Green World Geophysical who will initially use this
system to explore the Marcellus shale area in southern New York. Finally, we
received a 3,000-channel order from TGC Industries to be used in their U.S. and
Canadian markets. We expect to deliver all four of these orders in our third
quarter of fiscal year 2010. Upon delivery of these new orders, we will have ten
customers able to deploy over 27,000 GSR channels. Customer reception to our GSR
system demonstrations has been very positive, and more demonstrations are
forthcoming. We are extremely delighted to see the increase in world-wide
interest and acceptance of our GSR land nodal data acquisition system."

"Shipments of our seismic reservoir products were very low for the quarter at
only $0.3 million. We generally characterize demand for these products as
"lumpy" and, to illustrate, we expect to ship over $3 million of these products
in our third quarter as a result of recently received orders for our borehole
tools. We are also in the process of manufacturing BP`s seabed cable order
announced last March and expect to record additional seismic reservoir revenues
of $4 to $5 million from that sale in our fourth fiscal quarter ending September
30, 2010."

"Overall, we are confident as we look ahead to our near term financial
performance due to a reasonable backlog of seismic reservoir products, marine
products and land nodal acquisition systems. Our operating cash flows were
robust for the recently completed quarter and our balance sheet continues to
strengthen. At March 31, 2010, we reported $19.7 million of cash and our
stockholders` equity grew to $123.8 million, both record highs for our company.
Our long-term debt continues to decline and our capitalization ratio declined to
6.0% at March 31, 2010. Our $25 million credit facility remains untapped at this
time."

OYO Geospace designs and manufactures instruments and equipment used by the oil
and gas industry in the acquisition and processing of seismic data as well as in
reservoir characterization and monitoring activities. The company also designs
and manufactures equipment and film for the thermal printing industry worldwide.

This press release includes "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. All statements other than statements of historical fact
included herein including statements regarding potential future products and
markets, our potential future revenues, future financial position, business
strategy, future expectations and other plans and objectives for future
operations, are forward-looking statements. We believe our forward-looking
statements are reasonable. However, they are based on certain assumptions about
our industry and our business that may in the future prove to be inaccurate.
Important factors that could cause actual results to differ materially from our
expectations include the level of seismic exploration worldwide, which is
influenced primarily by prevailing prices for oil and gas, the extent to which
our new products are accepted in the market, the availability of competitive
products that may be more technologically advanced or otherwise preferable to
our products, tensions in the Middle East and other factors disclosed under the
heading "Risk Factors" and elsewhere in our most recent Annual Report on Form
10-K and Quarterly Report on Form 10-Q, which are on file with the Securities
and Exchange Commission. Further, all written and verbal forward-looking
statements attributable to us or persons acting on our behalf are expressly
qualified in their entirety by such factors.

OYO GEOSPACE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

(unaudited)

Three Months Ended Six Months Ended
March 31, March 31, March 31, March 31,
2010 2009 2010 2009

Net sales $ 30,781 $ 23,510 $ 57,097 $ 49,365
Cost of sales 20,492 16,368 39,647 34,203
Gross profit 10,289 7,142 17,450 15,162

Operating expenses:
Selling, general and administrative 3,974 3,396 7,713 7,120
Research and development 2,269 1,911 3,997 3,810
Bad debt expense (recovery) (378 ) 79 (420 ) (89 )
Total operating expenses 5,865 5,386 11,290 10,841

Gain (loss) on sale of assets (184 ) -- (184 ) 7

Income from operations 4,240 1,756 5,976 4,328

Other income (expense):
Interest expense (51 ) (136 ) (135 ) (411 )
Interest income 51 307 102 636
Foreign exchange gains (losses) 54 (21 ) 104 (561 )
Other, net 6 (57 ) (168 ) (63 )
Total other income (expense), net 60 93 (97 ) (399 )

Income before income taxes 4,300 1,849 5,879 3,929
Income tax expense 1,492 617 1,970 1,360

Net income $ 2,808 $ 1,232 $ 3,909 $ 2,569

Basic earnings per share $ 0.47 $ 0.21 $ 0.65 $ 0.43

Diluted earnings per share $ 0.45 $ 0.20 $ 0.63 $ 0.42

Weighted average shares outstanding - Basic 6,028,416 5,937,144 6,020,697 5,936,822
Weighted average shares outstanding - Diluted 6,227,083 6,035,314 6,203,880 6,069,615

OYO Geospace
Gary D. Owens, 713-986-4444
Chairman, President & CEO
FAX: 713-986-4445

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