ION Geophysical Corp. (IO), a company providing data-driven decision-making to offshore energy and port, has seen a tremendous increase of 26.67% in aftermarket trading session. As a result that, IO stock is currently changing hands at $1.90. There’s perceived to be no specific reason for this increase in IO stock. On Wednesday, IO stock closed the day at $1.50 after declining 5.06%. The decline came amid the news that ION had initiated the review of strategic alternatives.
Evaluation of strategic alternatives
On Wednesday, IO announced to initiate the process of evaluation of strategic alternatives. The move was meant to strengthen the financial position of the company and to maximize the shareholder value. The strategic alternatives include sales or other business combination transaction, sales of assets, debt financing, private or public equity transactions, and some other steps. To assist in the process of evaluation, ION has engaged Tudor Pickering, Holt & Co. ION said that there was no assurance that the evaluation would cause strategic changes. The company had not set the timetable for the conclusion of the strategic alternatives. The company further said that it did not want to comment any further over the matter until and unless the Board of Directors give the nod of approval for further disclosure of the matter.
IO announces the third phase of the acquisition program
On the 10th of September, IO announced a third, fully underwritten phase of the Company’s Mid North Sea High 3D new acquisition multi-client program. The program covers an unexplored area of the UK’s offshore. The survey location lies adjacent to the company’s initial phase, and hence, is strategically important for the improvement in IONs footprint in the market. The survey location is intended to fill the gaps in existing subsurface coverage. Data collection from the survey would occur from mid September to late October. The survey would be carried out in an area comprising 700 sq. km. Joe Gagliardi, Senior Vice President of ION’s Ventures group, commented that based on the excellent phase one subsurface image quality, the company expects to provide fresh insights in a new regional perspective.
Q2 2021 financial results
On the 12th of August, IO announced the quarterly results of the second quarter of the fiscal year 2021, which ended on 30th June. According to the details, the company generated total net revenue of $19.71 million during the quarter. The gross profit during the quarter stood at $3.63 million. The total operating expenses during the quarter were $11.01 million. The company bore a net loss of $23.52 million during the quarter. The net loss per basic and diluted share during the quarter stood at $0.90. On the last day of the quarter, the company had cash and cash equivalents of $26.73 million.
What’s ahead for IO stock?
Recent past performance of IO stock has been outstanding. The stock has gained an increase of 21% alone during the past one month. The company is expected to increase its EPS by 31% during the next fiscal year. So, based on these statistics, it is easy to say that IO stock could enjoy sanguine times in the near future.
