Mitcham Industries Reports Third Quarter Results

HUNTSVILLE, Texas--(BUSINESS WIRE)--Dec. 15, 2004--Mitcham Industries, Inc. (Nasdaq:MIND - News) today reported revenue of $4.7 million for its third quarter ended October 31, 2004, as compared to revenue of $7.3 million in the third quarter last year. For the quarter, the Company recorded a net loss of $823,000, or $(0.09) per share, as compared to net income of $105,000, or $0.01 per diluted share, for the comparable quarter last year.

"While our third quarter loss is disappointing, our core leasing business was in line with last year and we ordered an additional 3,500 channels and associated peripheral seismic equipment from Sercel to satisfy increased demand for the upcoming winter months," said Billy F. Mitcham, Jr., President and CEO of Mitcham Industries. "Our fourth and first quarters are seasonally our strongest periods and thus far in the fourth quarter we are pleased with the overall level of demand for our equipment and the general tone of the market worldwide."

"In our business, the timing of equipment sales is difficult to predict," said Mitcham. "Quarter-over-quarter, our equipment sales comparison reflected an unusually large sale in last year's third quarter," Mitcham said. "At quarter's end, our financial position is strong with working capital increasing to $14.4 million from $7.4 million at the beginning of this fiscal year."

For the nine months ended October 31, 2004, the Company recorded net income of $702,000, or $0.08 per diluted share, as compared to a net loss (inclusive of discontinued operations) of $5.5 million, or $(0.63) per share, for the prior year period. Revenues totaled $19.3 million as compared to $17.1 million for the comparable nine-month period in the prior year.

Mitcham Industries, Inc., a geophysical equipment supplier, offers for lease or sale, new and "experienced" seismic equipment to the oil and gas industry, seismic contractors, environmental agencies, government agencies and universities. Headquartered in Texas, with sales and services offices in Calgary, Canada, Brisbane, Australia and associates throughout Europe, South America and Asia, Mitcham Industries conducts operations on a global scale and is the largest independent exploration equipment lessor in the industry.

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