Mitcham Industries Q1 2010 Earnings Conference Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Terese Fabian - Sidoti & Company - Analyst : Hi, thank you and good morning.

Question: Terese Fabian - Sidoti & Company - Analyst : I have a question on your land and marine equipment in the lease pool. Do you have any kind of a break down on how much revenue you're getting from either side of that? You said that you have a number of marine projects that you're bidding on for a longer term.

Question: Terese Fabian - Sidoti & Company - Analyst : Okay, that's good. And how many GunLink products systems do you have in the lease pool?

Question: Terese Fabian - Sidoti & Company - Analyst : Okay. Are you seeing, can I just follow-up on that? Are you seeing much equipment out there that's new or used that's being for sale that could compete with your lease pool with your leasing side of the business?

Question: Terese Fabian - Sidoti & Company - Analyst : Okay. I have a number of other questions but I'll queue up if there are others. Okay, thank you.

Question: Luke Onli - Capital One Southcoast - Analyst : Hi, good morning. Bill, you kind of felt this out with how Seamap revenues should progress throughout the year. Margins were pretty healthy in 1Q. Should those kind of maybe fall back down to a normalized rate for the balance of the year?

Question: Luke Onli - Capital One Southcoast - Analyst : Okay. And then Bill, you didn't spend a whole lot of time on the VSPs. I think all of those are still under long term contracts right now. Could you maybe talk about additional opportunities there maybe for incremental levels or anything of that nature?

Question: Luke Onli - Capital One Southcoast - Analyst : Okay. All right, that's it for me. Thanks.

Question: Veny Aleksandrov - Pritchard Capital Partners - Analyst : Good morning, gentlemen. My question is on the Polarcus contract. Can you remind us the schedule for this contract? I know that it's going to begin in Q2 but how are the deliveries, going to be spread for the rest of the year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Veny Aleksandrov - Pritchard Capital Partners - Analyst : And it should be done by the end of the year?

Question: Veny Aleksandrov - Pritchard Capital Partners - Analyst : Thank you, that was my question, thanks.

Question: Russ DeMont - Midwood Capital Management - Analyst : Hi, good morning guys. I think you basically said this in the call but just to be clear, can you remind us as of sort of the end of the first quarter how much backlog there was in Seamap to be delivered over the next three quarters?

Question: Russ DeMont - Midwood Capital Management - Analyst : Okay, fair enough.

Question: Russ DeMont - Midwood Capital Management - Analyst : In order of magnitude, sort of 45 to 50% gross margin is what we should model? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Russ DeMont - Midwood Capital Management - Analyst : Okay, and then Rob, or really either of you, can you just give some color since we didn't really have the seasonal benefit we typically get in winter, does that mean we really shouldn't have much of a step down going into the Summer here in terms of revenues and EBITDA?

Question: Russ DeMont - Midwood Capital Management - Analyst : Okay, but I think last year, the order or magnitude of the step down typically pretty big but I guess it shouldn't be as big this quarter because we didn't have a great winter.

Question: Russ DeMont - Midwood Capital Management - Analyst : And can you -- and this will be my last question. Can you just give a little more color, Bill, you mentioned these high channel count jobs you're bidding on. Can you talk about sort of how many jobs there are, the timing of when shareholders might hear about that and just how much these jobs might kind of move the needle?

Question: Russ DeMont - Midwood Capital Management - Analyst : Okay, great. Thank you. Thanks very much guys for taking my questions. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Terese Fabian - Sidoti & Company - Analyst : Yes, I have a question, a follow-up on the VSP leasing that you're doing. Can you identify how much revenue came from that in the first quarter?

Question: Terese Fabian - Sidoti & Company - Analyst : Okay. And a question on CapEx. You identified a $6.5 million or thereabouts expenditure in the first quarter. Is that out of the 10 total that you had guided for the year?

Question: Terese Fabian - Sidoti & Company - Analyst : Okay. And you said that you would be acquiring equipment that you had specific sort of markets for. Can you talk about what that might be?

Question: Terese Fabian - Sidoti & Company - Analyst : Okay, thank you.