Mitcham Industries Q2 2011 Earnings Conference Call Transcript

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

Question: Terese Fabian - Sidoti & Company - Analyst : I have a question on South America. You have established offices there over the past couple of quarters, I think. Where is the activity that you're seeing there, and how does it compare with your leasing prior to your office location?

Question: Terese Fabian - Sidoti & Company - Analyst : Okay, and are you dealing with clients that you have in other areas, or do you have a new client base there?

Question: Terese Fabian - Sidoti & Company - Analyst : Okay, and you also raised the Middle East as an area where you're seeing increased activity. Can you talk a little bit about that?

Question: Terese Fabian - Sidoti & Company - Analyst : Okay, and just one last question on South America. How may channels do you have down there now?

Question: Terese Fabian - Sidoti & Company - Analyst : Okay, thank you, I'll queue back up.

Question: Luke Lemoine - Capital One Southcoast, Inc. - Analyst : Could you just talk about the number of GunLinks and BuoyLinks in your backlog and where you see these trending over the next few months? 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: Luke Lemoine - Capital One Southcoast, Inc. - Analyst : But I guess, as far as order deliveries, it sounds like one GunLink in Q3 and a few in Q4?

Question: Luke Lemoine - Capital One Southcoast, Inc. - Analyst : And then changing gears a little bit, are there still opportunities out there for additional VSP levels?

Question: Luke Lemoine - Capital One Southcoast, Inc. - Analyst : Okay, all right, thank you.

Question: Terese Fabian - Sidoti & Company - Analyst : I have a question on the Sercel cable-free system that you are buying. You said it's fully integratable with Sercel equipment. Is that true also for ARAM equipment, or is there some -- do you have to have another cable-less system for that?

Question: Terese Fabian - Sidoti & Company - Analyst : Okay. And are you going to be using that more abroad than in North America, since the market here is slow?

Question: Terese Fabian - Sidoti & Company - Analyst : Okay, thank you. Can I ask a question on your Seamap products? What is your current installed base of the GunLink 4000 and 2000 system?

Question: Terese Fabian - Sidoti & Company - Analyst : And who is buying this system now? Is it current customers, or are you integrating some new customers into the mix?

Question: Terese Fabian - Sidoti & Company - Analyst : 120 or so marine seismic vessels -- are you going to be trying to capture that whole base or part of the base, or what is your market share like?

Question: Terese Fabian - Sidoti & Company - Analyst : I'm sure.

Question: David Wishnow - Global Hunter Securities - Analyst : Hey, guys, good quarter. I just had a quick question about the domestic market. Obviously, as a whole, the market is oversupplied. Are you guys seeing any pockets of strength for specific equipment, either for frac monitoring or things like that, or is the whole market just weak?

Question: David Wishnow - Global Hunter Securities - Analyst : Absolutely, and as you see some of the seismic acquisition companies start ramping up multi-client activity in the domestic shales, likely through 2011, would that suck up some of the excess capacity in the market? Or, is there a way to see -- you know, is 2011 looking better for you guys in the domestic market? Or, is it still -- looks off?

Question: Tony Polak - Maxim Group - Analyst : I'm a little confused on your depreciation and amortization. I'm not sure what it is. In your regular statement, you say about $300,000 in depreciation and amortization; and then in the reconciliation of net income, it talks about $5.6 million. Could you just help me --

Question: Tony Polak - Maxim Group - Analyst : Right, I see that.

Question: Tony Polak - Maxim Group - Analyst : Okay, so you want to put that in direct cost of sales as opposed to operating expenses?

Question: Tony Polak - Maxim Group - Analyst : Okay, thank you very much.

Question: Terese Fabian - Sidoti & Company - Analyst : Hi, thank you, thanks for your patience here. Another question on Seamap and international marine work -- are you seeing any slowdown internationally as a result of Gulf of Mexico spills? 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 : Any particular areas? Brazil is going strong, but that's a pretty specialized market there. Arctic? West Africa? Anything special?

Question: Terese Fabian - Sidoti & Company - Analyst : And on the margins on Seamap, do you expect that they can be sustained at these healthy levels?

Question: Terese Fabian - Sidoti & Company - Analyst : Okay, I think that's it for me, now, thank you.