Mitcham Industries Q3 2010 Earnings Conference Call Transcript

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

Question: Neal Dingmann - Wunderlich Securities, Inc - Analyst : Thank you, sir. Our first question is from the line of Veny Aleksandrov with Pritchard Partners. Please go ahead, ma'am.

Question: Neal Dingmann - Wunderlich Securities, Inc - Analyst : Morning, guys.

Question: Neal Dingmann - Wunderlich Securities, Inc - Analyst : So Bill, when you talk about some of the Seamap, and some of the GunLink et cetera, and what's going on, I am wondering is that more of an expansion? I guess can you give us a bit of color of what's going on offshore, is it more expansion, is it more, I guess, going to newer systems, or kind of a combination of the two?

Question: Neal Dingmann - Wunderlich Securities, Inc - Analyst : And then moving over the Latin America, you touched on Peru in Columbia, I guess, what you've got going on there, how quick do you see that developer just kind of wondering, from calendar year 2010, how incremental you see that business? And what you think about bringing more channels to that area, or just wonder how you are going to operate out of those two areas? 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: Neal Dingmann - Wunderlich Securities, Inc - Analyst : So lastly, remind me how many channels domestically and do you see yourself adding any more calendar 2010 there, or more I guess, take more international?

Question: Neal Dingmann - Wunderlich Securities, Inc - Analyst : Got you. And you plan on adding more domestically calendar 2010, Bill?

Question: Neal Dingmann - Wunderlich Securities, Inc - Analyst : Got you. Okay. Thanks.

Question: Terese Fabian - Sidoti & Company - Analyst : Thank you. I have a question on the vertical seismic profiling equipment you have in your inventory now. Can you talk a little bit about that, who is using it, is it a significant part of your revenue now? And are you going to be expanding on this, because you see the market there? 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 : And as far as you know, are they all being used in North America?

Question: Terese Fabian - Sidoti & Company - Analyst : And what does it provide the user? What does that information add?

Question: Terese Fabian - Sidoti & Company - Analyst : Okay. Thank you, now moving into the marine segment, marine seismic vessels, declining numbers, you said something about shipping three systems of some kind? I missed that. Can you --

Question: Terese Fabian - Sidoti & Company - Analyst : Okay. At the other end, the GunLink 4000, how much does an upgrade cost from the 2 to the 4, and who would be interested in doing that?

Question: Terese Fabian - Sidoti & Company - Analyst : That's good to have a range. And one last question, seismic markets seem to be stabilizing, nobody knows how fast they're going to be rising, or at what tempo. What is happening with your customer, doubtful accounts are up. Do you see that stabilizing, and what kind of clients are involved here?

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

Question: Ross DeMont - Midwood Capital - Analyst : Good morning guys. Great quarter.

Question: Ross DeMont - Midwood Capital - Analyst : Quick question for you, just focusing on equipment leasing, and as you sort of set up for the fourth quarter, last year you did like $10 million in revs there, the year before you did 17. Without trying to back you into guidance, can I assume that last year would be a real low point for a fourth quarter performance in equipment leasing?

Question: Ross DeMont - Midwood Capital - Analyst : Well, I am trying to take your commentary in the Press Release saying Russia is setting up much better, and you're optimistic about Canada. And last year you had all these head winds, I just kind of -- I guess I am trying to get a little more color. I am assuming we should be meaningfully better than the $10 million in revs in equipment.

Question: Ross DeMont - Midwood Capital - Analyst : Okay. Understood. And then on the Seamap business, just to confirm, you're going to deliver -- well, what we think right now is one GunLink 4000, one BuoyLink RGPS, and three GunLink Light systems in the fourth quarter?

Question: Ross DeMont - Midwood Capital - Analyst : Okay. This just setting up to be a pretty good Seamap quarter then.

Question: Ross DeMont - Midwood Capital - Analyst : And then last thing I think, Rob, can you give me some color on working capital. It looked like payables were down quite a bit, and receivables up. Are you sort of running abnormally high levels of working capital, or is this just where you would be seasonally? I feel like the balance sheet is sort of consuming more cash than I would have anticipated.

Question: Ross DeMont - Midwood Capital - Analyst : Okay. So it shouldn't necessarily be anticipating some kind of flush of cash out of working capital?

Question: Ross DeMont - Midwood Capital - Analyst : Okay. Thank, guys very much. Good quarter.