Bolt Technology Corporation operates in two business segments: geophysical equipment and industrial clutches. The geophysical equipment segment includes the development, manufacture and sale of seismic energy source components used by the marine seismic industry. These components comprise the following:
- Marine Air Guns
- Underwater electrical connectors and cables, air gun signature hydrophones and pressure transducers.
- Source array synchronization and management systems.
- Sea floor data logging systems used in electromagnetic imaging for oil and gas exploration.
The geophysical equipment segment includes parent company Bolt Technology Corporation, responsible for marine air guns, AG Geophysical Products, responsible for underwater connectors, cables, sensors and digital source management systems and Real Time Systems, responsible for source array synchronization systems and sea floor data logging systems. The industrial clutch segment manufactures and sells precision mechanical and pneumatic clutches through a wholly owned subsidiary, Custom Products Corporation.
President’s Message:
I am pleased to report that in fiscal 2007, our revenues of $50,464,000, operating income of $15,443,000, net income of $10,607,000, net income per share of $1.87 and operating income margin of 31%, all established new records for our Company. The record financial results were driven by robust demand for our geophysical equipment as we shipped record numbers of seismic energy sources (air guns), underwater connectors and cables and seismic source monitoring systems. The major factor influencing the strong growth in our geophysical business in fiscal 2007 was the high level of world-wide marine seismic exploration fueled by high commodity prices and growth in hydrocarbon demand together with a decrease in existing hydrocarbon reserves. Our industrial products subsidiary, Custom Products Corporation, also reported increased revenue and earnings this year.
I am also pleased to report that our balance sheet at June 30, 2007 was strong and improved from June 30, 2006. For example, working capital increased almost 80% from last year to $26,932,000, and cash increased by over $5,000,000 to $9,988,000. During fiscal 2007 and fiscal 2006, we invested almost $1,000,000, each year, in new manufacturing equipment. These investments have improved our ability to meet increased manufacturing requirements more efficiently. We remained debt free in fiscal 2007, and late in the fiscal year, we entered into a $4,000,000 unsecured bank credit facility to provide funds for general corporate purposes should the need arise.
One result of our record financial year was the significant increase in the price of our common stock. The closing market price on June 30, 2007 was $44.03 per share, as compared to the closing market price of $12.07 on June 30, 2006.
An important strategic objective for us is our continuing search for suitable acquisition opportunities to add high-quality oil field service equipment products to our business. In July 2007, shortly after the end of our fiscal year, we completed the acquisition of Real Time Systems (RTS). RTS is a developer and manufacturer of controllers and synchronizers for air guns and is based in Fredericksburg, Texas. Their products are capable of controlling and synchronizing up to 96 air guns on a single seismic exploration vessel. RTS’s products are used with Bolt air guns and also with seismic energy sources manufactured by others. Our Company has important synergies with RTS, including common customers, which should result in the strengthening of customer relationships. In addition, RTS has recently introduced a Data Logger product, which is used to record data for the emerging electromagnetic exploration market. The purchase of RTS was funded from our existing cash, and we expect their operating results to be immediately accretive to our fiscal year 2008 earnings.
The Western Gulf of Mexico Lease Sale by the U.S. government in August 2007 received the second-largest amount of high bids in nine years, including record high bids for leases in deepwater. This sale is positive for Bolt because the awarding of these leases is expected to result in additional marine seismic exploration and therefore more demand for our geophysical equipment products. Industry leaders and analysts have expressed the view that the seismic exploration market should continue to grow for several years to come. Based on our current discussions with existing and potential customers, we share that view. The anticipated growth in the industry should result in continued high demand for our air guns, underwater cables and connectors, seismic monitoring systems and, as of July 1, 2007, our air gun controllers, synchronizers and data loggers. Accordingly, we expect fiscal 2008 to be another strong year for Bolt.
Finally, on behalf of management, I would like to take this opportunity to once again express thanks to our customers and employees for helping to make fiscal 2007 a very good year for our Company.
Raymond M. Soto
Chairman, President and Chief Executive Officer
Bolt Technology Corporation is listed on the NASDAQ and trades under the symbol BOLT.
As a public company all financial information is readily available from the links on this page.
SEC Filings for Bolt Technology
Section 16 Filings for Bolt Technology
Code of Ethics
Insider Trading Policy
Contact: Joseph Espeso
Senior Vice President,Finance and Chief Financial Officer
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