Is the Sky Falling on Geokinetics?
On November 8, following a dismal third quarter earnings report and a notification of noncompliance by the New York Stock Exchange, Richard F. Miles announced his resignation after five years as Geokinetics’ (NYSEAMEX:GOK) chief executive.
After reporting fiscal losses in the past two years, the Exchange alerted Geokinetics on October 29 that it had failed to meet the standards set forth in its Company Guide. The company has until November 23 to submit a plan detailing how it will regain compliance by next April. If no plan is submitted, or it is not excepted by the exchange, Geokinetics will be delisted. So far, losses have continued into the most recent quarter. For the three month period ending in September, the provider of seismic data acquisition reported a loss of $8.9 million, or $0.46 per share, on November 8.
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“The past five years at Geokinetics have been extremely challenging,” Miles said in a press release. “Although the Company faces liquidity issues, operationally, Geokinetics is well positioned today to take advantage of the current market climate.”
The company’s current President and Chief Operating Officer, David J. Crowley, has been appointed as the next chief executive.
Shares in Geokinetics rose 63 percent on Friday and closed at $0.282.