Equity Method Investment in INOVA Geophysical

6 Months Ended

Jun. 30, 2011

Equity Method Investment in INOVA Geophysical [Abstract]

Equity Method Investment in INOVA Geophysical

(2) Equity Method Investment in INOVA Geophysical

     On March 25, 2010, the Company completed the disposition of most of its land seismic equipment businesses in connection with its formation of a land equipment joint venture with BGP, Inc., China National Petroleum Corporation (“BGP”). BGP is a subsidiary of China National Petroleum Corporation (“CNPC”) and is a leading global geophysical services contracting company. The resulting joint venture company, organized under the laws of the People’s Republic of China, is named INOVA Geophysical Equipment Limited (“INOVA,” or “INOVA Geophysical”). BGP owns a 51% interest in INOVA Geophysical, and the Company owns a 49% interest. INOVA Geophysical is managed through a Board of Directors consisting of four members appointed by BGP and three members appointed by the Company. The Company accounts for its 49% interest in INOVA Geophysical as an equity method investment and, as provided by Accounting Standards Codification (“ASC”) 815 “Investments,” the Company records its share of earnings in INOVA Geophysical on a one fiscal quarter lag basis. The Company’s share of INOVA Geophysical’s losses for the five-day period ended March 31, 2010 of $0.2 million is included in its financial results for the three months ended June 30, 2010, and INOVA Geophysical’s financial results for this five-day period are not presented in the table below. The following table reflects summarized, unaudited financial information for INOVA Geophysical for the three months ended March 31, 2011 and for the six-month period from October 1, 2010 through March 31, 2011 (in thousands):

	Three Months			October 1, 2010
	Ended			through
	March 31, 2011			March 31, 2011
Total net revenues	$	32,452		$	77,991
Gross profit	$	3,708		$	14,924
Loss from operations	$	(6,657	)	$	(9,867	)
Net loss	$	(8,090	)	$	(10,771	)