Deep Down, an oilfield services company, has reported quarterly net income of $0.5 million, or $0.03 per diluted share, compared to a net loss of $0.5 million, or ($0.03) loss per diluted share for the second quarter of 2016.
Revenues for the quarter ended June 30, 2017 were $5.4 million compared to revenues of $6.0 million for the quarter ended June 30, 2016. The $0.6 million (11 percent) decrease is primarily a result of fewer jobs in process during the second quarter of 2017 compared to 2016.
Gross profit for the quarter ended June 30, 2017 was $2.7 million, or 50 percent of revenues, compared to $1.9 million, or 33 percent of revenues, for the quarter ended June 30, 2016. Despite the lower revenues in 2017, gross profit increased by $0.7 million, or 17 percent increase in gross profit percentage, due to a larger portion of higher margin service work and resolution of an outstanding customer issue.
At June 30, 2017, Deep Down had working capital of $11.1 million, including cash of just under $7.2 million.
Ronald E. Smith, CEO, stated: “We are pleased with our performance during the first half of the year, especially in light of the challenges across the industry. However, while we were able to realize markedly improved gross margins during the first half of the year, delays in contract executions will likely hamper our performance during the latter part of the year.
“We therefore anticipate focusing more on service projects, and feel confident that our strong balance sheet, and continuous organizational optimization efforts, will enable us to continue being a preferred solution provider, as we continue creating the most value for our customers, shareholders and employees.”