Deep Down has posted its unaudited results for the third quarter ended September 30, 2009.
Revenues for the third quarter of 2009 were $8.4 million, compared to $11.7 million for the third quarter of 2008, for a 28% decrease. The reduction in revenue over the same prior year period was a result of customers delaying future projects or slowing down many of their offshore and deepwater projects. Net loss for the third quarter ended September 30, 2009, was $2.1 million as compared to net income of $1.6 million for the same period of 2008.
Gross profit decreased approximately $3.5 million to approximately $2.2 million for the three months ended September 30, 2009, a decrease of approximately 62% compared to the three months ended September 30, 2008. For the three months ended September 30, 2009, gross margins were negatively impacted by our large floatation order and by two other floatation orders, all which have incurred more costs than originally estimated. As such, gross margins decreased to 26 percent of revenue for the third quarter of 2009.
"Revenues in the third quarter improved by $2.2 million over the second quarter revenues while the loss before income taxes was lower by over $500,000 compared to the second quarter, and we expect operations to continue to improve during the fourth quarter," commented Eugene L. Butler, Chief Financial Officer. "The cost containment program, which was commenced in the second quarter is continuing and beginning to have a positive effect on general and administrative expenses."
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