Dril-Quip Rides High on Fourth Quarter '09 Results

Dril-Quip announced net income of $28.7 million, or $0.72 per diluted share for the three months ended December 31, 2009, versus net income of $25.0 million, or $0.64 per diluted share for the fourth quarter of 2008. Total revenues increased to $141.3 million for the quarter ended December 31, 2009 from $135.5 million for the same period in 2008. The increase in revenues resulted from increases of $15.6 million in subsea equipment revenues and $0.7 million in service revenues, offset by decreases of $8.2 million in revenues related to offshore rig equipment and $2.3 million in surface equipment revenues. Operating income was $36.6 million in the fourth quarter of 2009 compared to $33.4 million in the fourth quarter of 2008.

For the twelve months ended December 31, 2009, net income was $105.1 million, or $2.66 per diluted share, compared with net income of $105.6 million, or $2.62 per diluted share, for the same period in 2008. The full year results for 2009 include a pre-tax charge of $5.2 million related to the recognition of employment contract termination expenses resulting from the death of Gary D. Smith, one of the Company's Co-Chief Executive Officers, during the third quarter of 2009. Revenues for the twelve months ended December 31, 2009 were $540.2 million, compared to revenues of $542.8 million for the same period in 2008. Operating income was $142.0 million for the year ended December 31, 2009 versus $141.7 million during the same period in 2008.

In addition, the Company announced that its backlog at December 31, 2009 was approximately $563 million, compared to its December 31, 2008 backlog of approximately $603 million. The Company expects its earnings per share for the quarter ending March 31, 2010 to approximate $0.62 to $0.72 per share, excluding any unusual or special charges.