Deep Down Inc. (OTCBB: DPDW) fabricates components for subsea distribution systems, specializing in innovative solutions, engineering and related services for offshore subsea control, umbilical and pipeline industries. The company today announced its unaudited results for the first quarter ended March 31, 2008, reporting a 199 percent increase in revenues.
The company posted revenue of $6.3 million for the first quarter of 2008, up 199 percent from $2.1 million reported the year prior. The company attributes the increase to its enhanced offshore subsea business and related activities, as well as its acquisitions of Mako Technologies and ElectroWave USA, which accounted for nearly $2 million of the quarter’s revenue.
“We are very proud of our period-to-period comparisons for the first quarter. Revenues, gross profit, operating income and EBITDA experienced significant triple digit growth, driven by both organic growth and the addition of complementary acquisitions. The first quarter has been the weakest quarter for our company historically,” Robert E. Chamberlain, Jr., Deep Down’s chairman, stated in the press release.
Gross margin for the three months ended March 31, 2008 was $2.4 million, up 184 percent from $846,305 for the same quarter of 2007.
“Our balance sheet continues to show improvements. Liquidity is strong with unrestricted cash and equivalents of $3,115,818 and a current ratio of 2.8. Our working capital position is $8,645,592 and we no longer have any shares of preferred stock outstanding. Stockholders’ equity has improved dramatically and is now $18,716,186 compared to ($1,800,660) on March 31, 2007,” Eugene L. Butler, Deep Down’s CFO stated.
Deep Down’s ElectroWave subsidiary manufactures products and services for electronic monitoring and control systems, applicable to energy military, and commercial business sectors. ElectroWave designs, manufactures, installs, and commissions integrated PLC and SCADA.
Mako Technologies, one of Deep Down’s other subsidiaries, caters to the offshore petroleum and marine industries with technical support services; its products are integral to offshore petroleum production, through rentals of its remotely operated vehicles (ROV), topside and subsea equipment, diving support systems for diving operations, maintenance and repair operations, offshore construction, and environmental and marine surveys.
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