Houston, Texas - Deep Down Inc. increased its revenue by $6.8 million to $11.7 million in Q3 2008, which is a 140-percent rise from the same period in 2007, the company recently reported.
The revenue increase included $8.5 million from the acquisitions of its Mako and Flotation Technologies subsidiaries, but the company suffered a loss of $1.7 million in historical service lines, compared to Q3 2007. Gross profit increased by $4.0 million to $5.3 million for Q3 compared with the same period in 2007.
"I am pleased with the positive cash flow results of this quarter's report," commented Robert Chamberlain, Deep Down's chairman.
"Deep Down's financial position continues to show strong growth within our industry. Stockholders' equity remains strong and is now $54.6 million compared to $12.6 million on 31 Dec 2007. Moreover, with the company now nearly debt free, we are poised to continue our business growth strategies and leverage the rising subsea, deepwater, and ultra-deepwater project opportunities currently forecast for installation."
"Deep Down's focus within the growing deepwater and ultra-deepwater market continues to position the company for sustained growth," commented Ron Smith, Deep Down's chief executive officer. "Moreover, equally as strong is our new CoreTec buoyancy design that makes our riser solutions much more durable and advantageous for subsea drillers.
"In spite of certain segments of our industry experiencing delays and slowing growth due to global oil price fluctuations, credit, and cash flow issues, we continue to expect strong deepwater order activity," Smith concluded.
Deep Down Inc. is a deepwater engineering specialist for the offshore subsea control, umbilical, and pipeline industries. The company's Flotation Technologies subsidiary manufactures deepwater buoyancy systems using Flotec syntactic foam and polyurethane elastomers.