Archive for the ‘Deep Down Inc. DPDW’ Category

Deep Down, Inc. (DPDW.OB) Posts Q2 Results, 55% Revenue Increase

Monday, August 16th, 2010

Deep Down Inc. today posted its financial results for the second quarter of 2010. The company reported a net loss of $452,000, or $0.00 loss per share, on revenues of $9.6 million, compared to a loss of $1.8 million, or $0.01 loss per share, on revenues of $6.2 million during the same quarter of 2009.

Deep Down’s second-quarter 2010 revenues increased 55 percent to $9.6 million, up from $6.2 million reported for the comparable quarter last year. The company attributes the increase to production of products for deepwater products and ROV and other related services.

The company’s gross profit increased 93 percent to $3.6 million for the second quarter 2010, reflecting an overall increase in the gross profit margin from 30 percent to 37 percent.

For the second quarter of 2010, Deep Down reported an operating loss of $339,000, down $2.1 million from the second quarter of 2009. The company attributes the reduced loss to improved gross margin and a 9.8 percent decrease in selling, general and administrative expenses.

Deep Down CEO Ronald E. Smith noted the importance of its international reach in the future, and said the company is on track to deliver services and products necessary to meet demand.

“There will undoubtedly be greater regulatory scrutiny and higher costs associated with finding and developing hydrocarbon reserves in deep water, particularly in the GOM. Additionally, we believe that the international markets will be more important to our operations going forward as we continue our focus on Brazil and West Africa deepwater projects. The deepwater market remains one of the best frontiers for adding large hydrocarbon reserves with high production flow rates. We are well positioned to supply services and products required to support safe offshore and deepwater projects of our customers. Therefore, we anticipate demand for our deepwater services and products will continue to grow and we will continue to focus on this sector of the industry worldwide,” Smith stated in the press release.

As of June 30, 2010, Deep Down’s working capital was $2.8 million, down $3.9 million from $1.1 million at December 31, 2009, mainly due to the company reclassifying $2.6 million of its long-term debt to current liabilities. The company also reported that $3.4 million of debt from one lender is due April 15, 2011; the company said it is in discussions with several lenders interested in refinancing the company’s debt.

Deep Down’s cash balance was $1.1 million at June 30, 2010, compared to $0.9 million at December 31, 2009.

For more information visit www.deepdowncorp.com

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Deep Down, Inc. (DPDW.OB) Continues to Grow its Intellectual Portfolio

Friday, December 18th, 2009

Deep Down, Inc. announced today that its wholly-owned subsidiary, Flotation Technologies, has been awarded a patent number US 7,628,665 B1 by the United States Patent and Trademark Office for “Drilling Riser Buoyancy Modules”. In summary, the granted patent provides broad protection for the design of the CoreTec™ Drilling Riser Buoyancy Module.

Drilling riser buoyancy modules are attached to the outside of a drilling riser string to provide buoyancy, offsetting a percentage of the weight. By adding these modules, companies are able to drill in deeper water. These drilling riser buoyancy modules are subjected to extremely rough handling which can cause severe and costly damage. The CoreTec™ drilling riser buoyancy module system combats this rough handling through the invention of its ToughSkin™ outer shell molded from a high strength polymer, providing an unprecedented level of protection for the buoyant inner core.

“Deep Down is pleased to add this patent to its ever-growing portfolio of intellectual property. This patent represents the company’s engineering excellence and leadership in the global subsea market,” stated Ronald E. Smith, Deep Down’s President and Chief Executive Officer. “A growing number of companies have now recognized the many advantages of our CoreTec™ drilling riser buoyancy modules and we look forward to continuing innovation by providing the market smarter overall products and solutions.”

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Deep Down, Inc. (DPDW.OB) Reports First Quarter Financial Results

Thursday, May 14th, 2009

Today, Deep Down, Inc. announced its unaudited results for the first quarter ended March 31, 2009. Revenues for the quarter totaled $7,102,589, up 13.1% compared to $6,279,465 for the first quarter of 2008. The increase in revenues included $2.6 million from the acquisition of Flotation Technologies. Net loss for the quarter was $729,775 compared to a net loss of $89,477 for the same period of 2008.

Ron Smith, President and Chief Executive Officer stated, “Historically, the first quarter is our weakest operating quarter; however, our operations as a whole have been naturally affected by the economic slowdown and falling oil and gas prices. We are fortunate to be in the deepwater sector of the industry, which is currently the strongest sector. We have recently announced several new contracts that are commencing this year, and are beginning work on our large riser buoyancy contract for delivery in the first quarter of 2010. We continue to expect growth in our operations for the balance of the year.”

“The Company’s financial condition continues to be strong,” commented Eugene L. Butler, Chief Financial Officer. “With all of the Company’s recent acquisitions and the significant growth we have experienced, we are now implementing a new Enterprise, Resource, and Planning (ERP) system to strengthen and improve our internal controls, consolidate our accounting systems, and streamline our service, manufacturing, and operating processes.”

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Deep Down, Inc’s (DPDW.OB) 3rd Quarter 2008 Revenues Skyrocket On Two Key Acquisitions

Wednesday, November 19th, 2008

One of the ways companies experience revenue growth is by buying other companies. For the 3rd Quarter 2008, Deep Down, Inc. reaped the fruit of this strategy as its revenues shot up from its acquisitions of Mako Technologies, LLC and Flotation Technologies, Inc. For the 3 month period ending September 30, 2008, gross revenue was $11.7 million, compared with $6.8 million for the same period in 2007. The purchases of Mako and Flotation Technologies accounted for $8.5 million, or 73%, of Deep Down’s 3rd Quarter revenues.

The purchases of Mako and Floatation Technologies also gave Deep Down’s gross profit a boost. For the quarter, gross profit came in at $5.3 million, as compared to $1.3 million for the 3rd quarter of 2007, an increase of $4.0 million. Mako and Flotation Technologies were the driving force on this increase while Deep Down’s older service lines produced a loss because of the projection terminations and decrease in sales.

Although acquisitions can increase revenues, they can also increase expenses. Deep Down incurred a $2.8 million increase in sales, general, and administrative (SG&A) expenses to $3.7 million for 3rd Quarter 2008 as compared to $900,000 for the same period a year earlier. Mako and Floatation accounted for $1.3 million of the additional SG&A expense.

Taking a longer view and examining the results on a calendar year basis for the nine months ended September 30, 2008, the gross profit was $10.4 million as compared to $3.8 million for the same period last year. Deep Down flexed its pricing muscle and was able to boost its gross profit margins from 31.6% to 40.2%, showing its market strength is not based purely on its ability to purchase other companies.

Asked to comment on the results, Robert E. Chamberlain, Jr., Deep Down’s Chairman said that his company’s finances “show strong growth within our industry.” He also said “[s]tockholders’ equity remains strong and is now $54.6 million compared to $12.6 million on December 31, 2007.” Finally, he noted, “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 CEO, Ron Smith, also believes demand for the company’s core deepwater products and services will stay strong. “In spite of certain segments of our industry experiencing delays and slowing growth due to global oil price fluctuations, credit, and cash flow issues,” he said, “ we continue to expect strong deepwater order activity.”

Based in Channelview, Texas and started in 1997, Deep Down sells products and provides various services to the offshore energy industry in support of deepwater energy exploration and development. Its customers are located worldwide.

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Deep Down Inc. (DPDW.OB) Subsidiary is Moving at the Speed of Light

Monday, September 15th, 2008

Flotation Technologies, a Deep Down Inc. company (OTCBB: DPDW.OB), has been named the 27th fastest growing, privately owned manufacturing company in the United States by Inc. Magazine. Flotation, which has its headquarters in Maine, is a worldwide company that is a renowned leader in the engineering, design and manufacture of deepwater buoyancy and polyurethane elastomer products.

Overall, Flotation ranked 1,006 on the prestigious Inc. 5000 list. A large reason for the notoriety and success of the company is the fact that Flotation has doubled its revenue from 2006 to 2007. Flotation is led by their President David Capotosto, who brings more than 25 years of manufacturing experience to Flotation and has a reputation for his aggressive style of managing in the field.

The general consensus is that, since 2004, Flotation has experienced growth that is head and shoulders above other companies and, coupled with their new parent company (Deep Down Inc., which is led by Chairman and Director Robert Chamberlain Jr.), the future of Floatation Technologies may be unlimited.

For more information on the company, you can view their web site at: www.flotec.com. On the site, there is a sophisticated breakdown of Flotation’s innovative solutions and general information on the company.

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Deep Down Inc. (DPDW.OB) is “One to Watch”

Thursday, September 4th, 2008

Deep Down Inc. is focused on providing Installation Management, Engineering Services, Support Services, and Storage Management for Subsea Controls, Umbilicals, and Pipeline Industries. Located near Houston, Texas, the company serves clients in the Gulf of Mexico and Internationally.

Deep Down’s aim is to be the premier subsea service company providing supportive solutions for the design, manufacturing, testing, and installation requirements of Deep Down’s client base of operators, control and umbilical suppliers, remotely operated vehicle (ROV) manufacturers, and installation contractors. By combining the efforts of motivated people with quality equipment and innovative technology, the company determines to support the demanding environment of the offshore subsea industry.

Deep Down Inc. also provides consulting services for subsea projects. The company’s management and engineering teams have “hands on” experience with installing umbilicals, ICCP cables, ADCP & riser monitoring systems, flexible and rigid riser and flowlines, flexible and rigid jumpers, steel tube and thermoplastic hose flying leads, rigid jumper PLET’s, and manifolds. Their background with installation contractors, operators, control suppliers, and umbilical manufacturers provide them with the required expertise needed to “Get it Done!”

Deep Down Inc believes all lives, ambitions, hopes, dreams, and fears are important, and desires to improve that quality of life for their employees, customers, and peers by upholding a high standard of excellence. Because withholding information and efforts weaken Deep Down, clients and vendors, the company commits itself to creating a positive work environment where information is dissimilated openly and trust is built in all levels of personnel.

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Profits Double Up For Deep Down, Inc. (DPDW.OB)

Thursday, August 21st, 2008

A series of acquisitions helped strengthen the bottom line for Deep Down, Inc (OTCBB: DPSW). The sub-sea pipeline infrastructure company has generated revenues of $14.2 million so far this year, compared to $7.2 million for the same 6-month period last year.

Deep Down’s statement shows that acquisitions of Mako ($2.7 million of the increase), Floatation Technologies ($1.5 million) and ElectroWave ($900,000) accounted for $5.1 million of the increase. The core business saw a revenue decrease (-$200,000) due to customer’s delaying scheduled projects, the company said. In addition, the company wrote off $800,000 in two bad debts. One was the result of a customer’s declared bankruptcy.

Contract revenues were up 25%, and rentals were up 47%. The quarterly report, currently unaudited, was filed with the SEC August 15. Deep Down did have an operating loss for the six months ended June 30 of $1.5 million, compared to operating income of $800,000 for the same prior year period. Net loss for the six months ended June 30, was $5.0 million compared to net income of $800,000 for the same annual period.

“Income was impacted by one-time interest expense and loss on debt extinguishment expenses totaling $2.6 million related to the early payoff of our secured credit agreement,” the release stated.
“I am pleased to report this quarter that Deep Down continues to improve its financial position,” Chairman Robert E. Chamberlain, Jr. said. “The company is now essentially debt free and has retired all of its remaining preferred shares. Liquidity is strong with unrestricted cash and equivalents of $4.1 million and a current ratio of 3.8.

“Our working capital position is $10.8 million. Stockholders’ equity has improved dramatically and is now $52.9 million compared to $12.6 million on December 31, 2007,” he concluded.

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Deep Down Inc. (DPDW.OB) Acquires Floatation Technologies Inc. and Two $9.0 Million Pending Contracts

Friday, June 27th, 2008

The continuing ruckus about opening offshore drilling to the continental shelves of US coasts may be a good sound bite, but it is only that to those who are getting the job done in the Gulf of Mexico and around the world. In many respects, the offshore drilling of oil and gas is like an iceberg. Only the smallest part of the operation is visible on the surface – or the rig. The sea floor is where most of the action takes place, as drilling gets underway with small spider-veins of piping, and tie-back and flotation devices marking the sea floor like a road map. Navigating and building this road map is no easy task, but for those who can, profit will be waiting.

Deep Down Inc., a subsurface oil and gas drilling equipment and controls supplier, works to offer all equipment necessary to drill for oil and gas offshore. The company works with a “get it done” moniker and as a result can manufacture any part or provide any service required to drill at almost any depth. The company offers its services and capabilities in the Gulf of Mexico and internationally.

The company recently received two separate orders for driller riser floater systems, totaling $18 million. Each system is rated to 2,400 meters with the capacity to be upgraded to 2,700 meters. Long-term contracts for the systems have been arranged in connection with Brazilian projects. To meet this particular commitment, and expand its overall customer base, the company has purchased Flotation Technologies Inc. of Biddeford Maine. This acquisition will give the company additional expertise in deepwater flotation systems and manufacturing power for deepwater buoyancy products.

Given the growth in Gulf of Mexico offshore drilling, one might envision a larger revenue base for the company. In reality, the company is relatively small in scope with quite a bit of room to grow. Its product base is such that it serves every aspect of drilling offshore. In concept, this might seem a finite number of services, but in practice there are hundreds (if not thousands) of products and services the company does and/or could provide. Deep Down Inc. is most certainly experiencing solid results in its sales practices, and could see substantial gains as the world’s oil and gas companies continue to drill deeper and deeper.

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Deep Down Inc. (DPDW.OB) Reports 199% Increase in Revenues; Gross Profit up 184%

Monday, May 19th, 2008

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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Deep Down Inc. (DPDW.OB) – Flotation Technologies, Inc. Announces $5.5 Million Award Contract

Friday, May 9th, 2008

Deep Down Inc. (OTCBB: DPDW), a world leader in the engineering, design and manufacturing of deepwater buoyancy and polyurethane elastomer systems, today announced that Flotation Technologies has received a $5.5 million contract for its unique, custom-designed riser buoyancy solution. On April 17, Deep Down announced a definitive agreement to purchase all of the outstanding capital stock of Flotation Technologies, Inc.

The contract is from an international energy company and is expected to be delivered in the third and fourth quarters of 2008. The client and product are unnamed due to the nature of the project.

“We are pleased to have been chosen as the contractor for this project,” Fred Maguire, Flotation Technologies’ sales and marketing manager stated in the press release. “It once again shows that Flotation Technologies has the design, engineering and manufacturing capabilities to provide innovative, market-changing product solutions.”

Deep Down engages in the provision of innovative solutions, installation management, engineering services, support services, custom fabrication and storage management services for offshore subsea control, umbilical and pipeline industries.

“We are very excited about the future of Flotation Technologies. We believe the ‘cost of ownership’ of many of its products is attractive due to lower maintenance, repair, and replacement requirements after installation. Buoyancy will become more important as the offshore energy industry continues its trend toward exploration and development activities in ultra-deep waters,” Ronald E. Smith, Deep Down’s president and CEO stated.

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Deep Down, Inc (DPDW.OB) Receives $1.5 Million in Steel Flying Lead Orders

Friday, February 15th, 2008

Deep Down, Inc (DPDW.OB) announced that the company has received orders for $1,500,000 worth of loose-tube steel flying leads [LSFL’s].

Currently, Deep Down is adding additional product features to their LSFL’s that will enable faster deployment in deepwater environments. The company expects that they will be able to complete the delivery of these LSFLs to both clients, Helix Energy Solutions Group, Inc. and VetcoGray, Inc., within the next 90 days. The original design continues to evolve as the industry expands exploration and production projects in deeper water.

Ron Smith, CEO, stated, “Our goal is to be the number one choice for the supply, and offshore support, of all types of SFLs, based on quality of product, quicker delivery times, and efficiency of product installation. We can manufacture SFLs up to 10,000 feet in length with any J-plate desired, with or without electrical cables included. Another important goal is to continue to simplify procedures so that subsea connections are easier to complete, whether by fully experienced remote operated vehicle (ROV) crews, or ROV crews new to our product line.”

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Deep Down, Inc. (DPDW.OB) Delivers Deepest Rated LARS in the World

Thursday, January 3rd, 2008

Deep Down, Inc. (DPDW.OB) recently announced that the company has delivered what they believe to be the deepest class rated Launch and Retrieval System in the world. Specifically, this system has a range of 4,000 meters and is designed to handle, lift, tension, and launch and retrieve various undersea equipment. Special functions of this equipment include auto-variable speed control, wire spooling and guide systems, grooved drums, emergency release capabilities, gravity lowering, emergency hoisting abilities, and a water-cooled drum to reduce heat on the umbilical.

Particularly, this system is capable of delivering payloads at speeds of up to 76 meters per minute. Furthermore, this equipment also includes a wraparound level wind sensor system that will allow for more sensitive operations in varying deepwater applications. This system has already been installed on Veolia ES Special Service’s newly-built DSV MT-6016 vessel, named the Swordfish.

Ron Smith, Deep Down’s CEO, commented, “It is exciting to know that the new Flagship for Veolia, the Swordfish, is set up for ultra deepwater environments and will have two Perry ROVs and two Deep Down LARS to help them accomplish their more challenging deepwater tasks. 2008 looks to be a very promising year, and our goal is to provide the best support possible to our clients, helping them meet their deepwater challenges with greater confidence”

Ron Smith continued, “We will continue to use proprietary-built state-of-the-art equipment (and third-party equipment such as the Baricon 30-ton, 4-track tensioner), engineering, and custom-developed installation and retrieval management systems to deliver cost-effective solutions, thereby distinguishing ourselves as the premier “first call” for our clients when confronted with a variety of challenges in ultra deepwater and harsh subsea environments.”

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Deep Down, Inc (DPDW.OB) Announces Upgraded Target Price

Tuesday, October 16th, 2007

Deep Down, Inc. (DPDW.OB) recently announced that Dahlmann Rose & Company, a leading analyst firm, upgraded their BUY rating and revised target price to $ 2.50 per share. This new $2.50 target price has increased from the previous target specified by Dahlmann, after the company has released a plethora of new developments to increase future company potential and shareholder value.

Dahlmann Rose is a full-service investment bank that offers both research, trading, and advisory services for growing companies. In particular, Dahlmann is focused on companies operating in the vast energy and commodity supply chain business sector. The company also provides investment banking services for companies specializing in the marine shipping and energy industries. Currently, Dahlmann has offices in New York, Houston, San Francisco, and New Orleans.

In response to the momentous news, the stock price increased over 18%, and closed at 2.02 per share.

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Deep Down, Inc (DPDW.OB) Announces Lieutenant Commander Gregory Boucher as Subsidiary Manager

Thursday, October 11th, 2007

Deep Down, Inc. (DPDW.OB) announced that Lieutenant Commander Gregory Boucher, whom retired from the United States Navy, will join ElectroWave USA, Inc. (a wholly owned subsidiary of Deep Down) as marine systems manager.

Lieutenant Commander Gregory Boucher will concentrate on the growing number of commercial and government clientele that the company oversees and works with; including energy related companies, major shipyards, the U.S. Navy, and the U.S. Coast Guard.

Lieutenant Commander Boucher has served in numerous positions of responsibility throughout his Navy Career. Such positions include the deck department, combat systems, and has also served as an Executive Officer of the Navy Operational Support Center in San Antonio, Texas.

With over nine-years of consecutive sea duty on four capital warships and assault craft Unit Five (hovercraft), Lieutenant Commander Boucher brings a wealth of military and marine experience, expertise, and contacts to Deep Down and its subsidiaries.

Four months ago, one of the message board members recommended this stock while it was trading for less than 60 cents. Earlier this week the stock exploded after the company announced several positive developments and reached a new all-time high of $1.77

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QualityStocks.net Message Board Posted Play: Deep Down, Inc. (DPDW.OB) Continues Strong Uptrend

Thursday, October 4th, 2007

One of message board members posted Deep Down, Inc. (DPDW.OB) on our message board approximately four months ago when the price was trading for as little as 50 cents. Since then the company has announced many significant events and received analyst coverage from Dahlman Rose & Company, a highly esteemed research investment bank.

Yesterday Deep Down reached a new all-time high of $1.24 after the company announced that it has secured over $22 million in floatation contacts and expects to close over $8 million in additional contracts within the next few weeks. The company has an exclusive agreement with Matrix to introduce its complete line to the U.S. Market.

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