Deep Down Swings to Profit
Deep Down reported net income of $0.2 million, or $0.01 income per fully diluted share, for the second quarter of 2015, compared to a net loss of $1.2 million, or $0.08 loss per diluted share for the second quarter of 2014.
Revenues for the quarter ended June 30, 2015 were $6.8 million, compared to revenues of $5.8 million for the quarter ended June 30, 2014. The $1.0 million (16 percent) increase is due primarily to a return to normal revenue levels, as the company experienced significant project delays in the 2014 period.
Gross profit for the quarter ended June 30, 2015 was $2.2 million, or 33 percent of revenues, compared to gross profit of $1.8 million, or 31 percent of revenues for the quarter ended June 30, 2014. The $0.4 million increase in gross profit is primarily attributable to the previously mentioned return to normal revenue levels in the 2015 period.
Operating expense for the quarter ended June 30, 2015 was $2.1 million, compared to operating expense of $2.9 million for the quarter ended June 30, 2014. The $0.8 million decrease in operating expense is primarily attributable to reductions in Panama exit and related costs, share-based compensation amortization, bad debts, and property taxes.
Ronald E. Smith, Chief Executive Officer, stated: “During these difficult times, we continue to focus on cost containment, improving our efficiency and assisting our customers with solutions that will reduce their costs. We will also focus on maintaining a strong balance sheet.”