Deep Down, Inc. (DPDW) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $0.98 million, or $ 0.06 a share in the quarter, against a net loss of $0.64 million, or $0.04 a share in the last year period.
Revenue during the quarter surged 49.10 percent to $9.16 million from $6.15 million in the previous year period. Gross margin for the quarter expanded 480 basis points over the previous year period to 35.97 percent. Operating margin for the quarter period stood at positive 10.63 percent as compared to a negative 9.37 percent for the previous year period.
Operating income for the quarter was $0.97 million, compared with an operating loss of $0.58 million in the previous year period.
Ronald E. Smith, Chief Executive Officer, stated, "More than two years following significant decreases in oil prices, the industry has adjusted to the new normal of lower prices. As companies continue to adapt, the industry is transitioning towards focusing on the total cost of a project, rather than simply pushing for reduced prices. "This transition is providing unique opportunities for us, as we assist our customers through their project execution strategies. We are also pursuing multiple opportunities where we seek to leverage our core technologies in non-traditional areas of the energy industry, as well as providing innovative solutions for emerging segments of the oil industry.
Operating cash flow improves significantly
Deep Down, Inc. has generated cash of $2.65 million from operating activities during the nine month period, up 229.16 percent or $1.85 million, when compared with the last year period.
Cash flow from investing activities was $2.87 million for the nine month period as against cash outgo of $0.49 million in the last year period.
Cash flow from financing activities was $0.83 million for the nine month period as against cash outgo of $0.66 million in the last year period.
Cash and cash equivalents stood at $6.73 million as on Sep. 30, 2016, up 35.38 percent or $1.76 million from $4.97 million on Sep. 30, 2015.
Working capital increases
Deep Down, Inc. has recorded an increase in the working capital over the last year. It stood at $14.62 million as at Sep. 30, 2016, up 16.98 percent or $2.12 million from $12.50 million on Sep. 30, 2015. Current ratio was at 4.10 as on Sep. 30, 2016, up from 2.71 on Sep. 30, 2015.
Days sales outstanding went down to 56 days for the quarter compared with 159 days for the same period last year.
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