11/17/09 - Deep Down Announces Third Quarter Results

HOUSTON, TX – November 17, 2009 – Deep Down, Inc. (OTCBB: DPDW) announced today unaudited results for the third quarter ended September 30, 2009.

Revenues for the third quarter of 2009 were $8.4 million, compared to $11.7 million for the third quarter of 2008, for a 28% decrease. The reduction in revenue over the same prior year period was a result of customers delaying future projects or slowing down many of their offshore and deepwater projects. Net loss for the third quarter ended September 30, 2009, was $2.1 million as compared to net income of $1.6 million for the same period of 2008.

Gross profit decreased approximately $3.5 million to approximately $2.2 million for the three months ended September 30, 2009, a decrease of approximately 62% compared to the three months ended September 30, 2008. For the three months ended September 30, 2009, gross margins were negatively impacted by our large floatation order and by two other floatation orders, all which have incurred more costs than originally estimated. As such, gross margins decreased to 26 percent of revenue for the third quarter of 2009.

“Revenues in the third quarter improved by $2.2 million over the second quarter revenues while the loss before income taxes was lower by over $500,000 compared to the second quarter, and we expect operations to continue to improve during the fourth quarter,” commented Eugene L. Butler, Chief Financial Officer. “The cost containment program, which was commenced in the second quarter is continuing and beginning to have a positive effect on general and administrative expenses.”

About Deep Down, Inc.
Deep Down, Inc. is an oilfield services company serving the worldwide offshore exploration and production industry. Deep Down’s proven services and technological solutions include distribution system installation support and engineering services, umbilical terminations, loose-tube steel flying leads, distributed and drill riser buoyancy, ROVs and tooling, marine vessel automation, control, and ballast systems. Deep Down supports subsea engineering, installation, commissioning, and maintenance projects through specialized, highly experienced service teams and engineered technological solutions. The company’s primary focus is on more complex deepwater and ultra-deepwater oil production distribution system support services and technologies, used between the platform and the wellhead. Deep Down provides these services through its subsidiaries. More information about Deep Down is available at www.deepdowncorp.com, by contacting the company at (281) 517-5000, or ir@deepdowninc.com.
 
One of our most important responsibilities is to communicate with shareholders in an open and direct manner. Comments are based on current management expectations, and are considered "forward-looking statements," generally preceded by words such as "plans," "expects," "believes," "anticipates," or "intends." We cannot promise future returns. Our statements reflect our best judgment at the time they are issued, and we disclaim any obligation to update or alter forward-looking statements as the result of new information or future events. Deep Down urges investors to review the risks and uncertainties contained within its filings with the Securities and Exchange Commission.

For Further Information

Investor Relations
ir@deepdowninc.com
(281) 517-5000 (O)

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