AI
Wednesday, August 13, 2008 2:35:37 PM
I am fairly confident that we will report in the neighborhood of the Dahlman Rose estimates. As you can see based on the following pro forma that if we had acquired Flotation Technologies on Jan 1st as opposed to May 1st our first quarter this year would have reported revenue of $11,156,573 vs. $6,279,465. It's important to remember that historically the 1st quarter is the weakest for both of DDI and Mako. (PG3 following link)
http://www.sec.gov/Archives/edgar/data/1110607/000101968708002925/deepdown_8k-ex9903.htm
Also of note is that even though the acquisition of Flotation Technologies closed on June 5th, the acquisition is effective for accounting purposes as of May 1st. That means we see an entire 2 months of Flotec revenue in the upcoming 10-Q. For reference, in the first quarter Flotec booked $4,877,108 in revenue. Dahlman Rose did not assume any revenue from Flotec in their most recent estimates further building in a safety net for DPDW to meet their estimates. Assuming zero growth and that the revenue was equally dispersed throughout the quarter, that would add approximately $3,251,405 to our upcoming quarterly.
http://www.sec.gov/Archives/edgar/data/1110607/000101968708002925/deepdown_8k.htm
It is also important to compare apples to apples. If we had acquired both Mako and Flotec as of January 1, 2007 we would have earned $38,294,120 in revenue. Now this year we will record 12 months of Mako, but only 8 months of Flotec. This is just to show those doubters that it is entirely possible to meet Dahlman Rose estimates of $61,362,800. That estimate is not far fetched or overzelous in the least. (PG4 following link)
http://www.sec.gov/Archives/edgar/data/1110607/000101968708002925/deepdown_8k-ex9903.htm
(F-15 following link)
http://www.sec.gov/Archives/edgar/data/1110607/000101968708003476/deepdown_10ksba3-123107.htm
http://www.sec.gov/Archives/edgar/data/1110607/000101968708002925/deepdown_8k-ex9903.htm
Also of note is that even though the acquisition of Flotation Technologies closed on June 5th, the acquisition is effective for accounting purposes as of May 1st. That means we see an entire 2 months of Flotec revenue in the upcoming 10-Q. For reference, in the first quarter Flotec booked $4,877,108 in revenue. Dahlman Rose did not assume any revenue from Flotec in their most recent estimates further building in a safety net for DPDW to meet their estimates. Assuming zero growth and that the revenue was equally dispersed throughout the quarter, that would add approximately $3,251,405 to our upcoming quarterly.
http://www.sec.gov/Archives/edgar/data/1110607/000101968708002925/deepdown_8k.htm
It is also important to compare apples to apples. If we had acquired both Mako and Flotec as of January 1, 2007 we would have earned $38,294,120 in revenue. Now this year we will record 12 months of Mako, but only 8 months of Flotec. This is just to show those doubters that it is entirely possible to meet Dahlman Rose estimates of $61,362,800. That estimate is not far fetched or overzelous in the least. (PG4 following link)
http://www.sec.gov/Archives/edgar/data/1110607/000101968708002925/deepdown_8k-ex9903.htm
(F-15 following link)
http://www.sec.gov/Archives/edgar/data/1110607/000101968708003476/deepdown_10ksba3-123107.htm
