Superior Drilling Products, Inc. Reports $2.3 Million In Revenue For Third Quarter 2016

VERNAL, Utah, Nov. 14, 2016 (GLOBE NEWSWIRE) -- Superior Drilling Products, Inc. (NYSE MKT:SDPI) ("SDP" or the "Company"), a designer and manufacturer of drilling tool technologies, today reported financial results for the third quarter ended September 30, 2016. 

Troy Meier, CEO of Superior Drilling Products, commented, "The third quarter is a clear demonstration of the success of our Drill-N-Ream ® well bore conditioning tool, the change in our go-to-market strategy and the improving conditions in the U.S. oil & gas industry.  Operators want new technologies that improve production efficiencies and reduce costs.  We believe our innovative tools will increasingly become critical components of a new standard in drill string configurations." 

Third Quarter 2016 Financial Summary ($ in thousands, except per share amounts)
  Q3 2016   Q3 2015   Y/Y Change   Y/Y % Change   Q2 2016   Seq. Change   Seq. % Change
Revenue $ 2,261     $ 3,018       (756 )     (25.1 )%   $ 1,114       1,147       103.0 %
Operating loss   (963 )     (1,592 )     629       39.5 %     (2,956 )     1,993       67.4 %
Operating margin       (42.6 )%       (52.7 )%               (265.4 )%        
Net loss $ (1,173 )   $ (1,940 )     767       39.5 %   $ (3,056 )     1,883       61.6 %
Diluted loss per share $ (0.07 )   $ (0.11 )   $ 0.05       41.1 %   $ (0.18 )   $ 0.11       63.6 %
                           

Third Quarter 2016 Overview

Compared with the prior-year period, revenue of $2.3 million declined because of the significant reductions in overall oilfield activity.  In recent months, the rig count, as reported by Baker Hughes, has begun a modest recovery, reflecting the stabilization of commodity prices and drill rig operators' progress in lowering their cost to develop oil and natural gas.  Sequentially, revenue more than doubled over the trailing second quarter of 2016.

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