HOUSTON, Nov. 10 /PRNewswire-FirstCall/ -- Dril-Quip, Inc. (NYSE: DRQ) today announced net income of $27.4 million, or $0.69 per diluted share for the three months ended September 30, 2008, versus net income of $27.6 million, or $0.67 per diluted share for the third quarter of 2007. Total revenues were $132.3 million during the quarter ended September 30, 2008 compared to $130.4 million for the same period in 2007. Operating results for the third quarter of 2008 were impacted as a result of Hurricane Ike which caused temporary disruptions in both manufacturing operations and shipments from our Houston- area facilities.

For the nine months ended September 30, 2008, net income was $80.5 million, or $1.98 per diluted share, compared with net income of $75.8 million, or $1.85 per diluted share, for the same period in 2007. Revenues for the nine months ended September 30, 2008 were $407.2 million, up approximately 12.2% when compared to revenues of $362.8 million for the same period last year.

In addition, the Company announced that its backlog at September 30, 2008 was approximately $528 million, compared to its September 30, 2007 backlog of approximately $457 million. The Company expects its earnings per share for the quarter ending December 31, 2008 to approximate $0.64 to $0.74 per diluted share, excluding any unusual or special charges.

Dril-Quip is a leading manufacturer of highly engineered offshore drilling and production equipment, which is well suited for use in deepwater, harsh environment and severe service applications.

Statements contained herein relating to future operations and financial results that are forward looking statements are based upon certain assumptions and analyses made by the management of the Company in light of its experience and perception of historical trends, current conditions, expected future developments and other factors. These statements are subject to risks beyond the Company's control, including, but not limited to, the volatility of oil and natural gas prices and cyclicality of the oil and gas industry, the Company's international operations, operating risks, and other factors detailed in the Company's public filings with the Securities and Exchange Commission. Investors are cautioned that any such statements are not guarantees of future performance and actual outcomes may vary materially from those indicated.

                               Dril-Quip, Inc.
                Comparative Consolidated Statements of Income
                   (in thousands, except per share amounts)
                                 (Unaudited)
                                    Three months ended    Nine months ended
                                      September 30,        September 30,
                                      2007      2008      2007      2008
    Revenues                       $130,423  $132,271  $362,806  $407,228
    Cost and expenses:
     Cost of sales                   75,895    74,230   208,137   235,775
     Selling, general and
      administrative                 11,772    15,734    35,856    43,539
     Engineering and product
      development                     6,009     6,489    16,495    19,624
                                     93,676    96,453   260,488   298,938
    Operating income                 36,747    35,818   102,318   108,290
    Interest income                   2,273       497     6,022     3,130
    Interest expense                    (98)      (47)     (256)     (149)
    Income before income taxes       38,922    36,268   108,084   111,271
    Income tax provision             11,298     8,822    32,300    30,731
    Net income                      $27,624   $27,446   $75,784   $80,540
    Diluted earnings per share        $0.67     $0.69     $1.85     $1.98
    Weighted average
     shares - diluted                41,004    39,832    40,983    40,625
    Depreciation and amortization    $3,867    $4,366   $11,560   $12,656
    Capital expenditures             $8,128    $9,123   $17,706   $39,365

SOURCE Dril-Quip, Inc.