HOUSTON, Feb. 27 /PRNewswire-FirstCall/ -- Dril-Quip, Inc. (NYSE: DRQ) today announced net income of $25.0 million, or $0.64 per diluted share for the three months ended December 31, 2008, versus net income of $32.2 million, or $0.78 per diluted share for the fourth quarter of 2007. Total revenues increased to $135.5 million for the quarter ended December 31, 2008 from $132.8 million for the same period in 2007 as the Company continued to experience strong worldwide demand for its products and services.

The fourth quarter 2008 results were adversely impacted by a pre-tax foreign exchange loss of $2.9 million as compared to a pre-tax foreign exchange gain of $0.9 million in the prior year quarter. In addition, results for the fourth quarter of 2008 were also negatively impacted by a pre-tax bad debt loss of $0.7 million related to a customer that has entered into administration (bankruptcy) under the laws of the United Kingdom. The Company's effective tax rate during the fourth quarter of 2008 was 25.7% as compared to 15.8% for the same period in 2007. In the fourth quarter of 2007 the Company benefited from a foreign development tax incentive which resulted in a reduction of income taxes of approximately $4.7 million, or $0.11 per diluted share.

For the twelve months ended December 31, 2008, net income was $105.6 million, or $2.62 per diluted share, compared with net income of $107.9 million, or $2.63 per diluted share, for the same period in 2007. Revenues for the twelve months ended December 31, 2008 were $542.8 million, up approximately 9.5% when compared to revenues of $495.6 million for the same period in 2007.

For the year ended December 31, 2008, results were negatively impacted by a pre-tax foreign exchange loss of $2.1 million as compared to a pre-tax foreign exchange gain of $3.0 million during 2007. The Company's effective tax rate for the twelve months ended December 31, 2008 was 27.2% as compared to 26.2% for the twelve months ended December 31, 2007.