Wednesday, Dynamic Materials Corp. (BOOM), a provider of explosion-welded clad metal plates and welding services, announced that its revenue for the second quarter of fiscal 2009 will be about 25% lower than first quarter revenue of $49.8 million. Earlier, the company had expected revenue decline to be in the range of 10% to 14% for the quarter.
On average, five analysts polled by Thomson Reuters expect the company to report revenues of $43.40 million for the quarter.
The company said that the decline in revenue was due to customer-driven shipping delays at its Explosive Metalworking business and generally soft demand in the markets served by oilfield products business.
Yvon Cariou, president and chief executive officer of Dynamic Materials, said, "The current conversion rate of quotes into bookings remains below historical levels at the explosion welding business, and as a result, the company expects its order backlog from this segment to be approximately $60 million at the end of the second quarter."
As a result of the revenue decline, the company expects lower gross margins for the second quarter than the previous range of 27% to 29%.
The company also said that it will provide any necessary updates to its full-year financial forecasts in its second quarter earnings report, which is scheduled for July 30, 2009.
BOOM is currently trading at $19.15, down 0.67% on the Nasdaq.
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