Smith Reports Quarter Net Loss of $8.2 Million
Reflecting continued tough times in the oil and gas drilling industry, Smith International Inc. reported a net loss of $8.2 million for the third quarter, compared with net income of $3.6 million for the same period a year ago.
The supplier of products and services to the oil and gas drilling industry posted revenue for the quarter of $175.4 million, compared with $192.9 million in the period a year earlier.
Smith attributed the slippage in its results to a 16% decline in oil and gas drilling activity in the U.S. That decline is generally blamed on lower prices for oil and gas.
For the nine months, Smith reported a net loss of $58.3 million on revenue of $524.9 million, compared with net income of $7.5 million on revenue of $545.2 for the same period a year earlier.
The most recent nine months includes a $27.8 million reserve established in the second quarter in connection with the company’s continuing patent litigation with Hughes Tool Co.
As reported, a federal appeals court ruled in 1983 that Smith had infringed on a patent for an oil seal developed by Houston-based Hughes Tool. A trial to determine the amount of damages is scheduled to begin in federal court in Los Angeles on Jan. 2.