Dynamic Materials (BOOM) Sees Q2 Sales 25% Below Q1 Level

July 1, 2009 8:19 AM EDT

Dynamic Materials Corporation (NASDAQ: BOOM) sees Q2 sales about 25% below Q109 sales of $49.8 million. The Company previously forecast a sequential revenue decline of between 10% and 14%. The Street is currently looking for Q2 sales of $43.4 million.

Management said the larger-than-expected decline was due to customer-driven shipping delays at DMC's Explosive Metalworking business and generally soft demand in the markets served by the Company's Oilfield Products business. As a result of the revenue decline, management expects second quarter gross margins will be below the prior forecasted range of 27% to 29%.

"The current conversion rate of quotes into bookings remains below historical levels at our explosion welding business, and as a result, we expect our order backlog from this segment to be approximately $60 million at the end of the second quarter," said Yvon Cariou, president and CEO. "Quoting activity within our explosion welding business continues to be very active, and has gained strength within our Oilfield Products segment. We remain highly optimistic that bookings rates within both of these segments will accelerate as economic activity in our end markets improves."

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