Dynamic Materials (NASDAQ: BOOM) reported Q4 EPS of $0.06, $0.12 worse than the analyst estimate of $0.18. Revenue for the quarter came in at $52 million versus the consensus estimate of $51.8 million.

Guidance Michael Kuta, chief financial officer, said due to the expected downturn in capital spending by the exploration and production industry, coupled with soft demand from the industrial processing markets and negative foreign currency translations, management is anticipating that consolidated sales for fiscal 2015 will be down 8% to 12% versus the $202.6 million reported in 2014. Full-year gross margin is expected to be in a range of 26% to 28% down from 30% in 2014. The anticipated decline is due to expected lower sales contributions from DynaEnergetics versus NobelClad.

For the first quarter, management anticipates sales will be down 10% to 15% versus the $46.8 million reported in the 2014 first quarter (excluding AMK). The expected decline relates to unfavorable currency translation at both businesses, and lower anticipated sales at DynaEnergetics as its customers work off existing inventory in the face of lower demand and operators delay the completion of wells in anticipation of higher future oil prices. First quarter gross margin is expected to be in a range of 25% to 27% versus the 31% reported in last year's first quarter. Similar to the full year, the gross margin percentage is expected to decline due to the lower sales contributions from DynaEnergetics versus NobelClad. Kuta said NobelClad also is experiencing a less favorable project mix in the first quarter. He added that $3.0 million to $5.0 million of additional restructuring expenses are expected in the first half of 2015, a majority of which will be recognized in the first quarter. The restructuring expenses will reflect cost reduction efforts both at DynaEnergetics and DMC's corporate office, as well as the completion of NobelClad's European restructuring initiatives.

Restatement Information DMC has completed its previously announced restatement related to past incorrect accounting for income tax expense and related deferred tax assets and liabilities at its business entities in Germany and other items, which were immaterial. These adjustments are detailed in today's annual report on Form 10-K for the fiscal year ended December 31, 2014. Although the corrections did not change the Company's sales or impact its cash balances for the related periods, which are the years ended December 31, 2013 and 2012, the four quarters of 2013, and the first, second and third quarters of 2014, the adjustments did reduce net income by $879,000 for the first nine months of 2014, $1.0 million for fiscal 2013, and $919,000 for fiscal 2012. The Company is taking steps to enhance its accounting procedures and controls based on information identified during the review and restatement process, and those steps also are detailed in today's Form 10-K filing.

For earnings history and earnings-related data on Dynamic Materials (BOOM) click here.