A summary of quarterly results of operations for the years ended December 31, 2012 and 2011 were as follows (in thousands, except per share data):


	March 31, 2012		June 30, 2012		September 30, 2012 (a)			December 31, 2012 (b)
Revenue	$	113,083	$	137,227	$	141,793		$	129,237
Gross profit		12,668		13,905		(13,379	)		(9,354	)
Net Income		6,779		7,592		(10,372	)		(8,090	)
Basic EPS		0.47		0.52		(0.72	)		(0.56	)
Diluted EPS		0.47		0.52		(0.72	)		(0.56	)


	March 31, 2011 (c)			June 30, 2011		September 30, 2011		December 31, 2011
Revenue	$	46,348		$	87,251	$	85,827	$	88,406
Gross profit (loss)		(9,568	)		4,846		4,004		5,246
Net income (loss)		(6,964	)		1,835		1,559		1,766
Basic EPS		(0.49	)		0.13		0.11		0.12
Diluted EPS		(0.49	)		0.13		0.11		0.12

(a)

We recognized contract losses of $20.6 million in the three-month period ended September 30, 2012 which resulted in an unfavorable reduction in gross margin during the period of $26.8 million as required under the accounting for loss contracts under percentage of completion accounting. This loss was mainly due to the increase in estimated man-hours to complete one of our major deepwater contracts. These increased man-hours were primarily driven by revisions and delivery delays to specifications and designs by our customer in the third quarter of 2012 causing out-of-sequence work schedules to be used while executing the project. The customer also extended delivery of the first phase of the project as a result of these revisions. On March 7, 2013 we executed change orders with the customer which settled issues raised in a claim for additional costs on this project. Revenue for this claim was recorded in the three-month period ended December 31, 2012.

(b)	We determined the contract receivable balance owed by Bluewater Industries on the Cheviot project as describe in Note 2 would not likely be collected in full and recorded a $14.5 million reserve as of December 31, 2012.

(c)

On April 8, 2011, we received an unfavorable ruling regarding a disputed claim for costs incurred in connection with an April 2008 accident at our Texas facility involving four cranes. As a result, we recognized all recorded amounts as asset impairments in cost of revenue of $7.7 million, of which $5.9 million related to disputed crane rental costs and $1.8 million related to the remaining net book value of one of the cranes involved in the accident that is now deemed a total loss.