NOTE 22—QUARTERLY FINANCIAL DATA (UNAUDITED)

The following tables set forth selected unaudited quarterly financial information for the quarterly periods in 2017 and 2016 (income per share information reflects the effect of three-to-one reverse stock split of McDermott common stock discussed in Note 19, Earnings per Share):

	For the Quarter Ended
	March 31⁽¹⁾		June 30⁽²⁾		September 30⁽³⁾			December 31⁽⁴⁾
2017	(in thousands, except per share data amounts)
Revenues	$	519,431	$	788,673	$	958,531		$	718,133
Gross Profit		90,841		138,224		184,621			121,639
Net income		24,195		36,459		92,926			23,635
Net income (loss) attributable to non-controlling interest		2,279		46		(1,775	)		(1,881	)
Net income attributable to McDermott		21,916		36,413		94,701			25,516
Income per share⁽⁵⁾
Basic		0.27		0.39		1.00			0.28
Diluted		0.23		0.38		0.99			0.27

⁽¹⁾	The first quarter of 2017 operating results improvement was driven by strong cost management, with significantly lower project costs in our MENA and APAC segments, and improvements in our selling, general and administrative expenses.

⁽²⁾	Operating results for the second quarter of 2017 continued to reflect efficient project execution and higher engineering, fabrication and marine activity and improved productivity on multiple projects primarily in our MENA segment.

⁽³⁾	Operating results for the third quarter reflect high quality operational performance, while operating with peak levels of utilization in the MENA segment and progressing on the Inpex Ichthys project.

⁽⁴⁾	Operating results for the fourth quarter of 2017 were primarily driven by higher fabrication and marine activity in the MENA segment and installation progress on the Inpex Ichthys project.

⁽⁵⁾	May not tie to the Consolidated Statements of Operations due to rounding.

	For the Quarter Ended
	March 31⁽¹⁾			June 30⁽²⁾		September 30⁽³⁾		December 31⁽⁴⁾
2016	(In thousands, except per share data amounts)
Revenues	$	729,032		$	706,627	$	558,543	$	641,781
Gross Profit		113,030			111,284		103,113		59,286
Net income (loss)		(2,444	)		21,805		16,392		546
Net income (loss) attributable to non-controlling interest		(272	)		1,148		284		1,022
Net income (loss) attributable to McDermott		(2,172	)		20,657		16,108		(476	)
Income (loss) per share⁽⁵⁾
Basic		(0.03	)		0.26		0.20	0.00
Diluted		(0.03	)		0.22		0.17	0.00

⁽¹⁾	Net loss for the quarter ended March 31, 2016 was influenced by successful execution and close-out improvements in the NCSA segment and productivity improvements and associated cost savings, primarily in the APAC segment, partially offset by impairment losses on the Agile vessel.

⁽²⁾	Net income for the quarter ended June 30, 2016 was influenced by productivity improvements and associated cost savings in the MENA and APAC segments.

⁽³⁾	Net income for the quarter ended September 30, 2016 was influenced by productivity improvements and associated cost savings, primarily in the MENA and APAC segments, partially offset by impairment losses on certain marine assets.

⁽⁴⁾

Net loss for the quarter ended December 31, 2016 was primarily due to increase in our estimated costs at completion on our Ichthys project in Australia and an impairment charge on Intermac 600. Those were partially offset by productivity improvements and associated cost savings, primarily in our MENA segment.

⁽⁵⁾	May not tie to the Consolidated Statements of Operations due to rounding.