Smith International, a Newport Beach-based oil services company reorganizing under Chapter 11 of the federal Bankruptcy Code, reported a $6.2-million profit for the third quarter, contrasted with a $64.4-million loss posted in the same period last year.
However, the beleaguered company posted an operating loss of $4.9 million for the three months. The quarterly profit reflected a one-time gain of $11.1 million, which resulted from an increase in the payment Smith received for a recently sold subsidiary.
Revenues for the quarter rose 2% to $70.8 million from $69.3 million in 1986.
For the first nine months of the year, the company reported a net loss of $41.1 million, an improvement from the $104.6 million lost during the same period in 1986. Revenues for the nine months were $186.4 million, down 29% from $260.8 million posted in the previous year.
"We've seen an improvement in every quarter this year in the ratio between operating expenses and revenues," said Loren Carroll, Smith's chief financial officer. "We expect that to continue. . . . This is the first quarter that I have not been disappointed with."