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DryShips Inc. Reports Financial and Operating Results for the Third Quarter 2012

ATHENS, GREECE -- (Marketwire) -- 11/14/12 -- DryShips Inc. (NASDAQ: DRYS), or the Company, an international provider of marine transportation services for drybulk and petroleum cargoes, and through its majority owned subsidiary, Ocean Rig UDW Inc., or Ocean Rig, of offshore deepwater drilling services, today announced its unaudited financial and operating results for the third quarter ended September 30, 2012.

Third Quarter 2012 Financial Highlights

  • For the third quarter of 2012, the Company reported a net loss of $51.3 million, or $0.13 basic and diluted loss per share.

Included in the third quarter 2012 results are:

  • Costs associated with the 10-year class survey for the Eirik Raude of $16.8 million, or $0.04 per share;
  • Non-cash write offs associated with the full repayment of the $1.04 billion senior secured credit facility totaling $18.3 million, or $0.05 per share; and
  • Non-cash mark-to-market gains on interest rate swaps totaling $3.7 million or $0.01 per share.

Excluding the above items, the Company's net results would have amounted to a net loss of $33.3 million, or $0.09 per share. (1)

The Company reported Adjusted EBITDA of $141.0 million for the third quarter of 2012, as compared to $172.9 million for the third quarter of 2011. (2)

Recent Events

  • Pursuant to Ocean Rig's previous announcements related to potential contract awards for the Ocean Rig Poseidon and Ocean Rig Athena, Ocean Rig has been awarded two three-year contracts for each rig for drilling in Angola from two different major international oil companies.

  • On October 24, 2012, the Company entered into a secured credit facility with ABN AMRO, Korea Development Bank and Korea Trade Insurance Corporation, or KSURE, for a $107.7 million senior secured term loan facility to partially finance our tankers, Alicante, Mareta and Bordeira. The term of the facility is 6 years and the repayment profile is 12 years.

  • As of September 30, 2012, the Company was not in compliance with certain loan-to-value ratios contained in certain of its original loan agreements under which a total of $157.3 million was outstanding as of that date. As a result, the Company may be required to prepay indebtedness or provide additional collateral to its lenders in the form of cash amounting to $77.2 million, in order to comply with these ratios.

  • On September 27, 2012, we entered into supplemental agreements under our $518.8 million senior loan facilities and $110.0 million junior loan facilities, each dated March 31, 2006, as amended. Under these supplemental agreements, we agreed to pledge 7,800,000 common shares of Ocean Rig in favor of the lending syndicates in order to remedy the value maintenance clause shortfall.

  • On September 20, 2012, Ocean Rig's wholly-owned subsidiary, Drill Rigs Holdings Inc., issued $800.0 million of aggregate principal amount of 6.50% Senior Secured Notes due 2017 offered in a private offering, resulting in net proceeds of approximately $782.0 million. Ocean Rig used a portion of the net proceeds of the sale of the notes to repay the full amount outstanding under its $1.04 billion senior secured credit facility.

  • In July 2012, Ocean Rig formally commenced syndication of a $1.35 billion senior secured term loan facility to partially finance our drillship newbuilding hulls Ocean Rig Mylos, Ocean Rig Skyros and Ocean Rig Athena. This facility will be led by DNB and Nordea and is expected to have a commercial tranche and two export credit agency, or ECA, tranches. Ocean Rig has received conditional commitments for the commercial tranche and one of the ECA tranches, and expects to finalize this transaction during the first quarter of 2013.

(1) The net result is adjusted for the minority interests of 35% not owned by DryShips Inc. common stockholders.

(2) Adjusted EBITDA is a non-GAAP measure; please see later in this press release for a reconciliation to net income.

George Economou, Chairman and Chief Executive Officer of the Company, commented:

"The shipping market continues to be severely depressed. Both tanker and drybulk spot charter rates have been at historic low levels -- well below cash breakeven rate -- for some time. Unfortunately this is coming at a time when our lucrative legacy charters continue to expire on a staggered basis. We have contract coverage of 33% and 22% of the calendar days for 2013 and 2014, respectively.

The deteriorating economic situation in Europe, together with BASEL III capital requirements, have led to a number of shipping banks with large portfolios to exit the sector. High profile restructurings and payment defaults have started to take their toll on the few remaining lenders. This comes at a time when we have significant capital expenditures to finance our drybulk and tanker newbuilding programs. The lack of liquidity is further exacerbated by falling assets values, which continued to decline during the quarter.

The optimization of our drybulk and tanker newbuilding programs is our top priority right now and we are in discussions with the shipyards in this respect to reduce and prolong our CAPEX program. We are in a challenging environment so these negotiations will be difficult and drawn out but we believe a win-win solution could be found.

Our shareholding in Ocean Rig UDW Inc. provides some flexibility in addressing the capital needs of our shipping segment. For example, we have recently pledged (and will continue to pledge) some of our Ocean Rig shares to our banks to remedy covenant breaches. We continue to be bullish about the prospects for Ocean Rig. The backlog currently stands at $4.5 billion over three years and provides Ocean Rig with substantial cash flow visibility and growth. Given strong industry fundamentals and the fact that there are very few ultra-deepwater units available in 2013, we expect to further increase our already substantial backlog by entering into long-term contracts for our two remaining units available in 2013. We continue to build on the Ocean Rig story and have positioned the company to build further on this strong platform to become the preferred contractor in the ultra-deepwater sector."

Financial Review: 2012 Third Quarter

The Company recorded a net loss of $51.3 million, or $0.13 basic and diluted loss per share, for the three-month period ended September 30, 2012, as compared to a net income of $25.0 million, or $0.07 basic and diluted earnings per share, for the three-month period ended September 30, 2011. Adjusted EBITDA was $141.0 million for the third quarter of 2012, as compared to $172.9 million for the same period in 2011.(1)

For the drybulk carrier segment, net voyage revenues (voyage revenues minus voyage expenses) amounted to $41.1 million for the three-month period ended September 30, 2012, as compared to $85.5 million for the three-month period ended September 30, 2011. For the offshore drilling segment, revenues from drilling contracts increased by $59.7 million to $285.7 million for the three-month period ended September 30, 2012, as compared to $226.0 million for the same period in 2011. For the tanker segment, net voyage revenues amounted to $9.0 million for the three-month period ended September 30, 2012, as compared to $3.3 million for the same period in 2011.

Total vessels', drilling rigs' and drillships' operating expenses and total depreciation and amortization increased to $181.1 million and $84.6 million, respectively, for the three-month period ended September 30, 2012, from $105.7 million and $71.0 million, respectively, for the three-month period ended September 30, 2011. Total general and administrative expenses increased to $35.3 million in the third quarter of 2012 from $28.4 million during the comparative period in 2011.

Interest and finance costs, net of interest income, amounted to $51.9 million for the three-month period ended September 30, 2012, compared to $36.0 million for the three-month period ended September 30, 2011.

(1) Adjusted EBITDA is a non-GAAP measure; please see later in this press release for a reconciliation to net income.

Fleet List

The table below describes our fleet profile as of November 14, 2012:


                                               Gross
                    Year                       rate          Redelivery
                   Built   DWT       Type      Per day   Earliest  Latest
                 --------- --------- --------- --------- --------- ---------
Drybulk fleet

Capesize:
Mystic              2008   170,040   Capesize  $52,310   Aug-18    Dec-18
Robusto             2006   173,949   Capesize  $26,000   Aug-14    Dec-14
Cohiba              2006   174,234   Capesize  $26,250   Oct-14    Feb-15
Montecristo         2005   180,263   Capesize  $23,500   May-14    Oct-14
Flecha              2004   170,012   Capesize  $55,000   Jul-18    Nov-18
Manasota            2004   171,061   Capesize  $30,000   Jan-18    Aug-18
Partagas            2004   173,880   Capesize  $10,000   Jun-13    Aug-13
Alameda             2001   170,662   Capesize  $27,500   Nov-15    Jan-16
Capri               2001   172,579   Capesize  $10,000   Nov-13    Mar-14
Fakarava            2012   206,000   Capesize  $25,000   Sept-15   Sept-15

Panamax:
Raraka              2012   76,037    Panamax   $13,150   Feb-13    Apr-13
Woolloomooloo       2012   76,064    Panamax   $13,150   Jan-13    Mar-13
Amalfi              2009   75,206    Panamax   $39,750   Jul-13    Sep-13
Rapallo             2009   75,123    Panamax   Spot      N/A       N/A
Catalina            2005   74,432    Panamax   $40,000   Jun-13    Aug-13
Majorca             2005   74,477    Panamax   Spot      N/A       N/A
Ligari              2004   75,583    Panamax   Spot      N/A       N/A
Saldanha            2004   75,707    Panamax   Spot      N/A       N/A
Sorrento            2004   76,633    Panamax   $24,500   Aug-21    Dec-21
Mendocino           2002   76,623    Panamax   Spot      N/A       N/A
Bargara             2002   74,832    Panamax   Spot      N/A       N/A
Oregon              2002   74,204    Panamax   Spot      N/A       N/A
Ecola               2001   73,931    Panamax   Spot      N/A       N/A
Samatan             2001   74,823    Panamax   Spot      N/A       N/A
Sonoma              2001   74,786    Panamax   Spot      N/A       N/A
Capitola            2001   74,816    Panamax   Spot      N/A       N/A
Levanto             2001   73,925    Panamax   Spot      N/A       N/A
Maganari            2001   75,941    Panamax   Spot      N/A       N/A
Coronado            2000   75,706    Panamax   Spot      N/A       N/A
Marbella            2000   72,561    Panamax   Spot      N/A       N/A
Redondo             2000   74,716    Panamax   Spot      N/A       N/A
Topeka              2000   74,716    Panamax   $12,250   Dec-12    Feb-13
Ocean Crystal       1999   73,688    Panamax   Spot      N/A       N/A
Helena              1999   73,744    Panamax   Spot      N/A       N/A

Supramax:
Byron               2003   51,118    Supramax  Spot      N/A       N/A
Galveston           2002   51,201    Supramax  Spot      N/A       N/A





                                               Gross
                    Year                       rate           Redelivery
                   Built   DWT       Type      Per day   Earliest  Latest
                 --------- --------- --------- --------- --------- ---------
Newbuildings
Newbuilding VLOC
 #2                 2013   206,000   Capesize  Spot      N/A       N/A
Newbuilding VLOC
 #3                 2013   206,000   Capesize  $21,500   Jan-20    Jan-27
Newbuilding VLOC
 #4                 2013   206,000   Capesize  Spot      N/A       N/A
Newbuilding VLOC
 #5                 2014   206,000   Capesize  Spot      N/A       N/A
Newbuilding
 Capesize 1         2013   176,000   Capesize  Spot      N/A       N/A
Newbuilding
 Capesize 2         2013   176,000   Capesize  Spot      N/A       N/A
Newbuilding Ice
 -class Panamax 1   2014   75,900    Panamax   Spot      N/A       N/A
Newbuilding Ice
 -class Panamax 2   2014   75,900    Panamax   Spot      N/A       N/A
Newbuilding Ice
 -class Panamax 3   2014   75,900    Panamax   Spot      N/A       N/A
Newbuilding Ice
 -class Panamax 4   2014   75,900    Panamax   Spot      N/A       N/A
Tanker fleet
Petalidi            2012   158,300   Suezmax   Spot      N/A       N/A
Lipari              2012   158,300   Suezmax   Spot      N/A       N/A
Vilamoura           2011   158,300   Suezmax   Spot      N/A       N/A
Calida              2012   115,200   Aframax   Spot      N/A       N/A
Saga                2011   115,200   Aframax   Spot      N/A       N/A
Daytona             2011   115,200   Aframax   Spot      N/A       N/A
Belmar              2011   115,200   Aframax   Spot      N/A       N/A
Newbuildings
Blanca              2013   158,300   Suezmax   Spot      N/A       N/A
Bordeira            2013   158,300   Suezmax   Spot      N/A       N/A
Esperona            2013   158,300   Suezmax   Spot      N/A       N/A
Alicante            2013   115,200   Aframax   Spot      N/A       N/A
Mareta              2013   115,200   Aframax   Spot      N/A       N/A

Drilling Rigs/Drillships:


Unit                    Year built  Redelivery Operating area   Backlog ($m)
                       ----------- ----------- ---------------- ------------
Leiv Eiriksson             2001      Q4 - 12   Falkland Islands      $17
Leiv Eiriksson             2001      Q1 - 16   North Sea            $653
Eirik Raude                2002      Q1 - 13   West Africa           $75
Ocean Rig Corcovado        2011      Q2 - 15   Brazil               $420
Ocean Rig Olympia          2011      Q3 - 15   Angola               $580
Ocean Rig Poseidon         2011      Q2 - 13   Africa                $85
Ocean Rig Poseidon         2011      Q2 - 16   Angola               $781
Ocean Rig Mykonos          2011      Q1 - 15   Brazil               $390
Newbuildings
Ocean Rig Mylos            2013      Q3 - 16   Brazil               $677
Ocean Rig Skyros           2013        N/A     N/A                   N/A
Ocean Rig Athena           2013      Q1 - 17   Angola               $745
Newbuilding TBN            2015        N/A     N/A                   N/A
                                                                ------------
         Total                                                     $4,423
                                                                ------------

Drybulk Carrier and Tanker Segment Summary Operating Data (unaudited)

(Dollars in thousands, except average daily results)


Drybulk                            Three Months Ended    Nine Months Ended
                                      September 30,        September 30,
                                 --------------------- ---------------------
                                    2011       2012       2011       2012
                                 ---------- ---------- ---------- ----------
Average number of vessels(1)           35.2       35.2       35.7       35.6
Total voyage days for vessels(2)      3,197      3,233      9,619      9,715
Total calendar days for
 vessels(3)                           3,240      3,241      9,743      9,744
Fleet utilization(4)                  98.7%      99.8%      98.7%      99.7%
Time charter equivalent(5)          $26,732    $12,727    $27,412    $17,719
Vessel operating expenses
 (daily)(6)                          $5,844     $5,248     $6,020     $5,405

Tanker                             Three Months Ended    Nine Months Ended
                                     September 30,         September 30,
                                 --------------------- ---------------------
                                    2011       2012       2011       2012
                                 ---------- ---------- ---------- ----------
Average number of vessels(1)            3.0        7.0       2.21        6.0
Total voyage days for vessels(2)        276        644        602      1,649
Total calendar days for
 vessels(3)                             276        644        602      1,649
Fleet utilization(4)                   100%       100%       100%       100%
Time charter equivalent(5)          $11,880     13,978    $14,081    $14,959
Vessel operating expenses
 (daily)(6)                          $7,725      6,205    $10,169     $7,357

(1) Average number of vessels is the number of vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.
(2) Total voyage days for fleet are the total days the vessels were in our possession for the relevant period net of off hire days.
(3) Calendar days are the total number of days the vessels were in our possession for the relevant period including off hire days.
(4) Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.
(5) Time charter equivalent, or TCE, is a measure of the average daily revenue performance of a vessel on a per voyage basis. Our method of calculating TCE is consistent with industry standards and is determined by dividing voyage revenues (net of voyage expenses) by voyage days for the relevant time period. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage, which would otherwise be paid by the charterer under a time charter contract, as well as commissions. TCE revenues, a non-U.S. GAAP measure, provides additional meaningful information in conjunction with revenues from our vessels, the most directly comparable U.S. GAAP measure, because it assists our management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance. TCE is also a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance despite changes in the mix of charter types (i.e., spot charters, time charters and bareboat charters) under which the vessels may be employed between the periods. Please see below for a reconciliation of TCE rates to voyage revenues.
(6) Daily vessel operating expenses, which includes crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs is calculated by dividing vessel operating expenses by fleet calendar days for the relevant time period.

(In thousands of U.S. dollars, except for TCE rate, which is expressed in Dollars, and voyage days)


Drybulk                           Three Months Ended     Nine Months Ended
                                     September 30,          September 30,
                                 --------------------- ---------------------
                                    2011       2012       2011       2012
                                 ---------- ---------- ---------- ----------
Voyage revenues                     $88,613    $46,881   $278,741   $186,388
Voyage expenses                     (3,150)    (5,733)   (15,062)   (14,244)
                                 ---------- ---------- ---------- ----------
Time charter equivalent revenues    $85,463    $41,148   $263,679   $172,144
                                 ---------- ---------- ---------- ----------
Total voyage days for fleet           3,197      3,233      9,619      9,715
Time charter equivalent (TCE)
 rate                               $26,732    $12,727    $27,412    $17,719

Tanker                             Three Months Ended    Nine Months Ended
                                      September 30,        September 30,
                                 --------------------- ---------------------
                                    2011       2012       2011       2012
                                 ---------- ---------- ---------- ----------
Voyage revenues                      $3,400    $11,096     $8,748    $28,733
Voyage expenses                       (121)    (2,094)      (271)    (4,066)
                                 ---------- ---------- ---------- ----------
Time charter equivalent revenues     $3,279     $9,002     $8,477    $24,667
                                 ---------- ---------- ---------- ----------
Total voyage days for fleet             276        644        602      1,649
Time charter equivalent (TCE)
 rate                               $11,880    $13,978    $14,081    $14,959



                               Dryships Inc.

                            Financial Statements
         Unaudited Condensed Consolidated Statements of Operations

(Expressed in
 Thousands of U.S.
 Dollars except for
 share and per share     Three Months Ended           Nine Months Ended
 data)                      September 30,               September 30,
                     --------------------------  --------------------------
                         2011          2012          2011          2012
                     ------------  ------------  ------------  ------------

REVENUES:
Voyage revenues      $     92,013  $     57,977  $    287,489  $    215,121
Revenues from
 drilling contracts       226,036       285,662       461,991       712,152
                     ------------  ------------  ------------  ------------
                          318,049       343,639       749,480       927,273

EXPENSES:
Voyage expenses             3,271         7,827        15,333        18,310
Vessel operating
 expenses                  21,066        21,006        64,772        64,802
Drilling rigs
 operating expenses        84,639       160,098       188,777       390,490
Depreciation and
 amortization              70,980        84,580       192,001       250,615
Vessel impairments
 and other, net             1,893            38        89,637         1,001
General and
 administrative
 expenses                  28,422        35,331        86,592       106,475
Legal settlements
 and other                      -        (1,842)            -        (3,448)
                     ------------  ------------  ------------  ------------

Operating income          107,778        36,601       112,368        99,028

OTHER INCOME /
 (EXPENSES):
Interest and finance
 costs, net of
 interest income          (35,985)      (51,923)      (80,646)     (152,468)
Loss on interest
 rate swaps               (31,466)      (27,777)      (71,242)      (49,491)
Other, net                  3,777        (1,177)        7,588         1,399
Income taxes               (7,778)      (10,975)      (17,556)      (32,603)
                     ------------  ------------  ------------  ------------
Total other expenses      (71,452)      (91,852)     (161,856)     (233,163)
                     ------------  ------------  ------------  ------------

Net income/(loss)          36,326       (55,251)      (49,488)     (134,135)

Net income/ (loss)
 attributable to Non
 controlling
 interests                (11,300)        3,980       (13,811)       17,207
                     ------------  ------------  ------------  ------------

Net income/(loss)
 attributable to
 Dryships Inc.       $     25,026  $    (51,271) $    (63,299) $   (116,928)
                     ============  ============  ============  ============

Earnings/(Loss) per
 common share, basic
 and diluted         $       0.07  $      (0.13) $      (0.19) $      (0.31)
Weighted average
 number of shares,
 basic and diluted    355,764,523   380,152,244   348,286,721   380,152,244



                                Dryships Inc.

               Unaudited Condensed Consolidated Balance Sheets

(Expressed in Thousands of U.S.
 Dollars)                               December 31, 2011 September 30, 2012
                                        ----------------- ------------------

ASSETS

  Cash and restricted cash (current and
   non-current)                         $         656,709 $          986,794
  Other current assets                            246,169            303,520
  Advances for vessels and rigs under
   construction and acquisitions                1,027,889          1,025,520
  Vessels, net                                  1,956,270          2,087,628
  Drilling rigs, drillships, machinery
   and equipment, net                           4,587,916          4,486,096
  Other non-current assets                        146,736            119,421
                                        ----------------- ------------------
  Total assets                                  8,621,689          9,008,979
                                        ================= ==================


LIABILITIES AND STOCKHOLDERS' EQUITY

  Total debt                                    4,241,835          4,453,519
  Total other liabilities                         441,192            535,938
  Total stockholders' equity                    3,938,662          4,019,522
                                        ----------------- ------------------
  Total liabilities and stockholders'
   equity                               $       8,621,689 $        9,008,979
                                        ================= ==================

Adjusted EBITDA Reconciliation

Adjusted EBITDA represents net income before interest, taxes, depreciation and amortization, vessel impairments, dry-dockings and class survey costs and gains or losses on interest rate swaps. Adjusted EBITDA does not represent and should not be considered as an alternative to net income or cash flow from operations, as determined by United States generally accepted accounting principles, or U.S. GAAP, and our calculation of adjusted EBITDA may not be comparable to that reported by other companies. Adjusted EBITDA is included herein because it is a basis upon which the Company measures its operations and efficiency. Adjusted EBITDA is also used by our lenders as a measure of our compliance with certain covenants contained in our loan agreements and because the Company believes that it presents useful information to investors regarding a company's ability to service and/or incur indebtedness.

The following table reconciles net income to Adjusted EBITDA:


                            Three        Three
                            Months       Months    Nine Months  Nine Months
(Dollars in thousands)      Ended        Ended        Ended        Ended
                          September    September    September    September
                           30, 2011     30, 2012     30, 2011     30, 2012
                         -----------  -----------  -----------  -----------

Net income/(loss)        $    25,026      (51,271)     (63,299) $  (116,928)

Add: Net interest expense     35,985       51,923       80,646      152,468
Add: Depreciation and
 amortization                 70,980       84,580      192,001      250,615
Add: Impairment losses             -            -      112,104            -
Add: Dry-dockings and
 class survey costs            1,700       17,033       21,412       22,763
Add: Income taxes              7,778       10,975       17,556       32,603
Add: Loss on interest
 rate swaps                   31,466       27,777       71,242       49,491
                         -----------  -----------  -----------  -----------
Adjusted EBITDA          $   172,935      141,017      431,662  $   391,012
                         ===========  ===========  ===========  ===========

Conference Call and Webcast: November 15, 2012

As announced, the Company's management team will host a conference call, on Thursday, November 15, 2012 at 9:00 a.m. Eastern Standard Time to discuss the Company's financial results.

Conference Call Details

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1(866) 819-7111 (from the US), 0(800) 953-0329 (from the UK) or +(44) (0) 1452 542 301 (from outside the US). Please quote "DryShips."

A replay of the conference call will be available until November 22, 2012. The United States replay number is 1(866) 247- 4222; from the UK 0(800) 953-1533; the standard international replay number is (+44) (0) 1452 55 00 00 and the access code required for the replay is: 2133051#.

A replay of the conference call will also be available on the Company's website at www.dryships.com under the Investor Relations section.

Slides and Audio Webcast

There will also be a simultaneous live webcast over the Internet, through the DryShips Inc. website (www.dryships.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

About DryShips Inc.

DryShips Inc. is an owner of drybulk carriers and tankers that operate worldwide. Through its majority owned subsidiary, Ocean Rig UDW Inc., DryShips owns and operates 10 offshore ultra deepwater drilling units, comprising of 2 ultra deepwater semisubmersible drilling rigs and 8 ultra deepwater drillships, 3 of which remain to be delivered to Ocean Rig during 2013 and 1 is scheduled for delivery during 2015. DryShips owns a fleet of 46 drybulk carriers (including newbuildings), comprising 12 Capesize, 28 Panamax, 2 Supramax and 4 newbuilding Very Large Ore Carriers (VLOC) with a combined deadweight tonnage of approximately 5.1 million tons, and 12 tankers (including newbuildings), comprising 6 Suezmax and 6 Aframax, with a combined deadweight tonnage of over 1.6 million tons.

DryShips' common stock is listed on the NASDAQ Global Select Market where it trades under the symbol "DRYS."

Visit the Company's website at www.dryships.com

Forward-Looking Statement

Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charterhire and drilling dayrates and drybulk vessel, drilling rig and drillship values, failure of a seller to deliver one or more drilling rigs, drillships or drybulk vessels, failure of a buyer to accept delivery of a drilling rig, drillship, or vessel, inability to procure acquisition financing, default by one or more charterers of our ships, changes in demand for drybulk commodities or oil, changes in demand that may affect attitudes of time charterers and customer drilling programs, scheduled and unscheduled drydockings and upgrades, changes in our operating expenses, including bunker prices, drydocking and insurance costs, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by DryShips Inc. with the U.S. Securities and Exchange Commission.

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There will be 50 billion Internet connected devices by 2020. Today, every manufacturer has a propriety protocol and an app. How do we securely integrate these "things" into our lives and businesses in a way that we can easily control and manage? Even better, how do we integrate these "things" so that they control and manage each other so our lives become more convenient or our businesses become more profitable and/or safe? We have heard that the best interface is no interface. In his session at Internet of @ThingsExpo, Chris Matthieu, Co-Founder & CTO at Octoblu, Inc., will discuss how these devices generate enough data to learn our behaviors and simplify/improve our lives. What if we could connect everything to everything? I'm not only talking about connecting things to things but also systems, cloud services, and people. Add in a little machine learning and artificial intelligence and now we have something interesting...
Last week, while in San Francisco, I used the Uber app and service four times. All four experiences were great, although one of the drivers stopped for 30 seconds and then left as I was walking up to the car. He must have realized I was a blogger. None the less, the next car was just a minute away and I suffered no pain. In this article, my colleague, Ved Sen, Global Head, Advisory Services Social, Mobile and Sensors at Cognizant shares his experiences and insights.
We are reaching the end of the beginning with WebRTC and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) irreversibly encoded. In his session at Internet of @ThingsExpo, Peter Dunkley, Technical Director at Acision, will look at how this identity problem can be solved and discuss ways to use existing web identities for real-time communication.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of WebRTC adoption today, but the potential is limitless when powered by IoT. Attendees will learn real-world benefits of WebRTC and explore future possibilities, as WebRTC and IoT intersect to improve customer service.
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at Internet of @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, will share some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, an Open Source Cloud Communications company that helps the shift from legacy IN/SS7 telco networks to IP-based cloud comms. An early investor in multiple start-ups, he still finds time to code for his companies and contribute to open source projects.
The Internet of Things (IoT) promises to create new business models as significant as those that were inspired by the Internet and the smartphone 20 and 10 years ago. What business, social and practical implications will this phenomenon bring? That's the subject of "Monetizing the Internet of Things: Perspectives from the Front Lines," an e-book released today and available free of charge from Aria Systems, the leading innovator in recurring revenue management.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges.
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at 6th Big Data Expo®, Hannah Smalltree, Director at Treasure Data, to discuss how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines.
All major researchers estimate there will be tens of billions devices – computers, smartphones, tablets, and sensors – connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be!
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at Internet of @ThingsExpo, Erik Lagerway, Co-founder of Hookflash, will walk through the shifting landscape of traditional telephone and voice services to the modern P2P RTC era of OTT cloud assisted services.
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between conference participants in three dimensional space. This has been shown to significantly improve comprehension and conference efficiency.
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, will discuss single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example to explain some of these concepts including when to use different storage models.
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridstore delivers vmOptimized™ Storage that self-optimizes to each application or VM across both virtual and physical environments. Leveraging a grid architecture, Gridstore delivers the first end-to-end storage QoS to ensure the most important App or VM performance is never compromised. The storage grid, that uses Gridstore’s performance optimized nodes or capacity optimized nodes, starts with as few a...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace. These technological reforms have not only changed computers and smartphones, but are also changing the data processing model for all information devices. In particular, in the area known as M2M (Machine-To-Machine), there are great expectations that information with a new type of value can be produced using a variety of devices and sensors saving/sharing data via the network and through large-scale cloud-type data processing. This consortium believes that attaching a huge number of devic...
Innodisk is a service-driven provider of industrial embedded flash and DRAM storage products and technologies, with a focus on the enterprise, industrial, aerospace, and defense industries. Innodisk is dedicated to serving their customers and business partners. Quality is vitally important when it comes to industrial embedded flash and DRAM storage products. That’s why Innodisk manufactures all of their products in their own purpose-built memory production facility. In fact, they designed and built their production center to maximize manufacturing efficiency and guarantee the highest quality of our products.
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. Over the summer Gartner released its much anticipated annual Hype Cycle report and the big news is that Internet of Things has now replaced Big Data as the most hyped technology. Indeed, we're hearing more and more about this fascinating new technological paradigm. Every other IT news item seems to be about IoT and its implications on the future of digital business.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. Download Slide Deck: ▸ Here
BSQUARE is a global leader of embedded software solutions. We enable smart connected systems at the device level and beyond that millions use every day and provide actionable data solutions for the growing Internet of Things (IoT) market. We empower our world-class customers with our products, services and solutions to achieve innovation and success. For more information, visit www.bsquare.com.
With the iCloud scandal seemingly in its past, Apple announced new iPhones, updates to iPad and MacBook as well as news on OSX Yosemite. Although consumers will have to wait to get their hands on some of that new stuff, what they can get is the latest release of iOS 8 that Apple made available for most in-market iPhones and iPads. Originally announced at WWDC (Apple’s annual developers conference) in June, iOS 8 seems to spearhead Apple’s newfound focus upon greater integration of their products into everyday tasks, cross-platform mobility and self-monitoring. Before you update your device, here is a look at some of the new features and things you may want to consider from a mobile security perspective.