The fundamental issue is that its traditional riser buoyancy product depends on drilling contractors building new rigs in response to rising oil and gas prices, and that isn't happening, which led the company to moderate production throughout the year.
Matrix has been working on diversifying the business over the past year by harnessing its strengths and applying them to growth markets beyond energy in the wider resources, defence, civil and infrastructure sectors.
The strategy is already paying off, with Matrix recently awarded some $5 million in contracts outside of its traditional riser buoyancy market, where it has previously dominated.
CEO Aaron Begley said the company continued to develop and refine products that utilise its leading position in composite materials and its advanced manufacturing facility in Henderson to target growth these areas.
"In the coming year Matrix will continue to pursue these growth opportunities, supported by the company's strong balance sheet," he said.
Yesterday the company reported a statutory net loss after tax of $19.7 million, increased from a NPAT loss of $2.1 million in the year before thanks to a $6.4 million one-off, goodwill write-off relating to its MOSE Engineering business.
MOSE closed in 2015, triggering redundancy and lease termination costs of $2.4 million.
The redundancy costs were actually unrelated to MOSE in FY17, with redundancies for right-sizing the Henderson facility in line with falling riser buoyancy production.
There were $2 million in redundancy costs and $1.3 million in costs related to the exit of leased premises that were relocated/closed including Malaga - which was MOSE - along with Karratha and Houston.
Continued weak global demand for riser buoyancy products used on new-build drill rigs forced Matrix's revenue down $33.1 million on 2015-16.
Matrix made a $4.4 million underlying EBITDA loss, in line with guidance, while cash from operations was positive $11.5 million.
The company decided not to declare a dividend for the period to retain enough working capital to continue its diversification strategy to reduce its dependence on oil prices.
Earlier this week Matrix was awarded a multi-million contract to manufacture its Longitudinal Groove System for an offshore pipeline.
Outside of the energy sector, the company has launched Paragon, LiCos and Kinetica, three distinct product groups that draw on the company's expertise in materials engineering and applied across a broad range of growth sectors.
Its MaxR range of well construction products - a consumable used in shale and horizontal wells - is also receiving sustained demand in the US and growing interest in Asia and the Middle East.
The company also has more than US$200 million (A$253 million) in tenders across its subsea, umbilicals, risers and flowlines; LGS and traditional riser buoyancy products.
