Energy Recovery, Inc. Reports Second Quarter 2008 Financial Results
August 12, 2008 at 16:05 PM EDT
Energy Recovery, Inc. (Nasdaq:ERII), a global leading provider of ultra efficient energy recovery products and technology for seawater desalination, announced today the results of its second quarter ended June 30, 2008. In the second quarter of 2008, ERI achieved net revenue of $12.0 million, an increase of 247% compared to revenue of $3.5 million reported for the same period a year ago. Year to date for 2008 net revenue was $21.1 million, which represented an increase of 99% over net revenue of $10.6 million for the six months ended June 30, 2007. ERI reported net income of $1.8 million, or $0.04 per diluted share, for the three months ended June 30, 2008 compared to a loss of $0.4 million, or $(0.01) per diluted share, for the same period last year. Year to date for 2008 net income was $2.8 million, or $0.07 per diluted share, compared to $0.7 million, or $0.02 per diluted share, for the same period last year.
In July 2008, ERI sold an aggregate of 16,100,000 shares of its common stock in its initial public offering (“IPO”) at $8.50 per share, including the underwriters’ over-allotment option. Of the shares sold in the offering, 10,178,566 shares were sold by the Company and 5,921,434 shares were sold by selling stockholders. ERI received net proceeds of approximately $77.1 million from the IPO, after deducting underwriting discounts and commissions and direct expenses. The financial effect of the IPO will be reflected in the Company’s third quarter financial results.
“Our strong second quarter results reflect the continued growth of the desalination industry worldwide and our leading market share in the energy recovery segment,” said GG Pique, President and CEO of Energy Recovery, Inc. “The recent IPO was a milestone event for the Company and our visibility as a leading player in our industry has risen as a result. The IPO proceeds put us on solid financial footing to pursue many important strategic initiatives that will further strengthen that leadership position.”
ERI provides the following guidance for the third quarter of 2008 and the full year (in thousands, except per share data):
Forward Looking Statements
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include statements regarding the Company’s ability to achieve certain levels of revenue and earnings in the third quarter and full year of 2008, the Company’s ability to successfully implement its strategic initiatives and the Company’s position in the desalination industry. Because such forward-looking statements involve risks and uncertainties, the Company's actual results may differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, cyclical nature of sea water reverse osmosis plants, delays or postponements in the construction of desalination plants, the ability of our customers to obtain other key components of a plant, delays in governmental approvals, changes in customers’ budgets for desalination plants and the timing of their purchasing decisions, interruption in the supply of key production components such as ceramic parts, shipping delays, and other risks detailed in the Company's filings with the Securities and Exchange Commission (“SEC”). All forward-looking statements are made as of today, and the Company assumes no obligation to update such statements. For more details relating to the risks and uncertainties that could cause actual results to differ materially from those anticipated in our forward-looking statements, please refer to the Company's SEC filings.
Conference Call to Discuss Second Quarter 2008 Results
The conference call scheduled today at 1:30 p.m. PDT will be in a “listen-only” mode for all participants other than the investment professionals who regularly follow the Company. The toll-free phone number for the call is 800-951-9235 and the access code is 56522909. Callers should dial in approximately 15 minutes prior to the scheduled start time. A telephonic replay will be available at 800-642-1687, Access Code: 56522909, from 5:30 p.m. PDT on Tuesday, August 12, 2008 to 5:30 p.m. PDT on Tuesday, August 26, 2008. Investors may also access the live call or the replay over the internet at www.energyrecovery.com. The replay will be available approximately three hours after the live call concludes.
Energy Recovery, Inc. (ERI) is a leading manufacturer of energy recovery devices, which significantly reduce energy consumption and help make desalination affordable. ERI’s PX Pressure Exchanger® technology (PX®) is a rotary positive displacement pump that recovers energy from the high pressure reject stream of seawater reverse osmosis systems at up to 98% efficiency with no downtime or scheduled maintenance.
The Company has research, development and manufacturing facilities in San Leandro, California as well as direct sales offices and technical support centers in key desalination hubs such as Madrid, UAE, Shanghai and Florida. ERI services customers in Algeria, Australia, China, India, Korea, Mexico, Taiwan and the Caribbean. For more information on ERI and PX technology, please visit www.energyrecovery.com.