Energy Recovery, Inc. (Nasdaq:ERII), a leader in the design and
development of energy recovery devices for desalination, announced
today the results of its third quarter ended September 30, 2009. In
the third quarter, ERI achieved net revenue of $9.5 million and a
net profit of $550,000 or $0.01 per diluted share. Both the net
revenue and net profit were in line with the Company’s
guidance.
“Our third quarter results were in line with our expectations
and we are preparing for a busy fourth quarter,” said GG Pique,
President and CEO of Energy Recovery, Inc. “In addition, we are
starting to book orders for delivery in 2010 and, with the credit
markets beginning to stabilize, we believe the stage is being set
for improvement in top line growth in 2010 and even more growth in
2011 as pent-up demand is satisfied.”
ERI provides the following guidance for the fourth quarter of
2009 and the full year:
Q4 2009 Fiscal Year 2009 Estimated net revenue
$14.5 to $16.5 million $46 to $48 million Estimated net
income $1.4 to $2.1 million $3.5 to $4.0 million Estimated
earnings per diluted share $0.03 to $0.04 $0.07 to $0.08
ERI estimates that for 2010, its net revenue will improve by 25%
over 2009.
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 about
ERI’s estimated net revenue, net income and earnings per diluted
share for the fourth quarter of 2009 and for the 2009 and 2010
fiscal years. Because such forward-looking statements involve risks
and uncertainties, the Company's actual results may differ
materially from the predictions in those forward-looking
statements. Factors that could cause actual results to differ
materially include, but are not limited to, delays in, or
cancellation of, the construction of desalination plants, the
inability of our customers to obtain project financing, delays in
governmental approvals, changes in end users’ budgets for
desalination plants or the timing of their purchasing decisions,
the world economic crisis 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 Third Quarter 2009 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 888-549-7750 or 480-629-9866 and the access
code is 4171252. Callers should dial in approximately 15 minutes
prior to the scheduled start time. A telephonic replay will be
available at 800-406-7325 or 303-590-3030, Access Code: 4171252,
until Thursday, November 19, 2009. 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.
About ERI®
Energy Recovery, Inc. (NASDAQ:ERII) designs and develops energy
recovery devices that help make desalination affordable by
significantly reducing energy consumption. ERI’s PX Pressure
Exchanger™ (PX™) device 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. The company is
headquartered in the San Francisco Bay Area with offices in key
desalination centers worldwide, including Madrid, Shanghai, Florida
and the United Arab Emirates. For more information on ERI and PX
technology, please visit www.energyrecovery.com.
Unaudited Financial Results
ENERGY RECOVERY, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands, except share
data)
(unaudited)
September 30,
2009
December 31,
2008
ASSETS Current assets: Cash and cash equivalents $
74,725 $ 79,287 Restricted cash 2,938 246 Accounts receivable, net
of allowance for doubtful accounts of $28 and $59 at September 30,
2009 and December 31, 2008, respectively 10,319 20,615 Unbilled
receivables, current 6,315 4,948 Inventories 10,510 8,493 Deferred
tax assets, net 1,950 1,755 Prepaid income taxes 749
-
Prepaid expenses and other current assets
1,515
984 Total current assets
109,021 116,328 Unbilled receivables, non-current 229 1,929
Restricted cash, non-current 2,588 19 Property and equipment, net
7,031 1,845 Intangible assets, net 309 321 Deferred tax assets,
non-current, net 106 119 Other assets, non-current
52 51 Total
assets $ 119,336
$ 120,612 LIABILITIES AND
STOCKHOLDERS’ EQUITY Current liabilities: Accounts
payable $ 803 $ 2,270 Accrued expenses and other current
liabilities 4,778 4,787 Income taxes payable 38 1,657 Accrued
warranty reserve 312 270 Deferred revenue 1,549 4,000 Current
portion of long-term debt 128 172 Current portion of capital lease
obligations
36 37
Total current liabilities 7,644 13,193 Long-term debt
245 385 Capital lease obligations, non-current
-
27 Other non-current liabilities
4
8 Total liabilities
7,893 13,613
Commitments and Contingencies (Note 6)
Stockholders’ equity:
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no
shares issued or outstanding
-
-
Common stock, $0.001 par value; 200,000,000 shares authorized;
50,164,317 and 50,015,718 shares issued and outstanding at
September 30, 2009 and December 31, 2008, respectively 50 50
Additional paid-in capital 100,749 98,527 Notes receivable from
stockholders (88 ) (296 ) Accumulated other comprehensive loss (63
) (44 ) Retained earnings
10,795
8,762 Total stockholders’ equity
111,443 106,999
Total liabilities and stockholders’ equity $
119,336 $ 120,612
ENERGY RECOVERY, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per share
data)
(unaudited)
Three Months Ended
September
30,
Nine Months Ended
September
30,
2009
2008 2009
2008 Net revenue $
9,545 $ 9,044 $ 31,280 $ 30,125 Cost of revenue
3,387 3,497
11,251 11,122 Gross
profit 6,158 5,547 20,029 19,003 Operating expenses: General and
administrative 3,043 2,696 9,705 8,211 Sales and marketing 1,634
1,467 4,795 4,263 Research and development
779
678 2,409
1,723 Total operating expenses
5,456 4,841
16,909 14,197
Income from operations 702 706 3,120 4,806 Other income (expense):
Interest expense (10 ) (17 ) (34 ) (62 ) Interest and other income
(expense), net
30
217 59
841 Income before provision for income taxes
722 906 3,145 5,585 Provision for income taxes
172 283
1,112 2,186 Net
income
$ 550 $
623 $ 2,033
$ 3,399 Earnings per share: Basic
$ 0.01 $
0.01 $ 0.04
$ 0.08 Diluted
$
0.01 $ 0.01
$ 0.04 $
0.07 Number of shares used in per share
calculations: Basic
50,160
49,646 50,120
43,114 Diluted
52,584
52,396 52,614
45,647
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