Energy Recovery (ERII) Tops Q4 EPS by 4c, Revenues Beat

Energy Recovery (NASDAQ: ERII) reported Q4 EPS of $0.03, $0.04 better than the analyst estimate of ($0.01). Revenue for the quarter came in at $17.7 million versus the consensus estimate of $14.79 million.

• Total revenue of $17.7 million
• Product gross margin of 74.5%
• Total gross margin(1) of 79.9%
• Net income of $2.4 million, or $0.04 per diluted share

Energy Recovery\'s President and CEO Chris Gannon commented, "2018 was a record year for the Company, setting all-time highs in full year revenue, as well as product and total gross margins(1). At the start of 2018, Energy Recovery had solid fundamentals with a healthy balance sheet and cash position, commanding market share in seawater reverse osmosis (SWRO) desalination energy recovery solutions, and a product concept that has the potential to transform fracing operations. Throughout the year, we built upon this foundation and invested to strengthen our infrastructure and position resources for long-term growth across our Water and Oil & Gas businesses."

Mr. Gannon continued, "As it relates to our Water segment, we believe the current expansion phase in the desalination business cycle is far from over, as we currently have the strongest project backlog and pipeline in the Company's history. While the timing of this revenue varies from quarter to quarter, growth shows every sign of continuing in 2019 and beyond. Governments and private enterprises worldwide are investing in SWRO desalination to counter the impacts of fresh water scarcity."

Mr. Gannon concluded, "In our Oil & Gas segment, throughout 2018 and early 2019 we materially advanced the VorTeq™ system-level enhancements. We also have taken firm control of our technology development process by acquiring the field resources and equipment necessary to accelerate commercialization of the VorTeq system. Construction is underway on our Commercial Development Center outside of Houston, TX, which will enable us to test and validate our oil & gas solutions at scales representative of real-world conditions as often as necessary. These investments underscore our confidence in the VorTeq system, and we are collaborating closely with our partners as we move into the next phase of development towards commercialization."

For earnings history and earnings-related data on Energy Recovery (ERII) click here.

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