Fuel Tech (NASDAQ: FTEK) reported Q1 EPS of ($0.05), versus ($0.01) reported last year. Revenue for the quarter came in at $10.2 million versus the consensus estimate of $13.74 million.

“Our Q1 2019 net loss from continuing operations of $1.3 million included operating losses at our soon-to-be suspended Air Pollution Control (“APC”) China operations (“Beijing Fuel Tech”) and other charges totaling $1.2 million, as well as the unfavorable impact of the timing of completion of current APC projects under contract,” said Vincent J. Arnone, Chairman, President and CEO of Fuel Tech. “With that said, we continue to pursue a promising pipeline of APC contract opportunities, particularly in the US, and we are in various stages of negotiation with potential clients that, in the aggregate, represent $10-15 million of contract award opportunities that we expect will close by late Q2 or early Q3 2019. The outlook for FUEL CHEM® is also promising. We are scheduled to begin installing our FUEL CHEM program on two incremental coal-fired units at a domestic utility in May and expect to have these new units up-and-running by the end of Q2 2019.”

The Q1 2019 net loss from continuing operations included the following items:

• a $0.6 million severance-related restructuring charge associated with the ongoing suspension of Beijing Fuel Tech’s operations. Substantially all the severance charges associated with this suspension were realized as of March 31, 2019;
• a $0.3 million operating loss at Beijing Fuel Tech, which was exclusive of the above-referenced restructuring charge; and
• a $0.3 million charge associated with required incremental work for a domestic APC project

Excluding the above-referenced charges and operating losses at Beijing Fuel Tech, Fuel Tech’s net loss from continuing operations for Q1 2019 was $0.1 million, or $0.01 per diluted share.

“We are focusing on cash collection and project completion at Beijing Fuel Tech,” said Mr. Arnone. “As the wind down of these operations continues, the negative impact of Beijing Fuel Tech’s operating losses on Fuel Tech’s overall performance will dissipate. Excluding operating losses and charges associated with Beijing Fuel Tech, we expect to generate operating income from continuing operations for the full year 2019.”

For earnings history and earnings-related data on Fuel Tech (FTEK) click here.