Fuel Tech (NASDAQ: FTEK) reported Q2 EPS of ($0.04), $0.02 worse than the analyst estimate of ($0.02). Revenue for the quarter came in at $8.9 million versus the consensus estimate of $12.11 million.

“Our Q2 2019 operating loss from continuing operations of $843,000 included operating losses at our soon-to-be suspended Air Pollution Control (“APC”) China operations (“Beijing Fuel Tech”) of $540,000,” said Vincent J. Arnone, Chairman, President and CEO of Fuel Tech. “Excluding the impact of these Beijing Fuel Tech losses, our consolidated operating loss from continuing operations for Q2 2019 was approximately $300,000. We have substantially completed the wind down of our Beijing Fuel Tech operations and we expect that this process will be finished by year end. Upon completion, we expect to eliminate approximately $2.0 million in annual operating losses associated with Beijing Fuel Tech.

“Business development activity for our APC business segment has been slower than anticipated during the first half of this year, as many of the contracts that we had hoped to secure have been delayed or canceled by the end customer and in a couple of select cases lost to competing bids. As a result, Q2 2019 APC revenues declined from Q2 2018. We continue to pursue a promising pipeline of APC contract opportunities, particularly in the US, and we remain in various stages of negotiation with potential clients for contract award opportunities that we expect will close during 2019.

“Performance at FUEL CHEM® was strong, with Q2 2019 revenues rising 20% from Q2 2018 and operating income up 26%. We expect FUEL CHEM performance for the second half of 2019 to modestly improve from the level achieved in the first half of 2019.”

Mr. Arnone continued, “At June 30, 2019, total cash was $14.9 million, including restricted cash of $3.3 million, down from restricted cash of $6.0 million at December 31, 2018 reflecting our new credit agreement and reductions in our outstanding letters of credit with existing customers. Stockholders’ equity was $32.1 million, or $1.32 per share, and the Company had zero debt.”

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