Business
Energy Recovery Reports First Quarter 2019 Financial Results
SAN LEANDRO, Calif., May 2, 2019 /PRNewswire/ -- Energy Recovery, Inc. (NASDAQ: ERII) ("Energy Recovery" or the "Company"), the leader in pressure energy
About this update from Energy Recovery, Inc.
[{"type":"text","content":"SAN LEANDRO, Calif., May 2, 2019 /PRNewswire/ -- Energy Recovery, Inc. (NASDAQ: ERII) (\"Energy Recovery\" or the \"Company\"), the leader in pressure energy technology for industrial fluid flows, today announced its financial results for the first quarter ended on March 31, 2019. \n\n \nFirst Quarter Summary:\nTotal revenue of $19.8 million, an increase of 43% year-over-year Product gross margin of 69.3% Total gross margin(1) of 75.1% Net income of $2.7 million, or $0.05 per diluted sharePresident and CEO Chris Gannon remarked, \"Our strong revenue growth, up 43 percent from the first quarter of 2018, underscores Energy Recovery's continued positive momentum. This growth was principally driven by our Water business which delivered its most successful first quarter in our history. Seawater reverse osmosis (SWRO) desalination is an increasingly important part of the world's water supply diversification strategy as global water scarcity increases. Combining these trends with the water industry's shift away from thermal to more cost-efficient membrane-based desalination solutions like SWRO provides growing optimism for the long-term health of our Water business.\" \nMr. Gannon added, \"In our Oil & Gas business, we remain solely focused on commercializing the VorTeq system. We have now put in place the engineering and operational resources required to test at scale at our facility. Consistent testing and runtime have led to concrete progress on the system level design enhancements identified last year as precursors to Milestone One and commercialization. I am pleased by our progress and continue to believe that we will meet our Milestone One requirements this year.\"\nRevenuesFor the first quarter ended March 31, 2019, the Company generated total revenue of $19.8 million. Total revenue for the first quarter ended March 31, 2019 increased by $6.0 million, or 43%, from $13.8 million in the first quarter ended March 31, 2018. Of the $6.0 million increase in total revenue, $5.0 million was attributable to higher Water segment revenue, and $1.0 million to the Oil and Gas segment revenue.\nThe Water segment generated total product revenue of $16.0 million for the first quarter ended March 31, 2019, compared to $11.0 million for the first quarter ended March 31, 2018, an increase of $5.0 million, or 45%. This increase was due to highe...