Business
Energy Recovery Reports Fourth Quarter and Fiscal Year End 2019 Financial Results
SAN LEANDRO, CA / ACCESSWIRE / March 5, 2020 / Energy Recovery Inc. (Nasdaq:ERII) ("Energy Recovery," "we," "our," or the "Company"), a leader in pressure
About this update from Energy Recovery, Inc.
[{"type":"text","content":"SAN LEANDRO, CA / ACCESSWIRE / March 5, 2020 / Energy Recovery Inc. (Nasdaq:ERII) (\"Energy Recovery,\" \"we,\" \"our,\" or the \"Company\"), a leader in pressure energy technology for industrial fluid flows, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2019.Fiscal Year 2019 Highlights:Total product revenue of $72.8 million, an increase of 19% year-over-yearTotal revenue of $86.9 million, an increase of 17% year-over-yearProduct gross margin of 72.1%, an increase of 140 basis points year-over-yearIncome from operations of $10.4 million, an increase of 4% year-over-yearNet income of $10.9 million, or diluted earnings per share of $0.19, a decrease of $0.21 year-over-year due to a tax benefit of $11.2 million recognized in 2018Adjusted net income(1) of $9.9 million, or non-GAAP diluted earnings per share(1) of $0.18, a decrease of $0.02 year-over-yearChairman and Interim President and Chief Executive Officer Robert Mao remarked, \"2019 was a year of new highs for Energy Recovery. In our water business, we achieved our third consecutive year of record-setting revenues, we signed our largest-ever desalination project contract, and we enter 2020 with a high degree of confidence based on closed deals that are expected to ship over the next two years. In addition, we executed our largest to date contract for a thermal to seawater reverse osmosis (\"SWRO\") desalination replacement project. Thanks to technologies such as our PX® Pressure Exchanger®, SWRO is now much more cost-effective than thermal, encouraging thermal plant owners and operators to replace thermal with SWRO technologies. We estimate this potential TAM to be approximately half a billion dollars at today's prices and are focused on capturing as much of this opportunity as possible over the coming decade.\"Mr. Mao continued, \"The ability to test continually while iterating design enhancements all in our own facility in Katy, Texas has allowed us to improve the VorTeq's reliability and repeatability. Our ability to process sand in volumes and concentrations used in today's hydraulic fracturing environment gives me confidence that our testing protocol is working. We intend to continue testing the system in preparation for commercialization, which will include live well testing.\"Mr. Mao concluded, \"While the Company's near...