Business
Energy Recovery Reports its First Quarter 2024 Financial Results
SAN LEANDRO, Calif.--(BUSINESS WIRE)-- Energy Recovery, Inc. (Nasdaq:ERII) (“Energy Recovery” or the “Company”) today announced its financial results for the
About this update from Energy Recovery, Inc.
[{"type":"text","content":" SAN LEANDRO, Calif.--(BUSINESS WIRE)--\nEnergy Recovery, Inc. (Nasdaq:ERII) (“Energy Recovery” or the “Company”) today announced its financial results for the first quarter ended March 31, 2024.\n\n\nFirst Quarter Highlights\n\n\n\nRevenue of $12.1 million, which is in-line with our February 2024 guidance.\n\n\n\nGross margin of 59.0%, a decrease of 190 bps, as compared to Q1’2023, due primarily to higher manufacturing costs and an increase in inventory scrap.\n\n\n\nOperating expenses of $18.1 million, an increase of 11%, as compared to Q1’2023, due primarily to increased investments within sales and marketing and Executive transition costs.\n\n\n\nLoss from operations of $10.9 million, mainly due to lower revenues and gross margin as previously guided.\n\n\n\nNet loss of $8.3 million and adjusted EBITDA(1) loss of $6.2 million.\n\n\n\nCash and investments of $129.5 million, which include cash, cash equivalents, and short- and long-term investments.\n\n\n\nDavid Moon, President and CEO, commented on the financial results: “The first quarter was a busy one for us and played out as we expected. Q1 revenue of $12.1 million was in line with our guidance of $10-$13 million, and based on the visibility we have today, we expect to be in-line with our full year revenue guidance of $140-$150 million. As of today, we have signed contracts with potential revenue opportunity equal to 60% of the mid-point of our 2024 guidance, which represents an increase of 26% over the same period in 2023.”\n\n\nMr. Moon added, “In our CO2 business, we completed a successful 30-day field test in Europe of our next generation PX G1300, as well as successful testing of our latest system architecture with Vallarta, our partner in California. We are now in the process of commissioning multiple new deployments at existing and new customer sites for this summer, which will provide the key uninterrupted summer runtime data that is vital for us to begin significant commercial adoption of the PX G1300. As we look out to the remainder of the year, my top priority is to execute on the goals and milestones laid out for this year.”\n\n\nFinancial Highlights\n\n\n\n\n \n\n\n\n\n\n\nYear-to-Date\n\n\n\n\n\n\n\n\n \n\n\n\n\n\n\n2024\n\n\n\n\n\n\n \n\n\n\n\n\n\n2023\n\n\n\n\n\n\n \n\n\n\n\n\n\n2024 vs. 2023\n\n\n\n\n\n\n\n\n \n\n\n\n\n\n\n(In millions, except net loss pe...