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Mar 31, 2020
Energy Recovery Q1 2020 Earnings Report
Energy Recovery reported first quarter results with revenue increase.
Key Takeaways
Energy Recovery reported a revenue of $21.5 million, a 9% increase year-over-year. Net income was $0.6 million, or $0.01 per diluted share.
Total product revenue of $19.0 million, an increase of 18% year-over-year
Total revenue of $21.5 million, an increase of 9% year-over-year
Product gross margin of 70.1%, an increase of 80 basis points year-over-year
Net income of $0.6 million, or diluted earnings per share of $0.01, a decrease of $0.04 year-over-year
Revenue by Geographic Location
Forward Guidance
The Company believes that its cash on hand, marketable securities and ongoing cash generated from operations should be sufficient to cover the Company’s capital requirements for the next 12 months and believes that it will be able to fulfill most, if not all, of its existing delivery obligations in fiscal year 2020.
Positive Outlook
- Cash on hand, marketable securities and ongoing cash generated from operations should be sufficient to cover the Company’s capital requirements for the next 12 months
- Available product inventory combined with current rate of production leads the company to believe that it can fulfill most, if not all, of its existing delivery obligations in fiscal year 2020
- The desalination industry appears to be showing some stability in fiscal year 2020
Challenges Ahead
- Gross margins will likely continue to be impacted until such time that the company can operate its manufacturing facilities as originally planned.
- Future COVID-19 restrictions could cause reduced demand for products if they result in a global recessionary economic environment or impact the construction of large desalination projects.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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