Loading...
•
Jun 30, 2020
Energy Recovery Q2 2020 Earnings Report
Reported stability and growth driven by mega SWRO projects and VorTeq technology.
Key Takeaways
Energy Recovery reported a strong second quarter with a 91% increase in total revenue, driven by product revenue and license and development revenue.
Product revenue was $19.3 million, flat year-over-year.
License and development revenue was $24.4 million related to the termination of the license agreement with Schlumberger.
Product gross margin was 66.0%, a decrease of 550 basis points year-over-year.
Net income was $16.9 million, or diluted earnings per share of $0.30.
Revenue by Geographic Location
Forward Guidance
The company expects increased demand for its technology, potentially leading to revenue growth. They also aim to generate near-term shareholder value from VorTeq technology and fulfill existing delivery obligations. They do not expect continued decreases in product gross margin due to the COVID-19 pandemic.
Positive Outlook
- Increased demand for our technology resulting in growth in our revenue
- Company will be able to generate near-term shareholder value from our VorTeq technology
- Company will be able to monetize the VorTeq technology
- Company will be able to fulfill our existing delivery obligations in fiscal year 2020 and beyond
- Company will not continue to experience decreases in the product gross margin due to the COVID-19 pandemic.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...