Energy Recovery Inc. (ERII) saw its loss narrow to $0.43 million, or $0.01 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $1.97 million, or $0.04 a share. On an adjusted basis, net loss for the quarter was $0.43 million, when compared with $0.96 million in the last year period. Revenue during the quarter grew 21.99 percent to $12.26 million from $10.05 million in the previous year period. Gross margin for the quarter contracted 105 basis points over the previous year period to 62.40 percent. Operating margin for the quarter stood at negative 5.11 percent as compared to a negative 21.38 percent for the previous year period.
Operating loss for the quarter was $0.63 million, compared with an operating loss of $2.15 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.25 million compared to negative $1.22 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 2.07 percent for the quarter compared to negative 12.11 percent in the last year period.
Joel Gay, president and chief executive officer said, "The first quarter’s performance is both a continuation of last year’s record performance and the anchor for what has the potential to be yet another impressive year. In establishing a new first quarter revenue high water mark, we again demonstrated the resiliency of our business model through an increasingly favorable segment and revenue type mix, further evidence of the strategic and operational turnaround effort initiated in January of 2015. Notably, we generated $2.8 million in Oil & Gas Segment revenue, and despite the majority of this revenue being recognized at approximately a 30% gross margin, total gross margins(1) for the company still reached a lofty 66%."
Operating cash flow remains negative
Energy Recovery Inc. has spent $4.82 million cash to meet operating activities during the quarter as against cash outgo of $0.26 million in the last year period. The company has spent $0.70 million cash to meet investing activities during the quarter as against cash outgo of $0.49 million in the last year period.
Cash flow from financing activities was $2.84 million for the quarter as against cash outgo of $2.59 million in the last year period.
Cash and cash equivalents stood at $58.69 million as on Mar. 31, 2017, down 39.20 percent or $37.84 million from $96.53 million on Mar. 31, 2016.
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