Energy Recovery, Inc. (NASDAQ:ERII) 4Q Revenue Up By 54%
Energy Recovery, Inc. (NASDAQ:ERII) Chief Financial Officer Mr. Alex Buehler in his commentary about the underlying business drivers which have led to the blockbuster results for 4Q, has been quoted to have said that, “Gross profit and net margins become exceedingly compelling when the company achieved sufficient revenue as was certainly the case in the fourth quarter of 2013. A gross profit margin of 63% and a net margin of nearly 30% served as a strong reminder of the profit and return profile that is attainable when the global desalination market achieved its full potential”.
Energy Recovery, Inc. (NASDAQ:ERII) goes on to add that revenue and net income of $23 million and $7 million recorded for the fourth quarter set new company records, while the management team kept a tight rein on the expenses to less than $8 million. The operational expense watch was not related to new research and development initiatives, coupled with marketing and sales investments, which are likely to help the firm further expand its revenue stream over the next few quarters. Over all the fourth quarter was very profitable for the $331 million market capped firm as it reported gross profit margins of 63 percent and earnings per share of 13 cents.
Strong Growth Over 4Q12
Revenue for the fourth quarter was up 54 percent in comparison to 4Q12, while gross profits were up 43 percent in the same comparison time frame. The firm also managed to bring down expenses by close to 10 percent in the 4Q, in comparison to 4Q12 while their earnings per share in 4Q12 were 4 cents loss. For the full year, revenue went up to hit $43 million and gross margin came in at 60 percent. The firm was also able to manage a cash flow of $6.5 million during the full year operations.