Q1 2024 Energy Recovery Inc Earnings Call Transcript
Key Points
- Revenue of $12.1 million for Q1 2024 was within the guided range of $10 to $13 million, indicating stable financial performance.
- Signed a significant mega project deal in Brazil for shipment in 2025, expanding the company's geographical footprint and potential future revenue.
- Achieved a 20% to 26% increase in contracted projects compared to the same period in 2023, demonstrating growth and confidence in meeting the annual guidance.
- Received the 'Refrigeration Product of the Year' award for the PX G, highlighting innovation and market recognition in the CO2 refrigeration sector.
- Successfully completed internal testing of the second-generation PX G, showing improved reliability and performance, ready for beta testing in real-world environments.
- The CFO transition is ongoing, with the current CFO set to leave by June 30, which could lead to uncertainties in financial leadership.
- Reported a decline in the OEM channel revenue compared to Q1 last year, although it is attributed to the timing of project shipments.
- Gross margin in Q1 2024 was 59%, below the guided range of 64% to 67%, impacted by inflation and increased manufacturing costs.
- Operating expenses grew by 11% compared to Q1 last year, adding financial pressure amidst strategic investments and executive transition costs.
- The company experienced a loss in Q1 as expected, with a forecast to remain negative in Q2, posing challenges to short-term profitability.
Greetings and welcome to the Energy Recovery First Quarter 2024 earnings call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, James Siccardi, Vice President of Investor Relations. Thank you, Mr. Siccardi, you may begin.
Hello, everyone, and welcome to Energy Recovery's 2024 first quarter earnings conference call. My name is Jim McCarthy, Vice President of Investor Relations at Energy Recovery. And I'm here today with our President and Chief Executive Officer, David Moon, and our Chief Financial Officer, Josh Levine.
During today's call, we may make projections and other forward-looking statements under the Safe Harbor provisions contained in the Private Securities Litigation Reform Act of 1995 regarding future
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