Q2 2024 Energy Recovery Inc Earnings Call Transcript
Key Points
- Energy Recovery Inc (ERII) achieved second-quarter water revenue of $26.9 million, a $6.4 million increase compared to the same quarter last year.
- The company completed significant shipments for large-scale projects, including the Perur project in Chennai, India, and the Hassyan IPP project in Dubai, UAE.
- Energy Recovery Inc (ERII) signed $15 million in contracts to supply pressure exchangers to several SWRO desal plants in India.
- The company's gross margin rebounded to approximately 65% in the second quarter, with full-year gross margin guidance maintained at 64% to 67%.
- Energy Recovery Inc (ERII) increased its cash and investment position from $129 million to $138 million in the second quarter, with expectations to end the year between $140 million and $150 million.
- The company's current 2024 total revenue reflects a 9% decrease year over year, driven by the timing of the closure of several large-scale project contracts.
- Operating expenses increased by 21% over the second quarter of last year, primarily due to one-time expenses related to the long-term growth strategy and executive transition costs.
- Energy Recovery Inc (ERII) experienced a small net income loss in the quarter, although there was a large sequential improvement from the previous quarter.
- The wastewater business had a slow start to the year, primarily driven by economic conditions in China, although an uptick in bid activity is expected in the second half.
- The company is still facing material handling challenges with the Q400 ramp-up production, although these are expected to be resolved by the end of the third quarter.
Greetings, and welcome to the Energy Recovery 2Q '24 earnings call. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the conference over to your host, James Siccardi, Vice President of Investor Relations.
Hello, everyone, and welcome to Energy Recovery's 2024 second-quarter earnings conference call. My name is Jim Siccardi, Vice President of Investor Relations at Energy Recovery, and I'm here today with our President and Chief Executive Officer, David Moon; and Brandon Young, our Controller and Interim Chief Accounting Officer.
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 events or the future financial performance of the company. These statements may discuss our business, economic and market outlook, growth expectations, new products and their performance, cost structure
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