|By Business Wire||
|April 1, 2014 08:17 AM EDT||
ThermoEnergy Corporation (OTCBB: TMEN), a technologies company engaged in the development and sale of wastewater treatment technologies, today reported revenue of $2.8 million for the fiscal year ended December 31, 2013.
Mr. James F. Wood, Chairman and Chief Executive Officer of ThermoEnergy, stated: "2013 was a year of progress for ThermoEnergy. We worked to refocus the Company on its core competency – the manufacture and sale of systems that treat and recover chemicals, metals and nutrients from industrial wastewaters. I am confident this effort led to a number of increased opportunities and proposals throughout the latter half of 2013. Oil and gas is a sustainable market and major focus for the Company’s technology. However, based on the infancy of our offering to this segment, achieving scale is taking longer than expected. Recent field pilots and third-party laboratory tests have substantiated our CAST® technology’s ability to treat produced water from conventional and unconventional hydrocarbon sources and provide a cost-effective solutions for treating and recovering these waters. Additional information on the technology and our successful pilot studies is available on the Company’s website at www.thermoenergy.com.”
Mr. Wood continued, “We have made significant efforts in managing our costs and continue to seek improvements in operations to improve our margins and reduce our manufacturing lead-times, which currently take anywhere from 16 to 24 weeks to build. Our technology is differentiated from competitive wastewater technologies in that CAST® technology produces a clean distillate. The potential recovery of potable water for agricultural and livestock uses in drought-stressed areas such as West Texas and California’s Central Valley continues to provide opportunities for the Company, and we believe ThermoEnergy’s technologies will become more valuable as global water shortages continue driven by climate changes and population growth.“
Operational and Financial Highlights:
- Full year revenues of $2.8 million with 96% derived from new business and service opportunities.
- Commissioned two ARP systems for removal and recovery of concentrated ammonia in wastewater.
- Booked two additional CAST® systems for recovery of glycol and metal finishing and negotiated the completion and payment of two additional systems previously unfinished. These four systems are expected to ship during the second and third quarters of 2014.
- Received third party scientific and economic validation supporting the benefits and return on investment generated by the Company’s introduction of CAST® technologies in the oil and gas market.
- Achieved cost savings of $2.7 million based on efforts undertaken to reduce spending on non-core business activities.
- Built and delivered UPA’s bench scale unit to demonstrate Pressurized Oxy-Combustion (POXC®) using domestic coals.
- Expanded the sales and marketing organization to better develop top line opportunities across all industrial markets: oil and gas, glycol, chemical, metal and nutrient recycling.
- Finalized the NYCDEP contract, resulting in a non-cash gain on contract termination of approximately $4.9 million.
- Reduced outstanding debt by $1.7 million through the pay down and conversion of $5.7 million in debt during the first half of 2013, offset by a $4 million non-dilutive note in the fourth quarter.
Financial Results for the Three-Month Period Ended December 31, 2013:
For the three-month period ended December 31, 2013 the Company recorded revenue of $191,000 compared to $1,351,000 in the fourth quarter of 2012. Going forward, revenue on orders in backlog will be recognized only when shipped. Revenue in the quarter was derived from service contracts and spare parts orders. Revenue in the fourth quarter of 2012 was derived mainly from our contract with the NYCDEP.
Gross loss for the fourth quarter of 2013 was ($174,000), driven mainly by unabsorbed manufacturing costs.
General and administrative expense for the fourth quarter of 2013 was $757,000, a decrease of $43,000 (5%) compared to the fourth quarter of 2012. The Company was able to recognize its targeted cost reduction efforts and maintain lower legal and financing expenses than the fourth quarter of 2012.
Engineering expense for the fourth quarter of 2013 was $18,000, a decrease of $80,000 (82%) compared to the fourth quarter of 2012. The decrease is attributable to increased utilization of our engineering resources and reduced non-cash stock expense during the period.
Sales and marketing expense for the fourth quarter of 2013 was $466,000, a decrease of $201,000 (30%) compared to the fourth quarter of 2012. The decrease was due to a reduction in non-core international business development efforts and reduced unbillable pre-sale expenses, partially offset by the continued increase in spending on domestic sales and marketing activities.
The Company reported a net loss for the three-month period ended December 31, 2013 of $1.314 million, ($0.01 per basic share), compared to a loss of $1.436 million ($0.01 per basic share) for the same period in 2012.
Financial Results for the Year Ended December 31, 2013:
For the year ended December 31, 2013 the Company recorded revenue of $2,812,000 compared to revenues of $6,971,000 in 2012. Revenue in 2013 was derived mainly by the Company’s first two projects utilizing its Ammonia Recovery Process (“ARP”) technology and work related to the subcontract with Unity Power Alliance’s DOE Grant. Equipment revenues were supported by continued growth in service revenues from our historic customer base. Revenue in 2012 were derived primarily from our contract with the NYCDEP.
Gross loss for the fiscal year ended December 31, 2013 was $501,000 compared to a profit of $173,000 in 2012. The gross loss is attributed to lower margins on the initial ARP project as well as higher unallocated overhead costs during the period. In 2012, the Company benefited from the continued construction of the NYCDEP contract. As reported last quarter, full year margin degradation was impacted by cost overruns of $275,000, which were driven by engineering and product design changes by our joint venture partner on UPA.
General and administrative expense totaled $3,179,000 in 2013, a decrease of $1,572,000 (33%) compared to 2012. The decrease is attributable to significantly lower professional and consulting expenses in 2013 from continuing efforts to reduce our cost structure, as well as significantly lower non-cash stock option expenses.
Engineering expense totaled $454,000 in 2013, which is consistent with spending in 2012. Our engineering team was not as fully utilized throughout the first half of 2013 compared to 2012 due to the cancellation of the NYCDEP contract and the timing of project activity. Engineering costs directly related to our projects are charged to cost of sales. The reduced utilization of our engineering team was offset by lower headcount and non-cash stock option expense in 2013.
Selling expense totaled $1,727,000 in 2013, a decrease of approximately $1.1 million (40%) compared to 2012. This decrease is attributed to a reduction in non-core business development efforts and reduced unbillable pre-sale expenses. These declines were offset by continued expenditures incurred to strengthen the field sales team, trade and promotion activities, and pilot testing of our TurboFrac® technologies in the unconventional oil shale market.
The Company recorded a non-cash gain of $4,878,000 related to the termination of its contract with the NYCDEP in 2013. This gain represents the amount by which our billings to the NYCDEP contract exceeded revenues recognized. We did not record any such gains in 2012.
Additional income of $2,357,000 was earned in 2013 related to the net change in fair value on our derivative instruments compared to $1,637,000 in 2012. Income in both years relates primarily to the passage of time and the decrease in our stock price. The increased income in 2013 is due to an increase in the number of underlying derivative instruments in 2013 compared to 2012.
The Company recorded derivative expense of $567,000 in 2012 related to the initial valuation of derivative liabilities. This expense did not repeat in 2013.
Due to our 50% ownership in UPA, the Company absorbed its proportional share of the costs necessary to complete the cost-sharing arrangement with the Department of Energy. This resulted in a loss of $298,000 in 2013 compared to $8,000 in 2012.
Interest expense was $2,663,000 in 2013 compared to $529,000 in 2012. This increase is due to amortization of debt discounts recognized on our December 2011 Bridge Notes and our November 2012 Bridge Notes in 2013.
The Company had cash on hand at December 31, 2013 of $2.5 million.
Please see the Company's Form 10-K filed with the SEC on March 31, 2014 for additional details.
Founded in 1988, ThermoEnergy is a diversified technologies company engaged in the worldwide development, sales and commercialization of patented and/or proprietary municipal and industrial wastewater treatment and power generation technologies. Additional information on the Company and its technologies can be found on its website at www.thermoenergy.com.
THIS PRESS RELEASE INCLUDES STATEMENTS THAT MAY CONSTITUTE "FORWARD LOOKING" STATEMENTS, USUALLY CONTAINING THE WORDS "ESTIMATE", "PROJECT", "EXPECT" OR SIMILAR EXPRESSIONS. FORWARD LOOKING STATEMENTS INHERENTLY INVOLVE RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM CURRENT EXPECTATIONS. BY MAKING THESE FORWARD LOOKING STATEMENTS, THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE THESE STATEMENTS FOR REVISIONS OR CHANGES.
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
Apr. 25, 2017 10:30 AM EDT Reads: 613
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Apr. 25, 2017 10:30 AM EDT Reads: 301
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Apr. 25, 2017 10:15 AM EDT Reads: 2,075
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Apr. 25, 2017 10:00 AM EDT Reads: 926
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Apr. 25, 2017 09:45 AM EDT Reads: 1,193
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software in the hope of capturing value in IoT. Although IoT is relatively new in the market, it has already gone through many promotional terms such as IoE, IoX, SDX, Edge/Fog, Mist Compute, etc. Ultimately, irrespective of the name, it is about deriving value from independent software assets participating in an ecosystem as one comprehensive solution.
Apr. 25, 2017 09:39 AM EDT Reads: 135
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across supply chain networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost and time for product recall as well as advance trade. Are you curious about Blockchain and how it can provide you with new opportunities for innovation and growth? In her session at 20th Cloud Exp...
Apr. 25, 2017 09:15 AM EDT Reads: 1,707
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
Apr. 25, 2017 09:15 AM EDT Reads: 262
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Apr. 25, 2017 09:00 AM EDT Reads: 1,004
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Apr. 25, 2017 08:45 AM EDT Reads: 808
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Apr. 25, 2017 08:30 AM EDT Reads: 2,942
As pervasive as cloud technology is -- and as persuasive as the arguments are for using it -- the cloud has its limits. Some companies will always have security concerns about storing data in the cloud and certain high-transaction applications will always be better suited for on-premises storage. Those statements were among the bottom-line takeaways delivered at Cloud Expo this week, a three day, bi-annual event focused on cloud technologies, adoption and associated challenges.
Apr. 25, 2017 08:30 AM EDT Reads: 3,850
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
Apr. 25, 2017 08:30 AM EDT Reads: 2,169
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
Apr. 25, 2017 08:00 AM EDT Reads: 818
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
Apr. 25, 2017 07:15 AM EDT Reads: 377