Hudson Technologies, Inc. (Pear River, NY, U.S.), a leading refrigerant-services company specializing, has announced its results for the third quarter, which ended Sept. 30, 2003.
Revenues for the third quarter totaled U.S. $3.99 million versus $3.89 million for the same period in 2002. The increase in revenues was due to an 18-percent increase in the company's RefrigerantSide Service revenues during the same period in 2002.
Hudson Technologies also reported a net loss of $589,000 and, after non-cash charges of $219,000 for payment-in-kind preferred stock dividends, a net loss per common share of $0.16. For the same period in 2002, the Company reported a net loss of $855,000 and, after non-cash charges of $204,000 for payment-in-kind preferred stock dividends, a net loss per common share of $0.20. The company's operating loss for the third quarter of 2003 was $415,000 compared to an operating loss of $776,000 for the third quarter of 2002.
"The company is now starting to realize, in the form of revenues and cost savings, the benefits from the initiatives taken earlier in the year designed to achieve profitability based on our current level and mix of revenues," said Kevin J. Zugibe, chairman and CEO.
On the cost side, Hudson's selling expenses and its overall operating expenses in the third quarter of 2003 decreased 53 percent and 23 percent, respectively, from the same period in 2002. We are on track to realize the $1.6 million in annual savings we planned to achieve through our rightsizing initiatives."
Mr. Zugibe continued, "On the revenue side, we have increased our focus on the highest opportunity industries and customers for our RefrigerantSide Services and are now producing more revenue per job with higher margins. As a result, for the first time in two years, RefrigerantSide Services revenues for the third quarter of 2003 exceeded the RefrigerantSide Services revenues for the same period in 2002. We believe that this quarter over quarter growth signals that Hudson's plans to grow its service revenues are back on track."
Mr. Zugibe said it’s equally important is Hudson Technologies continues to grow its non-automotive refrigerant sales into the HVAC market. Overall, Hudson’s margins were down slightly due in part to $80,000 of non-recurring costs incurred in connection with the ongoing consolidation of its three refrigerant reclamation facilities into one new and larger facility in Champaign, IL, U.S., he said.
However, Mr. Zugibe, added, "We expect that the efficiencies gained from this consolidation will far outweigh the one-time costs incurred. We are pleased with the progress this initiative is making."
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