PEARL RIVER, N.Y.--(BUSINESS WIRE)--Hudson Technologies, Inc. (NASDAQ:HDSN) announced results for the first quarter ended March 31, 2017.
The Company reported revenues of $38.8 million for the first quarter ended March 31, 2017, an increase of 38% compared to $28.2 million in the comparable 2016 period. The revenue increase in the quarter is primarily related to both price and volume increases of certain refrigerants sold. Gross margin in the first quarter of 2017 was 32% compared to 27% in the prior year period. Net income for the quarter, including the recognition of $0.5 million of non-recurring SG&A expense related to corporate development initiatives, was $5.7 million, or $0.14 per basic and $0.13 per diluted share, compared to net income of $2.9 million, or $0.09 per basic and diluted share, in the first quarter of 2016.
Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “We’re pleased to have delivered a strong start to 2017, as demonstrated by solid revenue growth, improved gross margin and increased profitability. Our business continued to be favorably impacted by increases in the average selling price of R-22 refrigerant during the first quarter, which marks the beginning of our nine-month refrigerant selling season.”
Mr. Zugibe continued, “The ongoing phase-out of R-22 refrigerants and the anticipated phase down of HFC-based refrigerants, expected to begin in 2019, represent significant opportunities for the growth of our Company. As a leading provider and reclaimer of refrigerants, we are well positioned to capitalize on the industry transition to next generation equipment and gases. This applies to both the sale of virgin refrigerants for use in new equipment and by utilizing our reclamation capabilities to help fulfill the growing supply gap for gases, such as R-22, which are being phased out of production. We are focused on working with our customers as they navigate the changing refrigerant marketplace and believe that our longstanding presence as an industry leader, proprietary technology and expansive distribution network are competitive advantages. Additionally, our strong balance sheet leaves us well positioned for continued growth and profitability.”
About Hudson Technologies
Hudson Technologies, Inc. is a leading provider of innovative solutions to recurring problems within the refrigeration industry. Hudson's proprietary RefrigerantSide® Services increase operating efficiency and energy savings, and remove moisture, oils and other contaminants frequently found in the refrigeration circuits of large comfort cooling and process refrigeration systems. Performed at a customer's site as an integral part of an effective scheduled maintenance program or in response to emergencies, RefrigerantSide® Services offer significant savings to customers due to their ability to be completed rapidly and at higher purity levels, and can be utilized while the customer's system continues to operate. In addition, the Company sells refrigerants and provides traditional reclamation services to the commercial and industrial air conditioning and refrigeration markets. For further information on Hudson, please visit the Company's web site at www.hudsontech.com.
