Energy Recovery, Inc. (NASDAQ:ERII) revenue declines


Dallas, Texas 09/05/2013 (Financialstrend) – Energy Recovery, Inc. (NASDAQ:ERII) mainly serves industries involved in design, development and services for desalination plants as well as mid-stream gas companies with Energy Recovery Devices (ERDs) to help them harness the reusable energy in the United States and internationally.

ERII with 19.83 ‘days to cover’ ratio stood to be among the most shorted stock on Russell 3000 for the settlement date Aug 15, according to recent data released by the NASDAQ. Theoretically this triggers buying activity to cover the shares which are sold short, which will eventually send stock price higher to produce enough sellers to attain volume required to close out short positions.

Hanstveit Arve, Independent Director of the company, raised his stake to 1.73 million shares after purchase of 80.8 thousand shares in the open market transaction. Transactions were made on Aug 29, for 40.9 thousand shares at the price of $5.2 per share and Aug 30, for 39.9 thousand shares at the price of $5.06 per share – as per the filing with the SEC. The average price stands out to be $5.13 per share with a total valuation of $414,574.

Earlier this year Trempont Dominique, another independent director of the company, bought 57,143 shares at $3.50 per share during May 2013. After this purchase his total holding stood at 209,533 shares.

The company reported 30.3% decline in its revenue which stands at $8.57 million during 2Q13 against $12.30 million during 2Q12. However the analysts were expecting the revenues to be around $7.97 million. For the 2Q13 ERII reported EPS of ($0.03) beating the street expectation of ($0.06), however, EPS for the same quarter of previous year was $0.01. EPS for the current fiscal FY13 is expected to be in a range of $0.06 to $0.08.

Analysts at Macquarie and Zacks have ‘neutral’ rating for the stock whereas Jefferies Group maintains ‘hold’ rating.