Hudson Technologies, Inc. (NASDAQ: HDSN), a leading distributor and reclaimer of refrigerants as well as a provider of proprietary on-site decontamination services for large comfort and process cooling systems, announced results for the first quarter ended March 31, 2011.
Revenues for the three months ended March 31, 2011 increased 52% to $13,818,000 from $9,083,000 in the comparable 2010 period. Gross profit margins improved to 27% of sales for the first quarter compared to 13% of sales in the first quarter last year. Hudson reported a net profit of $1,088,000, or $.05 per basic and $0.04 per diluted share for the first quarter of 2011, compared to a net loss of $270,000, or a loss of $0.01 per basic and diluted share, for the first quarter of 2010.
Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “We achieved record first quarter revenues primarily due to strong demand for all refrigerants, resulting in an increase in the amount of pounds sold compared to last year and higher selling prices for certain refrigerants. We also had record first quarter revenues for our services business. It is particularly encouraging that we have achieved these revenues without a material increase in reclamation. We believe that reclamation continues to be a large opportunity for us, but to date the industry has not yet seen a meaningful increase in R-22 pricing, which we believe will drive increased demand for reclamation. As the market has demonstrated over the past two years, the timing of price increases is difficult to predict and outside our control. As the EPA phase-down of R-22 continues and the supply gap widens, we do expect that pricing will be impacted and the opportunity for additional reclamation will emerge.
“Regardless of these external market dynamics, our core business is driving revenue and earnings growth across our broad product and services offerings. We also continue to expand our customer base and enhance our relationships with existing customers, which we believe supports sustainable revenue growth.