Hudson Technologies, Inc. (NASDAQ: HDSN), announced results for the second quarter and six months ended June 30, 2011.
Revenues for the three months ended June 30, 2011 decreased 8% to $14,712,000 from $16,053,000 in the comparable 2010 period; the comparable quarter last year was a particularly high revenue quarter for the Company. Hudson reported gross profit margins of 18% for the second quarter of 2011 compared to 23% in the second quarter last year. The Company also reported a net profit of $781,000, or $.03 per basic and diluted share for the second quarter of 2011, compared to a net profit of $1,327,000, or $0.06 per basic and diluted share, for the second quarter of 2010.
For the six months ended June 30, 2011, revenues increased 13.5% to $28,530,000 as compared to revenues of $25,137,000 in the first six months of 2010. Gross profit margins increased in the first half of 2011 to 22% compared to 19% in the first half of 2010. The Company reported a net profit of $1,869,000, or $0.08 per basic share and $0.07 per diluted share in the first six months of 2011 compared to net income of $1,057,000 or $0.05 per basic and diluted share in the first six months of 2010.
Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “Overall, we’re pleased with our results for the first half of 2011, which demonstrate the revenue growth and net income growth that we’ve historically reported. Unfortunately, the EPA phase out of R-22 refrigerants has not yet brought about the price increases in R-22 that will drive the demand for reclaimed refrigerants. There is clearly an oversupply of R-22, which could be due to a variety of reasons, including the economic downturn and its corresponding effect on the EPA projections for aftermarket demand, as well as stockpiling. That being said, this is a five-year process and the EPA has recently begun to implement revisions to the existing phase out regulations. We remain confident that, over time, Hudson will see the desired supply/demand imbalance that should positively impact the market opportunity for our R-22 reclaim business.