Hudson Technologies, Inc. (NASDAQ: HDSN), announced results for the third quarter and nine months ended September 30, 2012.
Revenues for the three months ended September 30, 2012 increased by 21% to $14,473,000 from $11,935,000 in the comparable 2011 period. Hudson reported a gross profit margin of 37% for the third quarter of 2012 compared to 12% in the third quarter last year. The Company also reported net income of $2,194,000 or $0.09 per basic share and $0.08 per diluted share for the third quarter of 2012, compared to a net loss of $113,000, or $0.00 per basic and diluted share for the third quarter of 2011.
For the nine months ended September 30, 2012, revenues increased 27% to $51,578,000 as compared to revenues of $40,465,000 in the first nine months of 2011. Gross profit margins increased in the first nine months of 2012 to 42% compared to 19% in the first nine months of 2011. The Company reported a net income of $9,837,000, or $0.41 per basic share and $0.37 per diluted share in the first nine months of 2012, compared to net income of $1,756,000 or $0.07 per basic and diluted share in the same period of 2011.
Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “We are pleased to report record revenues achieved during the third quarter and continued strong profitability. We are also pleased to note that our nine month revenues surpass our record 2011 full year revenues. Our 2012 year to date performance continues to be favorably impacted by the EPA’s initiative to support the growth of reclamation and recycling by providing meaningful reductions in the production of virgin R-22 refrigerant. In January 2012, the EPA issued ‘No Action Assurance’ letters that, pending the issuance of a final rule, reduced the 2012 import and production levels for virgin R-22 to approximately 45% of the amount allowed in 2011. In response to these reductions, we saw an immediate and significant increase in the sales price of R-22 refrigerant. With only two months remaining in 2012, the EPA’s final rule may not be issued until early 2013.