"A year ago we announced a significant booking for natural gas skids in Latin America. The customer is re-evaluating the size, throughput, and construction approach to its facility, which has resulted in a delay in our realization of revenue from this project. While we expect the project to move forward, it now appears that we will not recognize significant project revenue until fiscal 2014.
"Our quote activity in both reporting segments remains strong in most regions and we believe we are well positioned to benefit from an improvement in the global demand for energy infrastructure. However, given the current global economic environment, we expect to continue to see delays in capital expenditures throughout the balance of 2013."
Due to customer driven delays of projects in backlog, as well as lengthening sales cycles, the Company has reduced its revenue guidance for fiscal 2013 to be roughly flat in comparison to fiscal 2012. Product and geographic mix are expected to result in a blended gross margin percentage higher than the range previously communicated.Conference Call Peter Burlage, President and Chief Executive Officer, and Ron McCrummen, Chief Financial Officer, will discuss the Company's results for the second quarter ended December 29, 2012, during a conference call scheduled for Thursday, February 7, 2013, at 9:00 a.m. EST. Stockholders and other interested parties may participate in the conference call by dialing +1 800.299-9086 (domestic) or +1 617.786-2903 (international) and entering access code 76187504, a few minutes before 9:00 a.m. EST on February 7, 2013. Those who wish to listen to the live conference call and view the accompanying presentation slides should visit "Event Calendar" in the "Investor Relations" portion of the PMFG, Inc. website at www.peerlessmfg.com . A replay of the conference call will be accessible two hours after its completion through February 14, 2013 by dialing +1 888.286-8010 (domestic) or +1 617.801-6888 (international) and entering access code 96551811. The call also will be archived for 30 days at www.peerlessmfg.com . About PMFG We are a leading provider of custom engineered systems and products designed to help ensure that the delivery of energy is safe, efficient and clean. We primarily serve the markets for natural gas infrastructure, power generation and petrochemical processing. Headquartered in Dallas, Texas, we market our systems and products worldwide.