Hudson Technologies, Inc. (NASDAQ: HDSN) announced preliminary results for the second quarter and the six months ended June 30, 2013.
The Company expects to report revenues for the three months ended June 30, 2013 of approximately $15.5 million and net income per share in the range of approximately $0.00 to $0.01 on a fully diluted basis, compared to revenues in the second quarter of last year of $22 million and net income per share of $0.20 on a fully diluted basis. For the six months ended June 30, 2013, Hudson expects to report revenues of approximately $38 million and net income per share of approximately $0.17 to $0.18 on a fully diluted basis, compared to revenues for the first six months of last year of $37 million and net income per share of $0.29 on a fully diluted basis.
Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “During the second quarter of 2013, the industry was impacted by a number of negative factors. On April 3, the EPA issued its final rule permitting higher than anticipated 2013 and 2014 virgin R-22 allowances. This was followed by unusually cool spring weather in much of the country during our peak spring selling season. In fact, according to a report from the National Oceanic and Atmospheric Administration, this was the coldest spring that the United States has experienced since 1996, while spring 2012 was the warmest on record. Consequently, much of the seasonal start up of air conditioning systems and the accompanying restocking activity, which typically fuels our second quarter sales, was delayed and is only just beginning. The excess supply of R-22, created by the EPA’s final rule and compounded by the unusually cool spring, resulted in an approximate 30% reduction in selling prices compared to the first quarter of 2013. This reduced sales volume and pricing resulted in the decline in our revenues and profitability in the second quarter.