Hudson Technologies, Inc. (NASDAQ: HDSN) announced results for the quarter ended June 30, 2013.
Revenues for the three months ended June 30, 2013 decreased 29% to $15,768,000 from $22,251,000 in the comparable 2012 period. Net income for the second quarter was $334,000, or $0.01 per basic and diluted share, compared to net income of $5,135,000, or $0.22 per basic share and $0.20 per diluted share for the second quarter of 2012.
For the six months ended June 30, 2013, revenues increased 4% to $38,645,000 as compared to revenues of $37,105,000 in the first six months of 2012. The Company reported a net income of $4,803,000, or $0.20 per basic share and $0.18 per diluted share in the first six months of 2013, compared to net income of $7,644,000 or $0.32 per basic share and $0.29 per diluted share in the first six months of 2012.
Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “As we previously announced, our second quarter performance fell short of our expectations. The EPA’s final rule, issued April 3, permitted higher than expected virgin R-22 allowances for 2013 and 2014, heightening what is clearly an oversupply in the market. In addition, the demand for R-22 in the quarter was negatively impacted by very cool spring temperatures. As a result, we saw prices of R-22 soften by approximately 30% in the second quarter. We have seen a further reduction by approximately 10% during July, primarily related to the oversupply situation resulting from the EPA’s April rule.
“We are very disappointed in the EPA’s recent ruling from both an economic and environmental standpoint. Under the Montreal Protocol, virgin R-22 production must be reduced to zero by 2020 with reclaimed gas filling the anticipated supply gap. In furtherance of that requirement, the EPA is currently drafting rules to establish R-22 production allowances for the period 2015 through 2019. We are expanding our efforts to educate the EPA about the adverse environmental and market impact that will result from continued production of R-22, and to demonstrate the need to aggressively reduce production of R-22 for the 2015 to 2019 period. We believe the EPA should have greater urgency with regard to limiting virgin supply levels of R-22, to both lower the global warming potential of additional virgin R-22 and support an orderly and efficient market for the industry and consumers.”