Liquid Membrane Sales Increased 160% Year-Over-Year(PRNewswire) — �LiqTech International, Inc. (OTCQX: LIQT) ("LiqTech") announced today its financial and operational results for the second quarter 2012.
Financial highlights for the three and six months ended June 30, 2012:
- Net sales for the three month period ended June 30, 2012 were $3,953,335 compared to $3,805,816 for the same period in 2011, representing an increase of $147,519, or 3.9%.
- Net sales for the six month period ended June 30, 2012 were $10,295,056 compared to $6,723,211 for the same period in 2011, representing an increase of $3,571,845, or 53.1%.
- Gross profit for the three month period ended June 30, 2012 was $416,167 compared to $1,175,148 for the same period in 2011 representing a decrease of $758,981 or 64.6%.
- Gross profit for the six month period ended June 30, 2012 was $2,505,851 compared to $1,854,883 for the same period in 2011 representing an increase of $650,968 or 35.1%.
- Net income for the three month period ended June 30, 2012 was $(552,509) compared to $22,239 for the same period in 2011, representing a decrease of $574,748.
- Net income for the six month period ended June 30, 2012 was $(229,907) compared to $(105,963) for the same period in 2011, representing a decrease of $123,944.
Other Highlights for the quarter ended June 30, 2012:
- Jens Kampmann, Denmark's former Minister for the Environment, was appointed to Board of Directors.
- The Company satisfied an outstanding related party debt obligation which increased the Company's equity by USD $3,467,750 based on March 31, 2012 statements.
- Lasse Andreassen, CEO, purchased 537,000 restricted shares of LiqTech International at $2.65.
- Kathryn Radosevich, a green energy and environmental engineering executive with over 20 years entrepreneurial leadership, was appointed CEO of LiqTech North America.
Lasse Andreassen, CEO of LiqTech, stated, "We are pleased with the year to date growth and the many achievements that we have accomplished so far this year, which are the result of much hard work from everyone in our Company. Our efforts in sales and marketing are paying off, resulting in sales growth of 53% year to date. However, due to a temporary delay in the requirements set by the California Air Resources Board (ARB), we saw lower DPF sales in California than we expected in the second quarter. The total number of DPFs sold in California in the first half of 2012 was approximately 3,000. The ARB projected that approximately 12,000 filters would be installed in 2012 to meet a January 1, 2013 compliance deadline, and that approximately 66,000 filters overall would be installed from 2011 through 2015. Because of this, we expect sales to increase in the second half of 2012, and we have seen an increase in U.S. DPF sales in the first month of the third quarter."
Business Highlights by Product Line:
Following two successful exhibitions of LiqTech's membrane technology at the IFAT exhibition in Munich and the Singapore International Water Week, interest in the Company's liquid membranes continues to grow with a combination of pilot unit and membrane sales into new regions as well as the exploration of new strategic supply agreements.
- Membrane sales increased 160% and 122% for the three and six month periods respectively over the same periods in 2011. Second quarter 2012 liquid filtration sales increased 54% over the first quarter 2012.
- LiqTech's new presence in Singapore continues to pay dividends, as the Company now has new opportunities in the produced water market with several national and one multinational oil companies in the region, resulting in the first sales of membranes for preliminary testing in this potentially large sector.
- In Israel, LiqTech has entered into a supply agreement to supply high-performance pre reverse osmosis (RO) membranes to an Israeli technology leader and a global supplier of water desalination technology.
- In Australia, the Company has established its first sales for pilot plants with a key supplier of water treatment technology that requires the superior performance of our membranes.
- In India, LiqTech has established a partnership and initial sales with a leading manufacturer and large supplier of water treatment technology to that region.
- In Denmark, the Company has completed a successful scrubber water trial with a National Energy Supplier and expects further system sales this year.
- LiqTech International now has an agreement in Germany with SGS Aqua, an innovative water treatment company which is concluding trials with LiqTech's latest flat sheet membranes for membrane bioreactor applications.
- The UK Low Emission Zone came to an end last quarter as planned, and that together with the ongoing delays in the German retrofit program produced slower sales to our retrofit customers in Europe. The Company expects sales to Germany to increase near the end of August when Munich and other cities start their low emission zone programs.
- Sales of diesel particulate filters in California were lower than the industry expected. While the industry experienced a temporary delay in the ramp up of expected sales to comply with ARB regulations, we continue to expect that DPF sales will increase significantly in the coming quarters. The marine DPF business continues to grow, and LiqTech has established its first sales with potential for more sales this year.
- LiqTech's catalyst unit continues to deliver robust sales into customers in Korea, the Middle East and to new European customers.
In the second quarter, 2012, LiqTech launched the Maxfire brand of KF, a unique new light weight design of high quality ReSiC KF, which was very well received with new customers when unveiled at the Ceramitech show in Munich in June.
- KF sales continue to grow over 50% compared to the first half last year; our strategy is now to make the KF available direct to the end user via a global distribution network.
- Last quarter saw the completion of the development of a new heavy-duty slip-casted SiC membrane for mining applications, this SiC product has been developed in response to a request from a key supplier in the mining sector who is looking for better performance. LiqTech expects this to be available later this year, and expect significant sales to this customer.
ABOUT LIQTECH INTERNATIONAL, INC.
LiqTech International, Inc., a Nevada corporation, is a clean technology company that for more than a decade has developed and provided state-of-the-art technologies for gas and liquid purification using ceramic silicon carbide filters, particularly, highly specialized filters for the control of soot exhaust particles from diesel engines and for liquid filtration. It also manufactures kiln furniture. Using nanotechnology, LiqTech develops products using proprietary silicon carbide technology. LiqTech's products are based on unique silicon carbide membranes which facilitate new applications and improve existing technologies. For more information, please visit www.liqtech.com.
This press release contains "forward-looking statements." Although the forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by us in the our reports filed with the Securities and Exchange Commission, including the risk factors that attempt to advise interested parties of the risks that may affect our business, financial condition, results of operation and cash flows. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release.