SOURCE: Hudson Technologies

November 08, 2007 08:30 ET

Hudson Technologies Reports Third Quarter 2007 Results

PEARL RIVER, NY--(Marketwire - November 8, 2007) - Hudson Technologies, Inc. (NASDAQ: HDSN), a leading refrigerant services company specializing in proprietary on-site decontamination services for large comfort and process cooling systems, today announced results for the third quarter ended September 30, 2007.

Revenues for the three-month period ended September 30, 2007, were $4,738,000, a decrease of $233,000 or five percent from the $4,971,000 reported during the comparable 2006 period. Revenues for the nine-month period ended September 30, 2007, were $24,162,000, an increase of $3,482,000 or 17 percent from the $20,680,000 reported during the comparable 2006 period.

Comments by Kevin J. Zugibe, chairman and chief executive officer, Hudson Technologies:

"Continued growth in our refrigerant sales has raised total revenues to record levels for the Company. As a result, nine-month revenues of $24.2 million have already surpassed total 2006 revenues. While total revenues in the third quarter of 2007 were down slightly as compared to the third quarter of 2006, refrigerant revenues increased by approximately 5 percent over the same period last year. Hudson has been able to grow its refrigerant sales by focusing on customers in previously underserved markets and customers who utilize our service offerings.

"The refrigerant revenue increase for the third quarter of 2007 was offset by a decline in our service revenues, which was primarily attributable to a decline in revenues from the marine industry coupled with a slight decline in revenues in certain geographic markets we serve. We believe that these declines are primarily the result of general market conditions and are not indicative of a decline in the acceptance of our services.

"Our service revenues continue to be primarily comprised of emergency response revenue, which is consistent with the industry's approach to servicing refrigeration systems. We will continue to advocate to customers, prospects and our industry the benefits of moving from reactive maintenance to predictive and preventative maintenance procedures such as those that we have developed. As with any major paradigm shift, we continue to meet resistance to change, but we believe that over time we will be successful.

"During the third quarter of 2007, the Company completed the tender offer that commenced on June 29, 2007. As a result of the tender offer and the stock purchase from the Fleming Funds in June 2007, the Company reduced the total number of common shares outstanding to 19,067,264 shares. This represents a reduction of more than 26 percent in the total number of shares issued and outstanding prior to the tender offer and the Company's purchase of stock from the Fleming Funds. The Company's purchase and retirement of approximately 6.9 million shares of its common stock is intended to create shareholder value in future periods.

"These transactions, together with the $6 million personal investment made by our management last quarter to purchase shares from the Fleming Funds, reflect our confidence in the future of the Company."

Conference Call Information

The Company will host a conference call to discuss the third quarter 2007 results and additional matters on November 8, 2007, at 10:00 A.M. Eastern.

To listen to the conference call, dial 866-296-6505. Callers should please call at least ten minutes prior to the scheduled start time and verbally give the operator the following access code: 7045414.

An audio replay of the call will be available beginning November 8, 2007 at 4:00 P.M. Eastern for one week through November 15, 2007, and can be accessed by dialing 877-528-4487 and using the following access code: 87561185#.

A web stream replay of the call will be available for 30 days through December 8, 2007 at the following link:

About Hudson Technologies

Hudson Technologies, Inc. is a leading provider of innovative solutions to recurring problems within the refrigeration industry. Hudson's proprietary RefrigerantSide® Services increase operating efficiency and energy savings, and remove moisture, oils and other contaminants frequently found in the refrigeration circuits of large comfort cooling and process refrigeration systems. Performed at a customer's site as an integral part of an effective scheduled maintenance program or in response to emergencies, RefrigerantSide® Services offer significant savings to customers due to their ability to be completed rapidly and at higher purity levels, and can be utilized while the customer's system continues to operate. In addition, the Company sells refrigerants and provides traditional reclamation services to the commercial and industrial air conditioning and refrigeration markets. For further information on Hudson, please visit the Company's web site at

Safe Harbor Statement under the Private Securities Litigation Act of 1995

Statements contained herein, which are not historical facts constitute forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, changes in the markets for refrigerants (including unfavorable market conditions adversely affecting the demand for, and the price of refrigerants), the Company's ability to source refrigerants, regulatory and economic factors, seasonality, competition, litigation, the nature of supplier or customer arrangements which become available to the Company in the future, adverse weather conditions, possible technological obsolescence of existing products and services, possible reduction in the carrying value of long-lived assets, estimates of the useful life of its assets, potential environmental liability, customer concentration, the ability to obtain financing and other risks detailed in the Company's periodic reports filed with the Securities and Exchange Commission. The words "believe," "expect," "anticipate," "may," "plan," "should" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.

                Hudson Technologies, Inc. and subsidiaries
                  Consolidated Statements of Operations
     (Amounts in thousands, except for share and per share amounts)

                              Three month period      Nine month period
                              ended September 30,     ended September 30,
                            ----------------------  ----------------------
                               2007        2006        2007        2006
                            ----------  ----------  ----------  ----------

Revenues                    $    4,738  $    4,971  $   24,162  $   20,680
Cost of sales                    3,131       3,170      18,048      14,565
                            ----------  ----------  ----------  ----------
Gross Profit                     1,607       1,801       6,114       6,115
                            ----------  ----------  ----------  ----------

Operating expenses:
   Selling and marketing           352         351       1,240       1,200
   General and
    administrative                 664         708       2,237       2,434
   Compensation expense
    for stock purchases             --          --       4,338          --
                            ----------  ----------  ----------  ----------
         Total operating
          expenses               1,016       1,059       7,815       3,634
                            ----------  ----------  ----------  ----------

Operating income (loss)            591         742      (1,701)      2,481
                            ----------  ----------  ----------  ----------

Other income (expense):
   Interest expense               (235)        (78)       (540)       (266)
   Interest income                   4          15          15          21
                            ----------  ----------  ----------  ----------
         Total other income
          (expense)               (231)        (63)       (525)       (245)
                            ----------  ----------  ----------  ----------

Income (loss) before income
 taxes                             360         679      (2,226)      2,236

Income tax provision
 (benefit)                           3           5      (1,251)         18
                            ----------  ----------  ----------  ----------

Net income (loss)           $      357  $      674  ($     975) $    2,218
                            ==========  ==========  ==========  ==========

Net income (loss) per
 common share - basic       $     0.02  $     0.03  ($    0.04) $     0.09
                            ==========  ==========  ==========  ==========

Net income (loss) per
 common share - diluted     $     0.02  $     0.03  ($    0.04) $     0.08
                            ==========  ==========  ==========  ==========

Weighted average number of
 shares - basic             20,234,664  25,910,664  24,021,864  25,897,630
                            ==========  ==========  ==========  ==========

Weighted average number of
 shares - diluted           20,400,704  26,207,117  24,021,864  26,319,265
                            ==========  ==========  ==========  ==========