Some concerns over backlog growth.Zenon revenue up 27% over 2001 first quarter results
OAKVILLE, ON, May 16 /CNW/ - ZENON revenue and net income for the first quarter show marked improvement over 2001 figures as the company enters 2002.
Both revenue and earnings for the first quarter of 2002 have grown
significantly over those of the same period a year ago, with the change in
revenue representing 27% year-over-year growth. Net income of $428,000 or
$0.02 per share has also increased from a net loss of $238,000 or $0.01 per
share reported for the first quarter 2001.
Backlog at the end of the first quarter 2002 of $119 million has improved
considerably, representing a 65% rise from the $72 million reported for the
same period last year.
"We have booked in excess of $29 million in new orders during a quarter
that usually shows lower levels of order intake and profit," said Andrew
Benedek, Chairman and Chief Executive Officer of ZENON. "As the market for our
technology expands, we expect to continue this growth in orders and backlog
through the rest of the year."
Water issues are intensifying as news of additional drought warnings soar
on a global basis. Virtually everywhere, clean water is at a premium, causing
more countries and industries to take a serious look at efficiently planning
and managing their future water requirements.
One such area of the world is Singapore where the population of
approximately 4 million consumes roughly 317 million gallons of water per day.
Currently, much of the island's water comes from rivers in Malaysia. With an
expected jump in population over the next three years to 6 million, along with
added security concerns, the government began looking for additional sources
of water. As a solution, they have embraced membrane technology for water
reuse and enhanced drinking water quality.
During the quarter, ZENON's ZeeWeed(R) membranes were chosen to treat
wastewater for a new reclamation plant that will become Singapore's showpiece
as its commitment to recycling. The end product will be high-grade quality
reclaimed water, which will be supplied to a number of wafer-fabrication
plants in Singapore for process and other non-potable uses.
Scheduled to be running by the end of 2002, the plant will become a
significant reference site for ZENON as this region offers the single largest
potential market for membrane technology. The company has made a strategic
investment with this contract even though it will impact negatively on the
results of the second quarter.
In the Asia-Pacific region, ZENON has also been successful in winning a
contract, through its Australian licensee, to supply the company's ZeeWeed
technology for a new drinking water plant in Western Australia. The new plant
will initially treat upwards of 9 million gallons of water per day from
Harding Dam. As a result of high solids content in the feedwater, it was vital
that a highly reliable, robust and chemical resistant membrane be selected.
In North America, demand for ZENON's systems continues in both municipal
and industrial sectors. New ZeeWeed(R) drinking water plants will be built in
the Town of Georgina, Ontario and Fort Washakie, Wyoming. Acceptance of the
ZenoGem system for applications where high quality of wastewater treatment is
required to satisfy increasingly stringent environmental criterion, is also on
the increase.
In addition to resort communities such as the Coral Reef Club in Barbados
and Rancho Malibu in California, ZENON has also won a contract to supply its
ZenoGem technology to Forsyth County, Georgia. The new wastewater plant is a
Greenfield site that will accommodate population growth in this major Atlanta
community. The contract is valued in excess of $6 million and will be phased
in over the next two to three years, with the first half expected to be
complete in early 2003.
The company's recent announcement of its largest industrial wastewater
contract for Basic American Foods(R) is an indication of the shift to membrane
technology for treating industrial wastewater. In an effort to preserve our
natural environment, it is becoming even more critical for the manufacturing
process to produce a higher quality of treated effluent prior to discharge or
reuse.
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Good luck to all