Energy Recovery – ERII – Repurchases over One Million Shares

Energy Recovery Inc (NASDAQ: ERII), a leader in the design and development of energy recovery devices for desalination and other industrial processes, today announced that it has acquired over one million shares of its common stock on the open market as part of the stock repurchase program authorized by the board of directors and announced in August of 2011. Specifically, as of April 25, 2012, ERII has acquired 1,027,327 shares at a weighted average price of $2.15 over the preceding five weeks.

Tom Rooney, President and Chief Executive Officer, commented that “these share repurchases reflect our strong and continued confidence in the long-term fundamentals of the Company as well as our projections related to improved financial performance in 2012. With the transition year of 2011 now behind us, we have observed a notable increase in mega-project activity around the world, evidenced through several announcements of recent awards. Accordingly, we remain confident in our strategic plan, we are committed to drive value through steadfast execution of this plan, and we are anticipating much-improved results in the second and third quarters of the current year.”

During the most recent earnings conference call, which was conducted on March 8, 2012, ERII conveyed a forecast of 40% revenue growth in 2012 as compared to 2011 with the benefit of an improved cost structure achieved through restructuring and other cost-reduction initiatives. Thereafter, the Company predicted 20% growth in revenue, excluding expected revenue growth specific to energy recovery applications in the oil & gas market. With nearly all business drivers pointing in the right direction—including market opportunity, market share, volume, pricing, costs, and margins—and in response to the recent downward movement in share price, the Company moved decisively, using existing cash to fund share repurchases for the benefit of long-term shareholders. Alex Buehler, Chief Financial Officer, stated that “we are very comfortable with our current cash position and cash flow forecast; therefore, we intend to continue these share repurchases in the future as a statement that speaks to our confidence in the direction of the Company and our perception of value associated with the same.”

About Energy Recovery Inc (ERII)

Energy Recovery Inc (ERII) designs and develops energy recovery devices and pumps that significantly reduce energy consumption for desalination and other industrial processes. In total, Energy Recovery Inc has more than 12,000 devices installed worldwide, helping to save our clients in excess of one billion dollars in energy costs every year. The Company is headquartered in the San Francisco Bay Area with offices worldwide, including Madrid, Shanghai, and Dubai.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.