The following is a summary of the Fuel Tech, Inc. (FTEK) Q4 2023 Earnings Call Transcript:
Financial Performance:
Fuel Tech reported total revenue of $27.1 million in 2023, marking a surge from previous earnings since 2019.
Q4 consolidated revenues dropped slightly to $6.3 million compared to $7 million in Q4 2022, largely due to declines in both APC and Fuel Chem segments.
Despite an operating loss of $801,000 and a net loss of $539,000 or $0.02 per share in Q4 2023, gross margins rose remarkably to 51% from 43% in Q4 2022. This was led by an increased APC segment gross margin of 55%.
The company finished 2023 with $33.4 million in cash and investments, devoid of long-term debt.
SG&A expenses slightly escalated from 2022 but were managed by maintaining a conservative cost profile.
Business Progress:
Their Air Pollution Control (APC) segment yielded over $8.3 million in new project awards alongside an anticipated commercialisation of Dissolved Gas Infusion (DGI) technology in 2024.
Fuel Tech is pursuing potential customers for on-site DGI demonstrations and anticipates signing their first commercial DGI contract in 2024.
Despite a revenue dip for their FUEL CHEM segment due to weather impacts on demand, the company expects this segment's revenue to remain at 2023 level with chances of incremental growth from ongoing development opportunities.
The company's continued focus on R&D was shown through their investment in the commercialisation of DGI technology, with a consequent rise in R&D expenses.
A new hiring of a water and wastewater treatment executive on a consulting basis is expected to fuel growth through his expertise on Dissolved Gas Technologies.
More details: Fuel Tech IR
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