ThermoEnergy Corporation Announces First Quarter 2013 Results

WORCESTER, Mass., May 15, 2013 /PRNewswire/ -- ThermoEnergy Corporation (TMEN:OTCBB), a diversified technologies company engaged in the development and sale of patented and/or proprietary wastewater treatment and the development of combustion technologies for the power generation industry in global markets, today announced revenue of $1 million for the three-month period ended March 31, 2013.

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Mr. James Wood, President and Chief Executive Officer of ThermoEnergy commented, "Our revenues this quarter are derived primarily from sales to industrial customers, reflecting a strategic change in our sales and marketing efforts. ThermoEnergy began a concerted effort in the quarter to ramp up its sales and marketing efforts in the Oil and Gas industry.  ThermoEnergy is pleased with the response to the Company's Turbofrac® and Fracgen® product lines as we continue to build our sales pipeline in this market.  This is the first quarter that ThermoEnergy's revenues are not driven by its City of New York ammonia recovery project.  Despite our change in direction away from municipal ammonia recovery, we have been able to take advantage of developments from the New York City project, and the Company is gaining traction in the industrial and energy markets."  

Quarterly Highlights:

• Achieved $1M in revenues from industrial projects.
• Completed manufacturing and Factory Acceptance Testing of Ammonia Removal Process ("ARP") system for Paiton Energy.  The system is en route to Indonesia and scheduled for startup in July 2013.
• Refocused sales and marketing organization to develop sales pipeline and top line growth opportunities.
• Expanded sales activities in Permian Basin and initiated activities in Marcellus Shale to promote Company's proven CAST® technologies for the Oil and Gas industries.
• Received project definitization for the UPA DOE down-select grant, allowing for initiation of ThermoEnergy's involvement on UPA's bench-scale pilot.

Three Month Financial Results for the Period Ended March 31, 2013

For the three-month period ended March 31, 2013 the Company recorded revenues of $1,009,000, a decrease of 40% compared to the first quarter of 2012.  Revenues in 2013 are no longer derived from the Company's NYCDEP contract and are attributable to the manufacture and shipment of industrial systems and work performed by ThermoEnergy on UPA's DOE contract. 

Gross profit for the first quarter of 2013 was negative at $(166,000).  The gross loss is attributable to the Company's inability to record margins until the completion of projects and unabsorbed overhead costs resulting from the termination of the NYCDEP contract. 

General and administrative expenses declined as a result of the Company's continuing cost reduction efforts to $986,000 compared to $1,013,000 in the first quarter of 2012.

Engineering costs increased $86,000 to $195,000 on a year-over-year basis. The increase is due to reduced utilization of the Company's engineering team on projects during the period.

Sales and marketing expenses for the first quarter of 2013 was $382,000, a decrease of 46% compared to the first quarter of 2012. The Company recorded a loss on pre-sales test equipment in 2012 that did not repeat in 2013.  ThermoEnergy also made temporary reductions in headcount as the Company redirected its sales and marketing efforts in 2013.

The Company reported a net loss for the three month period ended March 31, 2013 of $1.07 million ($0.01 per share), compared to $1.54 million ($0.02 per share) for the same period in 2012.

As of March 31, 2013 the Company had cash on hand of $2.28 million.

Please see the Company's Form 10-Q filed with the SEC on May 15th for additional details.  

Investor Conference Call
The Company will host a conference call this afternoon at 4 p.m. EDT. Management will make a brief presentation focusing on the Company's results, strategies and operating plans. Those wishing to dial in to the call via telephone can do so at +1-877-941-2068 (+1-480-629-9712 for international callers), conference ID: 4617906. A live webcast will be available at:
http://public.viavid.com/index.php?id=104609

About ThermoEnergy Corporation
Founded in 1988, ThermoEnergy is a diversified technologies company engaged in the worldwide development, sales and commercialization of patented and/or proprietary wastewater treatment and power generation technologies. The company has been a pioneer in the development of sustainable water treatment technologies that help clients operate more efficiently, save money, reduce their carbon footprints, and meet sustainability goals. Additional information on the Company and its technologies can be found on its website at www.thermoenergy.com

THIS PRESS RELEASE INCLUDES STATEMENTS THAT MAY CONSTITUTE "FORWARD LOOKING" STATEMENTS, USUALLY CONTAINING THE WORDS "ESTIMATE", "PROJECT", "EXPECT" OR SIMILAR EXPRESSIONS. FORWARD LOOKING STATEMENTS INHERENTLY INVOLVE RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM CURRENT EXPECTATIONS. BY MAKING THESE FORWARD LOOKING STATEMENTS, THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE THESE STATEMENTS FOR REVISIONS OR CHANGES.

SOURCE ThermoEnergy Corporation

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