Fuel Tech posts disappointing Q3, lowers revenue guidance
Shares of Fuel Tech, Inc. (Nasdaq: FTEK) are sagging in pre-market trading after the company recorded a disappointing third quarter and lowered its revenue guidance.
For the three months ended Sept. 30, the Batavia, Ill.-based company posted net income of $0.9 million, or $0.04 per diluted share, two cents below the $0.06 per share eleven analysts polled by Thomson Financial were on average forecasting. For the third quarter of 2006, the small cap earned net income of $2.1 million, or $0.09 per diluted share.
Revenues were $15.2 million; below the $19.06 million ten analysts polled by Thomson Financial were on average expecting. The current quarter’s revenues were down 24% over the $20.17 million earned in the same quarter last year.
Fuel Tech said effects of delayed orders were evident in the company’s results. The company countered its results by stating that an increase in third-quarter contract announcements, combined with significant new business will “bode well for financial performance in future periods.”
As a result of longer-than-expected delays in signing new APC orders and in implementing recently signed FUEL CHEM orders, Fuel Tech is adjusting revenue guidance for the full year of 2007 to a range of $76 million to $79 million, eleven analysts polled by Thomson Financial were expecting revenues of $79.13 million for the full year.
Fuel Tech provides services for the optimization of combustion systems in utility and industrial applications globally.
Shares of Fuel Tech slid (FTEK) 6.6%, or $1.90, to $26.90 in pre-market trading. Shares of Fuel Tech have been trading in the range of $18.80 to $38.20 for the past 52 weeks.
