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 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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