April 1, 2008

San Leandro Company Takes First Step Toward IPO

er_logo.gifAccording to an S-1 filing on April 1, 2008, with the Securities and Exchange Commission, Energy Recovery, Inc. is planning an initial public offering (IPO) of common stock. The amount of the IPO may total $175 million, but the company said that it is subject to change.

Energy Recovery is "a leading global developer and manufacturer of highly efficient energy recovery devices utilized in the rapidly growing water desalination industry. We operate primarily in the sea water reverse osmosis, or SWRO, segment of the industry. In the SWRO process, high pressure is used to drive sea water through filtering membranes to produce fresh water."

In the filing, the company said that its product, the PX Pressure Exchanger, reduces the amount of energy needed for SWRO by 60%. Its product has been installed in more than 300 desalination plants. The company claims a "green" component to its product as well, stating that its products shipped as of last year will reduce carbon dioxide emissions by an estimated 1.5 million tons per year based on reducing electricity consumption by 300 megawatts.

Revenue has increased from $10.7 million in 2005 to $35.4 million in 2007 with almost 94% of that revenue from international sales. Earnings more than doubled from $2.4 million in 2006 to $5.8 million in 2007.

Energy Recovery was incorporated in Virginia in April 1992 and reincorporated in Delaware in March 2001. The company is located at 1908 Doolittle Drive in San Leandro.

Posted by Mike Katz-Lacabe at April 1, 2008 1:33 PM | TrackBack
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