NORTHBOROUGH, Mass. – Aspen Aerogels Inc. has reported a $7 million loss in the second quarter of 2018, or 29 cents per diluted share. The company had reported a $5.5 million loss in the second quarter of 2017, or a loss of 23 cents per diluted share.
The company, which designs, develops and manufactures aerogel insulation used primarily in the energy infrastructure and building materials markets, reported a 13.6 percent revenue decline over the year to $21.7 million in its Thursday earnings release.
The company attributed the decline in revenue to a drop in project work in its subsea market and due to the successful conclusion of a South Asia petrochemical project and several liquefied natural gas projects.
“On a positive note,” said Don Young, president and CEO of Aspen Aerogels, “we benefited from solid manufacturing yields and strong operational productivity in our East Providence, R.I., manufacturing facility during the first half of the year.”
The company also noted that its core petrochemical refinery markets grew in the first half of the year, particularly in North America.
Despite the quarterly loss, the company said it expected to increase revenue in the second half of the year and forsees long-term profitability.
“Looking forward to the second half of 2018, we anticipate a substantial increase in revenue and profitability from first half levels,” continued Young. “This projected second-half increase reflects our expectation of continued growth in our core petrochemical and refinery markets and the scheduled delivery of nearly $7 million of subsea work.”
Young concluded his prepared remarks by saying that, “We believe our approach will position us for a return to double-digit revenue growth in 2019 and consistent growth in revenue and profitability over the long term.”
Chris Bergenheim is the PBN web editor.