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November 4 , 2021 energy recovery® Energy Recovery Reports Third Quarter Financial Results SAN LEANDRO , CA / ACCESSWIRE / November 4 , 2021 / Energy Recovery , Inc. ( NASDAQ : ERII ) today announced its financial results for the third quarter ended September 30 , 2021 . " 2021 is playing out as expected , and we are well positioned to end the year in record fashion . Our desalination business continues to demonstrate strength , and we are building our pipeline of new industrial wastewater orders , two sides of our commitment to helping to address the growing global need for freshwater . We believe the solution to the rapidly increasing freshwater gap requires both increasing supply and better stewardship of water we already have , " said Robert Mao , Chairman of the Board , President and Chief Executive Officer of Energy Recovery . Mr. Mao continued , " Beyond water , our growth initiative in refrigeration is gaining strong momentum . We have had many fruitful conversations with U.S. and international grocery chains , and have recently signed an agreement to install our PX G1300 energy recovery device in a Vallarta Supermarkets grocery store in California , and signed a letter of intent with another chain in Europe . In addition , we are in discussions with multiple refrigeration manufacturers to help design the next generation of CO 2 refrigeration systems featuring our PX G1300 technology at its core . We believe our PX G1300 has the potential to maximize the savings offered by this next generation system , thus transforming the multi - billion dollar refrigeration market by making CO 2 refrigeration systems more financially attractive versus incumbent CO2 solutions . " Financial Results Three Months Ended September 30 , 2021 2020 Variance Nine Months Ended September 30 , 2021 2020 Variance ( In millions , except net income per share , percentages and basis points ) $ 27.4 Product revenue $ 20.8 ( 24 % ) $ 70.3 $ 65.7 7 % License and development revenue ( 1 ) - % 26.9 ( 100 % ) Total revenue $ 20.8 SA $ 27.4 ( 24 % ) $ 70.3 $ 92.6 ( 24 % ) Product gross profit $ 14.7 $ 19.6 ( 25 % ) $ Product gross margin 70.6 % 71.5 % ( 90 ) bps 48.1 68.4 % $ 45.6 5 % 69.5 % ( 110 ) bps Operating expense $ 13.3 $ 13.5 Operating income 1.4 $ 6.1 ( 2 % ) $ ( 77 % ) $ 40.2 $ 45.0 ( 11 % ) 7.9 $ 27.5 ( 71 % ) Net income $ 1.1 $ 5.4 Diluted net income per share $ 0.02 $ 0.10 $ ( 80 % ) $ ( 0.08 ) $ 9.0 $ 22.9 ( 61 % ) 0.15 $ 0.41 $ ( 0.26 ) Operating cash flow $ ( 4.2 ) $ 10.6 $ EA ( 14.9 ) $ 7.3 $ Cash and investments $ 108.4 $ 105.9 2 % $ 108.4 $ 10.4 105.9 $ ( 3.1 ) 2 %