revenues 109% increase from last year. ABHD
Revenues for the first nine months of 2012 increased by 109% compared to revenues in the same period of the prior year. The Company believes that these revenue figures reflect some improvement in the economic factors that affect sales of the Company’s products as well as some initial results of expanded business development efforts by the Company. The sales increase for this period was due entirely to the volume of products sold. The Company continues to expect significant sales growth in the fourth quarter of 2012 and into 2013 as new projects being pursued in stormwater, industrial waste water and produced water markets begin to generate revenues. On June 6, 2012, Waste Management Inc., a distributor of AbTech products, announced a program to provide a total stormwater management offering to U.S. municipalities in the form of public-private partnerships, collaborating with the Company and municipalities to design, build, operate and service stormwater infrastructure. The Company believes that this approach to the stormwater market could have a significant impact on future sales for the Company although the timing of such sales remains difficult to project at this stage.
The Company’s gross margin on sales increased from a negative (16)% in the first nine months of 2011 to positive 32% in the same period of 2012. This improvement in gross margins is the direct result of increased levels of production in the first nine months of 2012 that spread fixed overhead cost over a broader base of products, thus allowing the Company to achieve higher gross margins. The Company continues to have excess capacity and expects that gross margins will continue to improve as production increases to satisfy an expected increase in product sales.
