With sales up, Ionics cuts 2Q net loss - but not 1st half

Ionics Inc. reported results for the three and six-months periods ended June 30, with second quarter revenues of $125.8 million compared to $83.6 million for the same period in 2003. The net loss of $2.3 million, or ($0.10) per share, in Q2 2004 compared to a net loss of $4.9 million, or ($0.28) per share, for 2Q 2003...

WATERTOWN, MA, Aug. 9, 2004 (PRNewswire-FirstCall) -- Ionics Inc. reported results for the three and six-months periods ended June 30, with second quarter revenues of $125.8 million compared to $83.6 million for the same period in 2003. The net loss of $2.3 million, or ($0.10) per share, in Q2 2004 compared to a net loss of $4.9 million, or ($0.28) per share, for 2Q 2003.

Revenues for the first half of 2004 were $231.5 million compared to $163.8 million for the first half of 2003. The net loss of $6.3 million, or ($0.29) per share, in the first half of 2004 compared to a net loss of $4.3 million, or ($0.25) per share, for the first half of 2003.

Income from continuing operations before income taxes and minority interest expense for the second quarter and for the first six months of 2004 was $3.3 million and $1.8 million, respectively. This compares to a loss from continuing operations before income taxes and minority interest expense for the second quarter and first six months of 2003 of ($2.9) million and ($1.3) million, respectively.

The results for the second quarter include a non-cash charge for the establishment of a deferred tax asset valuation allowance in the amount of $3.3 million, which equates to about $0.15 per share. Other items included in the results were $0.6 million of restructuring charges, and $0.9 million in systems development and Sarbanes-Oxley Section 404 preparedness charges.

Also included are the consolidated results of the Ecolochem Group (acquired Feb. 13, 2004), and Desalcott (Desalination Company of Trinidad and Tobago Ltd.), Ionics' 40%-owned joint venture in Trinidad. Desalcott's results were included in the consolidated results of the Company in accordance with the provisions of FIN46. Ecolochem revenues for the quarter and the first half were $24.4 million and $36.3 million, respectively. Desalcott revenues for the quarter and for the first half were $7.5 million and $14.4 million, respectively.

Ionics is a global leader in water purification and wastewater treatment. It has over 50 years of experience in the design, installation, operation and maintenance of water and wastewater treatment systems and is a leading provider of emergency and long-term water treatment services. More membrane-based desalination systems have been designed and built by the company than any other supplier worldwide. Ionics is also a leader in supplying zero-liquid-discharge systems, in providing ultrapure water systems for the power and microelectronics industries, and in the measurement and analysis of water impurities. The company also supplies point-of-use and point-of-entry water treatment systems for commercial and residential applications.

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