Energy Recovery (ERII), which is a desalination play, reported results after the bell today that beat analyst estimates.  The company reported a non GAAP profit of .01/share on revenues of $12.6 million while analysts expected a .01/share loss on revenues of $11.8 million.

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CEO G.G. Pique commented on the quarter: “Our first quarter results were better than the guidance we provided due to better than expected sales from the OEM sector of our business.  This was our first full quarter with the consolidated results of Pump Engineering and we are pleased with the progress of the integration of the two companies. We have already submitted a significant number of joint sales proposals for our Pump Engineering high pressure pumps and our PX(R) devices.”

Looking ahead, the company expects next quarter to be about the same with EPS around flat to .01/share profit on revenues of $13 – $15 million.  For the full year, the company sees non GAAP EPS between .01 – .08/share on revenues of $55 – $65 million.  That’s below the estimates of .12/share on revenues of $72 million, so guidance not impressive.

Shares aren’t moving after hours, but they sure did today.  Shares of ERII plummeted about 8% with increasing volume taking out support of the February lows.  There is support at the 5 level which is the Aug 09 low, but if it can’t hold there, then look for a test of all time lows around 4.50.