August 14, 2014, Tecogen Inc., a manufacturer and installer of high efficiency, UltraTM clean combined heat and power products including natural gas engine-driven cogeneration, air conditioning systems, and high-efficiency water heaters for industrial and commercial use, reported revenues of $4,539,857 in the three months ended June 30, 2014, compared to $2,803,460 for the same period in 2013, an increase of 61.9%.
Major Highlights: Sales backlog of equipment and installations was $12 million at the end of the second quarter and continued to grow to $13.3 million as of August 13, 2014. Gross profit for the three months ended June 30, 2014 was $1,348,673 compared to $813,873 for the same period in 2013, an increase of 65.7%. Gross margins improved to 30% from 29% for the quarter ended June 30, 2014 compared to the same period in 2013. Research and development expenses for the year and the quarter were $559,716 and $251,582, respectively, as the Company continues to expand development of its technology while preparing the patent applications. The increase of operating expenses included higher sales commission expense and administrative expenses associated with taking the company public. Operating expenses grew to $2,567,761 from $1,965,383. Net loss for the three months ended June 30, 2014 was $1,229,707 compared to $1,090,480 for the same period in 2013. Our goal is for operations to be profitable by year end. Net loss per share was $0.08 for the three months ended June 30, 2014 and 2013.
Sales & Operations: Orders for gas fired chillers expanded our sales internationally into Canada and Mexico. The Ultra Emissions Retrofit Kit product line, featuring the patented Ultra-low emissions technology, reached the nine month anniversary of successful pilot retrofit project on a natural gas engine driven water pump in the Eastern Municipal Water District in Southern California. Positive response to initial installations in new markets as the Ilios Water Sourced Heat Pump continues to get traction. Over the next 12 months, management expects a steady growth in orders as success with early adopters adding to the positive reputation. Installation projects or Turnkey sales continue to contribute to the expansion of backlog. These projects historically lead to long term service agreements. Establishment of new service center on Long Island New York. The ninth service center will better serve our growing Metro New York customer base.