Fuel Tech(FTEK) - 2023 Q1 - Quarterly Report

Revenue Performance - Revenues for Q1 2023 were $7,287 million, a 32% increase from $5,535 million in Q1 2022[88] - The APC technology segment generated revenues of $3,559 million, up 61% from $2,204 million in the prior year[89] - The FUEL CHEM technology segment reported revenues of $3,728 million, reflecting a 12% increase from $3,331 million in Q1 2022[90] Backlog and Sales Pipeline - Consolidated APC backlog as of March 31, 2023, was $7,588 million, with a global sales pipeline estimated between $50 million and $75 million[87] Profitability and Expenses - Gross margin percentage decreased to 38% in Q1 2023 from 41% in Q1 2022, primarily due to changes in segment mix[91] - Selling, general and administrative expenses (SG&A) were $3,245 million, with SG&A as a percentage of revenues decreasing to 45% from 55%[92] - Research and development expenses for Q1 2023 were $218 million, focused on new product development including water treatment technologies[93] Interest and Cash Position - Interest income increased to $339 million in Q1 2023 from $1 million in Q1 2022, due to interest on held-to-maturity debt securities[94] - Cash and cash equivalents as of March 31, 2023, totaled $15,698 million, with working capital at $30,204 million[97] Capital Expenditures - The company expects to continue capital expenditures in 2023 for maintenance and plans to fund these with cash from operations[104]