Energy Recovery, Inc. (ERII) SEC Filing 10-Q Quarterly report for the period ending Friday, June 30, 2017

Exhibit 99.1

Energy Recovery Reports Second Quarter

and Year-to-Date 2017 Results

SAN LEANDRO, Calif., August 2, 2017

Second Quarter Summary:

Year-to-Date Summary:

Joel Gay, President and Chief Executive Officer said, “Despite project timing affecting our revenue in the quarter, we nonetheless performed to profit expectations, underscoring our bullishness toward the full-year prospects. Our ever-improving financial performance reaffirms the portfolio management strategy of harvesting cash flows from our desalination business to fund our early-stage enterprises, and more importantly, our product development road map and associated R&D pipeline. Total gross profit margins of 71% represent both a new high watermark for the company and the 6^th consecutive quarter above 65%. This level of gross profitability supports marquee and imminent product development initiatives such as the VorTeq™ and the MTeq™, as well as the development of offerings we seek to announce and ultimately monetize in the future.”

Mr. Gay continued, “In addition to further anchoring what we expect to be another impressive if not record-setting fiscal performance, we also made significant progress along the critical path for the eventual commercialization of the VorTeq and MTeq technologies. Specific to the VorTeq, in the quarter, we concluded the most comprehensive and rigorous design process in the company’s history to render the second generation prototype system. Earlier in the quarter, we hosted investors and analysts at our corporate headquarters to demonstrate our optimism in the new cartridge design through a test that best-approximated the vibrational, flow rate, proppant and pressure conditions we witnessed in the field last year. Our optimism in the new cartridge design is bolstered by multiple tests where the prior generation cartridge, in identical testing conditions, failed. Currently, all aspects of the second generation system are in manufacturing and we expect to take receipt of the final system in early September. We will spend the entirety of that month commissioning the unit and therefore expect to initiate full-scale, private testing in October, where we endeavor to execute a test in which we achieve the key performance indicators required under milestone one of the VorTeq licensing agreement. Assuming we are successful here, we would then proceed immediately into the milestone testing process. Our best estimate therefore is to achieve milestone one in the fourth quarter. Similar to the VorTeq, we also concluded the design process for the MTeq prototype and it too is currently being manufactured. Prior to initiating field trials with our newest partner, Sidewinder Drilling, we will also execute private, full-scale testing of the unit. We expect to initiate said testing prior to the end of the year. We are massively pleased with the multi-faceted progress made in the quarter and are anxious to meet our several objectives in the second half of the year.”