Sodastream International Ltd (NASDAQ:SODA) released the results from its June quarter this morning, posting diluted earnings of 43 cents per share, compared to 60 cents last year, on $141.2 million in revenue. Analysts had been expecting earnings per share of 31 cents on $140.56 million in revenue. In the same quarter a year ago, Sodastream reported $132.4 million in revenue.

Sodastream

Breaking down Sodastream’s earnings results

The home beverage system maker posted $13.8 million in EBITDA, compared to $18 million in the same quarter a year ago. Net income was reported to be $9.2 million, compared to $12.9 million in the same quarter a year ago.

Sodastream management reported that they saw record gas refills during the second quarter and unit growth in all of its regions. The company’s gross margin was 50.5%, compared to 54.3% in the second quarter of last year. Management cited foreign exchange rates and higher penetration of soda makers with lower margins in the inventory write-offs and sales mix. A higher share of gas refills partially offset those problems.

The company spent $46.9 million on sales and marketing, which amounted to 33.3% of revenue. That’s compared to $43.6 million in the same quarter a year ago. General and administrative expenses were $13.1 million or 9.3% of revenue. Operating income fell to $11.2 million, while tax expenses stayed at $1.1 million.

Sodastream cuts guidance

Company management said soda maker volumes in the U.S. are still under pressure because they’re struggling to drive demand and retailers are still working through excess inventory from the holiday season. As a result, they cut their soda maker sales projections in the U.S. for the second half of the year. Sodastream reported that their working on repositioning their brand to place it under “health and wellness.” They’re also refining their product line and marketing message.

The company said it projects about a 5% increase in revenue for all of this year and about a 5% increase in EBITDA. Excluding foreign exchange changes, Sodastream expects about a 17% increase year over year in EBITDA. Management expects net income for the full year to fall by about 5% year over year.