ADA-ES Inc., which develops technology to make coal mining cleaner and more efficient, said Thursday its net loss widened to $2.8 million in the first quarter as sales of carbon injection systems dropped and the company fought a lawsuit.

The loss of 39 cents per share compared to a loss of $543,000, or 8 cents per share, in the same quarter a year ago. Revenues fell 20 percent to $3.9 million from $4.9 million.

Several coal companies reported soft demand in the first quarter. The industry also is awaiting the outcome of federal climate legislation that will almost certainly target coal producers and industries that burn coal.

ADA-ES, which is based in Littleton, said its results also were impacted by $4.6 million in administrative expenses largely due to an ongoing lawsuit. Norit Americas sued ADA-ES in 2008 alleging misappropriation of trade secrets after two of its longtime employees joined ADA-ES.

Analysts polled by Thomson Reuters expected the company to report a loss of 19 cents per share on revenue of $4.96 million. Analysts' estimates typically exclude one-time items such as the legal expenses.

ADA-ES President and CEO Michael Durham said the company is well placed for expected new regulations from the U.S. Environmental Protection Agency and Congress.

Shares fell 38 cents, or 5.3 percent, to $6.75 in midday trading Thursday.

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