ALBANY, N.Y.– Mechanical Technology, Incorporated (MTI) (Trading Symbol: MKTY), a company engaged in the design, manufacture and sale of test and measurement instruments and systems through its subsidiary MTI Instruments, Inc. (MTI Instruments), announces its 2013 third quarter results and business update.
Revenue in our Test and Measurement Instrumentation segment for the three months ended September 30, 2013 increased by $1.2 million, or 113.5%, to $2.3 million from $1.1 million for the same period in 2012. Sales of capacitance products and tensile stages contributed to a 100% rise in general instrumentation revenue as compared to the third quarter of last year. Also contributing to the overall revenue increase was an increase in shipments of aviation balancing systems and accessory kits to the military under existing contracts and to commercial customers.
Revenue in our Test and Measurement Instrumentation segment for the nine months ended September 30, 2013 increased by $3.1 million, or 85.6%, to $6.8 million from $3.7 million for the same period in 2012. This increase in product revenue was attributed to a 113.9% increase in shipments of military and commercial aviation balancing systems and accessory kits. Also contributing to the overall increase was a 67.1% rise in general instrumentation revenue which was driven by higher capacitance product and tensile stage sales.
Net income attributed to MTI for the three months ended September 30, 2013 was $164 thousand compared to a net loss attributed to MTI of $1.1 million for the same period in 2012. The increase in net income attributed to MTI of $1.3 million is primarily attributable to an increase of MTI Instruments net income of $1.1 million. For the nine months ended September 30, 2013 net income attributed to MTI was $350 thousand compared to a net loss attributed to MTI of $2.5 million for the same period in 2012. The increase in net income attributed to MTI of $2.9 million is primarily attributable to an increase of MTI Instruments net income of $2.7 million.
Kevin Lynch, our Chairman and Chief Executive Officer, remarked, “This is the fourth consecutive quarter of positive earnings and improved year over year sales. We continue to grow the core instruments business and are focusing on opportunities for both short and long term gains. At the same time, we are improving on our operational objectives for productivity and cash management. Inventory is at its lowest point in several years, and with cash on hand of $1.0 million, we have exceeded cash levels of the prior quarter and the same period of the prior year.
“As mentioned in the prior release, we remain committed to expanding our product portfolio. Recently, our engineering team has released a “beta” version of a new capacitance product with improved performance. Based on the digital output, enhanced resolution, and modular approach, we would expect positive acceptance among industrial firms with precise manufacturing requirements. Due to the longer adaption requirements in automated industrial processes, we would expect this product to have positive impact on sales and earnings sometime in the latter half of 2014. Moving into the fourth quarter of 2013, we continue to focus on opportunities in our general instruments business to offset an initial slowness realized in early fourth quarter spending by the military.
“We are also pleased to have announced that the Board of Directors of the Company appointed David C. Michaels to the Board on August 28, 2103. Mr. Michaels was also elected to serve on the Audit Committee as well as the Governance, Compensation & Nominating Committee. Mr. Michaels brings a wealth of knowledge and experience to the MTI Board based upon his public company financial leadership at Albany International Corp. (AIN), and operational leadership at Starfire Systems and the American Institute for Economic Research. This addition to the MTI team continues to help strengthen the Company.”
MTI is engaged in the design, manufacture, and sale of test and measurement instruments and systems through its subsidiary MTI Instruments, Inc. MTI Instrument’s products use a comprehensive array of technologies to solve complex, real world applications in numerous industries including manufacturing, semiconductor, solar, commercial and military aviation, automotive and data storage. MTI also includes MTI MicroFuel Cells Incorporated (MTI Micro). MTI continues to pursue opportunities to exploit the potential in our investment in MTI Micro’s Mobion advance vapor direct methanol fuel cells technology, for as long as that entity can sustain its effort. For more information about the Company, please visit www.mechtech.com.
Statements in this press release which are not historical fact, including statements regarding expanding our product portfolio and our new “beta” product having a positive impact on sales and earnings in the latter half of 2014, constitute forward-looking statements within the meaning of federal securities laws. All forward-looking statements are made as of today, and MTI disclaims any duty to update such statements. It is important to note that the Company’s actual results could differ materially from those projected in forward-looking statements. Factors that could cause the anticipated results not to occur include: revenue growth of our test and measurement instrumentation business may not be achieved; a reduction in defense department spending; our inability to build and maintain relationships with our customers; significant periodic and seasonal quarterly fluctuations in our results of operations; our need to raise additional financing for MTI Micro; and/or our ability to bring in potential grant opportunities or purchase orders for MTI Micro; and the other risk factors listed from time to time in the Company’s SEC reports, including, but not limited to, our annual report on Form 10-K for the year ended December 31, 2012, and our quarterly reports on Form 10-Q.
Mechanical Technology, Incorporated
Lisa Brennan, 518-218-2500
Source: Mechanical Technology, Incorporated
Released November 7, 2013