Improvements in precision displacement measurement instruments are offset by declines in sales to U.S. Military as compared to same three-month period in 2013
ALBANY, N.Y.– Mechanical Technology, Incorporated (MTI or the Company), Trading Symbol: (MKTY), a company engaged, through its subsidiary MTI Instruments, Inc. (MTI Instruments), in the design, manufacture and sale of test and measurement instruments and systems that provide solutions for precision linear displacement, vibration measurement and system balancing and precision tensile measurement systems for markets that require the exacting measurement and control of products and processes in the development and implementation of automated manufacturing, assembly, and consistent operation of complex machinery, announces its 2014 third quarter results and business update.
Sales for the three months ended September 30, 2014 decreased by $371 thousand to $1.9 million from $2.3 million during the three months ended September 30, 2013. This decrease was primarily attributable to reduced activity under the existing U.S. Air Force maintenance contract.
Net loss for the three months ended September 30, 2014 was $53 thousand ($0.01 per share on a fully diluted basis) compared to net income of $164 thousand ($0.03 per share on a fully diluted basis) during the comparable 2013 period.
“As we entered the third quarter, our concerns regarding reduced customer expenditures were realized and we experienced disappointing revenue and earnings as a result” remarked Kevin Lynch, Chairman and Chief Executive Officer.
“In spite of this, we are entering the fourth quarter with a strong backlog. New orders from the U.S. Air Force are adding to our precision measurement instrument business. While our previous contracts with the U.S. Air Force have completed, efforts are underway to establish new contracts.”
“We continue our commitment to invest in product development and engineering, as exhibited in our ongoing spending to support the markets of precision automated manufacturing and complex machinery and measurement. Our previously announced licensing agreement, with a European firm, has opened an opportunity for inclusion of our new Accumeasure D by a major Asian tooling supplier to the semiconductor industry. Any impact of this potential development is not anticipated to be realized until 2016, when the customers’ new equipment is expected to be released.”
“The fourth quarter outlook appears positive with our existing backlog. Equally as important for the longer term, is our pipeline of opportunities with our newer product developments, supported by our efforts in sales and operations.”
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, electronics, semiconductor, solar, commercial and military aviation, automotive and data storage. For more information about the Company, please visit www.mechtech.com.
Statements in this press release which are not historical fact, including “Our previously announced licensing agreement, with a European firm, has opened an opportunity for inclusion of our new Accumeasure D by a major Asian tooling supplier to the semiconductor industry. Any impact of this potential development is not anticipated to be realized until 2016, when the customers’ new equipment is expected to be released,” “The fourth quarter outlook appears positive with our existing backlog. Equally as important for the longer term, is our pipeline of opportunities with our newer product developments, supported by our efforts in sales and operations,” and statements regarding new product development 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: variability of customer requirements resulting in cancellations, reductions, or delays; 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 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, 2013, and our quarterly reports on Form 10-Q.
Mechanical Technology, Incorporated
Lisa Brennan, 518-218-2500
Source: Mechanical Technology, Incorporated
Released November 7, 2014