ALBANY, N.Y.– Mechanical Technology, Incorporated (MTI or the Company) (Trading Symbol: MKTY), a company engaged in the design, manufacture and sale of test and measurement instruments and systems through its wholly-owned subsidiary MTI Instruments, Inc. (MTI Instruments), and in the development and commercialization of Mobion® off-the-grid portable power solutions through MTI MicroFuel Cells, Inc. (MTI Micro), announces its 2011 financial and operating results.
The Company’s total revenue for 2011 increased to $10.3 million or 22.3% from $8.4 million in 2010. Net income for the year ended December 31, 2011 was $2.4 million or $0.48 per diluted share, compared to a net loss of $1.8 million, or $0.37 per diluted share for 2010. Included in 2011 net income is a $1.5 million adjustment to recognize certain deferred tax assets, as the Company has projected the realization of a portion of its past net operating losses. The remainder of the 2011 net income of $900 thousand is primarily attributable to increased sales at MTI Instruments and expense reductions at MTI Micro.
MTI Instruments reported a 43.2% increase in product revenue in 2011 to $10.3 million compared to $7.2 million in 2010. The increase in revenue is primarily credited to strong sales in aviating balancing system shipments, combined with higher capacitance product sales.
Peng Lim, CEO stated: “We grew our top line revenue at MTI Instruments 43.2% this past year. I am very pleased with the turn around at MTI from a net loss of $2.62 per diluted share at the end of 2008 to net income of $0.48 per diluted share in 2011. We have made remarkable progress in the last three years and achieved record revenue levels.”
In 2011, MTI Instruments was successfully awarded a $4.1 million multi-year U.S. Air Force contract for the purchase of PBS-4100+ portable aircraft engine balancing systems. The PBS-4100+ product is used to automatically collect and record aircraft engine vibration data, identify vibration or balance trouble and calculate a solution, resulting in reduced engine vibration, longer engine life and lower fuel costs.
During 2011, MTI Micro completed its field testing program for Mobion® power solutions with the U.S. Department of Energy and a branch of the U.S. Department of Defense and is now seeking potential grant opportunities or purchase orders from existing relationships. To reduce operational losses, MTI Micro has suspended its operations until such time as market demand and other deciding factors, including, but not limited to, a new development program with a government agency and/or customer orders, come to fruition.
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 is also engaged in the development and commercialization of Mobion® off-the-grid portable power solutions through MTI MicroFuel Cells Inc. For more information about the Company please visit www.mechtech.com.
Statements in this press release which are not historical fact including statements regarding management’s intentions, hopes, goals, beliefs, expectations, projections, plans, anticipation, outlook or predictions of the future are forward looking statements. Such statements include the expectation of our ability to obtain for government grants or commercialize our Mobion fuel cell system and increase MTI Instruments sales. 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; 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, 2011.
Mechanical Technology, Incorporated
Andrew Barwicki, 516-662-9461
Source: Mechanical Technology, Incorporated
Released March 27, 2012