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 first quarter fiscal year 2012 operating and financial results.
Product revenue for the first quarter of 2012 was $1.2 million, compared to $2.5 million for the same period in 2011. The decrease in product revenue was due primarily to an $800 thousand decline in aviation balancing equipment sales. Last year, first quarter product revenue included unique order activity for aviation balancing systems, which began during the fourth quarter of 2010 and shipped during the first quarter of 2011. Also contributing to the first quarter decline in comparative product revenue was a slowdown in production levels at our customers in the U.S. and Asia which resulted in fewer wafer metrology tool shipments and a 31% drop in general instrumentation revenue.
Gross profit on product revenue for the first quarter of 2012 was $626 thousand, compared to $1.6 million, for the same period in 2011. Cost of product revenue for the three months ended March 31, 2012 decreased by $361 thousand, or 38.5%, to $578 thousand in 2012 from $939 thousand in 2011 due to the decrease in product revenue.
“Despite a decline in product revenue, our balance sheet remains strong with $5.5 million in total assets, including nearly $2.0 million in cash, and $1.4 million in current liabilities,” said Peng Lim, Chairman and CEO. “We believe the Company’s remaining 2012 quarterly revenues will be improved over the Company’s unfavorable first quarter 2012 results. Planning ahead into subsequent years, we are also looking for opportunities to continue to grow thru our current product mix, and potential merger and acquisition activities.”
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 increases in MTI Instruments’ sales in 2012 and beyond. 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 and our quarterly report on Form 10-Q for the quarter ended March 31, 2012.
Mechanical Technology, Incorporated
Andrew Barwicki, 516-662-9461
Source: Mechanical Technology, Incorporated
Released May 10, 2012