Fourth Quarter Net Profit; Increased Product Revenue at MTI Instruments; Global Testing of Mobion(R) Power Solutions, and Development Contracts at MTI Micro
ALBANY, N.Y.– Mechanical Technology, Incorporated (“MTI”) (OTC: MKTY.PK), a company engaged in the design, manufacture and sale of test and measurement instruments and systems through its subsidiary MTI Instruments, Inc. (“MTI Instruments”), and in the development and commercialization of Mobion(R) off-the-grid portable power solutions through MTI MicroFuel Cells Inc. (“MTI Micro”), today announced a consolidated net profit for the fourth quarter, increased product revenue at MTI Instruments, and continued progress towards commercialization at MTI Micro.
Net income for the three months ended December 31, 2010 was $278 thousand, or $0.06 per diluted share, compared to a loss of $530 thousand, or ($0.11) per diluted share for the same period in 2009. This outcome can be attributed to strong sales at MTI Instruments in the fourth quarter resulting in net income of $793 thousand for 2010, as compared to $276 thousand for 2009, and to operational efficiency gains at MTI Micro resulting in a reduction of its net loss for the quarter to $695 thousand in 2010 from $1.0 million in 2009.
MTI also reported positive results for the year at its MTI Instruments subsidiary which reported 14.6% gain in product revenue to $7.2 million as compared to the previous year, while recording an order backlog of $2.13 million, compared to $419 thousand at December 31, 2009.
“While in the midst of this economic downturn and during the last two years, we at MTI took important steps to maintain and increase sales, decrease expenses, and improve operational efficiency,” said Peng Lim, Chairman and CEO of MTI. “At MTI Instruments, we focused on enhancing our product offerings, increasing our marketing exposure both domestically and abroad, and optimizing our channels of distribution. Additionally, we added a new line of tensile stage products to complement our already high-end line of precision product offerings.”
At MTI Micro, the company focused on its field testing program for Mobion(R) power solutions with various industry, government, and opinion leaders, on the search for new customers and on the reduction of its burn rate.
“Last year, we began a global testing program for Mobion(R) power solutions and reported positive results; we signed two important contracts — one with a global original equipment manufacturer (OEM) and one with the US Department of Defense in addition to DOE and NYSERDA grants; and, we decreased our burn rate,” said Mr. Lim. “Additionally, MTI Micro has several outstanding proposals with various OEMs and governmental agencies for purchase orders and contracts which are essential to further the commercialization process.”
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(R) off-the-grid portable power solutions through MTI MicroFuel Cells Inc. MTI Micro has a team of entrepreneurial business executives, researchers and scientists; a proprietary direct methanol micro fuel cell power system and a number of system prototypes demonstrating size reductions and performance improvements; and related intellectual property. MTI Micro has received government funding and developed strategic partnerships to facilitate efforts to achieve commercialization. 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 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 the lack of liquidity in our common stock; our need to raise additional financing for MTI Micro; 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; 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, 2010.
Source: Mechanical Technology, Incorporated
Released March 25, 2011