Mechanical Technology Incorporated
(Second Quarter update)
- Product revenue for the year at our MTI Instruments subsidiary has now climbed 15% higher than last year. This increase is attributed to initial shipments under the historic delivery order from the US Air Force for 52 new PBS-4100+ engine vibration balancing systems, which was received in April 2020. The rise in military sales has offset a decline this year in semi-automated wafer metrology tool shipments to Asia.
- Our newest subsidiary, EcoChain, Inc., began operations in May 2020 after acquiring the intellectual property and certain other assets of Giga Watt, Inc. in Washington State. During its first 40 days of operation, EcoChain was able to mine $50,000 in cryptocurrencies by immediately utilizing the existing equipment and facility infrastructure acquired in the GigaWatt transaction. Those cryptocurrencies mined were promptly converted to cash and re-invested into new mining equipment purchases in June, which should increase revenues at the pilot mine starting in the third quarter of 2020.
- During the second quarter, MTI returned to profitability for the year with $600,000 in operating income for the quarter. This brings our operating income for the first six months to $458,000, which is 23% higher than the same period of time last year. The aforementioned increase in revenue, combined with a three-point rise in product margins at MTI Instruments, has driven these improved results.
- Cash balances have declined $1,159,000 from the start of the year due to the previously announced investments in preferred shares of Soluna Technologies, EcoChain’s acquisition of GigaWatt’s assets and the subsequent purchases of new cryptocurrency mining equipment for EcoChain’s first facility in Washington State. Available cash of $1,351,000 at June 30th, however, remains sufficient for supporting current operations and there has been no need to access our existing line of credit at Pioneer Bank.
- Thanks to the recent, record-setting activity under our existing, multi-year US Air Force contract, along with a notable rise over the last three months in purchases of PBS accessory kits for the military by third-party logistic companies, MTI Instruments enters the third quarter with an orders backlog over $3,400,000 – nearly all of which is expected to ship this year. Further adding to MTI’s overall revenue growth in 2020 will be the continued advancement of EcoChain’s cryptocurrency mining operations as facilities are upgraded and new equipment is placed into service.
MTI Investor Relations