Mechanical Technology Incorporated
(Third Quarter update)
- Revenue at MTI Instruments for the first nine months of 2019 is down 7% compared to the same period of time last year. Worldwide reductions in the semiconductor industry, combined with uncertainty surrounding international trade, has contributed to a 42% decline in sales to our key commercial customer in Asia and a 48% decline in shipments to our top Asian distributor.
- Operations continue to remain profitable – with $373,000 in operating income being recorded through the first nine months of 2019, less than the $745,000 operating income at this time last year (which, was unfavorably impacted by one-time costs associated with the Company’s deregistration of its common stock with the Securities and Exchange Commission in 2018). The comparative variance from last year is attributed to the decline in revenue and current product mix causing a four-point drop in margins as a percentage of sales. Further contributing to these current results has been an increase in product development spending associated with our next generation capacitance systems and sensors and improvements to our PBS-4100+ engine vibration balancing equipment.
- Excluding the special cash dividend paid to MTI shareholders in March 2019, cash balances have increased $425,000 for the year; bringing available cash to $2,655,000 at the end of September 2019.
- The Company’s order’s backlog of $413,000 at September 30, 2019 was $1,349,000 lower than at the end of September 2018. This is due to the aforementioned activity in Asia, as well as a $1,034,000 decline during 2019 in new business under our existing multi-year contract with the U.S. Air Force as federal funds are re-apportioned elsewhere.
- MTI continues to pursue opportunities to accelerate growth and diversify its revenue stream by targeting new industries and markets for our core product competencies (capacitance systems and sensors and engine vibration balancing equipment), as well as exploring new investment opportunities to utilize existing capital and increase shareholder value.
MTI Investor Relations