Mechanical Technology Incorporated
(Third Quarter update)
- Product revenue at our MTI Instruments subsidiary has now climbed 47% higher than prior year to date. This brings the year to date revenue to $7.5M, exceeding 2019 total year revenue of $6.6M. The majority of the increase is attributed to shipments under the historic delivery order from the United States 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 slight decline in the other instrumentation sales.
- EcoChain, Inc. (“EcoChain”), which began operations in May 2020 after acquiring the intellectual property and certain other assets of Giga Watt, Inc. (“GigaWatt”) in Washington State, was able to continue to grow operations. EcoChain revenues for Q3 were $176k, an increase of 252% over the prior quarter. EcoChain is continuing to invest in mining purchases to reach facility capacity, estimated to be in November 2020.
- MTI delivered an additional $1.5M in operating income for the third quarter bringing the year to date operating income to $1.9M, a 413% improvement over the prior year. The aforementioned increase in revenue combined with an improvement in product margin has favorably impacted operating income. The improvement in margin is driven by manufacturing efficiencies and leveraging of fixed costs. EcoChain’s operations continue to trend favorably with net loss of $3k in Q3 bringing the year to date loss to $148k.
- MTI’s cash balance increased over the beginning of the year by $384k.This was driven by the successful execution of the United States Air Force shipments and collections. MTI’s use of cash from the beginning of the year was related to its investments in Class A Preferred Shares of Soluna Technologies, Ltd., EcoChain’s acquisition of GigaWatt’s assets and the purchases of cryptocurrency mining equipment for EcoChain’s first facility in Washington State. MTI is strongly positioned to enter the fourth quarter and support operations.
- MTI continued to perform through the third quarter and delivered most of the remaining units for the United States Air Force. In addition to delivering a high volume of units, MTI was able to execute and gain cost efficiencies. The EcoChain cryptocurrency mine has continued to trend favorably and we expect that this positive trend will continue, as computing assets are fully deployed by the end of November. As MTI enters the fourth quarter, its backlog is strong at $840K.
MTI Investor Relations