ALBANY, N.Y.--(BUSINESS WIRE)--Mechanical Technology, Incorporated (MTI or the Company), (OTCQB:MKTY), a company engaged, through its subsidiary MTI Instruments, Inc. (MTI Instruments), in the design, manufacture and sale of test and measurement instruments and systems that provide solutions for precision linear displacement, vibration measurement and system balancing and precision tensile measurements for markets that require the exacting measurement and control of products and processes in automated manufacturing, assembly, and consistent operation of complex machinery, announces its first quarter 2015 results and business update.
- Revenue increased by 18.4% as compared to the prior year as a direct result of increases in both instruments for automated manufacturing and engine vibration and balancing system activity sales primarily to commercial airlines.
- Operating loss improved in the first quarter of 2015 compared to 2014 by $45.1 thousand, with a $0.07 loss per share, as the impact of first quarter revenue reflected expected delays in capital spending from key customers.
- Gross profit, as a percentage of product revenue, increased to 61.0% in 2015 compared to 58.1% in 2014 due to the composition of the product sales mix and improved inventory management in conjunction with our “lean” manufacturing approach.
- The current twelve-month inventory turns improved to 4.1 in 2015 as compared to 3.5 in the same period in 2014 as a result of the increase in sales volume and the continued focus in inventory management within the operations.
- ISO 9001:2008 recertification was successfully completed during the first quarter of 2015.
“First quarter bookings have proven to start slowly over the past several years until our customer’s capital budgets are reviewed and approved,” commented Kevin Lynch, Chairman and Chief Executive Officer of MTI. “These delays clearly affect our revenue and earnings early in the year; however, significant progress has been made in advancing key customer relationships, demonstrated by our healthy year over year growth. Gross margins have improved as we continue to realize operational efficiencies combined with an improved product mix.”
“Our transformation into a precision measurement instruments company, having come from a contract research and development and fuel cell company, is now final. Our business growth and future potential is entirely with precision measurement instruments.”
“We are pleased to report that the Accumeasure D system, launched in 2014, for non-contact measurement of linear displacement at the sub-nanometer level was accepted at two major new global customers. These new customers, both in Japan, have incorporated our system within their semiconductor wafer processing tool that we understand is being released later this year. Significant ramp-up from these incorporations is not expected until late 2015 or early 2016. It represents a major milestone in the recognition of MTI’s capabilities to develop and commercialize products, while reaching major corporations around the world. This remains a major component to our strategy as we anticipate closing on additional OEM applications in the coming quarters.”
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, electronics, semiconductor, solar, commercial and military aviation, automotive and data storage. For more information about the Company, please visit www.mechtech.com.
Statements in this press release which are not historical fact, including: “Significant ramp-up from these incorporations is not expected until late 2015 or early 2016,” and “this remains a major component to our strategy as we anticipate closing on additional OEM applications in the coming quarters,” constitute forward-looking statements within the meaning of federal securities laws. 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: variability of customer requirements resulting in cancellations, reductions, or delays; a reduction in defense department spending; our inability to build and maintain relationships with our customers; significant periodic 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, 2014, and our quarterly reports on Form 10-Q.