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 precision test and measurement sensors, instruments and systems that provide solutions for linear displacement, vibration measurement and system balancing and tensile measurements in markets that require the exacting measurement and control of products and processes for automated manufacturing, assembly, and consistent operation of complex machinery, announces its second quarter 2015 results and business update.
- In the second quarter of 2015, revenue decreased by $527 thousand as compared to the corresponding prior year period. Increases in commercial sales were not significant enough to offset the lower purchases from the U.S. Air Force. Despite this revenue shortfall, another milestone was achieved with the addition of a major global OEM in Europe, as a significant new Digital Accumeasure end use was commercialized. This is our fifth major OEM qualification, which we expect will have a positive impact on our 2016 results.
- Operating loss improved by $179 thousand in the second quarter of 2015 as compared to the first quarter of 2015, with a $0.04 loss per share, as the impact of second quarter revenue reductions was partially offset by improved margins.
- Gross profit was maintained above 60% in the second quarter of 2015, as it improved to 62.4% as compared to 59.8% in the second quarter of 2014. This resulted from the combination of the product sales mix and the impact from the ongoing efforts to reduce manufacturing costs and improve inventory management.
- New credit facilities totaling $2.5 million, which replace our previous $1.0 million line of credit, were obtained through Bank of America, N.A. for use in future working capital requirements and strategic initiatives.
“The losses in the second quarter were anticipated, as bookings were slow in the first quarter and new products were being qualified,” commented Kevin Lynch, Chairman and Chief Executive Officer of MTI. “We remain optimistic regarding the results for the full year, as the Microtrak 4 laser has been launched, and we are diligently working toward commercializing new customers and contracts across the entire business. The Microtrak 4 laser, which became available for commercial sale in the second quarter, is specifically designed to target larger volume automated assembly operations where higher data speeds, digital output and ease of integration is required. Initial feedback in the evaluation process has been very positive, and we have received several qualification orders from Asia.”
“As previously reported, we believe that as our business has improved, the Company has been undervalued in the marketplace, and our shareholders have not been rewarded. As such, during the June 11, 2015 Board of Directors meeting following the Annual Shareholders Meeting, our Directors reaffirmed their confidence in the Company and approved a stock repurchase program.”
“With this in mind, our goal remains to enhance shareholder value as we grow our position in the marketplace though new product development, lean manufacturing, improvements in our channels to market and technology acquisitions which we believe, in combination, will result in increases in both sales and earnings.”
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: “…which we expect will have a positive impact on our 2016 results,” “we remain optimistic regarding the results for the full year…,” and “our goal remains to enhance shareholder value as we grow our position in the marketplace though new product development, lean manufacturing, improvements in our channels to market and technology acquisitions which we believe, in combination, will result in increases in both sales and earnings,” 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.