ALBANY, N.Y. (PRWEB) February 20, 2020
Mechanical Technology, Incorporated (“MTI” or the “Company”), a publicly traded company (OTC Pink: MKTY) headquartered in Albany, New York, announces today its financial results for 2019. Please visit https://www.mechtech.com under News & Events.
2019 Financial Results
- In 2019, revenue at MTI Instruments decreased by $1.5 million, or 18.5%, to $6.6 million. The primary reason for the decrease in revenue was a $0.9 million decline in overall activity with the U.S. Air Force driven by reapportionment of federal funding. Also factoring into the lower revenue volume was a worldwide decline in the semiconductor industry, combined with uncertainty surrounding international trade, which contributed to a 15% drop in shipments to Asia in 2019.
- Even though revenue declined, the Company remained profitable in 2019, with operating income of $259 thousand. Overall, this marks the third consecutive year of reported profitability; the first time this has been achieved at MTI in 24 years. Compared to last year, pre-tax income was down $1.2 million due to the drop in revenue and the current product mix causing a five-point drop in margins as a percentage of sales. Further contributing to lower income was an increase in product development and marketing spending associated with our next generation capacitance systems & sensors and product enhancements to our PBS-4100+ engine vibration balancing equipment.
- Excluding the special cash dividend paid to the Company’s shareholders in March 2019, cash balances increased $280 thousand for the year, bringing available cash to $2.5 million as of December 31, 2019.
- The Company’s order’s backlog of $721 thousand at the end of the year was $100 thousand higher than at the end of 2018. This is due to orders received in December for a long-standing European customer in the alternative energy sector with shipments scheduled throughout 2020 and into 2021.
- As announced on January 17, 2020, MTI has established a new business line and made an accompanying strategic investment focused on the cryptocurrency and blockchain ecosystem. Our new, wholly-owned subsidiary, EcoChain Inc. (EcoChain), will develop, own and operate renewable-energy powered cryptocurrency mining operations. EcoChain has entered into an Operating and Management Agreement with Soluna Technologies Ltd. (Soluna) to assist in developing this new business line. The Company also made a strategic investment in Soluna through the purchase of Class A Preferred Shares of Soluna. Additional details of these arrangements, which were further discussed at our January 30, 2020 conference call, can be found on our website https://www.mechtech.com.
MTI is engaged in the design, manufacture, and sale of test and measurement instruments and systems through its subsidiary MTI Instruments, Inc. and is developing renewable-energy powered cryptocurrency mining operations through its newest subsidiary EcoChain Inc.
For more information about the Company, please visit https://www.mechtech.com.