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MTI Reports 3Q 2008 Results
(Wireless News Via Acquire Media NewsEdge)
Mechanical Technology (MTI), a company primarily engaged in the
development and commercialization of Mobion off-the-grid portable power
solutions through its subsidiary MTI MicroFuel Cells, and in the
design, manufacture, and sale of test and measurement instruments and
systems through its subsidiary MTI Instruments, announced its financial
results for the quarter ended September 30.
"This quarter, MTI Micro continues to make progress toward Mobion
manufacturing readiness, signed agreements with new customers,
demonstrated significant advancements in our technology, and filed our
100th patent application - these important developments move us closer
to achieving commercialization plan in the later part of next year,"
said Peng K. Lim, Chairman and CEO of MTI. "At MTI Instruments, despite
the slow down of the worldwide economy, we continue working on new
product innovations and focusing our marketing efforts to position the
business for a sales rebound when economic conditions improve."
The company noted that recent developments include:
- September 30, - MTI announced that Rodney A. Tillinghast, Corporate
Controller and Director of Financial Reporting for MTI, was named
Interim Chief Financial Officer and Secretary of the Board of
Directors, effective September 26.
- September 18, - MTI Micro announced that its third generation Mobion
Chip improved power performance by approximately 25 percent as compared
to the previous generation unveiled during June 2007. In laboratory
testing, the Mobion Chip demonstrated power of over 62 mW/cm2 while
producing more than 1,800 Watt Hours per Kilogram (Wh/kg) of energy
from the direct methanol fuel feed. In addition to the ongoing power
performance improvements, the third generation Mobion Chip was
approximately 25 percent smaller than the prior generation was in June
2007 and over 50 percent smaller than the initial generation was at the
beginning of 2007.
- August 26, - MTI announced that it had applied to transfer its common
stock listing from the Nasdaq Global Market to the Nasdaq Capital
Market. The application for transfer into the Nasdaq Capital Market was
accepted on September 3, and the transfer became effective September 5.
- July 11, - MTI Micro announced that it achieved 2,700 hours of
continuous operation with a Mobion laboratory cell -- the building
block of the Mobion Chip and systems. In addition to the 2,700 hours of
continuous run-time, MTI Micro's Mobion test successfully demonstrated
a significant achievement by showing power degradation of less than 15
percent.
- July 9, - MTI Micro and NeoSolar, a Korean manufacturer of portable
digital devices and energy products, announced that they entered into
an agreement for the development of Mobion fuel cell technology for use
in future models of NeoSolar portable digital devices, including ultra
mobile portable computers. Both MTI Micro and NeoSolar are working
together to develop, test, and evaluate Mobion prototypes for their
integration with a number of NeoSolar products, which could lead to the
use of external Mobion power sources, like chargers, snap-on
attachments, and embedded Mobion power sources, for integration into
various digital products.
Third Quarter Financial Results
Revenue for the nine months ended September 30, decreased in comparison
to the same period in 2007 by $1.1 million, or 17.4 percent, to $5.1
million. The revenue decrease was chiefly attributable to a $1.2
million decrease in general dimensional gauging sales, driven by
significantly lower sales to a Japanese OEM. This decline was partially
offset by an increase of $509,000 in semiconductor products due to
sales expansion in international markets and the sale of a fully
automated tool in the third quarter. Aviation sales declined by
$396,000 between periods due to declining activity with the U.S. Air
Force.
As a result of general global economic conditions, including weaker
than expected demand in Japan for photolithography equipment, slower
than expected dimensional gauging sales, reduced sales demand within
the commercial aviation industry, and the deferral of certain orders
under our existing U.S. Air Force contract, we estimate our test and
measurement instrumentation business will experience an annual sales
decrease of between 25 percent to 30 percent for 2008 compared to 2007.
Net loss for the nine months ended September 30, was $10.5 million, or
$(2.20) per diluted share, compared with a net loss of $8.1 million, or
$(0.84) per diluted share for the same period in 2007. Net loss for the
third quarter of 2008 compared to 2007 includes decreases in gross
margins on product sales, decreases in funded R&D revenue, cost savings
in R&D spending, increases in selling, general and administrative
expenses, a decrease in gain on derivatives, gains on the sale of
securities available for sale, and a decrease in the income effects of
minority interest stockholders.
Cash flows: For the nine months ended September 30, cash used in
operations decreased by 20.6 percent to $8.5 million compared to $10.8
million in 2007, while cash used for capital expenditures decreased to
$190,000 from $281,000 in 2007.
At present, MTI does not expect to advance future resources to fund MTI
Micro, and MTI Micro will instead seek external financing to fund its
research operations. Excluding any funding necessary to support MTI
Micro's operations, MTI current expects that its current cash,
marketable securities, and the future results of operations from MTI
Instruments are expected to provide sufficient liquidity for MTI
through at least December 2009. During September 2008, MTI Micro closed
on $1.5 million of funding from external investors in the form of
secured convertible notes.
((Comments on this story may be sent to newsdesk@closeupmedia.com))
((Distributed on behalf of 10Meters via M2 Communications Ltd -
http://www.m2.com))
((10Meters - http://www.10meters.com))
Copyright ? 2008 Wireless News
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