Mechanical Technology reports $3.16M loss in 1Q
Mechanical Technology Inc. narrowed its first-quarter loss for 2008 compared with the same quarter last year.The Albany, N.Y.-based company showed a net loss of $3.16 million, or 8 cents a share, for the quarter ending March 31, compared to a net loss of $3.19 million, or 8 cents a share, last year.
Mechanical Technology reported revenue of $2.32 million, up from $2.15 million a year ago.
MTI (Nasdaq:MKTY) designs test instruments and micro fuel cells for portable devices such as cell phones and cameras. It is the parent company to MTI Instruments and MTI MicroFuel Cells Inc.
This year, the company announced three prototypes involving its new Mobion technology: a charging device, a power pack accessory for digital cameras and an embedded fuel cell for a handheld global positioning system (GPS).
All of the prototypes feature MTI's methanol-based Mobion technology, which the company expects to market in 2009.
"We have made significant progress since the start of the year," said Peng Lim, CEO of MTI.
MTI's 2007 annual report with the U.S. Securities and Exchange Commission included an auditor's concern about the company's ability to continue operating.
According to the auditor's opinion, the company continues to accrue significant losses with the funding of MTI Micro's methanol fuel cell product development programs. It had an accumulated deficit of $105.066 million and working capital of $11.347 million at Dec. 31, 2007.
Mechanical Technology has taken steps to address those concerns. It sold 1.45 million shares of Plug Power Inc. (Nasdaq: PLUG) stock--MTI was a co-founder of the Latham-based fuel-cell developer--and said it has enough resources to fund operations for the next 12 months.
However, it is considering selling more Plug stock, reducing its current expenditure run-rate, seeking additional government or private funding or selling a division of the company. Mechanical Technology's two are MTI MicroFuel Cells Inc. and MTI Instruments Inc., which makes precision measurement instruments.
MTI Instruments is Mechanical Technology's money-maker. The 40-person company had revenue of $9 million in 2007.