Albany, New York, (PRWEB) February 26, 2019 – 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 2018. Please visit
https://www.mechtech.com under News & Events.

2018 Financial Results

 

      • Revenue rose $1.0 million, or 14%, to $8.1 million in 2018 due to increased activity with
        the U.S. government, as we continued to expand our PBS product offerings within both
        existing and new Air Force, Navy and Coast Guard programs. Additionally, we continued
        to grow our commercial engine balancing system and accessories business, most notably
        in engine test cell facilities throughout the world. This contributed to a record-setting year
        for our PBS product family; which surpassed $5.0 million in annual orders for the first
        time ever.

     

      • Spending on new development initiatives and product enhancements at our MTI
        Instruments (“MTII”) subsidiary intensified in 2018 as part of the Company’s
        commitment to grow organically. As a result, 2019 will see the introduction of new
        capacitance products and an updated model of our renowned engine vibration balancing system.

     

      • Operating income grew $935 thousand in 2018 to $1.5 million; the highest such level
        reported by the Company since 1998. The increase in revenue, along with continued
        improvements to product margins and reduced administrative costs related to the
        Company’s deregistration of its common stock with the Securities and Exchange
        Commission (“SEC”) in March of 2018 contributed to this rise in profitability.
        Additionally, 2017 operating results were negatively impacted by $398 thousand in onetime
        severance and reorganizational costs.

     

      • Financial results in 2018 were further bolstered by a $395 thousand deferred income tax
        benefit from recognizing a portion of our deferred tax asset, as the Company projects the
        utilization of a portion of its net operating loss carryforward to offset its taxable income.
        The Company will continue to assess and adjust the net deferred tax asset associated with
        its $50.4 million in net operating loss carryforwards, as warranted, based upon historical
        operating results and financial forecasts.

     

      • MTI’s cash surplus of $1.9 million for the year pushed our available cash balance at yearend
        to nearly $5.8 million; the Company’s highest ending cash balance since December
        2007.

     

     

    Annual Shareholders Meeting

    The Company will review our 2018 financial results and provide current business updates at the
    MTI Annual Meeting of Shareholders on Friday, March 29, 2019. At that meeting, Mr. Matthew
    E. Lipman and Mr. David C. Michaels, current MTI Board members, will be nominated for reelection
    to hold three-year terms expiring in 2022. The MTI Board of Directors has established
    Tuesday, March 12, 2019 as the date of record for shareholders eligible to vote at our Annual
    Meeting.

    Dividend Distribution

    The Company is pleased to announce that its Board of Directors declared a cash dividend of
    $0.37 per share of outstanding common stock. The dividend will be payable on March 20, 2019
    to shareholders of record at the close of business on March 12, 2019. This is the first dividend in
    the Company’s 58 year history.

    “The MTI Board is extremely pleased with MTI’s top and bottom line growth. The Company’s
    new focus on high-potential products and cost management resulted in higher growth and
    profitability, and improved cash flow. This strong performance enabled us to begin utilizing our
    deferred tax asset enhancing future cash flow” said David Michaels, MTI’s Chairman of the
    Board. “With our cash resources at the highest level in a decade and no financially attractive
    acquisition opportunities on the horizon, the MTI Board of Directors unanimously agreed that
    distributing a portion of our excess cash in the form of a dividend and continuing our organic
    growth and acquisition strategies would be in the best interest of our shareholders.”

 

  • Rick Jones, MTI’s President and CEO, also noted, “2018 was quite the transformational year for
    MTI, as we successfully deregistered our common stock with the SEC, yet still remain a publicly
    traded company on the OTC Pink-Current Information tier of the OTC Markets. In doing so,
    MTI is able to report financial information to our valued shareholders on a timelier basis, by
    complying with OTC Alternative Reporting Standards rather than overly comprehensive SEC
    regulatory compliance. To illustrate, our annual results being reported today are one month
    earlier than the previous year. Additionally, we are also moving up the date of our Annual
    Shareholders Meeting to March, rather than in June; allowing us to provide updates on recent
    activities earlier than in prior years. As expected, we have now been able to better deploy
    existing resources towards strategic endeavors, including the support of growth initiatives at MTI
    Instruments which began to take root in 2018. All in all, exciting times at MTI!”
    ###

    About MTI

    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
    https://www.mechtech.com.

    _________________________________________________________________________
    Contact Information:
    Lisa Brennan
    518-218-2592
    lbrennan@mtiinstruments.com