MagneGas, the clean technology company, has announced preliminary financial results for Q2 of 2017.
MagneGas’ preliminary revenues for the three months ended 30th June 2017 were $966,204 compared to $837,257 for the same period last year. This increase was primarily due to additional customers and distributors. Preliminary gross profit for Q2 ending 30th June 2017 increased to $433,547 from $364,982 for the same period last year.
Preliminary operating expenses for Q2 ending 30th June 2017 were $3.1m, compared to $2.8m for the same period last year. Preliminary operating expenses for the three months ended 30th June 2017 included a non-cash charge of $1.6m in stock based compensation.
MagneGas experienced a 50.1% increase in metal cutting fuel revenue in the Q2 of 2017 versus the same period last year. The company’s growth in this segment is primarily due to the successful expansion into two new markets, which have begun to deliver consistent and scaled revenues for the company in 2017. MagneGas has implemented additional sales and marketing initiatives, which it expects will help further drive its growth going forward.
Ermanno Santilli, CEO of MagneGas, stated, “In addition, we are utilising MagneGas2® as a key introductory product to penetrate large industrial clients. We then look to aggressively expand these relationships where we can profitably cross sell non-proprietary products. As an example of our success, our Sarasota, Florida location, opened in January of this year, is on pace to generate over $1m in annualised revenue within the coming quarters. We look to replicate this success as we grow our Huntington, Indiana location, followed by additional locations planned in Florida in the coming quarters.”
Through the introduction of butanol as a feedstock and further procedural and equipment improvements, MagneGas’ production rates have increased over 150% with a 50% reduction in production costs. The company believes these enhancements, along with changes to improve the ease of use, should make the equipment more attractive for small and medium sized distributors looking to produce their own acetylene substitute.
Scott Mahoney, CEO of MagneGas, commented, “Our executive team set forth a series of internal goals at the end of 2016. These goals centered on revenue growth, cost control, profitability, and productivity. We are now two full quarters into the execution of our plan, and we are pleased to have clear data that supports our plan is now being successfully executed. We are well into the third quarter now, and we are excited to continue to focus on accelerated revenue growth, improved profitability, and the opportunity to deliver further value to our shareholders. We have a number of near term catalysts that we look to execute on, and we believe this will continue to drive the value proposition of our technology in the coming quarters.”