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Bullboard - Stock Discussion Forum MagneGas Corp MNGA

"MagneGas Corp is a part of the energy markets. The company creates and produces hydrogen-based alternative fuel through the gasification of carbon-rich liquids, including certain liquids and liquid wastes. It also markets, for sale or licensure, its plasma arc technology for the processing of liquid waste. In addition, the Company sells metal cutting fuels and ancillary products through its... see more

NDAQ:MNGA - Post Discussion

MagneGas Corp > News .......................
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Post by aebestacey on Nov 14, 2015 1:58pm

News .......................

MagneGas reports tripling of third quarter revenue as momentum continues


The firm reports a tripling of revenue in its third quarter due to Increased sales at its gas distribution subsidiary ESSI
The firm's fuel can used as a replacement to natural gas or for metal cutting and its products are said to be cleaner and more productive.

Increased sales at its gas distribution subsidiary ESSI helped MagneGas (NASDAQ:MNGA), the firm, which converts liquid waste into MagneGas2 fuel, report a tripling of revenue in its third quarter as it continues to grow its customer base.

Revenue for the three months to end September rose 326% to US$623,893 from US$146,400 for the same period last year.

No analyst estimates were available for comparison.

Gross margins were lifted to 35% from 33% in the same quarter in 2014.

The firm's fuel can be used as a replacement to natural gas or for metal cutting and its products are said to be cleaner and more productive.

The group's chief executive Ermanno Santilli told investors: "We continue to execute on our strategy to expand MagneGas2 sales and increase our recurring revenue base.

"Revenue for the third quarter more than tripled to $623,893 versus the same period last year primarily due to our ESSI acquisition.

"We have added multiple distributors and marquee customers nationwide due in part to our aggressive sales campaign for MagneGas2 fuel, and the proven faster cutting speed, smaller heat affected zone, demonstrated safety attributes, and eco-friendly aspects of MagneGas2."

He added that due to growing demand for MagneGas2, for which there is now a backlog, the group has installed a second production facility.

"We expect that the second production unit will help to fulfill the increased demand and we plan to have a third unit in operation in early 2016 to support our further growth," he said.

Two new industrial gas distributors have been added on the East Coast and two major distributors on the West coast, the firm added.

"We continue to add to our growing customer base. In the past month we have announced that our cutting fuel has again been selected by industry experts as the fuel of choice for five major demolition projects in Florida.

"MagneGas2 is now being used in six of the top ten demolition projects in the Central Florida area, based on our estimates," he said.

The company boss added that the group has identified some exciting acquisitions in the industry.

"Based on the size of the markets we address, which we estimate to be in the several billion dollar range, we continue to evaluate opportunities to grow both organically and by acquisition.

"The goal of any acquisition would be to find synergies with our fuels or technology that would provide the target company with an accelerated growth trajectory, while bringing the overall MagneGas financial profile to profitability," he said.

Separately, the company on Tuesday saluted its US Military veteran employees and veterans globally on Veteran's Day, and noted that over 30% of the group's workforce were veterans.

Investors shrugged off the solid quarterly results, sending the Tarpon Spring, Florida-based company's shares falling 6.7% to $1.18 at 12:28 p.m. in New York.

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