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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 > A bit more in news......
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Post by aebestacey on Mar 26, 2016 7:19pm

A bit more in news......

MagneGas Corporation reveals 138% rise in revenue

The technology group highlighted a rapid increase in the number of new customers and distributors during the period.
MagneGas Corporation reveals 138% rise in revenue

MagneGas signed up new customers and is expanding its operations.

MagneGas Corporation (NASDAQ:MNGA) has reported a 138% rise in revenue, to US$2.4mln from US$1mln, in the twelve months to December 31 2015.

At the same time the technology company’s gross margin improved by 521 basis points, to 39%, and by the end of the year it had US$5.3mln of cash.

The technology group - which has a number of inventions including a patented process that converts liquid waste into a trademarked fuel product - highlighted a rapid increase in the number of new customers and distributors during the period.

The product, called MagneGas2, is a substitute product for acetylene that achieves faster metal cutting speeds and a smaller heat affected zone.

During the year, the company also achieved its first equipment sale. It received $775,000 for a 100kw Plasma-Arc Gasification system, and it will also earn high-margin royalty payments which equate to 6% of gross sales.

“This equipment sale also allows us to cost-effectively expand into Louisiana, Texas and the Gulf Coast Region,” said Ermanno Santilli, MagneGas chief executive officer.

“Internationally, we signed an MOU with Masada Waste Management Company, a major waste collection and management company based in the Republic of Sierra Leone to import fuel and equipment. This is a strategic collaboration aimed to expand MagneGas' technology in West Africa.”

Santilli also highlighted a recent contract win which sees the company participate in a US$100mln NASA project at the Kennedy Space Center.  It will be suppling fuel to the project’s lead sub-contractor S&R Enterprises.

“This contract will last approximately two years and our fuel will be used for the metal cutting portion of the project, which is anticipated to be significant,” he added.

It is the second sub-contractor at Kennedy to prefer MagneGas, Santilli pointed out. “The Kennedy Space Center is a great addition to our military, fire and rescue, and other marquis corporate customers, and opens up new opportunities in aerospace."

MagneGas told investors it would now be purchasing 2,000 additional fuel cylinders, and its wholly-owned distributor has put 400 further cylinders into service to accommodate demand.

“We look forward to seeing the impact of these new cylinders on revenue in the coming months as we continue to expand nationwide. As we move into our new headquarters, we will be able to bring our third unit on-line to further increase our production capacity," Santili said.

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