Despite warning, MTI Micro chief positive

COLONIE -- MTI MicroFuel Cells Inc., the Colonie company working to develop small fuel cells for handheld electronic devices, is still hoping to commercialize its Mobion device this year despite a gloomy financial outlook. Chief Executive Officer Peng Lim, who also heads parent company Mechanical Technology Inc., said in an interview Friday the company is conserving cash and keeping a low profile on its way to preparing Mobion for market. "We're continuing to make progress on our technology,' Lim said. "We're continuing to move forward." Investors might have been alarmed that Mechanical Technology's annual report filed earlier this week with the Securities and Exchange Commission says that MTI Micro needs additional funding to keep operating and that if new money doesn't come in, the company would have to make "significant changes" to its operations this month. Lim didn't seem upset by the cautionary legal wording, which is common in SEC filings made by small emerging technology companies. He said the language in previous filings has been much more dire, although he declined to comment specifically on the company's financial future. He did say that a recent decision by board member and investor Walter Robb to convert a bridge loan into stock showed a tremendous amount of confidence in the company. Robb, the former head of General Electric Co.'s Global Research Center in Niskayuna, had invested in MTI Micro through his venture capital fund, Counter Point Ventures Fund. The GE Pension Trust is also a passive investor in that fund, according to the annual report, although a GE corporate spokesman did not return a call seeking comment. "That is a good thing," Lim said "Counter Point has been very, very supportive of us. They go above and beyond." Lim pointed to $2.4 million in federal stimulus funding that MTI Micro's Mobion program received through the Department of Energy last year as a sign that the company has the ability to find new funding sources as it seeks to make its methanol-powered technology available to makers of digital cameras, cell phones and power tools. He also said that parent company Mechanical Technology, which operates in the same space on New Karner Road in Colonie, has made great strides in cutting expenses. For instance, last year, the company's loss for the year dropped to $3 million, from $12 million in 2008, as the company greatly reduced expenses while slightly increasing revenues in a tough economic climate. "It's good improvement," Lim said. "We've have made great progress for the year."