Although still losing money, systems integrator MTI Technology Corp. (Nasdaq: MTIC) today announced it raised $15 million in private placement equity financing, with which it plans to more than double its sales force and deepen a relationship with EMC Corp. (NYSE: EMC).
Advent International invested $11 million and EMC $4 million in exchange for stock in MTI, which is based in Irvine, Calif. Advent partner Mike Pehl also joins MTIs board, and MTI assigned its intellectual property to EMC in exchange for the funding.
In a call with analysts, MTI CEO Tom Raimondi said the company plans to increase its North American sales force from 22 today to 62 by the end of the year while expanding in Europe from 18 to 40.
In its earnings report today, MTI reported net losses of $3.9 million, or $0.12 per share, for its fiscal year 2004; and $700,000, or $0.02 per share, for the fourth quarter. MTI lost $11.2 million, or $0.34 per share, in fiscal year 2003; and reported net income of $600,000, or $0.02 per share, for its fourth quarter a year ago.
However, MTIs revenues of $83.2 million for the year and $23.6 million for the quarter were up year-over-year and sequentially. The companys revenues for the previous year were $82.4 million, and it had $22.4 million in revenue in the fourth quarter a year ago.
