MagneGas Corp., a Pinellas Park firm that makes a gas product used in metal working, reported a 201 percent spike in quarterly revenues on Tuesday. Its net loss increased from $2.2 million in the year-ago quarter to $3.5 million.
Magnegas had $2.9 million in revenue in its second quarter, the company said, up from $966,204 the same quarter in 2017. MagneGas attributed the spike to its acquisition of Trico Welding Supplies, a California company MagneGas absorbed, which accounted for the bulk of the revenue — $1.4 million. On a call with investors Tuesday, CEO Ermanno Santilli said that the company plans to continue growth through acquisitions, expanding into Europe.
"We are extremely confident in our strategy, and it is doing well," Santilli said.
The company is rapidly expanding, Santilli said, as it added more than 100 clients during the year’s first quarter. Santilli said MagneGas plans on expanding its client base in Florida, with several new developments in Pasco County for the year’s third quarter, as well as in Texas and California.
"Our goal is to be one of the top five independent operations in those markets," he said.
While the company’s roots were largely in metal cutting, Santilli said, that’s not its future.
"To be clear, the metal cutting industry is not our end game or our sole objective," he said. "Instead we are an environmental tech company."
MagneGas’ earnings release made no mention of a death associated with its product just weeks before the quarter ended, nor the two investigations by federal agencies into the accident. Andrew Reynolds, 32, was killed while transporting a MagneGas canister June 6. The cylinder exploded, and Reynolds died from injuries sustained during the blast.
This is the second death from a blast involving a MagneGas container, and the third-known incident of damage caused by a spontaneous MagneGas container explosion.
MagneGas shares closed at 27 cents per share Tuesday, down about 7.5 percent.
Contact Malena Carollo at [email protected] or (727) 892-2249. Follow @malenacarollo.