MTI Reports Earnings

IRVINE, Calif. -- MTI Technology Corporation (Nasdaq: MTIC - News), a multi-national provider of consulting services and comprehensive information infrastructure solutions, today reported financial results for its fiscal 2007 third quarter ended December 30, 2006.

Total revenue for the quarter grew 12% to $45.2 million compared to $40.2 million in the prior year period. Growth from the prior year is primarily attributable to a 50% rise in service revenues to $14.3 million, reflecting the changing nature of the Company following the acquisition of Collective Technologies. Product revenue of $30.9 million was up slightly from a year ago but was up 22% compared to the prior quarter.

The Company reported a net loss of $1.5 million or $0.04 per share in the third quarter of fiscal 2007 compared to $1.8 million or $0.05 per share in the prior year period, on a generally accepted accounting principles (GAAP) basis. Included in fiscal 2007 third quarter net loss are charges for stock option and restricted stock expense, amortization of intangible assets and restructuring totaling $1.0 million. Excluding these items, non-GAAP net loss improved by 71% year-over-year to $0.5 million or $0.01 per share from a net loss of $1.7 million or $0.05 per share in the prior year period.

MTI Technology Corp.