Revenue during the quarter plunged 47.43 percent to $9.57 million from $18.20 million in the previous year period. Gross margin for the quarter contracted 1860 basis points over the previous year period to 19.35 percent. Operating margin for the quarter stood at negative 73.67 percent as compared to a negative 15.42 percent for the previous year period.

Operating loss for the quarter was $7.05 million, compared with an operating loss of $2.81 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at negative $3.83 million compared with $0.05 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 40.05 percent for the quarter compared to 0.27 percent in the last year period.

Vincent J. Arnone, president and CEO of Fuel Tech, commented, "Our results for Q4 and FY 2016 were disappointing and indicative of the lingering challenges that we are facing caused by continued regulatory uncertainty that has hindered capital investment in our products by both utility and industrial customers. Declining energy demand, and a shift towards less expensive natural gas and away from coal have also negatively impacted our performance. Revenues for 2016 declined for our two primary business segments and our consolidated operating losses increased. We also incurred non-cash charges and other items totaling $4.7 million in Q4 2016 and $6.5 million in FY 2016."

The company has spent $0.94 million cash to meet investing activities during the year as against cash outgo of $0.78 million in the last year. It has incurred net capital expenditure of $0.94 million on net basis during the year, up 20.88 percent or $0.16 million from year ago.

The company has spent $6.19 million cash to carry out financing activities during the year as against cash outgo of $1.88 million in the last year period.

Cash and cash equivalents stood at $11.83 million as on Dec. 31, 2016, down 45.46 percent or $9.86 million from $21.68 million on Dec. 31, 2015.