Omnitek Engineering Corporation Reports 2013 Results

VISTA, Calif., March 31, 2014 (GLOBE NEWSWIRE) -- Omnitek Engineering Corporation (OTCBB:OMTK) today reported results for its fourth quarter and year ended December 31, 2013 -- highlighted by a strong balance sheet to support an accelerating ramp up of diesel-to-natural gas conversion kit sales and increasing fleet interest subsequent to the end of 2013.

For the fourth quarter ended December 31, 2013, the company reported a net loss of $526,480, or $0.03 per share, compared with $50,298, or $0.00 per share, a year ago. Revenues for the same period were $225,057 compared with $650,473 a year earlier, reflecting the timing and volume of orders.

The company reported a net loss for the full year of $1.6 million, or $0.08 per share, compared with a net loss of $1.4 million, or $0.07 per share, a year earlier. Revenues for the full year were $1.1 million compared with $1.9 million in 2012.

Revenues were impacted by the appreciation of the U.S. Dollar against the local currencies in certain international markets, as well as delayed order shipments to OE customers due to model-year changeovers.

Results for the twelve months ended December 31, 2013 reflect non-cash expenses, including the value of options and warrants granted in the amount of $314,467 and depreciation and amortization of $22,206 compared with non-cash expenses for the value of options and warrants granted of $653,856 and depreciation and amortization of $6,369 a year earlier.

"We anticipate sales of our diesel-to-natural gas engine conversions kits and natural gas engines will greatly accelerate in the coming quarters of 2014 -- supported by expanding sales to our bus fleet customer in Mexico, announced last week, and the expected near-term commencement of kit shipments to a European customer. We also expect the near-term ramp up fleet sales in the United States, which will include utilization of our EPA-certified kits for the widely operated line of heavy-duty Navistar DT466E and DT530E engines," said Werner Funk, president and chief executive officer of Omnitek Engineering Corporation.

Operating expenses for 2013 deceased 13 percent to $2,027,070 from $2,333,924 in 2012. General and administrative expense for 2013 was $1,711,440 compared with $2,041,447 in 2012, primarily due to an approximate $300,000 option and warrant expense reduction on a year-over-year basis and no private placement expenses being incurred in 2013. Salary and wages were higher in 2013 by approximately $204,671, due primarily to additions to staff in preparation for the anticipated ramp up of domestic and international sales of conversion kits in 2014. Research and development outlays increased slightly to $292,228 in 2013 compared with $285,745 in 2012 to further support the development of additional diesel-to-natural gas engine conversion kits.

"With more than eight million heavy-duty trucks on the road in the United States and a repayment period of typically one to two years for our diesel-to-natural gas conversion kits, the opportunities are significant and the company is better positioned than at any time in its history to capitalize on the pent-up domestic demand for our technology. We look forward to adding other EPA and state-related certifications this year," Funk emphasized.

About Omnitek Engineering Corporation

Omnitek Engineering Corp. develops and sells proprietary diesel-to-natural gas conversion systems and complementary products, including new natural gas engines that utilize the company's technology -- providing global customers with innovative alternative energy and emissions control solutions that are sustainable and affordable.

Some of the statements contained in this news release discuss future expectations, contain projections of results of operations or financial condition or state other ``forward-looking'' information. These statements are subject to known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from those contemplated by the statements. The forward-looking information is based on various factors and is derived using numerous assumptions. Important factors that may cause actual results to differ from projections include, among many others, the ability of the Company to raise sufficient capital to meet operating requirements, completion of R&D and successful commercialization of products/services, patent completion, prosecution and defense against well-capitalized competitors. These are serious risks and there is no assurance that our forward-looking statements will occur or prove to be accurate. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks"' "estimates," and variations of such words and similar expressions are intended to identify such forward-looking statements. Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

(Financial Tables Follow)

Statement of Operations
For the Three For the Three For the Twelve For the Twelve
Months Ended Months Ended Months Ended Months Ended
December 31, December 31, December 31, December 31,
2013 2012 2013 2012
REVENUES $ 225,057 $ 650,473 $ 1,052,518 $ 1,899,740
COST OF GOODS SOLD 175,594 340,232 703,630 971,927
GROSS MARGIN 49,463 310,240 348,888 927,813
General and administrative 491,959 252,419 1,711,440 2,041,447
Research and development expense 85,106 119,675 292,228 285,745
Bad debt expense -- 363 1,196 363
Depreciation and amortization expense 7,908 1,773 22,206 6,369
Total Operating Expenses 584,973 374,230 2,027,070 2,333,924
LOSS FROM OPERATIONS (535,510) (63,990) (1,678,182) (1,406,111)
Interest expense -- -- (13) (490)
Interest income 9,030 13,692 64,807 35,948
TOTAL OTHER INCOME 9,030 13,692 64,794 35,458
LOSS BEFORE INCOME TAXES (526,480) (50,298) (1,613,388) (1,370,653)
INCOME TAX EXPENSE -- -- 800 800
NET LOSS $ (526,480) $ (50,298) $ (1,614,188) $ (1,371,453)
BASIC AND DILUTED LOSS PER SHARE $ (0.03) $ (0.00) $ (0.08) $ (0.07)
OF COMMON SHARES OUTSTANDING BASIC AND DILUTED 19,750,787 19,092,975 19,750,787 19,092,975
Balance Sheet
December 31, December 31,
2013 2012
Cash $ 1,057,836 $ 3,192,761
Accounts receivable, net 38,261 120,547
Accounts receivable - related parties 33,369 26,455
Inventory, net 2,225,868 1,133,595
Prepaid expense 21,474 7,440
Deposits 62,973 331,760
Short term investments, net 917,248 --
Total Current Assets 4,357,029 4,812,558
FIXED ASSETS, net 118,460 14,560
Long-term investments, net -- 1,201,671
Intellectual property, net 2,872 5,218
Total Other Assets 2,872 1,206,889
TOTAL ASSETS $ 4,478,361 $ 6,034,007
Accounts payable and accrued expenses $ 91,744 $ 317,106
Accrued management compensation 189,466 264,717
Accounts payable - related parties 1,475 --
Customer deposits 222,072 184,109
Total Current Liabilities 504,757 765,932
Total Liabilities 504,757 765,932
Common stock, 125,000,000 shares authorized no par value 19,759,582 and 19,749,582 shares issued and outstanding, respectively 8,201,311 8,196,061
Additional paid-in capital 5,181,636 4,867,169
Accumulated deficit (9,409,343) (7,795,155)
Total Stockholders' Equity 3,973,604 5,268,075

CONTACT: Gary S. Maier Maier & Company, Inc. (310) 471-1288 gmaier@maierco.comSource:Omnitek Engineering Corp.