VISTA, Calif., Nov. 13, 2014 (GLOBE NEWSWIRE) -- Omnitek Engineering Corp. (OTCQB:OMTK) today reported results for its third quarter and nine months ended September 30, 2014 -- reflecting higher revenues, the company's successful third EPA-approved natural gas engine and EURO 4 emissions certification in Mexico.
Net revenues climbed for the third quarter 60 percent to $449,477 from $280,921 a year earlier – reflecting increased natural gas filter sales, drop-in engine sales and conversion kit shipments. For the same period, the company reported a net loss of $542,357, or $0.03 per share, compared with a net loss of $973,248, or $0.05 per share, a year earlier – primarily reflecting the non-cash impact related to a change in the valuation of a derivative.
Net revenues for the nine-month period increased 29.6 percent to $1.07 million from $827,460 a year ago, due to the positive factors noted above and no further impact of the company's relocation to a large facility a year earlier. For the same period, the company reported a net loss of $1.42 million, or $0.07 per share, compared with a net loss of $3.71 million, or $0.19 per share, a year earlier.
Gross margin for the quarter ended September 30, 2014 was 45 percent compared with 36 percent a year earlier due to volume and product mix. Gross margin for the nine months was 40 percent compared with 36 percent a year earlier, but still consistent with the company's normalized target range of 40 to 50 percent as domestic sales commence and foreign sales regain momentum.
"We remain confident that the long-awaited domestic conversion market will continue to accelerate as large domestic trucking fleet operators focus on our expanding line up of EPA-approved natural gas "drop-in" engines and conversions kits, the favorable economics, and environmental considerations," said Werner Funk, president and chief executive officer of Omnitek Engineering Corp.
At September 30, 2014, current liabilities totaled $543,167 and current assets totaled $3.3 million, resulting in positive working capital of approximately $2.7 million and a current ratio of 6.04 to 1. The company's total assets at September 30, 2014 were $3.4 million. Funk noted that inventory levels remain high to support the anticipated ramp up of domestic sales activities in the current year and expected accelerating activities in early 2015.
The company is working diligently to obtain EPA and CARB approval for additional diesel engine models to address the anticipated increasing demand from trucking fleets that operate with other diesel engine models to complement its EPA-certification of the heavy-duty Navistar DT466E and DT530E, 12-liter Mack E7 and Detroit Diesel Series 60 engines. The company is currently focused on completing testing of the Caterpillar C15 engine models as part of the second phase for the Puget Sound Clean Air Agency pilot project.
Funk emphasized that the cost for a diesel truck engine conversion can be recouped within a one-to-two year period, and even earlier if performed during a regularly scheduled engine overhaul.
About Omnitek Engineering Corp.
Omnitek Engineering Corp. develops and sells new natural gas engines, as well as proprietary diesel-to-natural gas conversion systems -- providing global customers with innovative alternative energy and emissions control solutions that are sustainable and affordable. Additional information is available at www.omnitekcorp.com.
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)
|OMNITEK ENGINEERING CORP.|
|Condensed Statements of Operations (unaudited)|
|For the Three||For the Three||For the Nine||For the Nine|
|Months Ended||Months Ended||Months Ended||Months Ended|
|September 30||September 30||September 30||September 30|
|(as restated)||(as restated)|
|COST OF GOODS SOLD||247,525||180,103||639,588||528,035|
|General and administrative||559,013||470,258||1,436,716||1,193,132|
|Research and development expense||192,321||104,991||431,480||207,127|
|Depreciation and amortization expense||11,898||14,503||41,701||41,839|
|Total Operating Expenses||763,232||589,752||1,909,897||1,442,098|
|LOSS FROM OPERATIONS||(561,280)||(488,934)||(1,477,248)||(1,142,673)|
|OTHER INCOME (EXPENSE)|
|Change in fair value of derivative liability||--||(505,353)||--||(2,625,978)|
|Investment income, net||--||--||12,921||--|
Total Other Income (Expense)
|LOSS BEFORE INCOME TAXES||(542,357)||(973,248)||(1,418,871)||(3,712,887)|
|INCOME TAX EXPENSE||--||--||800||800|
|BASIC AND DILUTED LOSS PER SHARE||$(0.03)||$(0.05)||$(0.07)||$(0.19)|
|WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING BASIC AND DILUTED||19,768,520||19,749,582||19,768,520||19,749,582|
|OMNITEK ENGINEERING CORP.|
|Condensed Balance Sheet|
|September 30,||December 31,|
|Accounts receivable, net||73,484||38,261|
|Accounts receivable - related parties||9,463||33,369|
|Short-term investments, net||--||917,248|
|Total Current Assets||3,280,029||4,357,029|
|FIXED ASSETS, net||96,522||118,460|
|Intellectual property, net||1,716||2,872|
|Total Other Assets||1,716||118,460|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accounts payable and accrued expenses||$146,624||$91,744|
|Accrued management compensation||118,947||189,466|
|Accounts payable – related parties||2,329||1,475|
|Total Current Liabilities||543,167||504,757|
|Common stock, 125,000,000 shares authorized no par value 19,779,582 and 19,759,582 shares issued and outstanding, respectively||8,214,911||8,201,311|
|Additional paid-in capital||11,053,338||10,785,771|
|Total Stockholders' Equity||2,835,100||3,973,604|
|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY||$3,378,267||$4,478,361|
CONTACT: Gary S. Maier Maier & Company, Inc. (310) 471-1288Source:Omnitek Engineering Corp.