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Omnitek Engineering Corp. Reports Second Quarter Results

VISTA, Calif., Aug. 10, 2015 (GLOBE NEWSWIRE) -- Omnitek Engineering Corp. (OTCQB:OMTK) today reported results for its second quarter and six months ended June 30, 2015 – reflecting strong revenue gains for the quarter and six months, margin expansion and a significantly reduced net loss for both periods.

Revenues for the second quarter increased 95.5 percent to $591,185 from $302,385 a year earlier, reflecting higher filter sales and diesel-to-natural gas engine conversion kit shipments. For the same period in 2015, the company reported a sharply reduced net loss of $168,280, or $0.01 per share, compared with a net loss of $459,509, or $0.02 per share, a year earlier, reflecting higher sales combined with lower operating expenses.

Results for the three months ended June 30, 2015 reflect the impact of non-cash expenses, including the value of options and warrants granted in the amount of $53,486 and depreciation and amortization of $7,734. For the three month period a year earlier, non-cash expenses for the value of options and warrants granted were $45,822, with depreciation and amortization of $14,834.

Revenues for the six-month period were $1,041,885 compared with $622,759 a year ago. For the same period, the company reported a sharply reduced net loss of $405,442, or $0.02 per share, compared with a net loss of $877,314, or $0.04 per share, a year earlier.

Results for the six months ended June 30, 2015 reflect the impact of non-cash expenses, including the value of options and warrants granted in the amount of $87,089 and depreciation and amortization of $15,524. For the six-month period a year earlier, non-cash expenses for the value of options and warrants granted were $91,141 and depreciation and amortization of $29,902.

Gross margin for the quarter ended June 30, 2015 was $322,181 compared with $105,374 a year ago. Gross margin for the quarter as a percentage of sales was 54 percent compared with 35 percent in the same period a year ago, primarily reflecting sales volume and product mix.

Gross margin for the six-months ended June 30, 2015 was $521,237 compared with $230,697 a year earlier. Gross margin for the six-month period as a percentage of sales was 50 percent compared with 37 percent in the same period a year ago, primarily reflecting sales volume and product mix.

"The company's sales performance continued to gain momentum in the second quarter, and we expect meaningful growth in the second half of 2015 -- supported by foreign market sales activity, particularly Europe and Mexico, as well as anticipated contributions from certain key domestic large fleet projects," said Werner Funk, president and chief executive officer of Omnitek Engineering Corp.

The company's order backlog at June 30, 2015 was approximately $440,000.

He emphasized that the cost for a diesel truck engine conversion can be recouped within a one-to-two year period, even with current low oil prices. This is particularly true in European countries, which are essentially unaffected by lower oil prices due to the high fuel tax component. He noted that a high price delta between diesel and natural gas can result in a payback period as short as six months.

At June 30, 2015, the company's total current assets were $2,813,881 and total current liabilities were $650,442 -- resulting in positive working capital of $2,252,255 and a current ratio of 4.33 to 1.

About Omnitek Engineering Corp.

Omnitek Engineering Corp. develops and sells proprietary diesel-to-natural gas engine 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)

OMNITEK ENGINEERING CORPORATION
Consolidated Statement of Operations
(unaudited)
For the Three For the Three For the Six For the Six
Months Ended Months Ended Months Ended Months Ended
June 30, June 30, June 30, June 30,
2015 2014 2015 2014
REVENUES $ 591,185 $ 302,385 $ 1,041,885 $ 622,759
COST OF GOODS SOLD 269,003 197,011 520,648 392,062
GROSS MARGIN 322,181 53,374 521,237 230,697
OPERATING EXPENSES
General and administrative 396,841 433,083 747,893 877,604
Research and development expense 89,655 135,399 166,239 239,159
Depreciation and amortization expense 7,734 14,834 15,524 29,902
Total Operating Expenses 494,230 583,316 929,656 1,146,665
LOSS FROM OPERATIONS (172,048) (477,942) (408,419) (915,968)
OTHER INCOME (EXPENSE)
Investment income, net 3,934 12,921 3,934 12,921
Interest expense (172) -- (172) --
Interest income 6 5,512 15 26,533
Total Other Income (Expense) 3,768 18,433 3,777 39,454
LOSS BEFORE INCOME TAXES (168,280) (459,509) (404,642) (876,514)
INCOME TAX EXPENSE -- -- 800 800
NET LOSS $ (168,280) $ (459,509) $ (405,442) $ (877,314)
BASIC AND DILUTED INCOME (LOSS) PER SHARE $ (0.01) $ (0.02) $ (0.02) $ (0.04)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 19,981,082 19,762,897 19,981,858 19,762,897
OMNITEK ENGINEERING CORPORATION
Consolidated Balance Sheet
ASSETS
June 30, December 31,
2015 2014
(unaudited) (audited)
CURRENT ASSETS
Cash $ 350,351 $ 498,782
Accounts receivable, net 93,133 56,059
Accounts receivable - related parties 17,723 15,092
Inventory, net 2,215,859 2,333,781
Prepaid expense 6,050 4,200
Deposits 130,765 92,779
Total Current Assets 2,813,881 3,000,693
FIXED ASSETS, net 73,934 88,715
OTHER ASSETS
Intellectual property, net 602 1,345
Other noncurrent assets 14,280 14,280
Total Other Assets 14,882 15,625
TOTAL ASSETS $ 2,902,697 $ 3,105,033
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 111,043 $ 84,385
Accrued management compensation 131,567 102,096
Accounts payable - related parties 7,096 3,600
Customer deposits 400,736 345,844
Total Current Liabilities 650,442 535,925
Total Liabilities 650,442 535,925
STOCKHOLDERS' EQUITY
Common stock, 125,000,000 shares authorized no par value 19,819,082 and 19,959,582 shares issued and outstanding, respectively 8,291,411 8,289,911
Additional paid-in capital 11,208,591 11,121,502
Accumulated deficit (17,247,747) (16,842,305)
Total Stockholders' Equity 2,252,255 2,569,108
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,902,697 $ 3,105,033

CONTACT: Gary S. Maier Maier & Company, Inc. (310) 471-1288Source:Omnitek Engineering Corp.