VISTA, Calif., Nov. 10, 2015 (GLOBE NEWSWIRE) -- Omnitek Engineering Corp. (OTCQB:OMTK) today announced results for its third quarter and nine months ended September 30, 2015 --reflecting a sharply reduced net loss for both periods, an order backlog of approximately $392,000 and the commencement of an evaluation program for a large domestic fleet customer subsequent to the quarter end.
Net revenues for the third quarter were $438,178 compared with $447,477 from a year earlier – reflecting the timing of orders. For the same period, the company reported a net loss of $271,970, or $0.01 per share, compared with a net loss of $542,357, or $0.03 per share, a year earlier.
Net revenues for the nine-month period increased 38 percent to $1.48 million from $1.07 million a year ago, reflecting increased contributions from high-pressure natural gas filter sales and conversion kit shipments to domestic and foreign customers. For the same period, the company reported a net loss of $677,414, or $0.03 per share, compared with a net loss of $1.42 million, or $0.07 per share, a year earlier.
Gross margin for the quarter ended September 30, 2015 was 44 percent compared with 45 percent a year earlier due to the volume and timing of orders. Gross margin for the nine months was 48 percent compared with 40 percent a year earlier, both within the company’s normalized target range of 40 to 50 percent.
“We remain confident that the long-awaited domestic conversion market will continue to accelerate as large domestic trucking fleet operators focus on the environment and the availability of our “as-new” converted EPA-approved natural gas engines and conversions kits. Equally important, our business in Mexico, Europe and Asia is gaining meaningful momentum – supported by a global focus on environmental and economic considerations,” said Werner Funk, president and chief executive officer of Omnitek Engineering Corp.
As noted above, the company recently commenced an evaluation program for a large domestic fleet customer. The engine being developed is the Navistar VT365, as used in class 5 and 6 delivery trucks. Omnitek Engineering anticipates delivering favorable results during the evaluation period, which it expects to complete early in 2016. “We are optimistic that the program will be enlarged to address an estimated 2,700 vehicles, and we look forward to announcing further details and developments in cooperation and with the approval of our customer,” Funk said.
At September 30, 2015, current liabilities totaled $522,801 and current assets totaled $2.5 million, resulting in positive working capital of approximately $2 million and a current ratio of 4.83 to 1. The company’s total assets at September 30, 2014 were $2.6 million. Funk noted that inventory levels remain high to support the anticipated acceleration of domestic and foreign sales activities.
Funk emphasized, despite lower oil prices which he expects will begin to increase, the cost for a diesel-to-natural gas engine conversion can be recouped within a one-to-two year period, particularly in foreign markets where taxes on diesel fuel are particularly higher than in the domestic market. Conversion costs also benefit when the process is 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|
|COST OF GOODS SOLD||245,419||247,525||766,067||639,588|
|General and administrative||385,209||559,013||1,133,102||1,436,716|
|Research and development expense||71,962||192,321||238,201||431,480|
|Depreciation and amortization expense||7,526||11,898||23,050||41,701|
|Total Operating Expenses||464,697||763,232||1,394,353||1,909,897|
|LOSS FROM OPERATIONS||(271,938||)||(561,280||)||(680,357||)||(1,477,248||)|
|OTHER INCOME (EXPENSE)|
|Investment income, net||-||-||3,934||12,921|
|Total Other Income (Expense)||(34||)||18,923||3,743||58,377|
|LOSS BEFORE INCOME TAXES||(271,972||)||(542,357||)||(676,614||)||(1,418,871||)|
|INCOME TAX EXPENSE||-||-||800||800|
|BASIC AND DILUTED LOSS PER SHARE||$||(0.01||)||$||(0.03||)||$||(0.03||)||$||(0.07||)|
|WEIGHTED AVERAGE NUMBER|
|OF COMMON SHARES OUTSTANDING BASIC AND DILUTED||19,981,082||19,768,520||19,980,934||19,768,520|
|OMNITEK ENGINEERING CORP.|
|Condensed Balance Sheet|
|September 30,||December 31,|
|Accounts receivable, net||49,757||56,059|
|Accounts receivable - related parties||20,475||15,092|
|Total Current Assets||2,525,881||3,000,693|
|FIXED ASSETS, net||66,542||88,715|
|Intellectual property, net||467||1,345|
|Other noncurrent assets||-||14,280|
|Total Other Assets||467||15,525|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accounts payable and accrued expenses||$||142,288||$||84,385|
|Accrued management compensation||156,375||102,096|
|Accounts payable – related parties||18,868||3,600|
|Total Current Liabilities||522,801||535,925|
|Common stock, 125,000,000 shares authorized no par value|
|19,779,582 and 19,759,582 shares issued and outstanding,|
|Additional paid-in capital||11,298,397||11,121,502|
|Total Stockholders' Equity||2,070,089||2,569,108|
|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY||$||2,592,890||$||3,105,033|
CONTACT: Gary S. Maier Maier & Company, Inc. (310) 471-1288
Source:Omnitek Engineering Corp.