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Omnitek Engineering Reports Second Quarter and Six-Month Results

VISTA, Calif., Aug. 11, 2017 (GLOBE NEWSWIRE) -- Omnitek Engineering Corp. (OTCQB:OMTK) today reported results for its second quarter and six months ended June 30, 2017 – reflecting a sharply reduced net loss for both periods, an improved cash position and the commencement of a previously announced grant program to develop an 18-liter off-road natural gas engine.

Net revenues for the second quarter were $246,314 compared with $252,316 a year earlier. For the same period, the company reported a net loss of $191,589, or $0.01 per share, compared with a net loss of $292,939, or $0.01 per share, a year earlier.

Results for the three months ended June 30, 2017 reflect the impact of non-cash expenses, including the value of options and warrants granted in the amount of $25,200 and depreciation and amortization of $6,224. For the three-month period a year earlier, non-cash expenses for the value of options and warrants granted were $81,969, with depreciation and amortization of $6,976.

Net revenues for the six-month period were $537,968 compared with $591,899 a year ago. For the same period, the company reported a net loss of $400,630, or $0.02 per share, compared with a net loss of $489,683, or $0.02 per share, a year earlier.

Results for the six months ended June 30, 2017 reflect the impact of non-cash expenses, including the value of options and warrants granted in the amount of $94,733 and depreciation and amortization of $12,448. For the six-month period a year earlier, non-cash expenses for the value of options and warrants granted were $118,068 and depreciation and amortization of $14,463.

Gross margin as a percentage of revenues was 41 percent for both the quarter ended June 30, 2017 and the quarter ended June 30, 2016. Gross margin as a percentage of revenues for the six months ended June 30, 2017 was 45 percent compared with 46 percent a year earlier.

“During the quarter, we completed the development phase of a key conversion program of the Navistar VT365 for a large domestic fleet customer. The feedback from the customer during its evaluation phase has been positive and we remain optimistic that the program will be expanded. The level of quote requests from other potential fleet customers -- particularly in Mexico, Canada, Europe and China -- continues to gain momentum and we remain focused on ramping up fleet conversions on a large scale to address global government mandates to improve air quality,” said Werner Funk, president and chief executive officer of Omnitek Engineering Corp.

Additional Second Quarter Highlights, include:

  • Increased filter sales as an OE supplier to TATA, India, to support expanding utilization of alternative fuel vehicles to address new stringent clean air policies in India
  • The commencement late in the quarter of a previously announced California Energy Commission grant program to demonstrate clean natural gas engine technology for off-road heavy-duty construction vehicle applications
  • Expansion of engine development work for an existing European customer, as well as engagement for development of a EURO VI 12-liter heavy-duty LPG (Propane) engine for bus and truck applications
  • An increased cash position
  • A year-to-date order backlog of approximately $369,000.

At June 30, 2017, current liabilities totaled $1,051,047 and current assets totaled $2,092,927, resulting in positive working capital of $1,041,880 million and a current ratio of 1.99 to 1.

About Omnitek Engineering Corp.
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)

OMNITEK ENGINEERING CORP.
Condensed Statements 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
2017 2016 2017 2016
REVENUES $246,314 $252,316 $537,968 $591,899
COST OF GOODS SOLD 145,794 148,316 298,407 320,493
GROSS MARGIN 100,520 104,000 239,561 271,406
OPERATING EXPENSES
General and administrative 249,017 341,461 549,139 654,257
Research and development 33,805 46,897 73,689 94,303
Depreciation and amortization 6,224 6,976 12,448 14,463
Total Operating Expenses 289,046 395,334 635,276 763,023
LOSS FROM OPERATIONS (188,526) (291,334) (395,715) (491,617)
OTHER INCOME (EXPENSE)
Other income - 1,144 - 5,374
Interest expense (2,263) (1,949) (4,115) (2,640)
Interest income - - - -
Total Other Income (Expense) (2,263) (805) (4,115) 2,734
LOSS BEFORE INCOME TAXES (190,789) (292,139) (399,830) (488,883)
INCOME TAX EXPENSE 800 800 800 800
NET LOSS $ (191,589) $ (292,939) $ (400,630) $ (489,683)
BASIC AND DILUTED LOSS PER SHARE $(0.01) $(0.01) $(0.02) $(0.02)
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING BASIC AND DILUTED 20,281,082 20,030,533 20,281,082 20,005,807


OMNITEK ENGINEERING CORP.
Condensed Balance Sheet
ASSETS
June 30, December 31,
2017 2016
(unaudited)
CURRENT ASSETS
Cash$96,973 $17,782
Accounts receivable, net 76,227 28,159
Accounts receivable - related parties 7,513 7,005
Inventory, net 1,876,470 1,869,900
Prepaid expense - 5,324
Costs and estimated earnings in excess of billings - 30,973
Deposits 35,744 21,716
Total Current Assets 2,092,927 1,980,859
FIXED ASSETS, net 19,391 31,839
OTHER ASSETS
Other noncurrent assets 14,280 14,280
Total Other Assets 14,280 14,280
TOTAL ASSETS$2,126,598 $2,026,978
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses$345,697 $ 325,255
Accrued management compensation 399,154 314,788
Accounts payable - related parties 56,702 18,373
Billings in excess of costs and estimated earnings 5,998 -
Customer deposits 243,496 87,114
Total Current Liabilities 1,051,047 745,530
Total Liabilities 1,051,047 745,530
STOCKHOLDERS' EQUITY
Common stock, 125,000,000 shares authorized no par value
20,231,082 and 19,981,082 shares issued and outstanding 8,411,411 8,411,411
Additional paid-in capital 11,815,574 11,620,841
Accumulated deficit (19,151,434) (18,750,804)
Total Stockholders' Equity 1,075,551 1,281,448
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$ 2,126,598 $ 2,026,978


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

Source:Omnitek Engineering Corp.