VISTA, Calif., Nov. 08, 2017 (GLOBE NEWSWIRE) -- Omnitek Engineering Corp. (OTCQB:OMTK) today announced results for its third quarter and nine months ended September 30, 2017 -- reflecting a sharply reduced net loss for both periods, encouraging feedback on an ongoing evaluation program for a large domestic fleet customer that commenced during the quarter and the expansion of development projects for near-and longer-term growth.
For the three months ended September 30, 2017, the company reported a net loss of $149,849, or ($0.01) per share, compared with a net loss of $217,909, or ($0.01) per share, a year earlier. Net revenues for the quarter were $276,241 compared with $355,050 from a year earlier – reflecting the timing of product shipments and recognition of long-term contract revenues.
For the nine-month period, the company reported a net loss of $550,479, or ($0.03) per share, compared with a net loss of $707,592, or ($0.04) per share, a year earlier. Net revenues for the nine-months were $814,210 compared with $946,948 a year ago.
Gross margin for the quarter ended September 30, 2017 was 43 percent compared with 43 percent a year earlier. Gross margin for the nine months was 44 percent compared with 45 percent a year earlier, both within the company’s normalized target range of 40 to 50 percent.
“During the quarter, we continued to support an evaluation phase and on-road testing of five trucks for a conversion program of the Navistar VT365 for a large domestic fleet customer. We remain optimistic that the program will be expanded. The level of development projects and quote requests from other potential customers -- particularly in Turkey, Europe, Mexico and China -- continues to gain momentum and we remain focused on ramping up 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 Third Quarter Highlights, include:
- Increased 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
- Expansion of engine development work for an existing European customer, including development of a EURO VI 13-liter heavy-duty natural gas engine and EURO VI 12-liter heavy-duty LPG (Propane) engine.
At September 30, 2017, current liabilities totaled $1,096,987 and current assets totaled $2,020,640, resulting in positive working capital of approximately $923,653 and a current ratio of 1.84.
Funk emphasized, despite lower oil prices which are beginning to increase, the cost for a diesel truck engine conversion can be recouped within a one-to-two-year period, especially in foreign markets where taxes 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.omintekcorp.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||158,358||200,894||456,765||521,387|
|General and administrative||240,477||306,535||789,618||960,789|
|Research and development expense||18,978||57,402||92,667||151,706|
|Depreciation and amortization expense||6,147||6,617||18,594||21,081|
|Total Operating Expenses||265,602||370,554||900,879||1,133,576|
|LOSS FROM OPERATIONS||(147,719||)||(216,398||)||(543,434||)||(708,015||)|
|OTHER INCOME (EXPENSE)|
|Total Other Income (Expense)||(2,130||)||(1,511||)||(6,245||)||1,223|
|LOSS BEFORE INCOME TAXES||(149,849||)||(217,909||)||(549,679||)||(706,792||)|
|INCOME TAX EXPENSE||-||-||800||800|
|BASIC AND DILUTED LOSS PER SHARE||$||(0.01||)||$||(0.01||)||$||(0.03||)||$||(0.04||)|
|WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING BASIC AND DILUTED||20,281,082||20,273,473||20,281,082||20,095,681|
OMNITEK ENGINEERING CORP.
|Condensed Balance Sheet|
|September 30,||December 31,|
|Accounts receivable, net||28,457||28,159|
|Accounts receivable - related parties||7,654||7,005|
|Cost and estimated earnings in excess of billings||-||30,973|
|Total Current Assets||2,020,640||1,980,859|
|FIXED ASSETS, net||13,245||31,839|
|Other noncurrent assets||14,280||14,280|
|Total Other Assets||14,280||14,280|
|TOTAL ASSETS||$|| 2,048,165||$||2,026,978|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accounts payable and accrued expenses||$||288,185||$||325,255|
|Accrued management compensation||437,897||314,788|
|Accounts payable – related parties||75,311||18,373|
|Billings in excess of costs and estimated earnings||30,000||-|
|Total Current Liabilities||1,096,987||745,530|
|Common stock, 125,000,000 shares authorized no par value 20,281,082 shares issued and outstanding||8,411,411||8,411,411|
|Additional paid-in capital||11,841,050||11,620,841|
|Total Stockholders' Equity||951,178||1,281,448|
|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY||$||2,048,165||$||2,026,978|
Gary S. Maier
Maier & Company, Inc.
Source:Omnitek Engineering Corp.