Omnitek Engineering Corporation Reports Fourth Quarter and Year-End Results

VISTA, Calif., March 18, 2013 (GLOBE NEWSWIRE) -- Omnitek Engineering Corporation (OTCBB:OMTK) today reported results for its fourth quarter and year ended December 31, 2012 -- highlighted by a strong balance sheet to support the company's domestic ramp up of diesel-to-natural gas conversion kit sales.

For the fourth quarter ended December 31, 2012, the company reported a reduced net loss of $50,298, or $0.002 per share, compared with a net loss of $155,384, or $0.01 per share, a year ago. Revenues for the same period were $650,473 compared with $239,817 a year earlier.

As anticipated due, in part, to certain items noted below, the company reported a net loss for the full year of $1.37 million, or $0.07 per share, compared with a net loss of $441,555, or $0.03 per share, a year earlier. Revenues for the full year increased 23 percent to $1.9 million from $1.55 million in 2011.

Results for the twelve-month period reflect the impact of non-cash expenses, including the value of options and warrants granted in the amount of $653,856 and depreciation and amortization of $6,369. For the twelve-month period a year earlier, non-cash expenses for the value of options and warrants granted were $208,706 and depreciation and amortization of $70,484.

Gross margin for 2012 was $927,813 compared with $753,430 a year ago. Gross margin as a percentage of sales for the same period was 49 percent compared with 49 percent last year. Further gross margin improvement is expected as domestic conversion kit sales ramp up and the company benefits from improved component pricing from suppliers and related synergies.

"The past year was a period of continued success for the company -- highlighted by EPA approval, just after year end, for the company's diesel-to-natural gas conversion technology for the widely operated line of heavy-duty Navistar DT466E and DT530E engines, representing an estimated addressable market of 1.5 million heavy-duty trucks and buses. We are continuing to focus on further expansion of the company's conversion center partnerships throughout the United States, most recently in Texas, while remaining focused on leveraging the company's presence since 2001 in international markets – represented by dealers, installers and partnerships throughout Asia, Latin and South America and Europe," said Werner Funk, president and chief executive officer of Omnitek Engineering Corporation.

"With more than eight million heavy-duty trucks on the road in the United States and a return on investment of one year or less for our diesel-to-natural gas conversion kits, the opportunities are significant and the company is better positioned than at any time in its history to capitalize on the pent-up domestic demand for our technology. We look forward to adding other EPA and state-related certifications this year," Funk emphasized.

About Omnitek Engineering Corporation

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)

Condensed Statement of Income
For the Three
Months Ended December 31,
For the Three
Months Ended December 31,
For the Twelve
Months Ended December 31,
For the Twelve
Months Ended December 31,
2012 2011 2012 2011
REVENUES $650,473 $239,817 $1,899,740 $1,546,723
COST OF GOODS SOLD 340,232 139,289 971,927 793,293
GROSS MARGIN 310,240 100,528 927,813 753,430
General and administrative 252,419 205,309 2,041,447 980,255
Research and development expense 119,675 42,516 285,745 143,304
Bad Debt Expense 363 -- 363 --
Depreciation and amortization expense 1,773 8,088 6,369 70,484
Total Operating Expenses 374,230 255,913 2,333,924 1,194,043
LOSS FROM OPERATIONS (63,990) (155,385) (1,406,111) (440,613)
Interest expense -- -- (490) (145)
Interest income 13,692 1 35,948 2
TOTAL OTHER INCOME (EXPENSE) 13,692 1 35,458 (143)
LOSS BEFORE INCOME TAXES (50,298) (155,384) (1,370,653) (440,756)
INCOME TAX EXPENSE -- -- 800 800
NET INCOME (LOSS) $(50,298) $(155,384) $(1,371,453) $(441,556)
BASIC INCOME (LOSS) PER SHARE $0 $(0.01) $(0.07) $(0.03)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 19,092,975 16,670,094 19,092,975 16,670,094
Condensed Balance Sheet
December 31, 2012 December 31, 2011
Cash $3,192,761 $31,196
Accounts receivable, net of allowance of $10,000 120,547 13,506
Accounts receivable -related party 26,455 16,715
Inventory 1,133,595 1,020,117
Prepaid expense 7,440 2,512
Deposits 331,760 41,943
Total Current Assets 4,812,558 1,125,989
FIXED ASSETS, net 14,560 13,249
Long-term investments, net 1,201,671 --
Intellectual property, net 5,218 8,256
Total Other Assets 1,206,889 8,256
TOTAL ASSETS $6,034,007 $1,147,494
Accounts payable and accrued expenses $317,106 $57,828
Accrued expenses - related parties 264,717 351,580
Accounts payable - related parties -- 2,568
Customer deposits 184,109 286,608
Total Current Liabilities 765,932 698,584
Total Liabilities 765,932 698,584
Common stock, 125,000,000 shares authorized no par value 19,749,590 and 17,137,812 shares issued and outstanding, respectively 8,196,061 2,659,299
Additional paid-in capital 4,867,169 4,213,313
Accumulated deficit (7,795,155) (6,423,702)
Total Stockholders' Equity 5,268,075 448,910

CONTACT: Gary S. Maier Maier & Company, Inc. (310) 471-1288 gmaier@maierco.comSource:Omnitek Engineering Corp.