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Omnitek Engineering Corporation Reports First Quarter Results

VISTA, Calif., May 15, 2013 (GLOBE NEWSWIRE) -- Omnitek Engineering Corporation (OTCBB:OMTK) today reported results for its first quarter ended March 31, 2013 -- reflecting the timing of customer and component orders and related ramp-up activities since the company received EPA approval in late January 2013 for its diesel-to-natural gas conversion kits for certain high-use truck engine models.

Net revenues for the fiscal first quarter increased 14 percent to $349,329 compared from $306,369 a year earlier. For the first quarter of 2013, the company reported a net loss of $250,420, or $0.01 per share, compared with a net loss of $163,125, $0.01 per share, a year ago, primarily due to expenses associated with the company's relocation to larger facilities and expansion to support anticipated new business.

Gross margin for the three months ended March 31, 2013 was $145,244 compared with $105,757 a year ago. Gross profit for the three-month period as a percentage of sales was 42 percent compared with 35 percent in the same period a year ago, reflecting volume and product mix of shipped orders.

"The first quarter was a transitional period for the company -- highlighted by EPA approval for the company's diesel-to-natural gas conversion technology for the widely operated line of heavy-duty Navistar DT466E and DT530E engines and the relocation to a larger facility. We expect additional engine approvals this year and look forward to significant growth opportunities in the quarters ahead in both domestic and international markets," said Werner Funk, president and chief executive officer of Omnitek Engineering Corporation.

He noted an April 22, 2013 article in The New York Times which highlighted the benefits of natural gas over diesel fuel and its accelerating usage – including reduced oil imports, lower fuel costs for truckers and environmental considerations.

"Omnitek's EPA-approved technology provides a viable alternative to new engine replacement for fleet operators at a significantly lower cost. 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 conversion, Omnitek is well-positioned to capitalize on the domestic abundance of natural gas and its benefits," Funk said.

He added that local fleet operators with trucks that return to the same depot every night are uniquely positioned to build on-site refueling stations and purchase fuel significantly below the cost charged by retail fuel stations.

At March 31, 2013, the company's total current assets were $4,609,597 and total current liabilities were $555,603 -- resulting in positive working capital of $4,053,994 and a current ratio of 8.30.

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)


OMNITEK ENGINEERING CORPORATION
Consolidated Statement of Operations
(Unaudited)
For the Three
Months Ended
March 31,
For the Three
Months Ended
March 31,
2013 2012
REVENUES $349,329 $306,369
COST OF GOODS SOLD 204,085 200,612
GROSS MARGIN 145,244 105,757
OPERATING EXPENSES
General and administrative 352,305 237,323
Research and development expense 50,359 28,894
Depreciation and amortization expense 13,270 1,457
Total Operating Expenses 415,934 267,674
LOSS FROM OPERATIONS (270,690) (161,917)
OTHER INCOME (EXPENSE)
Interest expense -- (408)
Interest income 21,070 --
Total Other Income (Expense) 21,070 (408)
LOSS BEFORE INCOME TAXES (249,620) (162,325)
INCOME TAX EXPENSE 800 800
NET LOSS $(250,420) $(163,125)
BASIC AND DILUTED LOSS PER SHARE $(0.01) $(0.01)
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING 19,749,582 17,196,734

OMNITEK ENGINEERING CORPORATION
Consolidated Balance Sheet
ASSETS
March 31,
2013
December 31,
2012
(unaudited)
CURRENT ASSETS
Cash $2,561,017 $3,192,761
Accounts receivable, net 48,597 120,547
Accounts receivable -related party 4,389 26,455
Inventory 1,354,846 1,133,595
Prepaid expense 18,000 7,440
Deposits 369,133 331,760
Short-term investments, net 253,615 --
Total Current Assets 4,609,597 4,812,558
FIXED ASSETS, net 59,610 14,560
OTHER ASSETS
Long-term investments, net 937,883 1,201,671
Intellectual property, net 4,518 5,218
Total Other Assets 942,401 1,206,889
TOTAL ASSETS $5,611,608 $6,034,007
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses $95,494 $317,106
Accrued compensation - related parties 249,947 264,717
Accounts payable - related parties (2,298)
Customer deposits 212,460 184,109
Total Current Liabilities 555,603 765,932
Total Liabilities 555,603 765,932
STOCKHOLDERS' EQUITY
Common stock, 125,000,000 shares authorized no par value
19,749,582 and 19,749,582 shares issued and outstanding, respectively 8,196,061 8,196,061
Additional paid-in capital 4,905,519 4,867,169
Accumulated deficit (8,045,575) (7,795,155)
Total Stockholders' Equity 5,056,005 5,268,075
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $5,611,608 $6,034,007

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