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 November 10, 2015 - 8:31 AM EST
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Omnitek Engineering Reports Third Quarter and Nine-Month Results

Revenues Up 38 Percent for Nine-Month Period

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

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 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
    2015 2014 2015 2014
REVENUES $ 438,178  $ 449,477  $ 1,480,063  $ 1,072,237 
COST OF GOODS SOLD   245,419    247,525    766,067    639,588 
GROSS MARGIN   192,759    201,952    713,996    432,649 
 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)
Investment income, net   -    -    3,934    12,921 
 Interest expense   (40)   -    (212)   - 
 Interest income   6    18,923    21    45,456 
  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 
NET LOSS $ (271,972) $ (542,357) $ (677,414) $ (1,419,671)
BASIC AND DILUTED LOSS PER SHARE $ (0.01) $ (0.03) $ (0.03) $ (0.07)
OF COMMON SHARES OUTSTANDING BASIC AND DILUTED  19,981,082    19,768,520    19,980,934    19,768,520 

Condensed Balance Sheet
   September 30, December 31,
   2015 2014
 Cash$ 205,711  $ 498,782 
 Accounts receivable, net  49,757    56,059 
 Accounts receivable - related parties  20,475    15,092 
 Inventory, net  2,205,336    2,333,781 
 Prepaid expense  6,050    4,200 
 Deposits  38,552    92,779 
  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 
  TOTAL ASSETS$ 2,592,890  $ 3,105,033 
 Accounts payable and accrued expenses$ 142,288  $ 84,385 
 Accrued management compensation  156,375    102,096 
 Accounts payable – related parties  18,868    3,600 
 Customer deposits  205,270    345,844 
  Total Current Liabilities  522,801    535,925 
  Total 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, 
 respectively  8,291,411    8,289,911 
 Additional paid-in capital  11,298,397    11,121,502 
 Accumulated deficit  (17,519,719)   (16,842,305)
  Total Stockholders' Equity  2,070,089    2,569,108 
Gary S. Maier
Maier & Company, Inc.
(310) 471-1288

Source: GlobeNewswire (November 10, 2015 - 8:31 AM EST)

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