Omnitek Engineering Reports Third Quarter and Nine-Month Results
VISTA, Calif., Nov. 10, 2016 (GLOBE NEWSWIRE) -- Omnitek Engineering Corp. (OTCQB:OMTK) today announced results for its third quarter and nine months ended September 30, 2016 – reflecting an order backlog of approximately $226,000 and the commencement of a development contract for a 450hp EURO 6 13-liter natural gas engine for Class 8 trucks after the quarter end.
Net revenues for the third quarter were $355,050 compared with $438,178 from a year earlier – reflecting the timing of shipments and product mix on a year-over-year basis. For the same period, the company reported a net loss of $217,909, or $0.01 per share, compared with a net loss of $271,972, or $0.01 per share, a year earlier.
Net revenues for the nine-month period were $946,948 compared with $1.48 million a year ago -- reflecting the timing of shipments and product mix on a year-over-year basis. For the same period, the company reported a net loss of $707,592, or $0.04 per share, compared with a net loss of $677,414, or $0.03 per share, a year earlier.
Gross margin for the quarter ended September 30, 2016 was 43 percent compared with 44 percent a year earlier. Gross margin for the nine months was 45 percent compared with 48 percent a year earlier, both within the company’s normalized target range of 40 to 50 percent.
“We remain confident that the domestic shift to natural gas will continue as large domestic trucking fleet operators focus on the environment, the availability of our natural gas “drop-in” engines and the company’s extensive lineup of EPA-approved conversion kits. Equally important, our business in Mexico, Europe and Asia is continuing its expansion – supported by a global focus on environmental and economic considerations,” said Werner Funk, president and chief executive officer of Omnitek Engineering Corp.
The company’s previously announced evaluation programs for two large North American fleet customers are proceeding as planned. “We remain optimistic that the programs will be enlarged to address a larger portion of the fleet vehicles, and we look forward to announcing further details and developments in cooperation and with the approval of our customers,” Funk said.
At September 30, 2016, current liabilities totaled $684,127 and current assets totaled $2.1 million, resulting in positive working capital of approximately $1.4 million and a current ratio of 3.00 to 1. The company’s total assets at September 30, 2016 were $2.1 million.
Funk emphasized, despite lower oil prices which he expects will begin to increase, the cost for a diesel truck engine conversion can be recouped within a one-to-two-year period, particularly 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.omnitekcorp.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
2016
2015
2016
2015
REVENUES
$
355,050
$
438,178
$
946,948
$
1,480,063
COST OF GOODS SOLD
200,894
245,419
521,387
766,067
GROSS MARGIN
154,156
192,759
425,561
713,996
OPERATING EXPENSES
General and administrative
306,535
385,209
960,789
1,133,102
Research and development expense
57,402
71,962
151,706
238,201
Depreciation and amortization expense
6,617
7,526
21,081
23,050
Total Operating Expenses
370,554
464,697
1,133,576
1,394,353
LOSS FROM OPERATIONS
(216,398
)
(271,938
)
(708,015
)
(680,357
)
OTHER INCOME (EXPENSE)
Other income
200
-
5,574
3,934
Interest expense
(1,711
)
(40
)
(4,351
)
(212
)
Interest income
-
6
-
21
Total Other Income (Expense)
(1,511
)
(34
)
1,223
3,743
LOSS BEFORE INCOME TAXES
(217,909
)
(271,972
)
(706,792
)
(676,614
)
INCOME TAX EXPENSE
-
-
800
800
NET LOSS
$
(217,909
)
$
(271,972
)
$
(707,592
)
$
(677,414
)
BASIC AND DILUTED LOSS PER SHARE
$
(0.01
)
$
(0.01
)
$
(0.04
)
$
(0.03
)
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING BASIC AND DILUTED
20,273,473
19,981,082
20,095,681
19,980,934
OMNITEK ENGINEERING CORP.
Condensed Balance Sheet
ASSETS
September 30,
December 31,
2016
2015
(unaudited)
CURRENT ASSETS
Cash
$
6,805
$
105,846
Accounts receivable, net
31,913
30,835
Accounts receivable - related parties
3,375
17,257
Inventory, net
1,995,384
2,107,463
Prepaid expense
5,324
6,050
Cost in excess of billings
21,242
-
Deposits
31,694
19,745
Total Current Assets
2,095,737
2,287,196
FIXED ASSETS, net
38,351
59,151
OTHER ASSETS
Intellectual property, net
-
281
Other noncurrent assets
-
14,280
Total Other Assets
-
14,561
TOTAL ASSETS
$
2,134,088
$
2,360,908
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses
$
340,837
$
145,207
Accrued management compensation
213,875
189,163
Accounts payable – related parties
10,519
7,591
Customer deposits
118,896
230,349
Total Current Liabilities
684,127
572,310
Total Liabilities
684,127
572,310
STOCKHOLDERS' EQUITY
Common stock, 125,000,000 shares authorized no par value
19,779,582 and 19,759,582 shares issued and outstanding,
respectively
8,411,411
8,291,411
Additional paid-in capital
11,595,554
11,346,599
Accumulated deficit
(18,557,004
)
(17,849,412
)
Total Stockholders' Equity
1,449,961
1,788,598
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
2,134,088
$
2,360,908,
CONTACT:
Gary S. Maier
Maier & Company, Inc.
(310) 471-1288