November 10, 2016 - 3:10 PM EST
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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

Source: GlobeNewswire (November 10, 2016 - 3:10 PM EST)

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