November 8, 2017 - 8:02 AM EST
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Omnitek Engineering Reports Third Quarter and Nine-Month Results

-- Increasing Oil Prices Expected To Be Catalyst For Growth --

VISTA, Calif., Nov. 08, 2017 (GLOBE NEWSWIRE) -- Omnitek Engineering Corp. (OTCQB:OMTK) today announced results for its third quarter and nine months ended September 30, 2017 -- reflecting a sharply reduced net loss for both periods, encouraging feedback on an ongoing evaluation program for a large domestic fleet customer that commenced during the quarter and the expansion of development projects for near-and longer-term growth.

For the three months ended September 30, 2017, the company reported a net loss of $149,849, or ($0.01) per share, compared with a net loss of $217,909, or ($0.01) per share, a year earlier. Net revenues for the quarter were $276,241 compared with $355,050 from a year earlier – reflecting the timing of product shipments and recognition of long-term contract revenues.

For the nine-month period, the company reported a net loss of $550,479, or ($0.03) per share, compared with a net loss of $707,592, or ($0.04) per share, a year earlier. Net revenues for the nine-months were $814,210 compared with $946,948 a year ago.  

Gross margin for the quarter ended September 30, 2017 was 43 percent compared with 43 percent a year earlier. Gross margin for the nine months was 44 percent compared with 45 percent a year earlier, both within the company’s normalized target range of 40 to 50 percent.

“During the quarter, we continued to support an evaluation phase and on-road testing of five trucks for a conversion program of the Navistar VT365 for a large domestic fleet customer. We remain optimistic that the program will be expanded.  The level of development projects and quote requests from other potential customers -- particularly in Turkey, Europe, Mexico and China -- continues to gain momentum and we remain focused on ramping up conversions on a large scale to address global government mandates to improve air quality,” said Werner Funk, president and chief executive officer of Omnitek Engineering Corp.

Additional Third Quarter Highlights, include:

  • Increased sales as an OE supplier to TATA, India to support expanding utilization of alternative fuel vehicles to address new stringent clean air policies in India
  • Expansion of engine development work for an existing European customer, including development of a EURO VI 13-liter heavy-duty natural gas engine and EURO VI 12-liter heavy-duty LPG (Propane) engine.

At September 30, 2017, current liabilities totaled $1,096,987 and current assets totaled $2,020,640, resulting in positive working capital of approximately $923,653 and a current ratio of 1.84.

Funk emphasized, despite lower oil prices which are beginning to increase, the cost for a diesel truck engine conversion can be recouped within a one-to-two-year period, especially 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.omintekcorp.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
  2017
 2016
 2017
 2016
         
REVENUES $276,241   $ 355,050  $814,210    $ 946,948 
COST OF GOODS SOLD     158,358       200,894   456,765   521,387 
GROSS MARGIN      117,883        154,156   357,445   425,561 
                 
OPERATING EXPENSES                
                 
General and administrative  240,477
      306,535     789,618    960,789 
                 
Research and development expense  18,978   57,402     92,667    151,706 
Depreciation and amortization expense  6,147     6,617     18,594    21,081 
                 
Total Operating Expenses  265,602   370,554   900,879    1,133,576 
                 
LOSS FROM OPERATIONS   (147,719)  (216,398)    (543,434)  (708,015  )
                 
OTHER INCOME (EXPENSE)                
                 
Other income  -   200   -   5,574 
Interest expense  (2,130)  (1,711)  (6,245)  (4,351)
                 
Total Other Income (Expense)  (2,130)  (1,511 )    (6,245 )  1,223 
                 
LOSS BEFORE INCOME TAXES   (149,849)  (217,909)    (549,679)  (706,792)
INCOME TAX EXPENSE             -              -           800             800  
                 
NET LOSS $(149,849) $(217,909) $  (550,479) $  (707,592  )
                 
BASIC AND DILUTED LOSS PER SHARE $(0.01) $(0.01) $(0.03) $(0.04)
                 
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING BASIC AND DILUTED  20,281,082    20,273,473    20,281,082    20,095,681  
                 


 

OMNITEK ENGINEERING CORP.
Condensed Balance Sheet
ASSETS
      
 September 30, December 31,
 2017
 2016
 (unaudited)  
CURRENT ASSETS     
Cash$44,444  $  17,782  
Accounts receivable, net 28,457     28,159  
Accounts receivable - related parties 7,654     7,005  
Inventory, net 1,898,755     1,869,900  
Prepaid expense -      5,324  
Cost and estimated earnings in excess of billings -   30,973 
Deposits 41,330     21,716  
      
Total Current Assets   2,020,640      1,980,859  
      
FIXED ASSETS, net   13,245      31,839  
      
OTHER ASSETS     
Other noncurrent assets 14,280   14,280  
      
Total Other Assets   14,280      14,280  
      
TOTAL ASSETS$  2,048,165
  $  2,026,978  
      
LIABILITIES AND STOCKHOLDERS' EQUITY
      
CURRENT LIABILITIES     
Accounts payable and accrued expenses$  288,185   $  325,255  
Accrued management compensation   437,897      314,788  
Accounts payable – related parties 75,311   18,373 
Billings in excess of costs and estimated earnings 30,000   - 
Customer deposits    265,594      87,114  
      
Total Current Liabilities   1,096,987      745,530  
      
Total Liabilities   1,096,987      745,530  
      
STOCKHOLDERS' EQUITY      
Common stock, 125,000,000 shares authorized no par value 20,281,082 shares issued and outstanding 8,411,411     8,411,411  
Additional paid-in capital 11,841,050     11,620,841  
Accumulated deficit  (19,301,283)  (18,750,804)
      
Total Stockholders' Equity    951,178      1,281,448  
      
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$  2,048,165   $  2,026,978  

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


Source: GlobeNewswire (November 8, 2017 - 8:02 AM EST)

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