SAN MARCOS, Calif., March 22, 2011 (GLOBE NEWSWIRE) -- Omnitek Engineering Corporation (OTCQB:OMTK) today reported a 31 percent increase in revenues for its year ended December 31, 2010, supported by continued strong demand for its diesel-to-natural gas conversion systems, particularly in developing overseas markets, and the company's high-pressure natural gas filter.
Net revenues for the fourth quarter increased 27 percent to $556,930 from $439,509 a year earlier. For the same period, the company reported a reduced net loss of $417,181, or $0.03 per share, compared with a net loss of $918,511, or $0.06 per share, a year ago.
Net revenues for the twelve-month period climbed 31 percent to $1.73 million from $1.32 million in the same period a year ago. For the same period, the company reported a reduced net loss of $1.15 million, or $0.07 per share, compared with a net loss of $1.35 million, or $0.08 per share, a year earlier.
The company achieved positive cash flow from operations of $40,111 for the year ended December 31, 2010 compared with negative cash flow of $60,163 during the year ended December 31, 2009.
Results for the year were impacted by increased operating expenses, particularly a non-cash charge for stock options of $637,813 and increased accounting and legal expenses associated with Omnitek becoming a public reporting company under the Securities Exchange Act of 1934 in late July.
Gross margin for the full-year was $578,537 compared with $391,969 a year ago. Gross margin as a percentage of sales for the same period was 33 percent compared with 30 percent last year.
"Global demand for converting high-polluting diesel powered engines to operate on natural gas continues to benefit from increased crude oil prices. We anticipate strong sales momentum for the balance of 2011, and look forward to a more favorable domestic regulatory environment to support the significant opportunities for our technology in the United States," said Werner Funk, president and chief executive officer of Omnitek Engineering Corporation.
He highlighted two recent corporate developments in emerging markets designed to bolster growth overseas, including agreements in India and Indonesia focused on marketing and installing Omnitek's diesel-to-natural gas conversions kits for truck and bus applications.
About Omnitek Engineering Corporation
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, affordable and designed to combat global warming.
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 Income | ||||
| For the Three | For the Three | For the Twelve | For the Twelve | |
| Months Ended | Months Ended | Months Ended | Months Ended | |
| December 31, | December 31, | December 31, | December 31, | |
| 2010 | 2009 | 2010 | 2009 | |
| REVENUES | $556,930 | $439,509 | $1,733,303 | $1,325,757 |
| COST OF GOODS SOLD | 540,014 | 447,987 | 1,154,766 | 933,788 |
| GROSS MARGIN | 16,916 | (8,478) | 578,537 | 391,969 |
| OPERATING EXPENSES | ||||
| General and administrative | 386,398 | 296,611 | 1,498,461 | 928,089 |
| Bad debt expense | 878 | 42,522 | 878 | 42,522 |
| Research and development expense | 31,594 | 139,711 | 133,302 | 329,881 |
| Depreciation and amortization expense | 25,794 | 24,062 | 93,711 | 96,853 |
| Total Operating Expenses | 444,664 | 502,906 | 1,726,352 | 1,397,345 |
| INCOME (LOSS) FROM OPERATIONS | (427,748) | (511,384) | (1,147,815) | (1,005,376) |
| OTHER INCOME (EXPENSE) | ||||
| Other income | -- | -- | 69,022 | |
| Interest expense | 15,630 | (8,333) | (6,829) | (26,812) |
| Interest income | (5,063) | 4,530 | 2 | 9,595 |
| TOTAL OTHER INCOME (EXPENSE) | 10,567 | (3,803) | (6,827) | 51,805 |
| NET INCOME (LOSS) BEFORE INCOME TAXES | (417,181) | (515,187) | (1,154,642) | (953,571) |
| INCOME TAX EXPENSE | -- | (403,324) | (800) | (404,124) |
| NET INCOME (LOSS) | $(417,181) | $(918,511) | $(1,155,442) | $(1,357,695) |
| BASIC INCOME (LOSS) PER SHARE | $(0.03) | $(0.06) | $(0.07) | $(0.08) |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | 15,592,640 | 16,008,846 | 15,592,640 | 16,008,846 |
| OMNITEK ENGINEERING CORPORATION | ||
| Consolidated Balance Sheet | ||
| ASSETS | ||
| December 31, | December 31, | |
| 2010 | 2009 | |
| CURRENT ASSETS | ||
| Cash | $ 34,944 | $ 78,991 |
| Accounts receivable, net of allowance of $10,000 | 28,117 | 10,813 |
| Accounts receivable -related party | -- | 73,749 |
| Inventory | 1,055,047 | 1,083,399 |
| Deposits | 73,412 | 128,359 |
| Total Current Assets | 1,191,520 | 1,375,311 |
| FIXED ASSETS, net | -- | 11,727 |
| OTHER ASSETS | ||
| Prepaid expense | -- | 2,500 |
| Intellectual property, net | 76,518 | 158,503 |
| Total Other Assets | 76,518 | 161,003 |
| TOTAL ASSETS | $ 1,268,038 | $ 1,548,041 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| CURRENT LIABILITIES | ||
| Accounts payable and accrued expenses | $ 136,936 | $ 11,832 |
| Accrued expenses-related parties | 395,888 | 371,050 |
| Accounts payable-related parties | 4,068 | 16,105 |
| Customer deposits | 333,887 | 194,331 |
| Note payable | -- | 84,158 |
| Total Current Liabilities | 870,779 | 677,476 |
| Total Liabilities | 870,779 | 677,476 |
| STOCKHOLDERS' EQUITY | ||
| Common stock, 125,000,000 shares authorized no par value 15,659,829 and 16,127,675 shares issued and outstanding, respectively | 2,374,799 | 2,330,476 |
| Additional paid-in capital | 4,004,607 | 3,366,794 |
| Accumulated deficit | (5,982,147) | (4,826,705) |
| Total Stockholders' Equity | 397,259 | 870,565 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,268,038 | $ 1,548,041 |