SAN MARCOS, Calif., March 27, 2012 (GLOBE NEWSWIRE) -- Omnitek Engineering Corporation (OTCBB:OMTK) today reported results for its fourth quarter and year ended December 31, 2011 – ending the year with a backlog due to timing of customer and component orders.
The company reported a reduced net loss of $155,384, or $0.01 per share, compared with a net loss of $397,179, or $0.03 per share, a year ago. Net revenue for the fourth quarter was $239,817 compared with $556,929 a year earlier -- reflecting the impact of order timing as noted above.
For the twelve-month period, the company reported a reduced net loss of $441,556, or $0.03 per share, compared with a net loss of $1.15 million, or $0.07 per share, a year earlier. Net revenue for the twelve months was $1.55 million compared with $1.73 million a year ago.
Gross margin for the full-year was $753,430 compared with $578,537 a year ago. Gross margin as a percentage of sales for the same period was 49 percent compared with 33 percent last year.
"The past year was a period of significant accomplishments for the company -- highlighted by the initial build-out of ten diesel-to-natural-gas conversion centers in Pennsylvania as part of a planned national network and the renewal and expansion of an OE customer contract for high-pressure natural gas filters," said Werner Funk, president and chief executive officer of Omnitek Engineering Corporation.
He added that global demand for converting high-polluting diesel powered engines to operate on natural gas continues to accelerate, supported by increases in crude oil prices and an abundance of natural gas in the U.S.
Funk noted that the company received a large influx of orders late in the fourth quarter valued at approximately $550,000, which could not be filled by year end due to supplier lead times and related logistical considerations, as previously mentioned.
"With more than eight million heavy-duty trucks on the road, the U.S. market represents a significant opportunity for our technology and we look forward to leveraging our leadership position in the industry and anticipated EPA approval for conversion kits to achieve a record 2012," Funk said.
About Omnitek Engineering Corporation
Omnitek Engineering Corp. develops and sells new natural gas engines, as well as proprietary diesel-to-natural gas conversion systems and complementary products -- providing global customers with innovative alternative energy and emissions control solutions that are sustainable and affordable.
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, | |
| 2011 | 2010 | 2011 | 2010 | |
| REVENUES | $239,817 | $556,929 | $1,546,723 | $1,733,303 |
| COST OF GOODS SOLD | 139,289 | 540,015 | 793,293 | 1,154,766 |
| GROSS MARGIN | 100,528 | 16,914 | 753,430 | 578,537 |
| OPERATING EXPENSES | ||||
| General and administrative | 205,309 | 367,272 | 980,255 | 1,499,339 |
| Research and development expense | 42,516 | 31,594 | 143,304 | 133,302 |
| Depreciation and amortization expense | 8,088 | 25,794 | 70,484 | 93,711 |
| Total Operating Expenses | 255,913 | 424,660 | 1,194,043 | 1,726,352 |
| LOSS FROM OPERATIONS | (155,385) | (407,746) | (440,613) | (1,147,815) |
| OTHER INCOME (EXPENSE) | ||||
| Interest expense | - | 15,630 | (145) | (6,829) |
| Interest income | 1 | (5,063) | 2 | 2 |
| TOTAL OTHER INCOME (EXPENSE) | 1 | 10,567 | (143) | (6,827) |
| LOSS BEFORE INCOME TAXES | (155,384) | (397,179) | (440,756) | (1,154,642) |
| INCOME TAX EXPENSE | - | - | 800 | 800 |
| NET INCOME (LOSS) | $(155,384) | $(397,179) | $(441,556) | $(1,155,442) |
| BASIC INCOME (LOSS) PER SHARE | $(0.01) | $(0.03) | $(0.03) | $(0.07) |
| WEIGHTED AVERAGE NUMBER | ||||
| OF COMMON SHARES OUTSTANDING | 16,670,094 | 15,592,640 | 16,670,094 | 15,592,640 |
| OMNITEK ENGINEERING CORPORATION | ||||
| Consolidated Balance Sheet | ||||
| ASSETS | ||||
| December 31, | December 31, | |||
| 2011 | 2010 | |||
| CURRENT ASSETS | ||||
| Cash | $31,196 | $34,944 | ||
| Accounts receivable, net of allowance of $10,000 | 13,506 | 28,117 | ||
| Accounts receivable -related party | 16,715 | - | ||
| Inventory | 1,020,117 | 1,055,047 | ||
| Deposits | 41,943 | 73,412 | ||
| Total Current Assets | 1,123,476 | 1,191,520 | ||
| FIXED ASSETS, net | 13,249 | - | ||
| OTHER ASSETS | ||||
| Prepaid expense | 2,512 | - | ||
| Intellectual property, net | 8,256 | 76,518 | ||
| Total Other Assets | 10,767 | 76,518 | ||
| TOTAL ASSETS | $1,147,493 | $1,268,038 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| CURRENT LIABILITIES | ||||
| Accounts payable and accrued expenses | $57,828 | $136,936 | ||
| Accrued expenses - related parties | 351,580 | 395,888 | ||
| Accounts payable - related parties | 2,568 | 4,068 | ||
| Customer deposits | 286,608 | 333,887 | ||
| Total Current Liabilities | 698,584 | 870,779 | ||
| Total Liabilities | 698,584 | 870,779 | ||
| STOCKHOLDERS' EQUITY | ||||
| Common stock, 125,000,000 shares authorized no par value | ||||
| 17,137,812 and 15,659,829 shares issued and outstanding, | ||||
| respectively | 2,659,299 | 2,374,799 | ||
| Additional paid-in capital | 4,213,313 | 4,004,607 | ||
| Accumulated deficit | (6,423,703) | (5,982,147) | ||
| Total Stockholders' Equity | 448,909 | 397,259 | ||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $1,147,493 | $1,268,038 | ||