VISTA, Calif., May 15, 2013 (GLOBE NEWSWIRE) -- Omnitek Engineering Corporation (OTCBB:OMTK) today reported results for its first quarter ended March 31, 2013 -- reflecting the timing of customer and component orders and related ramp-up activities since the company received EPA approval in late January 2013 for its diesel-to-natural gas conversion kits for certain high-use truck engine models.
Net revenues for the fiscal first quarter increased 14 percent to $349,329 compared from $306,369 a year earlier. For the first quarter of 2013, the company reported a net loss of $250,420, or $0.01 per share, compared with a net loss of $163,125, $0.01 per share, a year ago, primarily due to expenses associated with the company's relocation to larger facilities and expansion to support anticipated new business.
Gross margin for the three months ended March 31, 2013 was $145,244 compared with $105,757 a year ago. Gross profit for the three-month period as a percentage of sales was 42 percent compared with 35 percent in the same period a year ago, reflecting volume and product mix of shipped orders.
"The first quarter was a transitional period for the company -- highlighted by EPA approval for the company's diesel-to-natural gas conversion technology for the widely operated line of heavy-duty Navistar DT466E and DT530E engines and the relocation to a larger facility. We expect additional engine approvals this year and look forward to significant growth opportunities in the quarters ahead in both domestic and international markets," said Werner Funk, president and chief executive officer of Omnitek Engineering Corporation.
He noted an April 22, 2013 article in The New York Times which highlighted the benefits of natural gas over diesel fuel and its accelerating usage – including reduced oil imports, lower fuel costs for truckers and environmental considerations.
"Omnitek's EPA-approved technology provides a viable alternative to new engine replacement for fleet operators at a significantly lower cost. With more than eight million heavy-duty trucks on the road in the United States and a return on investment of one year or less for conversion, Omnitek is well-positioned to capitalize on the domestic abundance of natural gas and its benefits," Funk said.
He added that local fleet operators with trucks that return to the same depot every night are uniquely positioned to build on-site refueling stations and purchase fuel significantly below the cost charged by retail fuel stations.
At March 31, 2013, the company's total current assets were $4,609,597 and total current liabilities were $555,603 -- resulting in positive working capital of $4,053,994 and a current ratio of 8.30.
About Omnitek Engineering Corporation
Omnitek Engineering Corp. develops and sells proprietary diesel-to-natural gas conversion systems and complementary products, including new natural gas engines that utilize the company's technology -- 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)
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OMNITEK ENGINEERING CORPORATION |
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| Consolidated Statement of Operations | ||
| (Unaudited) | ||
|
For the Three Months Ended March 31, |
For the Three Months Ended March 31, |
|
| 2013 | 2012 | |
| REVENUES | $349,329 | $306,369 |
| COST OF GOODS SOLD | 204,085 | 200,612 |
| GROSS MARGIN | 145,244 | 105,757 |
| OPERATING EXPENSES | ||
| General and administrative | 352,305 | 237,323 |
| Research and development expense | 50,359 | 28,894 |
| Depreciation and amortization expense | 13,270 | 1,457 |
| Total Operating Expenses | 415,934 | 267,674 |
| LOSS FROM OPERATIONS | (270,690) | (161,917) |
| OTHER INCOME (EXPENSE) | ||
| Interest expense | -- | (408) |
| Interest income | 21,070 | -- |
| Total Other Income (Expense) | 21,070 | (408) |
| LOSS BEFORE INCOME TAXES | (249,620) | (162,325) |
| INCOME TAX EXPENSE | 800 | 800 |
| NET LOSS | $(250,420) | $(163,125) |
| BASIC AND DILUTED LOSS PER SHARE | $(0.01) | $(0.01) |
| WEIGHTED AVERAGE NUMBER | ||
| OF COMMON SHARES OUTSTANDING | 19,749,582 | 17,196,734 |
| OMNITEK ENGINEERING CORPORATION | |||
| Consolidated Balance Sheet | |||
| ASSETS | |||
|
March 31, 2013 |
December 31, 2012 |
||
| (unaudited) | |||
| CURRENT ASSETS | |||
| Cash | $2,561,017 | $3,192,761 | |
| Accounts receivable, net | 48,597 | 120,547 | |
| Accounts receivable -related party | 4,389 | 26,455 | |
| Inventory | 1,354,846 | 1,133,595 | |
| Prepaid expense | 18,000 | 7,440 | |
| Deposits | 369,133 | 331,760 | |
| Short-term investments, net | 253,615 | -- | |
| Total Current Assets | 4,609,597 | 4,812,558 | |
| FIXED ASSETS, net | 59,610 | 14,560 | |
| OTHER ASSETS | |||
| Long-term investments, net | 937,883 | 1,201,671 | |
| Intellectual property, net | 4,518 | 5,218 | |
| Total Other Assets | 942,401 | 1,206,889 | |
| TOTAL ASSETS | $5,611,608 | $6,034,007 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||
| CURRENT LIABILITIES | |||
| Accounts payable and accrued expenses | $95,494 | $317,106 | |
| Accrued compensation - related parties | 249,947 | 264,717 | |
| Accounts payable - related parties | (2,298) | ||
| Customer deposits | 212,460 | 184,109 | |
| Total Current Liabilities | 555,603 | 765,932 | |
| Total Liabilities | 555,603 | 765,932 | |
| STOCKHOLDERS' EQUITY | |||
| Common stock, 125,000,000 shares authorized no par value | |||
| 19,749,582 and 19,749,582 shares issued and outstanding, respectively | 8,196,061 | 8,196,061 | |
| Additional paid-in capital | 4,905,519 | 4,867,169 | |
| Accumulated deficit | (8,045,575) | (7,795,155) | |
| Total Stockholders' Equity | 5,056,005 | 5,268,075 | |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $5,611,608 | $6,034,007 | |