VISTA, Calif., Aug. 12, 2013 (GLOBE NEWSWIRE) -- Omnitek Engineering Corporation (OTCBB:OMTK) today reported results for its second quarter ended June 30, 2013, reflecting the impact of the company's relocation to a larger facility and delays in accepting and shipping orders in cooperation with customers to accommodate the anticipated disruption in operations during the quarter.
Net revenues for the second quarter were $197,210 compared with $380,531 a year earlier, as anticipated due to factors noted above. For the same period, the company reported a net loss of $369,393, or $0.02 per share, compared with a net loss of $1.0 million, or $0.05 per share, a year earlier -- reflecting lower general and administrative expenses in the second quarter of 2013 compared with a year ago, offset by reduced sales due to the relocation.
Net revenues for the six-month period were $546,539 compared with $686,900 a year ago. For the same period, the company reported a net loss of $619,814, or $0.03 per share, compared with a net loss of $1.2 million, or $0.06 per share, a year earlier.
Gross margin for the quarter ended June 30, 2013 was $53,364 compared with $231,082 a year ago. Gross margin for the quarter as a percentage of sales was 27 percent compared with 61 percent in the same period a year ago, primarily reflecting sales volume and product mix.
Gross margin for the six-months ended June 30, 2013 was $198,607 compared with $336,839 a year earlier. Gross margin for the six-month period as a percentage of sales was 36 percent compared with 49 percent in the same period a year ago, primarily reflecting sales volume and product mix.
"Notwithstanding the impact of the aforementioned items impacting the quarter and six-month period, sales for the second half are expected to regain momentum. Our optimism is supported by the ongoing build-out of our diesel-to-natural gas engine conversion network serving domestic trucking fleet operators in North America and the appealing value-proposition of utilizing natural gas, supported by a vastly improving regulatory environment," said Werner Funk, president and chief executive officer of Omnitek Engineering Corporation.
The company expects to obtain EPA and CARB approval for additional diesel engine models to address the anticipated increasing demand from trucking fleets that operate with other diesel engine models to complement its certification of the widely operated line of heavy-duty Navistar DT466E and DT530E engines.
Funk added that the company's expansion into international markets continues, with a particular focus on markets in South America, Europe, Mexico and China.
He emphasized that the cost for a diesel truck engine conversion can be recouped within a one-to-two year period, and even earlier if performed during a regularly scheduled engine overhaul.
Last month, Omnitek Engineering announced it was selected by the Puget Sound Clean Air Agency for a pilot project to demonstrate its diesel-to-natural gas engine conversion technology for drayage trucks serving the Port of Seattle, Washington, in support of the Port's Clean Truck Program, with an estimated more than 2,000 vehicles targeted for conversion. The company anticipates additional opportunities to convert trucks at other ports throughout the country.
About Omnitek Engineering Corporation
Omnitek Engineering Corp. develops and sells proprietary diesel-to-natural gas engine 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 Consolidated Statement of Operations (unaudited) |
|||||
| For the Three | For the Three | For the Six | For the Six | ||
| Months Ended | Months Ended | Months Ended | Months Ended | ||
| June 30, | June 30, | June 30, | June 30, | ||
| 2013 | 2012 | 2013 | 2012 | ||
| REVENUES | $197,210 | $380,531 | $546,539 | $686,900 | |
| COST OF GOODS SOLD |
143,846 |
149,449 |
347,932 |
350,061 |
|
| GROSS MARGIN | 53,364 | 231,082 | 196,607 | 336,839 | |
| OPERATING EXPENSES | |||||
| General and administrative | 370,582 | 1,198,267 | 722,874 | 1,435,590 | |
| Research and development expense | 51,777 | 48,254 | 102,136 | 77,148 | |
| Depreciation and amortization expense | 14,066 | 1,533 | 27,336 | 2,990 | |
| Total Operating Expenses | 436,425 | 1,248,054 | 852,346 | 1,515,728 | |
| LOSS FROM OPERATIONS | (383,061) | (1,016,972) | (653,739) | (1,178,899) | |
| OTHER INCOME (EXPENSE) | |||||
| Interest expense | -- | (82) | (13) | (490) | |
| Interest income | 13,668 | 1,174 | 34,738 | 1,174 | |
|
Total Other Income (Expense) |
13,668 | 1,092 | 34,725 | 684 | |
| LOSS BEFORE INCOME TAXES | (369,393) | (1,015,880) | (619,014) | (1,178,205) | |
| INCOME TAX EXPENSE | -- | -- | 800 | 800 | |
| NET LOSS | $ (369,393) | $ (1,015,880) | $ (619,814) | $ (1,179,005) | |
| BASIC AND DILUTED INCOME (LOSS) PER SHARE | $(0.02) | $(0.05) | $(0.03) | $(0.06) | |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | 19,749,582 | 19,661,571 | 19,749,582 | 18,429,153 | |
| OMNITEK ENGINEERING CORPORATION | ||
| Consolidated Balance Sheet | ||
| ASSETS | ||
| June 30, | December 31, | |
| 2013 | 2012 | |
| (unaudited) | (audited) | |
| CURRENT ASSETS | ||
| Cash | $1,998,546 | $3,192,761 |
| Accounts receivable, net | 27,112 | 120,547 |
| Accounts receivable -related party | 21,012 | 26,455 |
| Inventory | 1,822,603 | 1,133,595 |
| Prepaid expense | 11,062 | 7,440 |
| Deposits | 208,445 | 331,760 |
| Short-term investments, net | 202,207 | -- |
| Total Current Assets | 4,290,987 | 4,812,558 |
| FIXED ASSETS, net | 97,396 | 14,560 |
| OTHER ASSETS | ||
| Long-term Investments, net | 830,309 | 1,201,671 |
| Intellectual property, net | 3,955 | 5,218 |
| Total Other Assets | 834,264 | 1,206,889 |
| TOTAL ASSETS | $5,222,647 | $6,034,007 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| CURRENT LIABILITIES | ||
| Accounts payable and accrued expenses | $63,066 | $317,106 |
| Accrued expenses - related parties | 232,716 | 264,717 |
| Accounts payable - related parties | 3,070 | -- |
| Customer deposits | 214,578 | 184,109 |
| Total Current Liabilities | 513,430 | 765,932 |
| Total Liabilities | 513,430 | 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 | 4,928,125 | 4,867,169 |
| Accumulated deficit | (8,414,969) | (7,795,155) |
| Total Stockholders' Equity | 4,709,217 | 5,268,075 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $5,222,647 | $6,034,007 |