SAN MARCOS, Calif., Aug. 15, 2011 (GLOBE NEWSWIRE) -- Omnitek Engineering Corporation (OTCQB:OMTK) today reported results for its second quarter ended June 30, 2011 -- reflecting the benefits of increased marketing initiatives for its diesel-to-natural gas conversion systems, particularly in developing overseas markets and sales derived from the company's high-pressure natural gas filter.
Net revenues for the second quarter increased to $374,490 from $357,013 a year earlier. For the same period, the company reported a net loss of $124,808, or $0.01 per share, compared with a net loss of $119,792, or $0.01 per share, a year ago.
Results for the 2011 second quarter reflect the impact of non-cash expenses, including the value of options and warrants granted in the amount of $57,082 and depreciation and amortization of $20,849. For the three-month period a year earlier, non-cash expenses for the value of options and warrants granted were $22,786, with contributed interest of $5,543, and depreciation and amortization of $26,142. Excluding these non-cash amounts, the net loss would have been $67,727 for the three months ended June 30, 2011, and $97,006 for the three months ended June 30, 2010.
Net revenues for the six-month period climbed 28 percent to $989,746 from $774,255 a year ago. For the same period, the company reported a sharply reduced net loss of $106,697, or $0.01 per share, compared with a net loss of $644,127, or $0.04 per share, a year earlier.
Results for the six-month period reflect the impact of non-cash expenses, including the value of option and warrants granted in the amount of $126,534, and depreciation and amortization of $44,241. For the same period a year earlier, non-cash expenses for the value of options and warrants granted were $410,752, with contributed interest of $10,791 and depreciation and amortization of $46,517. Excluding these non-cash amounts, net income would have been $61,878 for the six months ended June 30, 2011, and the net loss would have been $176,067 for the six months ended June 30, 2010.
Results for the quarter and six months were also impacted by timing of shipments due to certain customer circumstances that required rescheduling of orders. Notwithstanding the aforementioned, sales for the remainder of the year remain on track and the company expects sales momentum to continue.
Gross margin for the quarter ended June 30, 2011 was $171,752 compared with $153,933 a year ago, reflecting increased sales and better component pricing. Gross margin for the quarter as a percentage of sales was 46 percent compared with 43 percent in the same period a year ago.
Gross margin for the six-months ended June 30, 2011 was $504,378 compared with $319,922 a year ago, reflecting increased sales and better component pricing. Gross margin for the six-month period as a percentage of sales was 51 percent compared with 41 percent in the same period a year ago.
"Global demand for converting high-polluting diesel powered engines to operate on natural gas continues to benefit from increased crude oil prices and environmental considerations and favorable economics. 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 certain corporate developments completed during the first two quarters that are expected to further bolster growth, the ramp up of diesel-to-biogas engine conversions in the Philippines and the appointment of a master distributor in Indonesia. Subsequent to the end of the second quarter the company established a presence in the Caribbean with the appointment of a master distributor and exclusive installer of conversion kits in Trinidad and Tobago. Last month the company appointed an exclusive marketing agent in Pennsylvania to cultivate market growth and facilitate conversion of heavy-duty trucks in Pennsylvania.
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 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 Operations | ||||
| (unaudited) | ||||
|
For the Three Months Ended June 30, |
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
For the Six Months Ended June 30, |
|
| 2011 | 2010 | 2011 | 2010 | |
| REVENUES | $ 374,490 | $ 357,013 | $ 989,746 | $ 774,255 |
| COST OF GOODS SOLD | 202,738 | 203,080 | 485,368 | 454,333 |
| GROSS MARGIN | 171,752 | 153,933 | 504,378 | 319,922 |
| OPERATING EXPENSES | ||||
| General and administrative | 243,232 | 215,506 | 509,089 | 837,255 |
| Research and development expense | 32,481 | 29,508 | 59,946 | 68,220 |
| Depreciation and amortization expense | 20,848 | 22,786 | 41,241 | 46,517 |
| Total Operating Expenses | 296,561 | 267,800 | 610,276 | 951,992 |
| INCOME (LOSS) FROM OPERATIONS | (124,809) | (113,868) | (105,898) | (632,070) |
| OTHER INCOME (EXPENSE) | ||||
| Interest expense | -- | (7,612) | -- | (15,415) |
| Interest income | 1 | 1,688 | 1 | 3,358 |
| Total Other Income (Expense) | 1 | (5,924) | 1 | (12,057) |
| INCOME (LOSS) BEFORE INCOME TAXES | (124,808) | (119,792) | (105,897) | (644,127) |
| INCOME TAX EXPENSE | -- | -- | 800 | 800 |
| NET INCOME (LOSS) | $ (124,808) | $ (119,792) | $ (106,697) | $ (644,927) |
| BASIC AND DILUTED INCOME (LOSS) PER SHARE | $ (0.01) | $ (0.01) | $ (0.01) | $ (0.04) |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | 16,471,747 | 16,147,675 | 16,068,031 | 16,143,382 |
| OMNITEK ENGINEERING CORPORATION | |||
| Consolidated Balance Sheet | |||
| ASSETS | |||
|
June 30, 2011 |
December 31, 2010 |
||
| (unaudited) | (audited) | ||
| CURRENT ASSETS | |||
| Cash | $ 113,717 | $ 34,944 | |
| Accounts receivable, net of allowance of $10,000 | 19,433 | 28,117 | |
| Accounts receivable -related party | 18,357 | -- | |
| Inventory | 1,095,766 | 1,055,047 | |
| Deposits | 65,843 | 73,412 | |
| Total Current Assets | 1,313,116 | 1,191,520 | |
| FIXED ASSETS, net | 14,842 | -- | |
| OTHER ASSETS | |||
| Intellectual property, net | 35,907 | 76,518 | |
| Total Current Assets | 35,907 | 76,518 | |
| TOTAL ASSETS | $ 1,363,865 | $ 1,268,038 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||
| CURRENT LIABILITIES | |||
| Accounts payable and accrued expenses | $ 61,920 | $ 136,936 | |
| Accrued expenses - related parties | 368,388 | 395,888 | |
| Accounts payable - related parties | 3,078 | 4,068 | |
| Customer deposits | 275,883 | 333,887 | |
| Total Current Liabilities | 709,269 | 870,779 | |
| Total Liabilities | 709,269 | 870,779 | |
| STOCKHOLDERS' EQUITY | |||
| Common stock, 25,000,000 shares authorized no par value 17,037,812 and 15,659,829 shares issued and outstanding, respectively | 2,612,299 | 2,374,799 | |
| Additional paid-in capital | 4,131,141 | 4,004,607 | |
| Accumulated deficit | (6,088,844) | (5,982,147) | |
| Total Stockholders' Equity | 654,596 | 397,259 | |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,363,865 | $ 1,268,038 | |