SAN MARCOS, Calif., Nov. 8, 2011 (GLOBE NEWSWIRE) -- Omnitek Engineering Corporation (OTCBB:OMTK) today reported results for its third quarter ended September 30, 2011 -- reflecting the impact of timing of shipments due to certain customer circumstances that required rescheduling of orders and a sharply reduced net loss for the nine-month period.
Net revenues for the third quarter were $317,160 compared with $402,119 a year earlier. For the same period, the company reported a net loss of $179,475, or $0.01 per share, compared with a net loss of $93,334, or $0.01 per share, a year ago.
Results for the 2011 third quarter were impacted by non-cash expenses, including the value of options and warrants granted in the amount of $114,791 and depreciation and amortization of $21,155. For the three-month period a year earlier, non-cash expenses for the value of options and warrants granted were $41,216 and depreciation and amortization $21,404. Excluding these non-cash amounts, the net loss would have been $43,529 for the three months ending September 30, 2011, and $30,714 for the three months ended September 30, 2010.
Net revenues for the nine-month period climbed 11 percent to $1,306,906 from $1,176,373 a year ago. For the same period, the company reported a sharply reduced net loss of $286,172, $0.02 per share, compared with a net loss of $738,261, or $0.05 per share, a year ago.
Results for the nine-month period reflect the impact of non-cash expenses, including the value of options and warrants granted in the amount of $184,243, and depreciation and amortization of $62,396, as well as the impact of the timings of shipments, as noted above. For the same period a year earlier, non-cash expenses for the value of options and warrants granted were $453,397, with contributed interest of $16,735, and depreciation and amortization of $67,917. Excluding these non-cash amounts, the net loss would have been $39,533 for the nine months ended September 30, 2011, and a net loss of $200,212 for the nine months ended September 30, 2010.
"A more favorable domestic regulatory environment to convert high-polluting diesel powered engines to operate on natural gas is greatly enhancing interest in the United States. Corporate initiatives during the third quarter will aid in facilitating conversions and support our optimistic outlook for strong sales momentum for the balance of 2011 and 2012, particularly the appointment of an exclusive dealer and authorized installer in Pennsylvania and a marketing agent in the state to cultivate growth," said Werner Funk, president and chief executive officer of Omnitek Engineering Corporation.
Gross margin for the quarter ended September 30, 2011 was $148,523 compared with $241,700 a year ago, reflecting a change in the mix of product sold. Gross margin for the quarter as a percentage of sales was 46 percent compared with 60 percent in the same period a year ago, due primarily to product mix.
Gross margin for the nine months ended September 30, 2011, was $652,901 compared with $561,621 a year ago, reflecting increased sales. Gross margin for the nine-month period as a percentage of sales was 50 percent compared with 48 percent in the same period a year ago, due primarily to product mix.
Funk added that the appointment of a master distributor and exclusive installer of conversion kits in Trinidad and Tobago in the Caribbean and other corporate developments during the third quarter are also expected to further bolster growth.
Funk noted that subsequent to the end of the third quarter, Omnitek commenced trading on the OTCBB, reflecting its commitment to increasing the company's trading status and stock ownership. It previously traded on the OTCQB marketplace.
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 CORP. | ||||
| Statements of Operations | ||||
| (unaudited) | ||||
|
For the Three Months Ended September 30, |
For the Three Months Ended September 30, |
For the Nine Months Ended September 30, |
For the Nine Months Ended September 30, |
|
| 2011 | 2010 | 2011 | 2010 | |
| REVENUES | $ 317,160 | $ 402,119 | $ 1,306,906 | $ 1,176,373 |
| COST OF GOODS SOLD | 168,637 | 160,419 | 654,005 | 614,752 |
| GROSS MARGIN | 148,523 | 241,700 | 652,901 | 561,621 |
| OPERATING EXPENSES | ||||
| General and administrative | 265,999 | 274,806 | 775,088 | 1,112,063 |
| Research and development expense | 40,845 | 33,487 | 100,791 | 101,708 |
| Depreciation and amortization expense | 21,155 | 21,404 | 62,396 | 67,917 |
| Total Operating Expenses | 327,999 | 329,697 | 938,275 | 1,281,688 |
| LOSS FROM OPERATIONS | (179,476) | (87,997) | (285,374) | (720,067) |
| OTHER INCOME (EXPENSE) | ||||
| Interest expense | -- | (7,044) | -- | (22,459) |
| Interest income | 1 | 1,707 | 2 | 5,065 |
| Total Other Income (Expense) | 1 | (5,337) | 2 | (17,394) |
| LOSS BEFORE INCOME TAXES | (179,475) | (93,334) | (285,372) | (737,461) |
| INCOME TAX EXPENSE | -- | -- | 800 | 800 |
| NET LOSS | $ (179,475) | $ (93,334) | $ (286,172) | $ (738,261) |
| BASIC AND DILUTED LOSS PER SHARE | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.05) |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | 17,055,203 | 15,547,675 | 16,290,048 | 15,573,902 |
| OMNITEK ENGINEERING CORP. | ||
| Balance Sheets | ||
| ASSETS | ||
|
September 30, 2011 |
December 31, 2010 |
|
| (unaudited) | (audited) | |
| CURRENT ASSETS | ||
| Cash | $ 48,097 | $ 34,944 |
| Accounts receivable, net of allowance of $10,000 | 60,616 | 28,117 |
| Accounts receivable -related party | 11,903 | -- |
| Inventory | 1,055,446 | 1,055,047 |
| Deposits | 46,087 | 73,412 |
| Total Current Assets | 1,222,149 | 1,191,520 |
| FIXED ASSETS, net | 14,045 | -- |
| OTHER ASSETS | ||
| Intellectual property, net | 15,548 | 76,518 |
| Total Current Assets | 15,548 | 76,518 |
| TOTAL ASSETS | $ 1,251,742 | $ 1,268,038 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| CURRENT LIABILITIES | ||
| Accounts payable and accrued expenses | $ 34,632 | $ 136,936 |
| Accrued expenses - related parties | 360,350 | 395,888 |
| Accounts payable - related parties | 1,035 | 4,068 |
| Customer deposits | 275,895 | 333,887 |
| Total Current Liabilities | 671,912 | 870,779 |
| Total Liabilities | 671,912 | 870,779 |
| STOCKHOLDERS' EQUITY | ||
| Common stock, 25,000,000 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 | 4,188,850 | 4,004,607 |
| Accumulated deficit | (6,268,319) | (5,982,147) |
| Total Stockholders' Equity | 579,830 | 397,259 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,251,742 | $ 1,268,038 |