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VISTA, Calif., Aug. 10, 2015 (GLOBE NEWSWIRE) -- Omnitek Engineering Corp. (OTCQB:OMTK) today reported results for its second quarter and six months ended June 30, 2015 – reflecting strong revenue gains for the quarter and six months, margin expansion and a significantly reduced net loss for both periods.
Revenues for the second quarter increased 95.5 percent to $591,185 from $302,385 a year earlier, reflecting higher filter sales and diesel-to-natural gas engine conversion kit shipments. For the same period in 2015, the company reported a sharply reduced net loss of $168,280, or $0.01 per share, compared with a net loss of $459,509, or $0.02 per share, a year earlier, reflecting higher sales combined with lower operating expenses.
Results for the three months ended June 30, 2015 reflect the impact of non-cash expenses, including the value of options and warrants granted in the amount of $53,486 and depreciation and amortization of $7,734. For the three month period a year earlier, non-cash expenses for the value of options and warrants granted were $45,822, with depreciation and amortization of $14,834.
Revenues for the six-month period were $1,041,885 compared with $622,759 a year ago. For the same period, the company reported a sharply reduced net loss of $405,442, or $0.02 per share, compared with a net loss of $877,314, or $0.04 per share, a year earlier.
Results for the six months ended June 30, 2015 reflect the impact of non-cash expenses, including the value of options and warrants granted in the amount of $87,089 and depreciation and amortization of $15,524. For the six-month period a year earlier, non-cash expenses for the value of options and warrants granted were $91,141 and depreciation and amortization of $29,902.
Gross margin for the quarter ended June 30, 2015 was $322,181 compared with $105,374 a year ago. Gross margin for the quarter as a percentage of sales was 54 percent compared with 35 percent in the same period a year ago, primarily reflecting sales volume and product mix.
Gross margin for the six-months ended June 30, 2015 was $521,237 compared with $230,697 a year earlier. Gross margin for the six-month period as a percentage of sales was 50 percent compared with 37 percent in the same period a year ago, primarily reflecting sales volume and product mix.
"The company's sales performance continued to gain momentum in the second quarter, and we expect meaningful growth in the second half of 2015 -- supported by foreign market sales activity, particularly Europe and Mexico, as well as anticipated contributions from certain key domestic large fleet projects," said Werner Funk, president and chief executive officer of Omnitek Engineering Corp.
The company's order backlog at June 30, 2015 was approximately $440,000.
He emphasized that the cost for a diesel truck engine conversion can be recouped within a one-to-two year period, even with current low oil prices. This is particularly true in European countries, which are essentially unaffected by lower oil prices due to the high fuel tax component. He noted that a high price delta between diesel and natural gas can result in a payback period as short as six months.
At June 30, 2015, the company's total current assets were $2,813,881 and total current liabilities were $650,442 -- resulting in positive working capital of $2,252,255 and a current ratio of 4.33 to 1.
About Omnitek Engineering Corp.
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)
OMNITEK ENGINEERING CORPORATION
Consolidated Statement of Operations
|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,|
|REVENUES||$ 591,185||$ 302,385||$ 1,041,885||$ 622,759|
|COST OF GOODS SOLD||269,003||197,011||520,648||392,062|
|General and administrative||396,841||433,083||747,893||877,604|
|Research and development expense||89,655||135,399||166,239||239,159|
|Depreciation and amortization expense||7,734||14,834||15,524||29,902|
|Total Operating Expenses||494,230||583,316||929,656||1,146,665|
|LOSS FROM OPERATIONS||(172,048)||(477,942)||(408,419)||(915,968)|
|OTHER INCOME (EXPENSE)|
|Investment income, net||3,934||12,921||3,934||12,921|
|Total Other Income (Expense)||3,768||18,433||3,777||39,454|
|LOSS BEFORE INCOME TAXES||(168,280)||(459,509)||(404,642)||(876,514)|
|INCOME TAX EXPENSE||--||--||800||800|
|NET LOSS||$ (168,280)||$ (459,509)||$ (405,442)||$ (877,314)|
|BASIC AND DILUTED INCOME (LOSS) PER SHARE||$ (0.01)||$ (0.02)||$ (0.02)||$ (0.04)|
|WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING||19,981,082||19,762,897||19,981,858||19,762,897|
OMNITEK ENGINEERING CORPORATION
Consolidated Balance Sheet
|June 30,||December 31,|
|Cash||$ 350,351||$ 498,782|
|Accounts receivable, net||93,133||56,059|
|Accounts receivable - related parties||17,723||15,092|
|Total Current Assets||2,813,881||3,000,693|
|FIXED ASSETS, net||73,934||88,715|
|Intellectual property, net||602||1,345|
|Other noncurrent assets||14,280||14,280|
|Total Other Assets||14,882||15,625|
|TOTAL ASSETS||$ 2,902,697||$ 3,105,033|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accounts payable and accrued expenses||$ 111,043||$ 84,385|
|Accrued management compensation||131,567||102,096|
|Accounts payable - related parties||7,096||3,600|
|Total Current Liabilities||650,442||535,925|
|Common stock, 125,000,000 shares authorized no par value 19,819,082 and 19,959,582 shares issued and outstanding, respectively||8,291,411||8,289,911|
|Additional paid-in capital||11,208,591||11,121,502|
|Total Stockholders' Equity||2,252,255||2,569,108|
|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY||$ 2,902,697||$ 3,105,033|
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