STAMFORD, Conn., Nov. 11, 2008 (GLOBE NEWSWIRE) -- Clean Diesel Technologies, Inc. (Nasdaq:CDTI) (XETRA:CDIA) (AIM:CDT), the cleantech emissions reduction company, today announced financial results for the third quarter and nine months ended September 30, 2008.
Recent Developments:
* Revenue for the third quarter was $1.6 million compared to $2.5 million in the third quarter of 2007, with the decline mainly attributable to large upfront licensing fees in the third quarter of 2007 * Revenue totaled $6.8 million for the nine months ended September 30, 2008 compared to $3.9 million for the nine months ended September 30, 2007 * Clean Diesel, EnBW Regional AG and H. Daugbjerg SA unveiled a diesel retrofit emissions control system at the IAA Commercial Vehicles 2008 trade show in Hannover, Germany in September * Michael Asmussen hired as Vice President of Sales, Americas, to lead domestic sales efforts
Dr. Bernhard Steiner, President and CEO of Clean Diesel Technologies, commented, "Clean Diesel has not been immune to the external macro events resulting in a global economic slowdown and the subsequent downturn in the automotive industry. Revenue for the quarter was $1.6 million compared with $2.5 million in the third quarter of last year, although it should be noted that last year's third quarter included significant upfront licensing fees which comprised much of our revenue for that period. Revenue also declined, as we expected, upon completion of the second of four compliance deadlines of the London Low Emission Zone (LEZ) in July 2008."
"Now with more than 300 patents and patents pending, the value of and demand for our portfolio of emission reduction technologies remains strong," continued Dr. Steiner. "Even though global events are driving an economic downturn, powerful forces are driving the demand for energy efficient solutions, and we see no signs of regulatory clean air mandates abating in the U.S. or abroad. This situation actually increases the competitive position and overall value of our unique technology portfolio. We believe the need for energy efficient emissions solutions is resulting in a new industry standard, embraced by engine manufacturers, for the combined use of Exhaust Gas Recirculation (EGR) and Selective Catalytic Reduction (SCR). Clean Diesel holds exclusive patents on the combined use of these technologies."
Dr. Steiner concluded, "Highlights in the third quarter include signing an important new license agreement with one of the leading companies in the industry. The brand awareness, know-how and value generated from participating in the London LEZ continues to create new opportunities, including participation with EnBW Regional AG, one of the largest German power network operators, and H. Daugbjerg SA, a Danish filter specialist, for a diesel retrofit emissions control system for the German market based on Clean Diesel's Purifier(tm) e4 technology. Our European LEZ experience is directly applicable in the Americas as we progress with verification by the California Air Resources Board for the Purifier e4 and participate in the California Off-Road Showcase and Supplemental Environmental Programs in Los Angeles and Oakland. These activities and developments underscore our global focus and market leadership."
Third Quarter 2008 Financial Results
Total revenue for the third quarter of 2008 was $1.6 million compared to $2.5 million in the third quarter of 2007. The decrease in the third quarter was primarily due to significant up-front license fees recognized in the prior year third quarter. Net loss for the third quarter of 2008 was $2.4 million or $0.29 per share compared to the Company's only profitable quarter to date with a net profit of $651,000 or $0.09 per share in the comparable period in 2007. Net loss for the quarter included $262,000 of non-cash stock-based compensation charges, compared to $91,000 in non-cash stock-based compensation charges in the three months ended September 30, 2007.
Total revenue for the nine months ended September 30, 2008 was $6.8 million, an increase of 74%, compared to $3.9 million for the same period in 2007. Net loss for the nine months ended September 30, 2008 was $6.1 million or $0.75 per share compared to $1.7 million or $0.25 per share in the comparable period in 2007. Net loss for the nine months ended September 30, 2008 included $1.0 million of non-cash stock-based compensation charges compared to $733,000 of non-cash stock-based compensation charges in the nine months ended September 30, 2007. The company also recorded an unrealized loss of $750,000 for the nine months ended September 30, 2008 that reduced the value of its investments in auction rate securities (ARS) with a corresponding reduction in stockholders' equity.
The Company disclosed that in October 2008, it received an offer from UBS AG for a put right permitting the Company to sell to UBS at par value the $11.7 million investment in ARS, previously purchased from UBS, at a future date (any time during a two-year period beginning June 30, 2010). The Offer also includes a commitment to loan the Company 75% of the UBS-determined value of the ARS at any time until the put is exercised. The Company accepted the UBS Offer on November 6, 2008.
Additional information about the Company's financial results is available on its Form 10-Q filed with the Securities & Exchange Commission: http://www.sec.gov.
About Clean Diesel Technologies
Clean Diesel Technologies (Nasdaq:CDTI) is a cleantech company providing sustainable solutions to reduce emissions, increase energy efficiency and lower the carbon intensity of on- and off-road engine applications. Clean Diesel's patented technologies and products allow manufacturers and operators to comply with increasingly strict regulatory emissions and air quality standards, while also improving fuel economy and power. The Company's solutions, which are in commercial use worldwide, significantly reduce emissions formed by the combustion of fossil fuels and biofuels, including particulate matter (PM), nitrogen oxides (NOx), carbon monoxide and hydrocarbons. Clean Diesel solutions also reduce carbon dioxide (CO2) emissions, a key greenhouse gas associated with global climate change.
Clean Diesel develops and manages intellectual property from original concept to full-scale commercial deployment. Its offerings include ARIS(r) Selective Catalytic Reduction (SCR); the patented combination of SCR and Exhaust Gas Recirculation; hydrocarbon injection for emissions control applications; Platinum Plus(r) Fuel-Borne Catalyst (FBC); the Purifier family of particulate filter systems; and its Wire Mesh Filter particulate filter technologies. The Company was founded in 1995 and is headquartered in Stamford, Connecticut. A wholly owned subsidiary, Clean Diesel International, LLC, is based in London, England. For more information, please visit www.cdti.com.
Certain statements in this news release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known or unknown risks, including those detailed in the Company's filings with the U.S. Securities and Exchange Commission, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
Please visit us on the World Wide Web at: www.cdti.com
CLEAN DIESEL TECHNOLOGIES, INC.
Condensed Consolidated Balance Sheets
(in thousands, except share data)
September 30, December 31,
2008 2007
------------ ------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 6,691 $ 1,517
Accounts receivable, net of allowance
of $516 and $49, respectively 1,093 1,927
Investments -- 7,100
Inventories, net 831 1,093
Other current assets 170 234
------------ ------------
Total current assets 8,785 11,871
Investments 10,975 11,725
Patents, net 992 817
Fixed assets, net of accumulated
depreciation of $486 and $421,
respectively 220 175
Other assets 71 75
------------ ------------
Total assets $ 21,043 $ 24,663
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 469 $ 757
Accrued expenses 476 850
Short-term debt 3,000 --
Customer deposits 78 56
------------ ------------
Total current liabilities 4,023 1,663
Commitments
Stockholders' equity:
Preferred stock, par value $0.01 per share:
authorized 100,000 shares; no shares
issued and outstanding -- --
Common stock, par value $0.01 per share:
authorized 12,000,000 shares; issued
and outstanding 8,138,303 and
8,124,056 shares, respectively 81 81
Additional paid-in capital 73,490 72,447
Accumulated other comprehensive loss (925) (16)
Accumulated deficit (55,626) (49,512)
------------ ------------
Total stockholders' equity 17,020 23,000
------------ ------------
Total liabilities and stockholders'
equity $ 21,043 $ 24,663
============ ============
CLEAN DIESEL TECHNOLOGIES, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts) (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2008 2007 2008 2007
-------- -------- -------- --------
Revenue:
Product sales $ 1,415 $ 223 $ 6,432 $ 567
Technology licensing fees
and royalties 165 2,237 368 3,352
Consulting and other -- -- -- --
-------- -------- -------- --------
Total revenue 1,580 2,460 6,800 3,919
Costs and expenses:
Cost of revenue - product
sales 1,174 167 5,232 388
Cost of revenue - licensing
fees and royalties -- -- -- --
Cost of revenue -
consulting and other -- -- -- --
Selling, general and
administrative 2,403 1,659 7,447 4,957
Research and development 162 100 316 292
Patent amortization and
other expense 65 86 143 262
-------- -------- -------- --------
Operating costs and
expenses 3,804 2,012 13,138 5,899
(Loss) income from
operations (2,224) 448 (6,338) (1,980)
Other income (expense):
Interest income 125 204 481 298
Interest expense (14) -- (14) --
Other income (expense), net (268) (1) (243) (1)
-------- -------- -------- --------
(Loss) income before
provision/benefit
for income taxes (2,381) 651 (6,114) (1,683)
Provision/benefit for
income taxes -- -- -- --
-------- -------- -------- --------
Net (loss) income $ (2,381) $ 651 $ (6,114) $ (1,683)
======== ======== ======== ========
(Loss) income per share:
Basic $ (0.29) $ 0.09 $ (0.75) $ (0.25)
======== ======== ======== ========
Diluted $ (0.29) $ 0.09 $ (0.75) $ (0.25)
======== ======== ======== ========
Weighted-average number of
common shares outstanding:
Basic 8,138 7,377 8,137 6,685
======== ======== ======== ========
Diluted 8,138 7,580 8,137 6,685
======== ======== ======== ========
CLEAN DIESEL TECHNOLOGIES, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands) (Unaudited)
Nine Months Ended
September 30,
2008 2007
------------ ------------
Operating activities
Net loss $ (6,114) $ (1,683)
Adjustments to reconcile net loss to
cash used in operating
activities:
Depreciation and amortization 110 100
Provision for doubtful accounts, net 499 28
Compensation expense for stock options
and warrants 1,033 733
Changes in operating assets and
liabilities:
Accounts receivable 335 (1,827)
Inventories 262 (361)
Other current assets and other assets 68 (28)
Accounts payable, accrued expenses
and other liabilities (640) (47)
------------ ------------
Net cash used for operating activities (4,447) (3,085)
------------ ------------
Investing activities
Sales (purchases) of investments 7,100 (11,825)
Patent costs (220) (212)
Purchases of fixed assets (110) (71)
------------ ------------
Net cash provided by (used for)
investing activities 6,770 (12,108)
------------ ------------
Financing activities
Proceeds from short-term debt 3,000 --
Proceeds from issuance of common stock,
net -- 4,313
Proceeds from issuance of warrants, net -- 6,867
Stockholder-related charges (14) (143)
Proceeds from exercise of stock options 24 83
------------ ------------
Net cash provided by financing
activities 3,010 11,120
------------ ------------
Effect of exchange rate changes on cash (159) 10
Net increase (decrease) in cash and
cash equivalents $ 5,174 $ (4,063)
Cash and cash equivalents at beginning
of the period 1,517 5,314
------------ ------------
Cash and cash equivalents at end of the
period $ 6,691 $ 1,251
============ ============
Supplemental non-cash activities:
Payment of accrued directors' fees
in common stock $ -- $ 140
Unrealized loss on available-for-sale
securities $ 750 $ --