SAN MARCOS, Calif., Nov. 15, 2010 (GLOBE NEWSWIRE) -- Omnitek Engineering Corporation (OTCQB:OMTK) today reported a 25 percent increase in revenues for its third quarter ended September 30, 2010 -- 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 third quarter increased to $402,119 from $321,194 a year earlier. For the same period, the company reported a reduced net loss of $93,334, or $0.01 per share, compared with a net loss of $132,121, or $0.01 per share, a year ago.
Gross margin for the three months ended September 30, 2010 was $241,700 compared with $166,442 a year ago, reflecting increased sales and better component pricing. Gross margin for the three-month period as a percentage of sales was 60 percent compared with 52 percent in the same period a year ago.
Net revenues for the nine-month period climbed 32.7 percent to $1.2 million from $886,248 in the same period a year ago. For the same period, the company reported a net loss of $738,261, or $0.05 per share, compared with a net loss of $439,184, or $0.03 per share, a year earlier, due in part to increased expenses associated with Omnitek becoming a public reporting company under the Securities Exchange Act of 1934 in late July and non-cash charges related to stock option grants.
Gross margin for the nine months was $561,621 compared with $400,447 a year ago. Gross margin for the nine-month period as a percentage of sales was 48 percent compared with 45 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. We anticipate strong sales momentum for the balance of 2010, 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 two recent corporate developments in emerging markets designed to bolster growth overseas, including a marketing agreement with a Karachi-based company for truck and bus applications throughout Pakistan and the appointment of a master distributor in India to support diesel-to-natural gas conversion kit sales for truck, bus and power generator applications.
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, affordable and designed to combat global warming.
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 | For the Three | For the Nine | For the Nine | |
| Months Ended | Months Ended | Months Ended | Months Ended | |
| September 30, | September 30, | September 30, | September 30, | |
| 2010 | 2009 | 2010 | 2009 | |
| REVENUES | $ 402,119 | $ 321,194 | $ 1,176,373 | $ 886,248 |
| COST OF GOODS SOLD | 160,419 | 154,751 | 614,752 | 485,801 |
| GROSS MARGIN | 241,700 | 166,443 | 561,621 | 400,447 |
| OPERATING EXPENSES | ||||
| General and administrative | 274,806 | 207,333 | 1,112,063 | 631,478 |
|
Research and development expense |
33,487 | 63,673 | 101,708 | 190,170 |
|
Depreciation and amortization expense |
21,404 | 24,385 | 67,917 | 72,791 |
| Total Operating Expenses | 329,697 | 295,391 | 1,281,688 | 894,439 |
| LOSS FROM OPERATIONS | (87,997) | (128,948) | (720,067) | (493,992) |
| OTHER INCOME (EXPENSE) | ||||
| Other income | -- | -- | -- | 69,022 |
| Interest expense | (7,044) | (4,880) | (22,459) | (18,479) |
| Interest income | 1,707 | 1,707 | 5,065 | 5,065 |
|
TOTAL OTHER INCOME (EXPENSE) |
(5,337) | (3,173) | (17,394) | 55,608 |
| NET LOSS BEFORE INCOME TAX | (93,334) | (132,121) | (737,461) | (438,384) |
| INCOME TAX EXPENSE | -- | -- | 800 | 800 |
| NET LOSS | $ (93,334) | $ (132,121) | $ (738,261) | $ (439,184) |
|
BASIC AND DILUTED LOSS PER SHARE |
$ (0.01) | $ (0.01) | $ (0.05) | $ (0.03) |
|
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING |
15,547,675 | 16,006,398 | 15,573,902 | 16,006,398 |
| OMNITEK ENGINEERING CORP. | ||||
| Balance Sheets | ||||
| ASSETS | ||||
| September 30, | December 31, | |||
| 2010 | 2009 | |||
| (unaudited) | (audited) | |||
| CURRENT ASSETS | ||||
| Cash | $ 40,600 | $ 78,991 | ||
| Accounts receivable, net of allowance of $10,000 | 69,963 | 10,813 | ||
| Accounts receivable-related party | -- | 73,749 | ||
| Inventory | 1,122,732 | 1,083,399 | ||
| Deposits | 123,706 | 128,359 | ||
| Prepaid expense | 22,500 | -- | ||
| Total Current Assets | 1,379,501 | 1,375,311 | ||
| FIXED ASSETS, net | 5,399 | 11,727 | ||
| OTHER ASSETS | ||||
| Prepaid expense | -- | 2,500 | ||
| Intellectual property, net | 97,664 | 158,503 | ||
| Total Other Assets | 97,664 | 161,003 | ||
| TOTAL ASSETS | $ 1,482,564 | $ 1,548,041 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| CURRENT LIABILITIES | ||||
| Accounts payable and accrued expenses | $ 123,444 | $ 11,832 | ||
| Accrued expenses-related parties | 404,011 | 371,050 | ||
| Accounts payable-related parties | 18,311 | 16,105 | ||
| Customer deposits | 280,738 | 194,331 | ||
| Note payable | 26,123 | 84,158 | ||
| Total Current Liabilities | 852,628 | 677,476 | ||
| Total Liabilities | 852,628 | 677,476 | ||
| STOCKHOLDERS' EQUITY | ||||
|
Common stock, 125,000,000 shares authorized no par value 15,647,675 and 16,127,675 shares issued and 15,547,675 and 16,027,675 shares outstanding, respectively |
2,357,976 | 2,330,476 | ||
| Additional paid-in capital | 3,836,926 | 3,366,794 | ||
| Accumulated deficit | (5,564,966) | (4,826,705) | ||
| Total Stockholders' Equity | 629,936 | 870,565 | ||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,482,564 | $ 1,548,041 | ||