VISTA, Calif., May 4, 2015 (GLOBE NEWSWIRE) -- Omnitek Engineering Corp. (OTCQB:OMTK) today reported results for its first quarter ended March 31, 2015 -- reflecting increased sales, a sharply reduced net loss and an order backlog.
Net revenues for the first quarter increased 41 percent to $450,700 compared with $320,374 a year earlier. For the same period, the company reported a net loss of $237,162, or $0.01 per share, compared with a net loss of $417,805, or $0.02 per share, a year ago.
Gross margin for the three months ended March 31, 2015 was $199,055 compared with $125,323 a year ago. Gross profit for the three-month period as a percentage of sales was 44 percent compared with 39 percent in the same period a year ago, reflecting volume and overhead absorption.
"The company's sales performance for the quarter is encouraging, and we remain confident that the long-awaited domestic market will gain further momentum in the quarters ahead, supported by post-first quarter EPA-approval of the Caterpillar C15 engine and three additional EPA-approved engines in our portfolio. Our business in foreign markets, particularly in Mexico and Europe, continues to gain momentum, which contributed to an expanding order backlog at March 31 of more than $500,000, as previously highlighted in our year-end financial release issued on that date," said Werner Funk, president and chief executive officer of Omnitek Engineering Corp.
He noted Omnitek's EPA-approved technology provides a viable alternative to new engine replacement for fleet operators at a significantly lower cost. With more than eight million heavy-duty trucks on the road in the United States and a payback period for conversions of approximately one year, Omnitek is well-positioned to capitalize on the domestic abundance of natural gas and its benefits.
He added that local fleet operators with trucks that return to the same depot every night are uniquely positioned to build on-site refueling stations and purchase fuel significantly below the cost charged by retail fuel stations. "This dynamic remains a compelling consideration for fleet managers, even with oil price volatility," Funk said
At March 31, 2015, the company's total current assets were $2,899,451 and total current liabilities were $628,951 -- resulting in positive working capital of $2,270,050 and a current ratio of 4.61 to 1.
About Omnitek Engineering Corp.
Omnitek Engineering Corp. develops and sells proprietary diesel-to-natural gas 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)
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OMNITEK ENGINEERING CORP. Consolidated Statement of Operations (Unaudited) |
||
| For the Three | For the Three | |
| Months Ended | Months Ended | |
| March 31, | March 31, | |
| 2015 | 2014 | |
| REVENUES | $ 450,700 | $ 320,374 |
| COST OF GOODS SOLD | 251,645 | 195,051 |
| GROSS MARGIN | 199,055 | 125,323 |
| OPERATING EXPENSES | ||
| General and administrative | 351,052 | 451,402 |
| Research and development | 76,584 | 103,760 |
| Depreciation and amortization | 7,790 | 8,187 |
| Total Operating Expenses | 435,426 | 563,349 |
| LOSS FROM OPERATIONS | (236,371) | (438,026) |
| OTHER INCOME (EXPENSE) | ||
| Interest income | 9 | 21,021 |
| Total Other Income (Expense) | 9 | 21,021 |
| LOSS BEFORE INCOME TAXES | (236,362) | (417,805) |
| INCOME TAX EXPENSE | 800 | 800 |
| NET LOSS | $ (237,162) | $ (417,805) |
| BASIC AND DILUTED LOSS PER SHARE | $ (0.01) | $ (0.02) |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | 19,980,632 | 19,759,582 |
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OMNITEK ENGINEERING CORP. Consolidated Balance Sheet |
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| ASSETS | ||
| March 31, | December 31, | |
| 2015 | 2014 | |
| (unaudited) | ||
| CURRENT ASSETS | ||
| Cash | $ 432,912 | $ 498,782 |
| Accounts receivable, net | 105,800 | 56,059 |
| Accounts receivable - related parties | 13,665 | 15,092 |
| Inventory, net | 2,300,619 | 2,333,781 |
| Prepaid expense | 6,050 | 4,200 |
| Deposits | 40,405 | 92,779 |
| Total Current Assets | 2,899,451 | 3,000,693 |
| FIXED ASSETS, net | 81,324 | 88,715 |
| OTHER ASSETS | ||
| Intellectual property, net | 945 | 1,345 |
| Other noncurrent assets | 14,280 | 14,280 |
| Total Other Assets | 15,225 | 15,625 |
| TOTAL ASSETS | $ 2,996,000 | $ 3,105,033 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| CURRENT LIABILITIES | ||
| Accounts payable and accrued expenses | $ 115,151 | $ 84,385 |
| Accrued management compensation | 108,298 | 102,096 |
| Accounts payable - related parties | 7,214 | 3,600 |
| Customer deposits | 398,288 | 345,844 |
| Total Current Liabilities | 628,951 | 535,925 |
| Total Liabilities | 628,951 | 535,925 |
| STOCKHOLDERS' EQUITY | ||
| Common stock, 125,000,000 shares authorized no par value 19,981,082 and 19,979,582 shares issued and outstanding, respectively | 8,291,411 | 8,289,911 |
| Additional paid-in capital | 11,155,105 | 11,121,502 |
| Accumulated deficit | (17,079,467) | (16,842,305) |
| Total Stockholders' Equity | 2,367,049 | 2,569,108 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,996,000 | $ 3,105,033 |