Omnitek Engineering Corp. Reports First Quarter Results
VISTA, Calif., May 15, 2017 (GLOBE NEWSWIRE) -- Omnitek Engineering Corp. (OTCQB:OMTK) today reported results for its first quarter ended March 31, 2017.
Net revenues for the first quarter were $291,654 compared with $339,582 a year earlier. For the same period, the company reported a net loss of $207,189, or $0.01 per share, compared with a net loss of $200,285, or $0.01 per share, a year ago.
Gross margin for the three months ended March 31, 2017 was $139,041 compared with $167,404 a year ago. Gross profit for the three-month period as a percentage of sales was 48 percent compared with 49 percent in the same period a year ago, reflecting volume and overhead absorption.
“Results for the quarter reflect a short-term delay in several projects we expected to have ramped up in the first quarter. We remain confident that meaningful sales will be realized in the current and subsequent quarters, supported by delayed projects moving forward and recent additional business inquiries. Foreign market activity, particularly, Mexico, China and Europe, continue to gain momentum -- which supports our optimistic outlook for 2017,” said Werner Funk, president and chief executive officer of Omnitek Engineering Corp.
Results for the three months ended March 31, 2017 reflect the impact of non-cash expenses, including the value of options and warrant granted in the amount of $69,533 and depreciation and amortization of $6,224. For the three-month period a year earlier, non-cash expenses included options and warrants granted in the amount of $36,099 and depreciation and amortization of $7,487.
He noted an order backlog at March 31 of more than $500,000. At March 31, 2017, the company’s total current assets were $1,959,023 and total current liabilities were $756,978 -- resulting in positive working capital of $1,202,045 and a current ratio of 2.59 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, | |||||||||
| 2017 | 2016 | |||||||||
| REVENUES | $ | 291,654 | $ | 339,582 | ||||||
| COST OF GOODS SOLD | 152,613 | 172,178 | ||||||||
| GROSS MARGIN | 139,041 | 167,404 | ||||||||
| OPERATING EXPENSES | ||||||||||
| General and administrative | 300,122 | 312,795 | ||||||||
| Research and development | 39,884 | 47,407 | ||||||||
| Depreciation and amortization | 6,224 | 7,487 | ||||||||
| Total Operating Expenses | 346,230 | 367,689 | ||||||||
| LOSS FROM OPERATIONS | (207,189 | ) | (200,285 | ) | ||||||
| OTHER INCOME (EXPENSE) | ||||||||||
| Interest expense | (1,852 | ) | (690 | ) | ||||||
| Other income | - | 4,230 | ||||||||
| Total Other Income (Expense) | (1,852 | ) | 3,540 | |||||||
| LOSS BEFORE INCOME TAXES | (209,041 | ) | (196,745 | ) | ||||||
| INCOME TAX EXPENSE | - | - | ||||||||
| NET LOSS | $ | (209,041 | ) | $ | (196,745 | ) | ||||
| BASIC AND DILUTED LOSS PER SHARE | $ | (0.01 | ) | $ | (0.01 | ) | ||||
| WEIGHTED AVERAGE NUMBER | ||||||||||
| OF COMMON SHARES OUTSTANDING | 20,281,082 | 19,981,082 | ||||||||
|
OMNITEK ENGINEERING CORP. Consolidated Balance Sheet | ||||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||
| March 31, | December 31, | |||||||||||||||||||||||
| 2017 | 2016 | |||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||
| CURRENT ASSETS | ||||||||||||||||||||||||
| Cash | $ | 20,249 | $ | 17,782 | ||||||||||||||||||||
| Accounts receivable, net | 38,138 | 28,159 | ||||||||||||||||||||||
| Accounts receivable - related parties | 10,282 | 7,005 | ||||||||||||||||||||||
| Inventory, net | 1,849,880 | 1,869,900 | ||||||||||||||||||||||
| Prepaid expense | - | 5,324 | ||||||||||||||||||||||
| Costs and estimated earnings in excess of billings | 16,457 | 30,973 | ||||||||||||||||||||||
| Deposits | 24,017 | 21,716 | ||||||||||||||||||||||
| Total Current Assets | 1,959,023 | 1,980,859 | ||||||||||||||||||||||
| FIXED ASSETS, net | 25,615 | 31,839 | ||||||||||||||||||||||
| OTHER ASSETS | ||||||||||||||||||||||||
| Other noncurrent assets | 14,280 | 14,280 | ||||||||||||||||||||||
| Total Other Assets | 14,280 | 14,280 | ||||||||||||||||||||||
| TOTAL ASSETS | $ | 1,998,918 | $ | 2,026,978 | ||||||||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||
| CURRENT LIABILITIES | ||||||||||||||||||||||||
| Accounts payable and accrued expenses | $ | 309,915 | $ | 325,255 | ||||||||||||||||||||
| Accrued management compensation | 317,601 | 314,788 | ||||||||||||||||||||||
| Accounts payable - related parties | 42,737 | 18,373 | ||||||||||||||||||||||
| Customer deposits | 86,725 | 87,114 | ||||||||||||||||||||||
| Total Current Liabilities | 756,978 | 745,530 | ||||||||||||||||||||||
| Total Liabilities | 756,978 | 745,530 | ||||||||||||||||||||||
| STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||
| Common stock, 125,000,000 shares authorized no par value | ||||||||||||||||||||||||
| 20,281,082 shares issued and outstanding | 8,411,411 | 8,411,411 | ||||||||||||||||||||||
| Additional paid-in capital | 11,790,374 | 11,620,841 | ||||||||||||||||||||||
| Accumulated deficit | (18,959,845 | ) | (18,750,804 | ) | ||||||||||||||||||||
| Total Stockholders' Equity | 1,241,940 | 1,281,448 | ||||||||||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,998,918 | $ | 2,026,978 | ||||||||||||||||||||
CONTACT: Gary S. Maier (310) 471-1288
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