Omnitek Engineering Corporation has reported results for its second quarter and six months ended June 30, 2014 - 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% 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% compared with 35% 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% compared with 37% 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,” says 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 emphasizes 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 notes 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.
