Omnitek Engineering Corp. announces results for its third quarter and nine months ended September 30, 2018 -- reflecting the development of a 430 hp 13-L heavy-duty EURO VI natural gas engine for truck and bus applications for a European customer, and its finalization subsequent to the end of the quarter.
For the 3 months ended September 30, 2018, the company reported a net loss of $143,305, or ($0.01) per share, compared with a net loss of $149,849, or ($0.01) per share, a year earlier. Net revenues for the quarter were $280,567 compared with $276,241 from a year earlier.
Results for the quarter were impacted by non-cash expenses, including the value of options granted in the amount of $5,272, depreciation and amortization of $1,568 and expenses relating to settlement of debt of $32,963. For the three-month period a year earlier, non-cash expenses included the value of options granted of $25,476 and depreciation and amortization of $6,147.
For the 9-month period, the company reported a net loss of $317,938, or ($0.02) per share, compared with a net loss of $550,479, or ($0.03) per share, a year earlier. Net revenues for the 9 months were $1,009,653 compared with $814,210 a year ago.
Results for the nine-month period were impacted by non-cash expenses, including the value of options granted in the amount of $32,458, depreciation and amortization of $7,294 and expenses relating to settlement of debt of $32,963. For the 9-month period a year earlier, non-cash expenses included the value of options granted of $120,209 and depreciation and amortization of $18,594.
Gross margin for the quarter ended September 30, 2018 was 39% compared with 43% a year earlier. Gross margin for the 9 months was 43% compared with 44%t a year earlier -- within the company’s normalized target range of 40-50% on an annual basis.
“Higher oil prices, air pollution regulations and the price disparity between diesel and natural gas in foreign markets remain important catalysts for our business, and we remain focused on ramping up sales volume -- particularly in Turkey, China, India and Europe. The recent finalized development of a 430 hp 13-L EURO VI natural gas engine represents a significant competitive advantage, and we anticipate significant sales for this product line to materialize in 2019. In addition, we anticipate meaningful sales to materialize after our exclusive Chinese distributor receives final government approvals to manufacture natural gas engines in its new manufacturing facility currently being built in Shandong Province, China,” says Werner Funk, President and Chief Executive Officer of Omnitek Engineering Corp.
At September 30, 2018, current liabilities totaled $1,229,580 and current assets totaled $1,507,583, resulting in positive working capital of approximately $278,003 and a current ratio of 1.23.
