OREANDA-NEWS. Omnitek Engineering Corp. today reported results for its second quarter and six months ended June 30, 2016 – primarily reflecting the timing of orders between the completion of current pilot programs and the ramp up of fleet conversions on a larger scale.

Net revenues for the second quarter were $252,316 compared with $591,185 a year earlier.   For the same period, the company reported a net loss of $292,939, or $0.01 per share, compared with a net loss of $168,280, or $0.01 per share, a year earlier.

Results for the three months ended June 30, 2016 reflect the impact of non-cash expenses, including the value of options and warrants granted in the amount of $81,969 and depreciation and amortization of $6,976. For the three-month period a year earlier, non-cash expenses for the value of options and warrants granted were $53,486, with depreciation and amortization of $7,734.

Net revenues for the six-month period were $591,899 compared with $1,041,885 a year ago. For the same period, the company reported a net loss of $489,683, or $0.02 per share, compared with a net loss of $405,442, or $0.02 per share, a year earlier.

Results for the six months ended June 30, 2016 reflect the impact of non-cash expenses, including the value of options and warrants granted in the amount of $118,068 and depreciation and amortization of $14,463. For the six-month period a year earlier, non-cash expenses for the value of options and warrants granted were $87,089 and depreciation and amortization of $15,524.

Gross margin as a percentage of revenues for the quarter ended June 30, 2016 was 41 percent compared with 54 percent a year earlier due to sales volume and product mix, but consistent with management’s target range.  Gross margin as a percentage of revenues for the six months was 46 percent compared with 50 percent a year earlier, also consistent with management’s target range.

“During the quarter we made significant progress on several ongoing pilot programs, and the level of quote requests from potential fleet customers -- particularly in Mexico, Canada, Europe and China -- continues to gain momentum.  Based on current developments and activity, we anticipate accelerating demand and follow-on orders for engine conversion kits and/or converted engines in the second half,” said Werner Funk, president and chief executive officer of Omnitek Engineering Corp.

Air pollution regulations and the price disparity between diesel and natural gas, mostly as a result of higher taxes on diesel fuel in foreign markets, continues to generate significant business opportunities for Omnitek -- contributing to a modest order backlog at June 30, 2016 of approximately $230,000, which is expected to accelerate throughout the balance of this year. 

Funk indicated a previously referenced evaluation program for a large domestic fleet customer is proceeding as planned. As previously announced, the engine being developed for this particular program is the Navistar VT365, as used in class 5 and 6 delivery trucks and school buses.

At June 30, 2016, current liabilities totaled $616,989 and current assets totaled $2,174,723, resulting in positive working capital of $1,557,734 million and a current ratio of 3.52 to 1.  

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.