Omnitek Engineering Corporation Reports First Quarter Results

Anticipates Demand for Diesel Engine to Natural Gas Conversions to Gain Momentum

• Press Release
• Source: Omnitek Engineering Corp.
• On 4:15 pm EDT, Thursday May 14, 2009

SAN MARCOS, Calif., May 14, 2009 (GLOBE NEWSWIRE) -- Omnitek Engineering Corporation (Pink Sheets:OMTK - News) today reported results for its first quarter ended March 31, 2009, with revenues impacted by the timing of customer order shipments for its diesel-to-natural gas conversion systems until after the quarter end.

Related Quotes

Symbol	Price	Change
OMTK.PK	0.33	0.00

{"s" : "omtk.pk","k" : "c10,l10,p20,t10","o" : "","j" : ""}

Net revenues for the fiscal first quarter were $211,357 compared with $537,176 a year earlier. For the same period, the company reported a net loss of $156,891, or $0.01 per share, compared with a net loss of $172,875, or $0.01 per share, a year ago.

Gross profit for the three months ended March 31, 2009 was $81,327 compared with $185,241 a year ago, due primarily to decreased sales. Gross profit for the three-month period as a percentage of sales was 38 percent compared with 34 percent in the same period a year ago.

"Notwithstanding the results for the quarter, which were impacted by the timing of customer order shipments rather than a precipitous decline in global demand for converting high-polluting diesel powered engines to operate on natural gas, we anticipate strong sales for the balance of 2009," said Werner Funk, president and chief executive officer of Omnitek Engineering Corporation.

He highlighted two recently announced agreements concerning initial conversion orders for fleets in Peru and Bulgaria to support management's growth expectations for the year. Both projects in Peru and Bulgaria commenced in May.

Funk indicated that a project to convert diesel powered irrigation pumps in central California is expected to commence within the next 30 days.

About Omnitek Engineering Corporation

Omnitek Engineering, Corp. develops and sells new natural gas engines, as well as proprietary diesel-to-natural gas conversion systems -- providing global customers with innovative alternative energy and emissions control solutions that are sustainable, affordable and designed to combat global warming.

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.

                    OMNITEK ENGINEERING CORPORATION
                   Consolidated Statement of Income

                                       For the Three     For the Three
                                        Months Ended      Months Ended
                                          March 31,         March 31,
                                       -------------     -------------
                                           2009               2008
                                       -------------     -------------


 REVENUES                              $     211,357    $      537,176
 COST OF GOODS SOLD                          130,031           351,935
                                       -------------     -------------
 GROSS MARGIN                                 81,327           185,241

 OPERATING EXPENSES

   General and administrative                226,257           292,249
   Bad debt expense                           (4,089)            1,688
   Research and development expense           62,718            31,623
   Depreciation and amortization
    expense                                   24,022            34,248
                                       -------------     -------------

     Total Operating Expenses                308,909           359,808
                                       -------------     -------------

 INCOME (LOSS) FROM OPERATIONS              (227,582)         (174,567)
                                       -------------     -------------

 OTHER INCOME (EXPENSE)
   Extinguishment of Liability                69,022                --
   Interest expense                               --                --
   Interest income                             1,670             1,692
                                       -------------     -------------

 TOTAL OTHER INCOME (EXPENSE)                 70,692             1,692
                                       -------------     -------------

 NET INCOME (LOSS) BEFORE INCOME TAXES      (156,890)         (172,875)

 INCOME TAX EXPENSE (BENEFIT)                     --                --
                                       -------------     -------------

 NET INCOME (LOSS)                     $    (156,890)    $    (172,875)
                                       =============     =============


 BASIC INCOME (LOSS) PER SHARE         $       (0.01)    $       (0.01)
                                       =============     =============

 WEIGHTED AVERAGE NUMBER
  OF COMMON SHARES OUTSTANDING            16,006,398        16,006,398
                                       =============     =============



                    OMNITEK ENGINEERING CORPORATION
                      Consolidated Balance Sheet

                                         March 31,         March 31,
                                           2009              2008
                                       -------------     -------------
                                        (unaudited)       (unaudited)
 CURRENT ASSETS
   Cash                                $       9,458     $      24,089
   Accounts receivable                        60,322           189,692
   Inventory                               1,439,288         1,077,370
   Deposits                                  271,083            80,398
   Deferred tax asset                        403,324           462,354
                                       -------------     -------------

     Total Current Assets                  2,183,475         1,833,903
                                       -------------     -------------


 FIXED ASSETS, net                            21,792           29,910
                                       -------------     -------------

 OTHER ASSETS
   Prepaid expense                             2,500             3,250
   Intellectual property, net                221,270           323,758
                                       -------------     -------------

     Total Current Assets                    223,770           327,008
                                       -------------     -------------

     TOTAL ASSETS                      $   2,429,036     $   2,190,821
                                       =============     =============


                 LIABILITIES AND STOCKHOLDERS' EQUITY
                 ------------------------------------

 CURRENT LIABILITIES
   Accounts payable and accrued
    expenses                           $     326,297     $     118,206
   Accrued expenses-related parties          352,976           269,946
   Customer deposits                          56,667            47,675
   Shareholder loans                              --            15,000
                                       -------------     -------------

     Total Current Liabilities               735,940           450,827
                                       -------------     -------------

 STOCKHOLDERS' EQUITY
   Common stock, 25,000,000 shares
    authorized no par value 16,006,398
    shares issued and outstanding          2,320,476         2,320,476
   Additional paid-in capital              2,998,522         1,840,702
   Accumulated deficit                    (3,625,902)       (2,421,184)
                                       -------------     -------------

     Total Stockholders' Equity            1,693,096         1,739,994
                                       -------------     -------------

     TOTAL LIABILITIES AND
      STOCKHOLDERS' EQUITY             $   2,429,036     $   2,190,821
                                       =============     =============

Maier & Company, Inc.
Gary S. Maier
(310) 442-9852