Clean Diesel Technologies Reports 2005 Second-Quarter Results
STAMFORD, Conn.--Aug. 1, 20052, 2005--Clean Diesel Technologies Inc. (Clean Diesel) (OTCBB:CDTI) (AIM:CDT) (AIM:CDTS), a developer of chemical and technological solutions to reduce harmful engine emissions, today reported results for the second quarter and first half of 2005, and announced that it has been chosen for grants or awards in the states of Texas, New York and Massachusetts. Total revenue for this year's second quarter was $268,000 with a net loss of $1,286,000, or $0.07 loss per share, versus revenue of $93,000 and a net loss of $885,000, or $0.06 loss per share, for the second quarter of 2004. For the first six months ended June 30, 2005, total revenue was $460,000 with a net loss of $2,477,000, or $0.14 loss per share. In the comparable 2004 period, revenue was $287,000 and a net loss of $1,693,000, or $0.11 loss per share.Completion of two previously announced State of Pennsylvania demonstration programs boosted Clean Diesel's revenue with sales of the verified Platinum Plus(R) Purifier diesel-oxidation catalysts (DOC) and fuel-borne catalyst (FBC). The company supplied systems for 125 beverage-delivery and waste-hauling vehicles in southeastern Pennsylvania. The increase in Platinum Plus FBC revenue is also the result of the ongoing sales to fleets and expanded market share in the U.S. mining sector.
Clean Diesel said that its increased sales and marketing initiatives are beginning to generate results. In the last two months: the Platinum Plus FBC has been selected in competitive bidding for grants or awards by the Texas Council of Environmental Quality, for demonstration of the company's cleaner burning biodiesel blend; the Platinum Plus FBC/DOC was chosen by the New York State Energy Research Development Authority for application to ferries and marine vessels; and the state of Massachusetts selected the verified FBC/DOC and FBC catalyzed wire-mesh filter (CWMF) for use with public and municipal buses and vehicles.
Clean Diesel has recently commenced a program with Rhodia, the current FBC supplier for over 1 million vehicles in Europe, to demonstrate the performance benefits, lower cost and improved durability of the Platinum Plus FBC with particulate filter-based systems on light- and medium-duty original equipment manufacturers (OEMs). The use of the Platinum Plus FBC is expected to reduce life cycle platinum requirements of the filter systems by over 50 percent.
Clean Diesel expects revenue growth in the near term as local and state funding becomes more available and its technologies continue to gain broader acceptance. The recently approved U.S. House bill and Senate bill to provide $1 billion, over five years, to support retrofit of existing engines would greatly increase the funds available to "clean-up" the 11 million existing diesel engines in the U.S.
Clean Diesel CEO Bernhard Steiner said: "Good progress has been made on attracting interest from U.S. and European OEMs and tier-one suppliers in licensing the company's ARIS injector system for urea selective catalytic reduction (SCR)-based NOx reduction and the exhaust gas recirculation (EGR)/SCR technology. The patented EGR/SCR system can achieve the stringent 2010 NOx limits."
In addition, Clean Diesel recently announced that Dr. Walter Copan has joined the company as its vice president and chief technology officer. Copan was principal licensing executive, technology transfer, for the U.S. Department of Energy's National Renewable Energy Laboratory (NREL), where he was responsible for the commercialization of clean energy, energy efficiency and related technologies through partnerships with industry, academia, and government. Prior to his tenure with NREL, Copan spent 28 years with the Lubrizol Corp. in a number of positions in research and development, engineering, product development, strategy, international business development, and new ventures.
Full financial information is included in the company's Form 10-Q filed with the Securities and Exchange Commission (www.SEC.gov).
About Clean Diesel Technologies Inc.
Clean Diesel Technologies Inc. and its U.K. representative office, Clean Diesel International LLC, is a developer of chemical and technological solutions to reduce harmful engine emissions. Clean Diesel Technologies has patented products that reduce emissions from combustion engines while simultaneously improving fuel economy and power. Products include Platinum Plus(R) fuel-borne catalysts (FBC), the Platinum Plus Purifier System and the ARIS(R) 2000 urea-injection systems for selective catalytic reduction of NOx. Platinum Plus and ARIS are registered trademarks of Clean Diesel Technologies Inc. For more information, visit CDT at www.cdti.com or contact the company directly.
TABLES FOLLOW
CLEAN DIESEL TECHNOLOGIES INC.
STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
Revenue:
Additive revenue $91 $56 $186 $113
Hardware revenue 166 25 258 144
License and royalty revenue 11 12 16 30
Total revenue 268 93 460 287
Costs and expenses:
Cost of revenue 161 53 271 185
General and administrative 1,210 821 2,375 1,611
Research and development 88 90 147 170
Patent amortization and other
expense 25 27 64 39
Loss from operations (1,216) (898) (2,397) (1,718)
Other income (expense)
Foreign currency exchange
gain/(loss) (75) -- (94) --
Interest income 5 13 14 25
Net loss attributable to common
stockholders $(1,286) $(885) $(2,477) $(1,693)
Basic and diluted loss per common
share $(0.07) $(0.06) $(0.14) $(0.11)
Weighted average number of common
shares outstanding - basic and
diluted 17,171 15,679 17,168 15,679
CLEAN DIESEL TECHNOLOGIES INC.
BALANCE SHEET
(in thousands, except share data)
June 30, Dec. 31,
2005 2004
(Unaudited)
ASSETS:
Current assets:
Cash and cash equivalents $1,525 $4,265
Accounts receivable, Net 255 145
Inventories 338 387
Other current assets 113 71
Total current assets 2,231 4,868
Patents, Net 537 418
Fixed asset, Net 203 200
Other assets 27 27
Total assets $2,998 $5,513
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable and accrued expenses $282 $391
Total current liabilities 282 391
Stockholders' Equity:
Preferred stock, par value $0.05 per share,
authorized 100,000 and 80,000 shares
respectively, no shares issued and outstanding -- --
Common stock, par value $0.05 per share,
authorized 30,000,000, issued and outstanding
17,193,047 and 17,165,868 shares respectively 860 858
Additional paid-in capital 38,500 38,431
Accumulated deficit (36,644) (34,167)
Total stockholders' equity 2,716 5,122
Total liabilities and stockholders' equity $2,998 $5,513