Clean Diesel Technologies Reports 2006 Second Quarter Results
STAMFORD, Conn.--Aug. 11, 2006--Clean Diesel Technologies, Inc., a developer of technological solutions to reduce harmful engine emissions, today announces its results for the 2006 second quarter. Clean Diesel's Platinum Plus fuel borne catalyst (FBC) revenue increased 60% in the second quarter 2006 and 60% for the six months year to date, versus the comparable 2005 periods. The Company is expanding its customer and distributor base particularly in the UK and Europe. Overall revenue is up slightly for the quarter as the increase in revenue from additives and other revenue including a market assessment project was mostly offset by a decrease in hardware revenue. For the first half of 2006 overall revenue increased 19% as compared to 2005.Dr. Bernhard Steiner, President and CEO, commented: "Clean Diesel's investment in international sales and marketing is beginning to generate the anticipated revenue increase. As a result of this growing European demand for the Platinum Plus Fuel Borne Catalyst, the Company has upgraded its UK Representative office to a UK Branch office which will continue to operate as Clean Diesel International LLC. In addition, Clean Diesel has established a local UK-based blending and warehousing facility to better service our expanding customer and distributor base".
Revenue for the second quarter 2006 was $279,000 with a net loss of $1,190,000 ($0.05 loss per share), compared to revenue of $268,000 in the second quarter of 2005 with a net loss of $1,286,000 ($0.07 loss per share). For the six months ended June 30, 2006, revenue was $548,000 with a net loss of $2,774,000 ($0.11 loss per share), compared to $460,000 of revenue and a net loss of $2,477,000 ($0.14 loss per share) in 2005.
Expenses in the second quarter of 2006 were up slightly in comparison to 2005 as a result of higher patent costs, increased European professional expenses, increased R&D and non-cash compensation expense ($53,000) for stock options, partially offset by the lower compensation expense relating to the first quarter severance charge for the departure of the former President and Chief Operating Officer.
For the first six months of 2006, expenses are up versus 2005 due to: higher R&D related to increased testing of the Mitsui acquired wire-mesh filter technology, non-cash compensation expense ($106,000) for stock options; and severance recognized in the first quarter of 2006. As now required under the United States Financial Accounting Standard 123R, the fair value of options granted must be calculated and the expense recognized over the vesting term of the option.
Dr. Steiner also noted: "Clean Diesel's Selective Catalytic Reduction and related technologies continue to generate substantial interest for both new vehicle and retrofit applications. The Company expects to announce the first of several original equipment manufacturer license agreements for its ARIS Selective Catalytic Reduction technology in the near future."
About Clean Diesel Technologies, Inc.
Clean Diesel Technologies, Inc. and its UK Branch office, Clean Diesel International LLC, is a developer of 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, catalyzed wire mesh diesel particulate filter technologies and the ARIS(R) 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.
CLEAN DIESEL TECHNOLOGIES, INC.
STATEMENT OF OPERATIONS
(Unaudited)
(in thousands,
except share data)
Three Months Ended Six Months Ended
June 30, June 30,
2006 2005 2006 2005
Revenue:
Additive revenue $ 145 $ 91 $ 296 $ 186
Hardware revenue 73 166 117 258
License, royalty and other
revenue 61 11 135 16
---------- ---------- ---------- ----------
Total revenue 279 268 548 460
Costs and expenses:
Cost of revenue 156 161 272 271
General and administrative 1,186 1,210 2,715 2,375
Research and development 177 88 395 147
Patent amortization and
other patent expense 50 25 93 64
---------- ---------- ---------- ----------
Loss from operations (1,290) (1,216) (2,927) (2,397)
Other income (expense):
Foreign currency exchange
gain (loss) 79 (75) 93 (94)
Interest income 21 5 48 14
Miscellaneous income 0 0 12 0
---------- ---------- ---------- ----------
Net Loss $ (1,190) $ (1,286) $ ( 2,774) $ (2,477)
========== ========== ========== ==========
Basic and diluted loss per
common share $ (0.05) $ (0.07) $ (0.11) $ (0.14)
========== ========== ========== ==========
Weighted average number of
common shares outstanding 26,111 17,171 26,098 17,168
========== ========== ========== ==========
CLEAN DIESEL TECHNOLOGIES, INC.
BALANCE SHEETS
(in thousands,
except share data)
June 30, December 31,
2006 2005
(Unaudited)
------------ ------------
ASSETS
Current Assets
Cash and cash equivalents $ 2,501 $ 4,513
Accounts receivable, net of allowance of $18
and $11 in 2006 and 2005, respectively 172 125
Inventories 452 285
Other current assets 128 94
Subscription receivable, net 0 488
------------ ------------
Total current assets 3,253 5,505
Patents, net 593 567
Fixed assets, net of accumulated
depreciation of $307
And $259 in 2006 and 2005, respectively 118 175
Other assets 37 27
------------ ------------
Total assets $ 4,001 $ 6,274
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Deferred revenue $ 0 $ 9
Accounts payable and accrued expenses 775 487
------------ ------------
Total current liabilities 775 496
STOCKHOLDERS' EQUITY:
Preferred Stock, par value $0.05 per share,
100,000 shares authorized, no shares issued
and outstanding -- --
Common Stock, par value $0.05 per share,
authorized 30,000,000 shares, issued and
outstanding 26,162,459 and 25,369,358
shares respectively 1,308 1,268
Common Stock, par value $0.05 per share,
subscribed and to be issued; 705,113 shares
in 2005 0 35
Additional paid-in capital 44,285 44,068
Accumulated deficit (42,367) (39,593)
------------ ------------
Total stockholders' equity 3,226 5,778
------------ ------------
Total liabilities and stockholders' equity $ 4,001 $ 6,274
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